Anticipated harvests from NTS owned or part-owned salmon farmers SalmoNor (100% owned), Norway Royal Salmon (68% owned) and Arctic Fish (51% owned). Volumes in the right-hand column assume that SalmoNor gets development licences converted into standard licences, and that Arctic Fish is granted the new permits that it has applied for. Graph: NTS ASA.
Anticipated harvests from NTS owned or part-owned salmon farmers SalmoNor (100% owned), Norway Royal Salmon (68% owned) and Arctic Fish (51% owned). Volumes in the right-hand column assume that SalmoNor gets development licences converted into standard licences, and that Arctic Fish is granted the new permits that it has applied for. Graph: NTS ASA.

NTS sets out its stall

Mowi takeover target NTS today released a company presentation giving details of its business and anticipated salmon harvest volumes for 2022 and 2023.

Published

The presentation gives potential suitors for NTS an updated insight into the company, which owns 100% of SalmoNor, 68.1% of Norway Royal Salmon (NRS) and 51% of Iceland’s Arctic Fish. It includes financial figures for the years 2017 to 2020 and for the first none months of 2021, and its net interest bearing debt, which amounts to NOK 12.622 bn (£1.053 bn).

In the update, which comes a month before the scheduled presentation of its annual results, NTS guides for 35,000 gutted weight tonnes of salmon from NRS, 34,800 gwt from SalmoNor and 13,000 gwt from Arctic Fish this year.

No more triploids

Production volume at NRS is anticipated to rise to 50,000 gwt next year as a result the decision by Norwegian authorities to allow the farmer the phase out poorly performing triploid salmon at sites with “green” licences and replace them with conventional diploid fish.

The use of triploid salmon was stipulated in the green licence conditions, but the Ministry of Trade and Industry has decided that no new triploid salmon will be released after this spring due to health concerns about the fish, which appear more vulnerable to diseases.

Together with 39,000 gwt from SalmoNor, and 13,000 gwt from Arctic Fish, NTS expects a group harvest volume of 102,000 gwt in 2023, rising to 125,000 gwt in subsequent years if new licences that have been applied for by Arctic Fish are granted.

Up for sale

Earlier this month NRS entered into a share purchase agreement to acquire 100% of SalmoNor from NTS to establish what would be the world’s sixth-largest salmon farmer.

However, that plan was put in doubt just days later when a group of investors collectively holding more than 50% of shares in NTS ASA made an offer for the rest of the company.

The group made a voluntary cash offer to buy all outstanding shares in NTS for NOK 105 per share – a premium of 13% - and then possibly sell them on if they got a higher offer.

And this week Mowi went higher, offering NTS shareholders NOK 110 per share, a deal which values NTS at NOK 13.8 billion (£1.44bn), after being invited to make an offer by the NTS shareholder group.

Salmon industry analysts have not ruled out other offers coming in for all or parts of NTS, which owns wellboats and service boats provider Frøy as well as its salmon farming companies.