Biological challenges in its northern farming region as well as lower salmon prices pulled down Norway Royal Salmon's second quarter results.
Operational earnings before interest, tax, depreciation and amortization (EBITDA) fell 31 percent to NOK 140.1 million (€14 million/$15.6 million). This was due, in part, to lower seawater temperatures in the northern farming region, as well as preventative measures taken to reduce impacts of the algal bloom.
Despite selling 3 percent more salmon by volume, the average price fell NOK 5.97 (€0.60/$0.66) per kilo, maintaining NRS's revenue at around NOK 1.2 billion (€120 million/$133.2 million).
NRS had good price achievement and the sales business had a good result in the quarter, said CEO Charles Hostlund.
"To meet the growing demand for healthy Norwegian salmon, NRS continues to increase the activity in Northern Norway," he said.
During the quarter the company acquired 50 percent of Nordnorsk Smolt and is starting construction of a new smolt facility outside Tromso. The investment is in line with NRS's strategy of greater control over this part of the value chain as well as producing bigger smolt, said Hostlund.
The group's biomass increased 26 percent in comparison to the end of the same quarter last year, but it harvested 34 percent less volume in the quarter, at 5,830 metric tons gutted weight.