Quarterly Report • Aug 19, 2021
Quarterly Report
Open in ViewerOpens in native device viewer
Alfabygget N-5392 Storebø NORWAY
www.auss.no
| All figures in NOK 1,000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Operating revenue | 6 262 791 | 5 306 056 | 12 215 606 | 11 162 510 | 22 446 926 |
| EBITDA* | 1 262 036 | 826 560 | 2 357 023 | 2 026 955 | 3 674 978 |
| EBITDA % | 20% | 16% | 19% | 18% | 16% |
| EBIT* | 867 170 | 446 235 | 1 573 518 | 1 280 053 | 2 158 707 |
| Pre tax profit before biomass adj.* | 828 826 | 432 828 | 1 511 219 | 1 092 302 | 2 037 136 |
| Pre tax profit | 1 489 372 | 714 194 | 2 590 215 | 730 878 | 1 027 426 |
| Earnings per share (EPS) * | 1,66 | 1,23 | 3,10 | 2,39 | 4,55 |
| Earnings per share (EPS) | 3,00 | 1,79 | 5,31 | 1,61 | 2,45 |
| Dividend per share (paid) | 3,50 | 2,50 | 2,50 | ||
| Total assets | 41 323 094 | 40 497 880 | 39 741 004 | ||
| Equity | 23 728 148 | 23 161 171 | 22 990 574 | ||
| Equity ratio | 57% | 57% | 58% | ||
| NIBD ex. right-of-use assets liabilities ** | 4 938 173 | 5 074 473 | 4 651 037 | ||
| NIBD incl. right-of-use assets liabilities to tother than credit institurions ** | 6 575 748 | 6 374 216 | 5 942 244 |
* Before fair value adjustments of biological assets
** NIBD = Net interest bearing debt
Group operating revenue in Q2 2021 totalled NOK 6,263 million, compared with NOK 5,306 million in Q2 2020.
Group EBITDA in Q2 2021 totalled NOK 1,262 million, compared with NOK 827 million in Q2 2020.
The gradual easing of COVID-19-related restrictions in a number of key markets means stronger demand and higher prices realised for seafood. Better prices realised for Atlantic salmon and trout, together with a good level of pelagic activity in South America, are therefore the main factors in the higher earnings in Q2 2021 compared with Q2 2020.
EBIT before fair value adjustment related to biological assets in Q2 2021 was NOK 867 million (Q2 2020: NOK 446 million).
Fair value adjustment related to biological assets in Q2 2021 was positive and totalled NOK 653 million (Q2 2020: NOK 307 million).
EBIT after fair value adjustment related to biological assets in Q2 2021 was NOK 1,520 million (Q2 2020: NOK 753 million).
The largest associates are Norskott Havbruk AS and Pelagia Holding AS. Income from associates in Q2 2021 totalled NOK 62 million (Q2 2020: NOK 82 million). 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 Q2 2021 totalled NOK -72 million (Q2 2020: NOK -83 million). Net other financial expenses in the quarter totalled NOK -21 million (Q2 2020: NOK -38 million).
The Group reported a profit before tax for the quarter of NOK 1,489 million (Q2 2020: NOK 714 million). Profit after tax was NOK 1,159 million (Q2 2020: NOK 571 million).
The Group's activities are classified according to the following operating segments: Lerøy Seafood Group ASA (Europe), Austral Group S.A.A (Peru), Foodcorp Chile S.A (Chile), Br. Birkeland AS (Norway), Br. Birkeland Farming AS (Norway) and the joint venture Pelagia Holding AS (Europe).
LSG's operations comprise farming, wild catches (Lerøy Havfisk and LNWS), VAP and Sales & Distribution. LSG's farming operations are distributed geographically with licences in Troms and Finnmark (Lerøy Aurora), Nordmøre/Trøndelag (Lerøy Midt) and Vestland (Lerøy Sjøtroll).
In Q2 2021, LSG reported revenue of NOK 5,349 million (Q2 2020: NOK 4,713 million) and EBITDA before fair value adjustment related to biological assets of NOK 899 million (Q2 2020: NOK 606 million). These figures include one-off gains of NOK 44 million (Q2 2020: NOK 1 million).
The gradual easing of COVID-19-related restrictions in a number of key markets means stronger demand and higher prices realised. Higher prices realised, combined with improved productivity in the white fish industry, are the key drivers of the improved earnings compared with the same period of 2020.
For Farming, the harvest volume for salmon and trout was 36,756 GWT in Q2 2021, down from 38,896 GWT in Q2 2020.
For large parts of 2020, the market was substantially impacted by the COVID-19 restrictions. Demand in Q1 2020 was at a historic high, but the restrictions introduced to combat COVID-19 gradually manifested themselves from the last part of the first quarter and for the remainder of the year. Demand improved significantly in Q1 2021, and this trend has continued in Q2. The grocery market was the key driver in Q1 2021, and has continued to be so, but it is pleasing to note demand picking up in the hospitality and catering market too in Q2. If the easing of COVID-19 restrictions is maintained, we expect this positive development to continue in the coming periods.
The average price for salmon in Q2 2021, measured according to NSI (sales price FCA Oslo), was NOK 62.50/kg, compared with NOK 57.90/kg in Q2 2020 and NOK 52.10/kg in Q1 2021. This represents a price increase of NOK 5/kg on Q2 2020 and NOK 10/kg on Q1 2021.
Norwegian trout exports saw an increase in volume of around 20% in 2020. This factor, combined with the COVID-19 restrictions, had a negative impact on pricing on the market throughout 2020. Growth in exports declined in Q4 2020, and this trend has continued in 2021. This has led to much better equilibrium in the trout market, and prices realised in Q2 2021 have improved significantly on the same period in 2020. The interim report for Q1 2021 explained that the consequences of quality grading, particularly in Lerøy Aurora, would impact the Group's prices realised in Q2 2021. As expected, the price effect resulting from the quality downgrade hit Lerøy Aurora hardest but also had a negative impact on prices realised for Lerøy Midt and Lerøy Sjøtroll. At today's date, a substantial improvement in harvest quality is expected in the coming quarters.
LSG's contract share for salmon in Q2 2021 was 30%, and prices realised for contracts were higher than those on the spot market overall.
For Lerøy Sjøtroll, 27% of the harvest volume in Q2 2021 was trout. The Group's prices realised for trout in the quarter reflect the market equilibrium and were around NOK 2/kg lower than for salmon.
