A salmon farm. (Photo: Norway Royal Salmon)

Norway Royal Salmon revenues fell 5pc

NORWAY
Thursday, November 15, 2012, 04:20 (GMT + 9)

Norway Royal Salmon has reported that its salmon biomass increased significantly in the third quarter and expects to use almost all the group's maximum allowable biomass (MAB) in the fourth quarter of 2012. However, the firm believes its net debt will rise as a consequence of this biomass growth.

It also revealed that in the third quarter total harvests were 4,243 tonnes of gutted weight, 33 per cent less compared to 6,304 tonnes that had been harvested in the same period in 2011.

There is an estimated total harvest of 21,500 tonnes in 2012 and 29,000 tonnes in 2013. The estimated harvest volume this year fell by 1,000 tonnes and the corresponding estimated harvest volume in 2013 rose by 1,000 tonnes since the previous interim report, mainly due to the expectation of higher sales prices in H1 2013 versus Q4 2012, as well as lower than normal sea temperatures, which resulted in slightly lower growth.

The Group’s consolidated operating revenues in the third quarter totalled NOK 411.6 million (EUR 56.3 million) against NOK 431.5 million (EUR 58.97 million) in the same quarter in 2011, down 5.0 per cent. The operating profit before fair value adjustments and non-recurring items was NOK 2.2 million (EUR 300,668) compared with NOK  9.1 million (EUR 1.24 million) year-on-year, down NOK 6.9 million (EUR 943,004).

The market situation ahead is viewed as positive thanks to the strong demand for salmon worldwide. An increase in the global supply of salmon in the fourth quarter is also anticipated, although the growth will be significantly lower than in the previous three quarters.

Norway’s growth will be limited and not guaranteed, but Chile’s appears certain. Exports to the Russian market are expected to develop normally.

Low salmon prices have encouraged increased demand in most markets in the quarter. Exports from Norway jumped by 16 per cent and export growth in Chile is considerable, resulting in the global consumption growth of salmon being estimated to be slightly below 20 per cent in the third quarter.

Consumption of salmon in the European market has surged by 19 per cent and Japan had an import growth of 26 per cent in the third quarter and of 38 per cent so far in 2012.

Despite ongoing problems with exports to China, the volumes to China and Hong Kong showed a growth of 88 per cent in the second quarter.

By Natalia Real
[email protected]
www.seafood.media

Print