Austevoll Seafood ASA

Earnings Release • Feb 21, 2023

Financial report Q4 2022 and preliminary financial statements for 2022

Financial report Q4 2022 and preliminary financial statements for 2022

Group operating revenue in Q4 2022 totalled NOK 7,639 million, compared with NOK 7,028 million in Q4 2021. The growth in revenue essentially comes from the farming companies.

EBITDA before fair value adjustment related to biological assets in Q4 2022 was NOK 1,069 million, compared with NOK 1,307 million in the same quarter in 2021.

EBIT before fair value adjustment related to biological assets was NOK 630 million in Q4 2022, compared with NOK 903 million in Q4 2021.

The decrease in earnings can mainly be attributed to lower earnings from the companies in South America. The business in Peru experienced a challenging second fishing season with significantly lower catch and production volumes, but also had reduced sales volumes of finished products in the quarter compared with Q4 2021.

For the farming companies, the seasonal increase in harvest volume in Norway in the second half of 2022 meant lower prices for salmon and trout than in the first half. The high harvest volume generated good earnings despite lower margins.

The rebound in demand following the reopening of society plus high contract shares and significant seasonal fluctuations in export volumes of salmon and trout resulted in extremely volatile developments in the spot prices for salmon and trout through 2022. The average price for salmon in Q4 2022, measured according to NSI (sales price FCA Oslo), was NOK 72.1/kg, compared with NOK 68.7/kg in Q3 2022 and NOK 59.7/kg in Q4 2021. This represents a price increase of NOK 4.0/kg compared with Q3 2022 and NOK 12.0/kg compared with Q4 2021. These prices are testimony to a strong underlying market.

As expected, lower outstanding quotas in Q4 led to lower catch volumes and earnings for the whitefish operations compared with the same period in 2021. In Q4 2022, prices rose by 25% for cod, 6% for haddock and 8% for saithe compared with Q4 2021. Despite higher prices realised, the lower catch volume led to a lower catch value in Q4 2022 compared with the same period in 2021.

Fair value adjustment related to biological assets in Q4 2022 was negative at NOK -210 million. The corresponding figure in Q4 2021 was positive at NOK 246 million.

EBIT after fair value adjustment related to biological assets in Q4 2022 was NOK 421 million, compared with NOK 1,149 million in Q4 2021.

The largest associates are Norskott Havbruk AS and Pelagia Holding AS. Income from associates in Q4 2022 totalled NOK 94 million (Q4 2021: NOK 85 million).

Earnings from Pelagia for the quarter were significantly up on the same period in 2021. Good access to raw material, cost focus/rationalisation, high sales volumes for finished products, and higher prices realised for fishmeal, protein concentrate and fish oil all contributed to the earnings improvement. Earnings from Norskott were weak and significantly lower than in the same period in 2021. Norskott’s results were severely impacted by an acutely challenging biological situation in Scotland. The Group’s associates have generated good results over time, are significant enterprises in their segments and represent substantial values for Austevoll Seafood ASA. Please refer to note 5 for more detailed information on associates.

The Group’s net interest expense in Q4 2022 totalled NOK -81 million (Q4 2021: NOK -71 million). The increase is a result of rising interest rate levels and higher tied-up working capital. Net other financial items for the quarter were positive at NOK 37 million (Q4 2021: negative at NOK -10 million).

Profit before tax and fair value adjustment related to biological assets for Q4 2022 amounted to NOK 727 million, compared with NOK 905 million in Q4 2021.

The Group reported profit before tax in the quarter of NOK 471 million (Q4 2021: profit of NOK 1,154 million). Profit after tax was NOK 405 million (Q4 2021: NOK 909 million).

For further information please see attached report and presentation.

Questions and comments may be addressed to the company's CEO, Arne Møgster, or to CFO, Britt Kathrine Drivenes.

This information is subject of the disclosure requirements acc. to Section 5-12 vphl (Norwegian Securities Trading Act).