LSG's release from stock costs in Q2 2021, including the newly introduced production fee of NOK 0.4/kg, are significantly lower than in the same period of last year, but remain high.
At today's date, slightly lower costs per kilo harvested are expected for 2021 compared with 2020, with costs expected to continue to fall in Q3 and Q4 2021.
As previously mentioned, an abnormal rate of winter ulcers has affected release from stock costs for Lerøy Aurora, partly due to low harvest weights. In combination with a low harvest volume, this has negatively affected release from stock costs in Q2 2021. However, production in the sea – and hence growth – has been good in the second quarter, with around 70% of the volume for 2021 expected to be harvested in the second half of the year. The release from stock costs for this volume are expected to be significantly lower than the equivalent figure for fish harvested year to date in 2021. Lerøy Aurora expects a harvest volume in the region of 47,000 GWT in 2021.
Production in Lerøy Midt in Q2 2021 has been satisfactory. The release from stock costs for the quarter are on a par with Q1. At today's date, lower costs are expected in the second half of 2021 than in the first half. The company expects a harvest volume in the region of 70,000 GWT in 2021.
Growth in Lerøy Sjøtroll in Q2 2021 has been good. The company is on schedule to fulfil its expectation of a significant increase in harvest volume from 68,000 tonnes in 2020 to 75,000 tonnes in 2021, with an associated cost reduction in 2021 relative to 2020. Costs in Q2 2021 were lower than in Q2 2020. At today's date, release from stock costs are expected to be slightly lower in the second half of 2021 than in the first half.
The wholly owned subsidiary Lerøy Havfisk's primary business is wild catches of white fish. Lerøy Havfisk has licence rights to harvest just above 10% of the total Norwegian cod quotas in the zone north of 62 degrees latitude, corresponding to around 30% of the total quota allocated to the trawler fleet. Lerøy Havfisk also owns several processing plants, which are mainly leased out to its sister company Lerøy Norway Seafoods (LNWS) on long-term contracts. Lerøy Havfisk's trawler licences stipulate an operational obligation for these processing plants.
Lerøy Havfisk had 10 trawlers in operation in Q2 2021. The catch volume of 16,345 tonnes in Q2 2021 is lower than the 19,708 tonnes caught in the same period of 2020, but a change in catch composition means the value is higher. Catches of shrimp and haddock have been prioritised in Q2 2021, while catches of redfish are significantly down on the same period in 2020. With a substantial cod quota remaining, Lerøy Havfisk has a strong market position for the remainder of the year.
As described in the Group's recent interim reports, demand for seafood has been negatively impacted by the restrictions introduced to combat the spread of COVID-19, and this situation continued in Q2 2021. Compared with Q2 2020, prices for cod, which is the most important species, are down 12%, while prices for haddock and saithe have risen 3% and 13% respectively. Current expectations are that further easing of the COVID-19-related restrictions could result in a positive price development for the remainder of 2021, including for cod.
LNWS's primary business is processing wild-caught white fish. The company has use of 12 processing plants and purchasing stations in Norway, five of which are leased from Lerøy Havfisk.
Processing of white fish has been extremely challenging for many years – with Q2 2021 no exception – but it is pleasing to note a substantial improvement in underlying operations, which has also led to an improvement in the financial results for Q2 2021 compared with the same period of 2020.
The Group's focus on boosting the competitiveness of the white fish industry is a long-term process and will continue undiminished, despite what the Group hopes is temporary market-related challenges brought about by the pandemic. Over time, a number of organisational changes have been introduced, which, in combination with significant investments in facilities and in developing the organisations, we consider will deliver sustainable earnings.
In total, Havfisk/LNWS contributed EBIT of NOK 65 million in Q2 2021, compared with NOK -5 million in the same period of 2020. Please note that Havfisk has opted to leave a higher share of the cod quota for the second half of the year compared with 2020.
Investigation by the competition authorities in the EU and USA On 20 February 2019, the EU's competition authorities ("the Commission") initiated investigations relating to suspected restrictive practices involving collaboration on the salmon market. The US Department of Justice (DOJ) started an investigation into the Norwegian salmon industry in November 2019. Lerøy Seafood Group ASA is one of the companies involved in these matters. In the wake of the European Commission's investigations, companies in Lerøy Seafood Group ASA and a number of other Norwegianowned aquaculture companies are among those to be sued by customers in the USA and Canada. Please refer to the Group's annual report for more information.
In Q2 2021, LSG increased its shareholding in Seafood Danmark from 33% to 78%, and the company has been consolidated from Q2. This is the result of a long-term relationship between the parties, and LSG looks forward to having the company as an integrated part of the Group. Seafood Danmark's collaboration with demanding customers has afforded them a strong position on the Danish seafood market, but the company is also active on other core markets. Thanks to its well-established organisation, Seafood Danmark will strengthen LSG's downstream operations. The company has strong local management who have demonstrated solid operations and good earnings over several years. The company reported operating profit of around DKK 70 million in 2020.
On 29 June 2021, Scottish Sea Farms Ltd. (SSF), a joint venture between Lerøy Seafood Group ASA and SalMar ASA, entered into an agreement to purchase 100% of the shares in Grieg Seafood Hjaltland (GSHU) from Grieg Seafood ASA. The debt-free, cash-free purchase price has been set at GBP 164 million.
GSHU is a vertically integrated Scotland-based producer of salmon with operations in Shetland and the Isle of Skye. The company has 21 active sea locations, a smolt facility and a harvesting plant. GSHU harvested approx. 16,000 tonnes (HOG) Atlantic salmon in 2020. SSF is one of the largest producers in Scotland, with operations in the Orkneys and Shetland and on the Scottish mainland. SSF harvested approx. 24,000 tonnes (HOG) Atlantic salmon in 2020. The management of SSF looks forward to getting started on the work required to improve GSHU's biological and operational performance. SSF's organisation sees significant potential for increased earnings through sound operational understanding, improved biological control and realising synergies by integrating the two companies. The acquisition will be financed by new equity from shareholders and external capital. The transaction is expected to be completed by the end of Q4 2021, assuming approval is obtained from the relevant authorities and the standard terms and conditions.
For further information, please refer to LSG's report and presentation for Q2 2021.
