Norwegian aquaculture conglomerate NTS published preliminary fourth quarter results on Tuesday, a day after salmon farming giant SalMar made a bid for the company.
The group, whose subsidiaries include Norway Royal Salmon (NRS), SalmoNor and Froy, posted preliminary earnings before interest taxes depreciation and amortization (EBITDA) of NOK 479 million (€47.6 million/$54 million), a significant rise over the same period a year ago.
The group’s total operating revenues in the fourth quarter also soared, to more than NOK 2.6 billion (€258.6 million/$293.2 million), while operating profit ended at NOK 303 million (€30.1 million/$34.2 million).
Norway Royal Salmon also posted a jump in operational EBIT for the fourth quarter of NOK 101.6 million (€10.1 million/$11.5 million), while pre-tax profit was a narrower loss of NOK 10.7 million (€1.1 million/$1.2 million).
The group's total operating revenue in the quarter was just under NOK 1.5 billion (€149.2 million/$169.2 million).
NTS and Norway Royal Salmon will post final figures for the fourth quarter on Feb. 23, which may deviate from the preliminary figures, the companies said.
Long and winding road
On Feb. 14, Norwegian salmon farming giant SalMar submitted a bid to acquire NTS of NOK 120 (€11.90/$13.50) per share, outbidding Mowi's previous bid of NOK 110 (€10.90/$12.40) per share.
SalMar's offer values the equity capital of NTS at approximately NOK 15.1 billion (€1.5 billion/$1.7 billion).
Three weeks ago, the world's largest salmon farmer Mowi also made an offer for NTS, at a price of NOK 110 (€10.90/$12.40) per share, valuing the company at around NOK 13.8 billion (€1.4 billion/$1.6 billion).
It has since withdrawn the bid.
If NTS ends up in the hands of SalMar, it will create a smaller but still sizeable entity, with NTS bringing around 88,000 metric tons to SalMar's 182,000 metric tons, taking the combined entity to a production total of around 270,000 metric tons per year.
This figure would lift SalMar firmly into second place in the global farmed salmonid ranks, overtaking Leroy's 2021 harvest volumes of 186,600 metric tons and Cermaq's of around 180,000 metric tons.
There has been significant drama around NTS in recent months, with a rebel group of shareholders also making a bid to takeover the company, which has since been withdrawn.
