Record quarter for NRS

“We are very pleased that NRS achieved a record result for the third consecutive quarter. The reason for the good quarterly result is high salmon prices as well as low and stable production costs in Region North and substantially lower production costs compared to last quarter in Region South,” says CEO Charles Høstlund.

Region North posted an operational EBIT of MNOK 220.3 in the quarter, compared with MNOK 60.2 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 34.15, compared with NOK 9.69 in the corresponding quarter last year.

Region South posted an operational EBIT of MNOK 8.5 in the quarter, compared with MNOK 0.1 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 21.79, compared with NOK 0.24 in the corresponding quarter last year.

The company harvested 7,537 tonnes gutted weight during the quarter, 16 per cent more than in the same quarter last year. 7,086 tonnes of the total volume was harvested in Region North and 451 tonnes in Region South. Estimated harvest volume is 26,700 tonnes for 2016 and 34,000 tonnes for 2017, an increase of 27 per cent.

“NRS has released 10.1 million smolts to the sea in 2016 and expects a significant build-up of biomass next year,” says Høstlund.

The sales business sold 17,662 tonnes during the quarter, 8% more than in Q3 last year. The sales business had a good price achievement as the price of salmon was the second highest, after Q2 2016, recorded in a quarter for the last 20 years.

For 2016, expected global supply will drop 6-8% and, in the longer term, global growth is expected to continue to be low. This provides the basis for a positive market outlook for 2016 and in the longer term for the industry.