Austral Group S.A.A. (Austral) is involved in fishing, production of fishmeal and fish oil, and consumer products. Austral holds 6.98% of the total quota for anchoveta in Central/North Peru, and just under 4% of the quota in South Peru. In addition, the company has fishing rights for horse mackerel and mackerel. Anchoveta is used to produce fishmeal and fish oil, while horse mackerel/mackerel is used for consumer products. The main fishing seasons for anchoveta in Central/North Peru are from April to July and November to January. Fishmeal and fish oil are produced in four factories, located in Coishco, Chancay, Pisco and Ilo. The company also produces consumer products in facilities that share premises with the fishmeal and fish oil factories in Coishco and Pisco.
The first fishing season in Peru started on 23 April, with a total quota of 2.5 million tonnes and a quota of 175,000 tonnes for the company. The equivalent season in 2020 started on 13 May, with a total quota of 2.4 million tonnes. The start of the 2020 season was impacted by the authorities introducing restrictions on the number of operational vessels per company, such that each company started the season with 60% of its fleet. The late start-up and limit on operational vessels meant lower catch volumes in Q2 2020. Over time, these restrictions were lifted.
The company finished the fishing season on 26 July, having caught 100% of its allocated quota for the first season of 2021. At the end of Q2 2021, the company had already caught 143,500 tonnes, representing 81% of the allocated quota for the season. At the end of Q2 2020, the company had caught 113,500 tonnes, representing 67% of the total quota for the first season. The growth in volume for both catches and goods sold is the most important factor in the improvement in results for the quarter compared with Q2 2020.
Operating revenue in Q2 2021 totalled NOK 389 million (Q2 2020: NOK 187 million) and EBITDA amounted to NOK 162 million (Q2 2020: NOK 60 million).
Sales volumes for fishmeal and fish oil in the quarter were 23,300 tonnes, up substantially from 5,800 tonnes in the same quarter of 2020. Prices realised for fishmeal were on a par with the same period of 2020, while the company's prices realised for fish oil were significantly down on Q2 2020.
Peru is usually the world's largest producer of fishmeal and fish oil. Production volumes in Peru therefore have a significant influence on global prices for fishmeal and fish oil.
Stringent national restrictions remain in place in the wake of the COVID-19 outbreak. The infection rate (R number) in Peru has been high in 2021, but has declined slightly from the end of the second quarter. The restrictions in place continue to affect the company's operations, with extensive measures introduced to ensure sufficient crew to man the ships and factories and to ensure supply of input factors. The company is maintaining its comprehensive safety routines, which include follow-up of regulations laid down by the authorities, routines for testing and implementation/facilitation of quarantine. The COVID-19 outbreak has caused and continues to cause increased uncertainty and significantly lower predictability than normal.
Foodcorp Chile S.A. (FC) is involved in fisheries, production of consumer products, and production of fishmeal and fish oil. From 2018, the regulation of fisheries in Chile has allowed greater flexibility for the fleet to carry out fishing in all the country's regions. FC's quota therefore now corresponds to 8.4% of the horse mackerel quota established for the fleet to which its vessels belong. FC also has a quota for sardine/anchoveta.
All FC's land-based industrial activities are located in the same building in the coastal town of Coronel.
The main season for horse mackerel fishing is from December to July. The main season for sardine/anchoveta fishing is divided into two periods. The first season starts in March and ends in July/August. The second season normally starts in October/November and lasts until the end of December.
The company has executed its main season in the first half of the year, catching just under 59,500 tonnes of horse mackerel, 27,700 tonnes of which in the second quarter. Just under 28,700 tonnes were caught in Q2 2020 and 63,200 tonnes in the first half of 2020 overall.
In 2021, the company has its own quota (including leased quota) for horse mackerel of just under 40,000 tonnes (2020: 34,600 tonnes). The company's horse mackerel quota is 15% higher than in 2020. The company has also purchased 27,800 tonnes (2020: 28,500 tonnes) of horse mackerel from third parties, to be caught by FC's own vessels. The total quota, including purchases from third parties, therefore amounts to 67,700 tonnes, up from approx. 63,000 tonnes in 2020.
Operating revenue in Q2 2021 totalled NOK 322 million (Q2 2020: NOK 301 million) and EBITDA amounted to NOK 127 million (Q2 2020: NOK 130 million).
Sales of frozen products totalled 19,500 tonnes in Q2 2021, up from 15,000 tonnes in the same quarter of 2020. Demand for frozen products has been good, and the company's prices realised in the quarter were 33% higher than in Q2 2020.
The authorities in Chile, as in Peru, have introduced stringent national restrictions in light of the COVID-19 pandemic. The infection rate (R number) has been high in 2021, but has shown a slight downward trend in the third quarter. The company is maintaining its comprehensive safety routines, which include follow-up of regulations laid down by the authorities, routines for testing and implementation/facilitation of quarantine.
In Q2 2021, the BRBI segment reported operating revenue of NOK 56 million (Q2 2020: NOK 36 million). EBITDA amounted to NOK 33 million (Q2 2020: NOK 16 million).
The increase in revenue and earnings relates to the vessel fishing for snow crab. After several extremely challenging years, the vessel has had a good first half of the year, catching 479 tonnes of snow crab since the start-up in January, compared with 259 tonnes in the first half of 2020.
The total Norwegian quota for snow crab had been caught when fishing was, as normal, suspended on 1 July to protect the crab during the period of ecdysis. In 2020, fishing was stopped on 15 July. This means the vessel will not operate in the second half of 2021 but will carry out essential maintenance in this period. The pelagic vessels fished for North Sea herring in the second quarter.
The vessels carried out fisheries in the second quarter as normal, and have experienced only a minor impact from the COVID-19 outbreak.
In Q2 2021, the BFARM segment reported operating revenue of NOK 139 million (Q2 2020: NOK 57 million). EBITDA before fair value adjustment related to biological assets in Q2 2021 was NOK 41 million (Q2 2020: NOK 4 million).
Of this volume, 2,217 tonnes were harvested in Q2 2021 compared with 1,239 tonnes in Q2 2020. The company sells all its fish on the spot market, and the prices realised in Q2 2021 are considerably higher than in the same quarter of 2020. Unfortunately, infectious salmon anemia (ISA) was detected at one of the company's locations in June 2021, which means the fish here must be harvested before 5 September. This relates to fish put to sea as recently as December 2020, so the forced harvesting will mean a low average weight. The forced harvesting will lead to a significantly negative result for the company in Q3. The loss resulting from the forced harvesting at this location is estimated to be in the region of NOK 25-28 million.
