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Norway Royal Salmon ASA: Q1 14 - Best margins in NRS' history

Norway Royal Salmon (NRS) reports the best margins in the Group's history. The
farming business achieved an EBIT per kg of NOK 18.45 in the quarter compared
with NOK 9.48 in the same quarter last year.
Return on capital employed the last four quarters was 29.3 per cent.
Operational EBIT for the first quarter came in at MNOK 87.1, compared with
MNOK 44.8 in the same quarter of 2013. NRS continues to experience strong
salmon markets driven by high demand and low supply growth.

Operational cash flow for the quarter was MNOK 102 and contributed to the
Group's net interest bearing debt falling by MNOK 87 to MNOK 367 at the end
of the first quarter of 2014. The equity ratio increased to 47.8 per cent.

Region North

Region North posted an operational EBIT of MNOK 86.6 in the quarter, compared
with MNOK 44.1 in the corresponding quarter last year. Operational EBIT per
kg gutted weight from farming was NOK 18.71 in the quarter, compared with NOK
10.09 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 6.0 in the quarter, compared
with MNOK 5.9 in the corresponding quarter last year. Operational EBIT per kg
gutted weight from farming was NOK 15.40 in the quarter, compared with NOK
6.59 in the corresponding quarter last year.

5 435 tonnes gutted weight was harvested during the quarter, approximately the
same as in the same quarter last year. 5 007 tonnes of the total volume was
harvested in Region North and 428 tonnes in Region South.

A total of 13 978 tonnes was traded during the quarter; an increase of 3 per
cent compared with the same quarter last year. The sales business achieved an
operational EBIT of MNOK 2.5 before losses on fixed price contracts of MNOK
10.2 in the quarter.

Norway Royal Salmon ASA has entered into an agreement with Danske Bank to
refinance its credit facilities totaling NOK 900 million over five years. NOK
500 million is an installment-free long-term loan and NOK 400 million is a
short-term overdraft and guarantee facility. The main terms of the agreement
reflects the Group's good creditworthiness and the bank's belief in NRS. The
agreement has a financial covenant requiring an equity ratio of at least 30
per cent. The new bank agreement gives the group a very good financial

Estimated volume for 2014 is 29,000 tonnes, an increase of 15 per cent from

Market outlook is considered positive as salmon prices are higher than at the
same time last year, at the same time global supply increased by 4 per cent
in the first quarter. Harvest volumes from Norway are expected to increase
during the summer and autumn months of 2014. The growth in supply from Chile
is expected to be moderate. Thus a global supply growth of 5-8 per cent is
expected in 2014. Based on this, NRS expect relatively high prices on
Atlantic salmon in 2014.

NRS has been nominated to receive 10 new green licenses to a total price of
NOK 146 million. This can potentially give NRS a capacity growth of 40 per
cent. The criteria for the allocation of the licenses are to establish a
production that reduces the extent of sea lice, and reduces the risk of
impact on wild salmon as a result of escapes. The future growth of the
aquaculture industry will be through sustainable solutions. NRS is motivated
and ready for the challenge of being at the forefront of sustainable
aquaculture. This gives the opportunity to establish a good and substantially
larger operating structure in the Region North. We believe we have good
conditions to achieve and succeed with this in Region North.

For more information, please contact:

* CEO John Binde, +47 9760 9400
* CFO Ola Loe, +47 9117 9411.

Norway Royal Salmon ASA in brief

Norway Royal Salmon ASA (NRS) is the majority shareholder in four fish farming
companies, which own a combined total of 25 production licences, and is a
minority shareholder in three fish farming companies (associates) which
together own nine production licences. NRS is an attractively positioned fish
farming group, which through an extensive network of collaborating
enterprises and in-house production units, offers salmon to the market
through its own sales organisation. For further details, please

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

NRS Q1 2014 Report
NRS Q1 2014 Presentation


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Norway Royal Salmon ASA via Globenewswire


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