Continued focus on growth and utilisation of capacity
Highlights in the second quarter 2011
Ø Considerable fall in salmon prices in the latter half of the second quarter
Ø Continued focus on operational efficiency and utilisation of capacity in our
o Satisfactory operations and good biological status
o Lower harvested volume than estimated in the quarter due to deferred
harvesting as a result of slower growth and low market prices in the end of
o Harvested volume for 2011 estimated at 20,000 tons
Ø Slightly higher costs than planned due to operational and organisational
expansion in connection with growth in the company's farming operations
Ø Sales business improved volumes and margins through the second quarter
Ø EBIT before fair-value adjustments and non-recurring effects totalled NOK
31.7 million (NOK 52.0 million)
Ø A dividend of NOK 0.91 per share was paid out
Financial performance in the second quarter 2011
Norway Royal Salmon (NRS) posted EBIT before fair-value adjustments and non-
recurring effects of NOK 31.6 million in the second quarter 2011, compared with
NOK 52.0 million in the corresponding quarter last year. The reduction in EBIT
can largely be ascribed to lower salmon prices than in the corresponding period
The Group made a loss before tax of NOK 62.7 million in the second quarter,
after a NOK 82.9 million downward fair value adjustment prompted by lower market
prices than at the close of the previous quarter. The Group had a net positive
cash flow from operating activities of NOK 2.2 million.
At the close of the quarter equity totalled NOK 531 million, which corresponds
to an equity ratio of 36.3 per cent. Net interest-bearing debts at the close of
the second quarter totalled NOK 481 million.
Fish Farming returned EBIT before fair-value adjustments of NOK 30.8 million in
the second quarter 2011, compared with NOK 45.5 million in the corresponding
quarter last year. EBIT per kg gutted weight (before fair-value adjustments)
came to NOK 9.20 in the second quarter 2011, compared with NOK 13.91 in the
corresponding quarter last year.
A total of 3,351 tons gutted weight was harvested during the quarter, compared
with 3,269 tons in the same quarter last year. Fish Farming expects to harvest
an estimated 20,000 tons in 2011. The Group owns 25 production licences, which
give an annual production capacity of almost 30,000 tons gutted weight.
NRS therefore has a substantial unutilised production capacity, whose profitable
exploitation we are working hard to achieve. Given the volume of smolt
transferred to the sea and today's biomass, the company is on schedule with
regard to the coming years' planned harvesting volumes and capacity utilisation.
Sales posted EBIT before fair-value adjustments of NOK 5.2 million in the second
quarter 2011, compared with NOK 10.1 million in the same quarter last year. EBIT
per kg before fair-value adjustments came to NOK 0.46 in the second quarter
2011, compared with NOK 0.77 in the corresponding quarter last year. A total of
11,244 tons of farmed fish was traded during the quarter, 1,900 tons less than
in the same quarter last year.
The price of salmon fell sharply during the second quarter this year, as a
result of increased supplies entering the market largely due to higher volumes
being exported from Chile.
Norway Royal Salmon ASA in brief
Norway Royal Salmon ASA (NRS) is the majority shareholder in four fish farming
companies which own a combined total of 25 production licences, and is a
minority shareholder in four fish farming companies (associates) which together
own nine production licences. NRS is an attractively positioned fish farming
group which, through an extensive network of collaborating enterprises and in-
house production units, offers salmon and trout to the market through its own
sales organisation. For further details, please seewww.norwayroyalsalmon.com.
For more information, please contact:
* CEO John Binde, +47 9760 9400
* CFO Ola Loe, +47 9117 9411.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.