Salmon farming center. (Photo Credit: Norway Royal Salmon)

Norway Royal Salmon achieves higher income despite growth in costs

Despite an increase in production costs in the third quarter due to high feed costs, Norway Royal Salmon (NRS) reported a 47 per cent growth in operating revenues, which reached NOK 775.8 million (USD 89.6 million), compared to NOK 527.3 million (USD 60.9 million) in the corresponding period last year.

The firm also informed operational EBIT before non-recurring items for the quarter for NOK 53.9 million, compared to NOK 21.3 million achieved during the analysed period a year ago, an increase of NOK 32.6 million. The growth in revenues is due to higher sold volume and higher prices.

The farming business harvested showed a 7 per cent rise year on year in the analysed quarter, to 6,519 tonnes of gutted weight although 800 tonnes less were harvested than what had been planned. 

The company explained that the ISA virus detected at two sites in Region North forced it to destroy the biomass at both sites. Consequently, the harvest volume in 2015 has been the reduced and the harvest volume of the autumn 2016 will also be reduced as a result of the destruction of the fish.

Meanwhile, sales volume incresed by 29 per cent in the third quarter, to NOK 16.3 million.

The firm expects that its production costs decline in the next quarters and that the biomass recovers. It also expects to achieve full use of the maximum allowable biomass of the Group at the end of 2016, including the use of the 10 new licences.

According to the market outlook for the coming years, indicating low supply growth, NRS expects its new licenses favours the Group's results.

The company states it is satisfied with their farming operations in Troms and Finnmark, where there are good conditions for salmon production, with low production costs, and believes that the allocation of additional new licenses reinforces this position.

As for the outlook for the fourth quarter, the Group expects production volumes of Norwegian salmon decline 2 per cent while growth in the UK and Canada will rise world supply slightly above the level recorded in the same period last year.

On the other hand, for 2016, it is expected that there will be no growth neither from Norway nor globally. A continued low supply growth and a good work in the markets provides the basis for a positive market outlook for the industry.
 

(NOK 1 = USD 0.11560)

[email protected]
www.seafood.media

Address:	Olav Tryggvasons 40
City:	Trondheim
State/ZIP:	(NO-7414)
Country:	Norway
Phone:	+47 73 92 43 00
Fax:	+47 73 92 43 01
E-Mail:	[email protected]
More about:

 

 

 

 

Print