NRS present improved operational performance

NRS's operating revenue in the first quarter of 2012 was MNOK 381 compared with MNOK 409 in the same quarter of 2011. The reduction in revenues is due to the significantly lower price of salmon during the first quarter compared with the corresponding period last year. Income from associates was MNOK 6.2 in the quarter compared with MNOK 2.9 in the corresponding period last year.

Net interest bearing debt has been reduced by MNOK 76 to MNOK 456. The net interest bearing debt was reduced as a result of a positive operational cash flow of MNOK 50 and a contribution from the share issue and sale of treasury shares of MNOK 42.

At the close of the quarter the company's equity had increased to MNOK 582, which corresponds to an equity ratio of 41.1 %. The group's financial flexibility has improved further as the group's bank facilities were increased by MNOK 42 in connection with the completed share issue.

Fish Farming

Farming experienced further improved operational performance and reduced the production cost in the quarter. Biological status is good. Farming posted EBIT before fair value adjustments of MNOK 11.0 in the first quarter 2012, compared with MNOK 12.3 in the corresponding quarter last year. EBIT per kg gutted weight (before fair value adjustments) was NOK 2.41 in the first quarter 2012, compared with NOK 11.90 in the corresponding quarter last year. Achieved sales price in the quarter was NOK 12.37 lower per kg compared with the corresponding quarter last year and explains the reduction in EBIT-margin. EBIT per kg for Region North and Region South was NOK 2.59 and 0.58 respectively.

4,543 tons gutted weight was harvested during the quarter, compared with 1,035 tons in the same quarter last year. Estimated volume for 2012 is 22,500 tons, which is an increase of 20 per cent compared to 2011. A further increase of 24 % to 28,000 tons in 2013 is expected.

Sales

Sales posted EBIT before fair value adjustments of MNOK 3.7 in the first quarter 2012, compared with MNOK 2.3 in the same quarter last year. The margin development was demanding in the quarter. EBIT per kg before fair value adjustments came to NOK 0.29 in the first quarter 2012, compared with NOK 0.24 in the corresponding quarter last year. A total of 12,817 tons of farmed fish was traded during the quarter, an increase of 35 % compared with the same quarter last year.

During the quarter NRS improved its position in the biggest growth markets. It is expected that the trading activity will have good access to salmon in coming periods and the margins are expected to improve throughout the year compared to achieved margins in the first quarter of 2012.

Going forward, the market situation is viewed as positive as the market has been able to absorb a record high volume growth so far this year. Towards the end of the year a limited growth in the global supply of salmon is expected. An important assumption for the positive market view is that export to the Russian market will develop normally without any unexpected trade barriers.