NRS and Bakkafrost burdened by Q2 reports

Aslak Berge

Shares drop on the first day of reporting.

On Tuesday, the season for the second quarter results kicked off. First out was Norway Royal Salmon (NRS).

The company reported marginally weaker operating profit than anticipated by the brokerage firms that follow the stock.

However, the company also reported the second highest operating EBIT per kilo in the history of the group. Operating EBIT for the second quarter of 2017 was €14.6m and an EBIT per kilo of €3.24.

“The reason for the good quarterly result is a high salmon price, and the fact that the South Region and the sales business delivered strong results,” says CEO Charles Hostlund.

NRS slaughtered a volume of 5,231 tonnes in the quarter; 3,633 tonnes in the North Region and 1,598 tonnes in the South Region. In 2017, the slaughter volume is expected to be 34,000 tonnes, which is an increase of 27 percent from 2016.

Nordea Markets points out that the production cost per kilo in “the North Region” was EUR 4.17 in the quarter, up 30 percent from the same quarter last year. It is a cost increase that concerns the brokerage firm, according to TDN Finans.

Bakkafrost figures for the second quarter were largely in line with the pre-tips.

Arctic Securities emphasizes that the contract prices Bakkafrost state that they have entered are well below the forward curve and also under Arctic’s prerequisites for the third and fourth quarters of 2017.

The Bakkafrost share fell 2.5 percent, while the NRS share fell 2.2 percent Tuesday.



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