Despite lower sales volumes and high production costs Norway Royal Salmon (NRS) posted strong earnings growth in the second quarter of 2018, with high prices boosting income.

The salmon producer posted operating earnings before interest, tax, demortization and amortization (EBITDA) of NOK 203.0 million (€20.9 million/$24.4 million), a year-on-year increase of 30 percent.

Revenues remained relatively static, however, nudging down by 1.9 percent to NOK 1.2 billion (€123.4 million/$144.0 million).

Infectious Salmon Anemia (ISA) was detected at one of NRS' site in Region North and costs related to it had a significant impact on the result for the quarter and estimated volume for 2018, said CEO Charles Høstlund.

While total operational earnings before interest and tax (EBIT) rose 34 percent to NOK 181 million (€18.6 million/$21.7 million) for the second quarter 2018, EBIT per kilo fell 20.6 percent to NOK 24.39 (€2.51/2.93).

Region North posted an operational EBIT of NOK 157.4 million (€16.2 million/$18.9 million) in the quarter, a 46 percent increase on the corresponding quarter last year. However, operational EBIT per kilo gutted weight was down 16.7 percent to NOK 24.73 (€2.54/$3.00).

Region South posted an operational EBIT of NOK 56.5 million (€5.8 million/$6.8 million) in the quarter, a 13 percent increase on last year. Operational EBIT per kilo gutted weight, however, was down 23.6 percent to NOK 23.49 (€2.42/$2.82).

NRS harvested 8,773 metric tons gutted weight in the quarter, which is 68 percent higher than in the same quarter last year.

Some 6,365 metric tons of the total volume were harvested in Region North and 2,407 metric tons in Region South.

Estimated harvest volume is 36,000 metric tons for 2018, an increase of 13 percent from 2017.

The sales business sold 17,150 metric tons of salmon during the quarter, which is 1 percent down on the corresponding quarter last year.

Finance

NRS earnings stay ahead of rising costs in Q2