Norway Royal Salmon Q1 earnings down

NORWAY Royal Salmon (NRS) has become the third major aquaculture company in recent days, after Bakkafrost and Lerøy, to report a drop in 2018 first quarter earnings and profits resulting from lower salmon prices.
The company announced an operational EBIT (operating profit) of NOK 193 million against NOK 205 million for Q1 2017.
The EBIT per kg this period was NOK 18.78 against NOK 28.60 12 months ago. CEO Charles Høstlund remained upbeat, pointing out that demand for salmon continued to be strong.
The company’s Norwegian salmon operations are divided into two regions – north and south
Region North posted an operational EBIT of NOK 184.4-million in the quarter, compared with NOK 150.1 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 19.22 compared with NOK 27.28 in 2017.
Region South posted an operational EBIT of NOK 20.9 million in the quarter, compared with NOK 55.3 million in Q1 last year. Operational EBIT per kg gutted weight was NOK 15.64, down from NOK 32.91 in 2017.
Norway Royal Salmon said it harvested its highest volume in a quarter of 10,935 tonnes gutted weight, which is 52 per cent higher than in Q1 2017. The harvest estimate for the whole of this year is 40,000 tonnes.
NRS was awarded eight permits (5,990 tonnes) for the development of Arctic Offshore Farming, an offshore facility that allows for farming in more exposed areas. It currently owns 43 fish farming licences (38,626 tonnes).
‘This is a recognition of the active role in the development of the aquaculture industry for the future that Norway Royal Salmon takes,’ said Høstlund.
Picture: The Arctic Offshore Farming design