Operating profit and harvest both rise for NRS in Q4
Norway and Iceland fish farmer Norway Royal Salmon (NRS) has reported an improved operating profit and EBIT per kilo for the fourth quarter of last year compared to the same period the year before.
NRS made an operating profit of NOK 102 million (£8.5m) for Q4, up from NOK 17m in Q4 2020. EBIT per kilo increased to NOK 9.43 from NOK 5.05 in the same period in 2020.
“Demand for salmon increased during the fourth quarter and into the first quarter of 2022,” said interim chef executive Klaus Hatlebrekke. “With a very strong demand and expectations of a decline in global harvest volumes in the first half of 2022, this provides the basis for a very positive market view for salmon in the future.
“The production of fish delivered from the new smolt facility and the phasing out of triploid fish over the next years are expected to lead to a decrease in production costs in the coming years. We are pleased that the production at our new smolt facility in Dåfjord has been good, which will ensure NRS smolt from the second quarter.”
23% revenue increase
For full-year 2021, NRS had operating revenues of NOK 5.8 billion, an increase of 23% from 2020. Operational EBIT for 2021 was NOK 344m, an increase of 40% from the previous year. Net profit after tax was NOK 693m for 2021.
In Norway, NRS made an operating profit of NOK 95.4m in the last quarter of last year, (Q4 2020: NOK 36.1) and harvested 10,319 gutted weight tonnes, 44% more than in Q4 2020.
In Iceland, the NRS subsidiary Arctic Fish made an operating profit of NOK 29.5m in Q4, compared to an operating loss of NOK -13.8m in the same period in 2020. Arctic Fish harvested 2,938 gwt, around the same as in Q4 2020.
“In the first quarter of 2022, Arctic Fish experienced biological challenges at two sites. Our skilled employees have made a great effort to handle the situation in the best possible way. The situation is now considered to be stable,” said Hatlebrekke.
In a presentation of its results today, Arctic Fish said the challenges had resulted in the deaths of around 3,000 tonnes of fish and would cost the company NOK 106m.
63,000 gwt in 2023
For 2021, the total harvest volume of the group was 49,640 gwt. For 2022, the harvest volume is expected to be 45,100 tonnes, of which 35,000 tonnes will come from Norway and 10,100 tonnes from Iceland. For 2023, the total harvest volume of the group is expected to be 63,000 tonnes, of which 50,000 tonnes will come from Norway and 1, 000 tonnes from Iceland.
NRS is majority-owned by salmon farming and service vessels company NTS ASA, which may soon be bought by Scottish Sea Farms co-owner SalMar.
A group of NTS shareholders holding 50.1% of the stock have given SalMar binding promises to sell their shares to the company, which intends to launch a voluntary offer for NTS.