In the consolidated financial statements, Pelagia Holding AS (Pelagia) is defined as a joint venture and accounted for by the equity method.
In note 4 Segments, Pelagia is consolidated using the so-called "proportionate consolidation method", in accordance with AUSS's 50% shareholding.
The figures for Pelagia in this section reflect 100% of the company's financial and operational figures.
As usual, the second quarter has been the low season for production of consumer products. Lower quotas for blue whiting and sand eel, together with an earlier start to the blue whiting season in 2021, have resulted in a lower volume of raw materials received for production of fishmeal and fish oil compared with Q2 2020.
Revenue for Pelagia in Q2 2021 was NOK 1,751 million (Q2 2020: NOK 1,958 million) and EBITDA was NOK 80 million (Q2 2020: NOK 199 million).
The sales volume for frozen products in the quarter was 48,800 tonnes, up slightly from 47,600 tonnes in the same quarter in 2020. Sales of fishmeal/FPC and fish oil in Q2 2021 totalled 52,100 tonnes, up from 39,300 tonnes in Q2 2020.
The volume of raw materials received for consumer products in the quarter was 31,000 tonnes, up from 18,000 tonnes in Q2 2020. Total receipt of raw materials for Pelagia and associates for fishmeal/FPC and fish oil production was 240,000 tonnes in Q2 2021, compared with 336,000 tonnes in Q2 2020.
In March 2021, Pelagia Holding AS's subsidiary Pelagia AS entered into an agreement to acquire the remaining 50% of the shares in Hordafor AS. The transaction was completed on 1 July 2021. Following this transaction, Pelagia AS now owns 100% of the shares in Hordafor AS, and the company will accordingly be treated as a subsidiary from Q3 2021.
National and international restrictions in connection with the COVID-19 outbreak are affecting the company's operations. Pelagia's employees have done their utmost to keep the value chain operational during this challenging time, and operations have, to date, continued practically as normal, albeit with a slight increase in costs – particularly relating to the logistics chains.
Cash flow from operating activities in Q2 2021 was NOK 1,027 million (Q2 2020: NOK 950 million). Cash flow from investing activities in Q2 2021 was NOK -355 million, including NOK 158 million relating to acquisitions (Q2 2020: NOK -241 million). Cash flow from financing activities in Q2 2021 was NOK -1,751 million (Q2 2020: NOK -474 million). NOK 1,309 million of this relates to payment of dividends from the parent company and Group companies (to minority). Payment of dividends at 30 June 2020 was NOK 979 million. In addition to this, the parent company has redeemed a NOK 500 million bond that fell due in May 2021, utilising parts of the company's cash and cash equivalents.
The Group's cash and cash equivalents at 30 June 2021 totalled NOK 3,694 million, compared with NOK 4,482 million at 30 June 2020.
The Group reported operating revenue of NOK 12,216 million for the first half of 2021 (H1 2020: NOK 11,163 million). EBITDA before value adjustment related to biological assets in H1 2021 was NOK 2,357 million (H1 2020: NOK 2,027 million).
EBIT before value adjustment related to biological assets in H1 2021 was NOK 1,574 million (H1 2020: NOK 1,280 million). The fair value adjustment related to biological assets in H1 2021 was positive at NOK 1,053 million. The corresponding figure for the same period in 2020 was negative at NOK -307 million.
EBIT after value adjustment related to biological assets in H1 2021 was NOK 2,626 million (H1 2020: NOK 973 million).
Income from associates for H1 2021 totalled NOK 136 million (H1 2020: NOK 32 million).
The Group's net interest expense in H1 2021 totalled NOK -146 million (H1 2020: NOK -156 million).
Profit before tax and fair value adjustment related to biological assets for H1 2021 was NOK 1,511 million, compared with NOK 1,092 million in H1 2020.
Profit after tax for H1 2021 totalled NOK 2,010 million (H1 2020: NOK 567 million).
Cash flow from operating activities for H1 2021 was NOK 2,160 million (H1 2020: NOK 1,371 million). Tax payments in H1 2021 totalled NOK 265 million (H1 2020: NOK 285 million). Cash flow from investing activities for H1 2021 was NOK -613 million (H1 2020: NOK -869 million). Cash flow from financing activities for H1 2021 was NOK -2,317 million (H1 2020: NOK -286 million). Net change in cash for the Group in H1 2021 was NOK -770 million (H1 2020: NOK 216 million).
The Group's cash and cash equivalents at 30 June 2021 totalled NOK 3,694 million, compared with NOK 4,482 million at 30 June 2020.
The Group's statement of financial position at 30 June 2021 showed a total of NOK 41,323 million, compared with NOK 40,498 million at 30 June 2020. Some Group companies have a functional currency other than the Norwegian krone. Changes in foreign exchange rates will therefore result in periodic changes in the amounts in the Group's statement of financial position, due to translation to Norwegian krone.
The Group is financially sound with book equity at 30 June 2021 of NOK 23,728 million, equivalent to an equity ratio of 57%. At 30 June 2020, the Group had book equity of NOK 23,161 million, also equivalent to an equity ratio of 57%.
At 30 June 2021, the Group had net interest-bearing debt excluding right-of-use liabilities other than to credit institutions totalling NOK 4,938 million, compared with NOK 5,074 million at 30 June 2020. The Group's net interest-bearing debt including right-of-use liabilities other than to credit institutions was NOK 6,576 million at 30 June 2021, compared with NOK 6,374 million at 30 June 2020.
The Group and parent company's financial position is very strong. The Board of Directors considers it important that the Group, through its operations, retains the confidence of participants in the various capital markets. The Group has and shall continue to have significant financial flexibility to allow it to finance further organic growth, carry out strategic acquisitions and sustain the company's dividend policy.
At 30 June 2021, the parent company Austevoll Seafood ASA had cash and cash equivalents of NOK 472 million and net interest-bearing debt of NOK 306 million. The parent company's bond loan, which was established in 2015 and matured on 4 May 2021, was redeemed in full by utilising parts of the company's cash and cash equivalents.
