ISA outbreak hits NRS Q2 results

NORWAY Royal Salmon said today that costs involved in dealing with an outbreak of ISA (Infectious Salmon Anaemia) at one of its northern region sites has had a “significant impact” on its second quarter results. CEO Charles Høstlund also warned that that it  could also affect the estimated volumes for the whole of 2018.
The company reported an operational EBIT (earnings before interest and tax)  of NOK 181 million  for the second quarter 2018 and EBIT per kg of NOK 24.39. Corresponding figures for the same quarter last year were NOK 135 million  and NOK 30.70.
The operational cash flow in the second quarter was NOK 325 million. Although the group paid NOK 225 million  in dividends,  the net interest bearing debt decreased in the quarter by NOK 33 million  to NOK 413 million. The equity at the end of the quarter is NOK 2,101 million, which equates to an equity ratio of 52 per cent. The return on capital employed for the last four quarters is 40 per cent.
Norway Royal Salmon said it  harvested 8,773 tonnes gutted weight in the quarter, which was  68 per cent higher than in the same quarter last year.  A total of 6,365 tonnes of the total volume were harvested in Region North and 2,407 tonnes in Region South. The estimated harvest volume for 2018 is 36,000 tonnes an increase of 13 per cent from 2017. The sales business sold 17,150 tonnes salmon during the quarter, which is approximately equal to the corresponding quarter last year.
The company also revealed that it purchased 800 tonnes in Region North for NOK 132 million during the quarter. And it said both the project for construction of a new smolt facility and Arctic Offshore Farming  were going according to plan. “These are major investments that will have significant effects and increase the group\’s potential,” said CEO  Høstlund.