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Charles Høstlund, Norway Royal Salmon CEO:
Charles Høstlund, Norway Royal Salmon CEO: "The reason for the good quarterly result is high salmon prices, and that Region South and the sales business delivered strong results.” Image: Therese Soltveit

Norway Royal Salmon (NRS) today reported the highest quarterly earnings and profits for a first quarter in the history of the group.

Operational EBIT for the first quarter of 2017 was MNOK 205 (£19 million) and EBIT per kg was NOK 28.60 (£2.64). Corresponding figures for the same quarter last year were MNOK 153 (£14 million) and NOK 25.54 (£2.36).

CEO Charles Høstlund: “We are very pleased that NRS has delivered a new record result. The reason for the good quarterly result is high salmon prices, and that Region South and the sales business delivered strong results.”

Norway Royal Salmon harvested 7,181 tonnes gutted weight during the first quarter of 2017.
Norway Royal Salmon harvested 7,181 tonnes gutted weight during the first quarter of 2017.

The group’s Region North posted an operational EBIT of MNOK 150.1 in the quarter (MNOK 173.3 in Q1 2016). Operational EBIT per kg gutted weight was NOK 27.28 (NOK 26.66 in Q1 2016).

Region South posted an operational EBIT of MNOK 55.3 in the quarter (MNOK 10.8 in Q1 2106). Operational EBIT per kg gutted weight was NOK 32.91 (NOK 15.26 in Q1 2016).

NRS harvested 7,181 tonnes gutted weight during the quarter (approximately the same as in the same quarter last year), 5,500 tonnes of which were harvested in Region North and 1,681 tonnes in Region South. Estimated harvest volume is 34,000 tonnes for 2017, an increase of 27 per cent from 2016.

The sales business sold 15,714 tonnes salmon during the quarter, approximately the same as in Q1 2016.

Høstlund added: “The price of salmon in the quarter was the highest price recorded in a first quarter for the last 20 years. For 2017, we expect an increase in the supply to the global market of 2 to 4 per cent. A continued low supply growth and good work in the markets provides the basis for a positive market outlook.”

In May, Norway Royal Salmon and Grieg Seafood acquired 50 per cent each of Nordnorsk Smolt AS, a smolt plant that supplies big smolt. The company is located in Hasvik (Finnmark), a strategically good location for NRS operations in Region North. The acquisition will ensure good access to big smolt which will contribute to better production optimization and shorter production time in the sea. The investment is in accordance with NRS’s strategy to strengthen smolt production.