The Group's risk exposure is described in the Annual Report 2020. The Group's activities are essentially global and will always be impacted to varying degrees by developments in the global economy. In light of the turmoil in the global economy in recent years, including trade barriers and geopolitical risk, the general consensus is that macroeconomic uncertainty is still greater than what was previously considered normal. The Group's risk profile covers pandemics, of which the COVID-19 outbreak is an example. As a result of the outbreak, national and global authorities have introduced extensive restrictions in an attempt to prevent uncontrolled spread of the infection. COVID-19 is having an impact on global value chains in that the necessary measures taken by public authorities, illness and fear are, at a global level, significantly affecting how we live our lives. As a part of the global seafood industry, the Group is also severely affected. This has manifested in the form of changes in the pattern of demand for the Group's products, access to workforce both in the Group and externally, other input factors and credit risk. The COVID-19 pandemic has had and continues to have a negative impact on the demand for seafood, but there has been an easing of COVID-19-related restrictions through Q2 2021.
At today's date, it remains difficult for us to reach any conclusion on future developments, apart from highlighting the increased level of uncertainty the pandemic still represents. The Group's results will continue to be affected by developments in the relationship between supply and demand in the future.
Although the uncertainty may have a negative impact on the real economy in most markets, it is our opinion that AUSS's core business is founded on long-term sustainable assets within interesting segments of the global seafood industry.
The Group is exposed to risk related to the value of the Group's assets. Risk arises mainly as a result of changes in the prices of raw materials and finished products, to the extent that these changes impact the company's competitiveness and earnings potential over time. Operational factors, such as marine biomass, fishing conditions and price trends for the Group's input factors, are other key parameters that have an impact on risk for the Group.
At 30 June 2021, the Group had live fish on its statement of financial position worth NOK 6 billion. Biological risk has been and will remain a substantial risk factor in the Group's operations. Assessing and managing biological risk must therefore be a part of the Group's core expertise.
Changes in fishing patterns and quota adjustments mean fluctuations in catch volumes from quarter to quarter and year to year, and hence varying utilisation of the Group's production facilities. The seasonal fluctuations in catch volumes cause similar fluctuations in the quarterly key figures.
Since LSG's acquisition of Havfisk and LNWS, the Group has had substantial exposure in relation to catches of various species of white fish subject to Norwegian quotas. The Group faces political risk linked to administration by public authorities, including framework conditions for fish farming and licence terms related to fisheries legislation in the regions where it operates.
Industrial developments and employment in capital-intensive activities exposed to global competition, such as fish farming, fisheries and industry, are challenging and require a long-term perspective by businesses and politicians at a national level. The Group's strategy centres on a long-term perspective, irrespective of framework conditions, to ensure a globally competitive organisation, which can continue to safeguard industrial development in the numerous local communities where the Group has operations.
In the approval granted by the Norwegian Ministry of Trade, Industry and Fisheries, LSG's ownership of Lerøy Havfisk and LNWS is linked to the ownership structure approved when the application was submitted, thereby requiring approval of any changes in ownership not covered by the exemption granted by the Ministry. The nationality requirement in section 5 of the Act relating to the right to participate in fishing must also be met.
The majority of the Group's debt is at floating interest rates, but fixed-rate contracts have been entered into for approx. 26% of the Group's interest-bearing debt.
The Group is exposed to fluctuations in foreign exchange rates, particularly the EUR, GBP, USD, Chilean peso and Peruvian sol. Measures to reduce this risk in the short term include forward contracts and multi-currency overdraft facilities. Furthermore, parts of the long-term debt are matched to earnings in the same currency.
At 30 June 2021, the company had 7,919 shareholders, compared with 7,214 at the start of the quarter.
The share price at the start of Q2 2021 was NOK 103.50 and NOK 106.80 at the end.
The annual general meeting in May 2021 passed a dividend of NOK 3.50 per share for the 2020 financial year, which was paid on 9 June 2021. The dividend payment for the 2019 financial year, paid in June 2020, was NOK 2.50 per share.
A list of the company's 20 largest shareholders can be found in Note 6 in this report.
Since it was established in 1981, Austevoll Seafood ASA (AUSS) has remained loyal to its strategic foundations of "creating lasting values through healthy oceans and thriving communities". The entire value chain in the Group's portfolio companies has its "origins" in the sustainable use of the sea, and the Group's growth has been and shall continue to be sustainable in terms of finance and the climate/environment. Sustainable growth places stringent requirements on the Group within finance, corporate governance, the climate and environment as well as social issues. Sustainability is essential for gaining access to capital, and is of decisive importance for the Group's survival and continued development. We are therefore proud to confirm that the Group's food production is globally competitive, according to the UN's sustainability criteria. Social sustainability is important for sustaining viable local communities and access to the Group's most important resource, people. For more detailed information, please read the company's sustainability report for 2020 on the website https://ar2020.auss.no/
Price developments for Atlantic salmon have remained highly volatile at the start of 2021, significantly influenced by the repercussions of the COVID-19 pandemic. It is not possible to form any precise opinion on the duration or consequences of the pandemic, but developments in 2021 provide grounds for optimism. There are indications that seafood is gaining in popularity with consumers, and we are therefore optimistic about the underlying future development in demand for seafood, and hence about the Group's operations and value creation.
The Group's production of red fish currently takes place mainly in Norway. Norwegian and global salmon and trout production are experiencing relatively modest growth, which – combined with a weaker Norwegian krone – has resulted in very high prices. This provides an incentive to start production of salmon in new areas and using new, alternative technologies. These incentives have existed for several years now, but with long lead times for developing the industry, sea-based production in Norway has remained dominant. The harvest volume from land-based production of salmon remains insignificant on the end markets. The market share for Norwegian Atlantic salmon may, in the long term, be affected by production of salmon and trout in new regions and locations. Through business development, investments and a clear operational focus on competitiveness, the Group shall ensure that its value chain stands strong in the face of competition in the years to come. As well as developing existing farming operations, the Group is accumulating knowledge and/or expertise within both land-based and offshore salmon production.
In recent years, LSG has made significant investments in several parts of the value chain, including building facilities for smolt/ post-smolt capacity in all the Group's regions. Lerøy Sjøtroll's Kjærelva facility is now completed, producing around 4,000 tonnes of biomass per year. Lerøy Aurora completed the final construction stage of its new smolt facility in Laksefjord in Q4 2020, and the facility is expected to reach full utilisation in 2021. Lerøy Midt can report that the second stage of development of the Belsvik facility is on schedule. The plan is for completion by the start of 2022, and the facility will produce around 5,000 tonnes of biomass. The Group's investments in improved smolt production and post-smolt production, combined with a number of other initiatives, will support its ambition of continued growth in volume and improved competitiveness as a result of lower production costs.
LSG's substantial investments in post-smolt facilities have not only increased the Group's annual harvest volume by means of improved exploitation of existing assets, but also provided significant learnings in RAS technology. This is in the main the same technology applied for full-scale land-based production of salmon. The Group is now negotiating for a possible further development of a new RAS facility in the region of Vestland. The plans are initially to develop the facility in three stages. The first and second stages will allow further increases in the Group's post-smolt production. The final stage will also provide facilities for post-smolt production, but may be used for salmon production up to harvest size. The newly acquired industrial site, including the links to the Group's farming operations in West Norway, could improve interaction between land and sea. The lessons learned may potentially be exploited to realise land-based projects in other regions in the future. The development will take place in stages, but initial estimates suggest a cost framework of around NOK 1 billion for the first stages. The development is projected to provide an annual increase in production in the sea of 8,000-10,000 GWT. Construction work is scheduled for completion in 2023.
The Group achieved significant improvements in production in the sea in 2020. The harvest volume was up from around 158,000 tonnes in 2019 to 171,000 tonnes in 2020. Moreover, standing biomass increased from 111,000 tonnes at year-end 2019 to 119,000 tonnes at year-end 2020. The first months of 2021 were cold, negatively affecting growth conditions, but growth in Q2 has been satisfactory, and the Group maintains its forecast of a harvest volume for 2021, including associates, of 205,000-210,000 tonnes. Ongoing investments and additional improvement initiatives will generate further growth in the years to come.
LSG is convinced that this growth, combined with other improvement measures, will reduce the Group's release from stock costs for salmon and trout in 2021 and going forward.
The previous interim report explained that the consequences of winter ulcers would impair prices realised in Q2 2021. This proved to be the case, but a significant improvement is expected in the second half of the year.
The Group has made substantial investments in white fish in recent years. One new vessel was added to the fleet in 2018 – Nordtind – and another in early 2020 – Kongsfjord. Further improvements to fish quality were important design criteria for Kongsfjord. Consumers' expectations and quality requirements continue to increase, making high quality and competitiveness key factors for success when competing to attract consumers.
The white fish industry, including land-based operations, has suffered significantly from the impact of COVID-19 on demand at the start of 2021. It is naturally not possible for the Group to know how long the restrictions will last, but Lerøy's long-term plans remain the same. The work on and investments in making the factories less seasonally dependent continue, along with structured and meticulous work on making improvements to each unit. We believe that this process will gradually generate results.
The Group's quotas for 2021 are up 17% for cod, 22% for haddock and 16% for saithe north of 62 degrees latitude, and down 43% for saithe south of 62 degrees. In June, ICES (the International Council for the Exploration of the Sea) published its recommendations for the total quotas of cod, haddock and saithe in 2022. These recommendations entail reductions in the cod and haddock quotas of 20% and 23% respectively. For saithe north of 62 degrees latitude, a quota roughly equivalent to 2021 is recommended, while a 24% reduction in the total quota is recommended for the North Sea. The final quotas will be set by the Norwegian authorities in the autumn.
LSG works to develop an efficient and sustainable value chain for seafood. This not only provides cost-efficient solutions, but also quality, availability, a high level of service, traceability and competitive climate-related and environmental solutions. Investments in recent years, e.g. in a new industrial facility for Lerøy Midt, a new factory in Stamsund and new factories in Spain and the Netherlands, now commissioned, will make a positive contribution in the years to come. The management and Board of Directors are confident that Lerøy has a good starting point for continued profitable growth and development of Group operations.
According to the IFFO*, fishmeal production from Regions Peru, Chile and North Atlantic as of week 30 (week beginning 26 July 2021) was up 9.5% on the same period in 2020. This increase stems mainly from Peru, where the first season started on 23 April with a total quota of 2.5 million tonnes. By the end of the season in mid-August, over 98% of the total quota in Peru had been caught. There has also been some fishing in Peru's southern zone during the period. Production in the North Atlantic has been lower than last year, and the blue whiting quotas for 2021 are down 20% on 2020.
* Source: IFFO, week 17, 2021 (Regions Chile, Peru, Denmark/ Norway, Iceland/North Atlantic)
The Group's production of consumer products takes place in Europe and South America. In Europe, the fishing season for Norwegian spring-spawning herring is usually from January to April and the season for North Sea herring from May onwards. The main season for mackerel fishing normally starts in September and continues throughout the autumn. Correspondingly, the remaining quotas for Norwegian spring-spawning herring are also caught during this period. The first half of the year is the season for horse mackerel in South America. The quotas recommended by ICES for catches in the North Atlantic in 2021 represent an increase of 21% for Norwegian spring-spawning herring, while the quotas recommended for mackerel and North Sea herring are down by 9% and 5% respectively on 2020. The 2021 quota recommended by SPRFMO for horse mackerel in the South Pacific represents an increase of approx. 15% on the quota for 2020.
The Group is financially sound, has shown positive development and is currently well positioned in several parts of the global seafood industry. The Group's products are healthy and delicious, and production is sustainable from a financial, climate and environmental perspective.
The Group's strategy going forward is to continue to grow and further develop within its current operating segments. The Group has and shall continue to have the financial flexibility to support its strategy of further organic growth, carry out strategic acquisitions and sustain the company's dividend policy.
The management and Board of Directors continue to expect good underlying growth in demand in the years ahead. It is not possible for the management and Board of Directors to estimate how long the COVID-19 pandemic will last, but we believe that demand will with time return to historic levels and continue to develop from there.
The Board of Directors underlines that uncertainties related to assessments of future developments remain higher than normal, but current estimates are that earnings could be negatively impacted by COVID-19 restrictions for some time to come. At the same time, it is noted that the Group's underlying development is good, something that we consider – in the current circumstances – provides a basis for an uptick in profitability this year compared with 2020.
The farming companies will harvest 60% of the volume for 2021 in the second half of the year, and the market development, including price developments for salmon, will of course have a significant impact on earnings.
Over the years, the Board of Directors and management have focused on building a strong Group of companies, which includes ensuring that the Group has organisations well-prepared to solve challenges in difficult and changing conditions. The Board of Directors is therefore confident that the Group will emerge stronger from this global crisis. The management and Group employees are doing what they can every day to ensure that the Group fulfils its underlying social responsibility, keeping the value chain and food supplies operational at a challenging time.
We declare that, to the best of our knowledge, the half-yearly financial statements for the period 1 January to 30 June 2021 have been prepared in accordance with IAS 34 – Interim Financial Reporting, and that the information in the financial statements provides a true and fair illustration of the Group's assets, liabilities, financial position and result as a whole. We also declare that, to the best of our knowledge, the half-yearly report provides a correct overview of significant events during the accounting period and their impact on the half-yearly accounts, the key risks and uncertainties faced by the Group during the next accounting period, and significant transactions with related parties.
Storebø, 18 August 2021 The Board of Directors of Austevoll Seafood ASA
Chairman of the Board Helge Singelstad
Board memeber Lill Maren Møgster Deputy Chairman of the Board Hege Charlotte Bakken
Board memeber Board memeber Eirik Drønen Melingen Helge Møgster
Board memeber Board memeber Hege Solbakken Siren M. Grønhaug
CEO Arne Møgster
| (audited) | ||||||
|---|---|---|---|---|---|---|
| All figures in NOK 1,000 | Note | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| Operating revenue | 4 | 6 262 791 | 5 306 056 | 12 215 606 | 11 162 510 | 22 446 926 |
| Raw material and consumables used | 3 182 127 | 2 910 941 | 6 234 867 | 5 795 703 | 12 079 107 | |
| Salaries and personnel expenses | 933 578 | 785 297 | 1 978 968 | 1 807 085 | 3 604 585 | |
| Other operating expenses | 885 050 | 783 258 | 1 644 748 | 1 532 767 | 3 088 256 | |
| EBITDA before fair value adjustments * | 1 262 036 | 826 560 | 2 357 023 | 2 026 955 | 3 674 978 | |
| Depreciation and amortisation | 395 138 | 380 690 | 784 063 | 750 391 | 1 518 825 | |
| Impairment | -272 | -365 | -558 | -3 489 | -2 554 | |
| EBIT before fair value adjustment * | 7 | 867 170 | 446 235 | 1 573 518 | 1 280 053 | 2 158 707 |
| Fair value adjustment related to biological assets | 3 | 652 988 | 306 889 | 1 052 930 | -307 045 | -954 044 |
| Operating profit | 1 520 158 | 753 124 | 2 626 448 | 973 008 | 1 204 663 | |
| Income from associated companies | 5 | 61 678 | 82 098 | 136 481 | 32 423 | 250 121 |
| Net interest expenses | -71 898 | -82 688 | -146 202 | -155 940 | -294 911 | |
| Net other financial items (incl. agio/disagio) | -20 566 | -38 340 | -26 512 | -118 613 | -132 447 | |
| Profit before tax and fair value adj.* | 7 | 828 826 | 432 828 | 1 511 219 | 1 092 302 | 2 037 136 |
| Profit before tax | 1 489 372 | 714 194 | 2 590 215 | 730 878 | 1 027 426 | |
| Income tax expenses | -330 838 | -142 767 | -580 175 | -163 657 | -204 575 | |
| Net profit | 1 158 534 | 571 427 | 2 010 040 | 567 221 | 822 851 | |
| Profit to non-controlling interest | 552 505 | 209 251 | 938 481 | 241 657 | 328 736 | |
| Profit to controlling interests | 606 029 | 362 176 | 1 071 559 | 325 564 | 494 115 | |
| Earnings per share (EPS) * | 1,66 | 1,23 | 3,10 | 2,39 | 4,55 | |
| Earnings per share (EPS) | 3,00 | 1,79 | 5,31 | 1,61 | 2,45 | |
| Diluted EPS | 3,00 | 1,79 | 5,31 | 1,61 | 2,45 |
*) related to biological assets (alternative performance measure)
| All figures in NOK 1,000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | (audited) 2020 |
|---|---|---|---|---|---|
| Net earnings in the period | 1 158 534 | 571 427 | 2 010 040 | 567 221 | 822 851 |
| Other comprehensive income | |||||
| Currency translation differences | -32 217 | -370 903 | -125 932 | 332 990 | -138 724 |
| Other comprehensive income from associated companies | 2 969 | 305 | -888 | -3 631 | -4 947 |
| Cash flow hedges | 13 352 | 1 771 | 44 554 | -64 164 | -34 429 |
| Others incl. tax effect | 4 047 | 10 186 | -395 | -12 698 | 3 635 |
| Total other comprehensive income | -11 849 | -358 641 | -82 661 | 252 497 | -174 465 |
| Comprehensive income in the period | 1 146 685 | 212 786 | 1 927 379 | 819 718 | 648 386 |
| Allocated to; | |||||
| Minority interests | 560 553 | 142 274 | 926 538 | 270 597 | 312 030 |
| Majority interests | 586 132 | 70 512 | 1 000 841 | 549 121 | 336 356 |
| All figures in NOK 1,000 Note |
30.06.2021 | 30.06.2020 | 31.12.2020 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 11 759 095 | 11 689 333 | 11 526 318 |
| Vessels | 2 022 345 | 2 166 981 | 2 103 409 |
| Property, plant and equipment | 6 653 225 | 6 368 221 | 6 275 401 |
| Right-of-use assets 8 |
3 364 691 | 3 001 322 | 3 105 697 |
| Investments in associated companies 5 |
2 415 032 | 2 420 824 | 2 526 775 |
| Investments in other shares | 46 124 | 39 649 | 41 720 |
| Other long-term receivables | 166 207 | 177 293 | 163 885 |
| Total non-current assets | 26 426 719 | 25 863 623 | 25 743 205 |
| Inventories 3 |
7 996 664 | 7 165 460 | 6 735 346 |
| Accounts receivable | 2 347 593 | 2 110 140 | 2 045 398 |
| Other current receivables | 858 080 | 876 664 | 754 290 |
| Cash and cash equivalents | 3 694 038 | 4 481 993 | 4 462 765 |
| Total current assets | 14 896 375 | 14 634 257 | 13 997 799 |
| Total assets | 41 323 094 | 40 497 880 | 39 741 004 |
| Equity and liabilities | |||
| Share capital 6 |
101 359 | 101 359 | 101 359 |
| Own shares | -18 312 | -18 312 | -18 312 |
| Share premium | 3 713 549 | 3 713 549 | 3 713 549 |
| Retained earnings and other reserves | 8 606 349 | 8 524 721 | 8 311 893 |
| Non-controlling interests | 11 325 204 | 10 839 855 | 10 882 086 |
| Total equity | 23 728 148 | 23 161 171 | 22 990 574 |
| Deferred tax liabilities | 3 608 479 | 3 531 655 | 3 261 183 |
| Pensions and other obligations | 14 017 | 92 885 | 56 647 |
| Borrowings | 5 939 038 | 5 781 808 | 5 650 866 |
| Lease liabilities to credit institutions | 1 029 505 | 936 311 | 1 093 736 |
| Lease liabilities to other than credit institutions | 1 352 670 | 1 080 282 | 1 055 920 |
| Other long-term liabilities | 34 403 | 30 075 | 25 992 |
| Total non-current liabilities | 11 978 112 | 11 453 016 | 11 144 344 |
| Short term borrowings | 520 839 | 1 179 501 | 1 022 626 |
| Lease liabilities to credit institutions | 265 247 | 257 614 | 270 899 |
| Lease liabilities to other than credit institutions | 284 905 | 219 461 | 235 287 |
| Overdraft facilities | 877 582 | 1 371 157 | 1 049 683 |
| Account payable | 1 889 051 | 1 432 073 | 1 363 866 |
| Other current liabilities | 1 779 210 | 1 423 887 | 1 663 725 |
| Total current liabilities | 5 616 834 | 5 883 693 | 5 606 086 |
| Total liabilities | 17 594 946 | 17 336 709 | 16 750 430 |
| Total equity and liabilities | 41 323 094 | 40 497 880 | 39 741 004 |
| Net interest bearing debt (NIBD) | 4 938 173 | 5 074 473 | 4 651 037 |
| Lease liabilities to other than credit institutions | 1 637 575 | 1 299 743 | 1 291 207 |
| NIBD incl. right of use assets liabilities | 6 575 748 | 6 374 216 | 5 942 244 |
| Equity ratio | 57% | 57% | 58% |
| All figures in NOK 1,000 | 30.06.2021 | 30.06.2020 | 31.12.2020 |
|---|---|---|---|
| Equity at period start | 22 990 574 | 23 331 034 | 23 331 034 |
| Comprehensive income in the period | 1 927 379 | 819 718 | 648 386 |
| Dividends | -1 308 707 | -983 421 | -983 421 |
| Transactions with non-controlling interest | 118 902 | -6 160 | -5 425 |
| Other | - | - | - |
| Total changes in equity in the period | 737 574 | -169 863 | -340 460 |
| Equity at period end | 23 728 148 | 23 161 171 | 22 990 574 |
| All figures in NOK 1,000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | (audited) 2020 |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Profit before income taxes | 1 489 372 | 714 194 | 2 590 215 | 730 878 | 1 027 426 |
| Fair value adjustment of biological assets | -652 988 | -306 889 | -1 052 930 | 307 045 | 954 044 |
| Taxes paid in the period | -138 772 | -48 368 | -265 010 | -285 104 | -493 805 |
| Depreciation and amortisation | 395 137 | 380 690 | 784 063 | 750 391 | 1 518 825 |
| Impairments | -271 | -364 | -558 | -3 489 | -2 554 |
| Associated companies - net | -61 678 | -82 098 | -136 481 | -32 423 | -250 122 |
| Interest expense | 77 392 | 92 355 | 157 139 | 185 906 | 341 027 |
| Interest income | -5 494 | -9 667 | -10 937 | -29 966 | -46 116 |
| Change in inventories | -331 569 | 1 878 | -51 234 | -183 527 | -400 415 |
| Change in receivables | 73 416 | 489 117 | -172 459 | 332 213 | 629 946 |
| Change in payables | 326 474 | -108 668 | 412 450 | -271 554 | -334 538 |
| Other operating cash flow incl currency exchange | -144 272 | -172 199 | -93 914 | -128 893 | 620 |
| Net cash flow from operating activities | 1 026 747 | 949 981 | 2 160 344 | 1 371 477 | 2 944 338 |
| Cash flow from investing activities | |||||
| Purchase of intangible and fixed assets | -344 686 | -262 299 | -564 710 | -897 760 | -1 529 323 |
| Purchase of shares and equity investments | -159 972 | - | -201 640 | -11 | -36 672 |
| Proceeds from sale of fixed assets/equity investments | 25 565 | 3 448 | 27 682 | 7 389 | 17 223 |
| Cash inflow from business combinations | 2 948 | - | 2 948 | - | - |
| Dividend received | 113 514 | 24 440 | 113 514 | 24 440 | 129 548 |
| Interest income | 5 494 | 9 667 | 10 937 | 29 966 | 46 116 |
| Other investing activities - net | 2 167 | -16 090 | -1 765 | -33 505 | -29 716 |
| Net cash flow from investing activities | -354 970 | -240 834 | -613 034 | -869 481 | -1 402 824 |
| Cash flow from financing activities | |||||
| Proceeds from new long term debt | 222 561 | 1 520 159 | 873 402 | 1 822 241 | 2 111 463 |
| Repayment of long term debt | -766 575 | -1 211 637 | -1 426 956 | -1 517 541 | -2 224 573 |
| Change in short term debt | 173 148 | 343 390 | -302 715 | 496 255 | 143 721 |
| Interest paid | -74 266 | -90 407 | -154 018 | -191 210 | -344 560 |
| Dividends paid | -1 308 706 | -978 635 | -1 308 706 | -983 421 | -983 421 |
| Other finance cash flow - net | 2 887 | -56 988 | 2 107 | 87 941 | -28 720 |
| Net cash flow from financing activities | -1 750 951 | -474 118 | -2 316 886 | -285 735 | -1 326 090 |
| Net change in cash and cash equivalents | -1 079 174 | 235 029 | -769 576 | 216 261 | 215 424 |
| Cash, and cash equivalents at start of period | 4 773 212 | 4 258 515 | 4 462 765 | 4 251 100 | 4 251 100 |
| Exchange gains/losses (-) | - | -11 551 | 849 | 14 632 | -3 759 |
| Cash and cash equivalents at period end | 3 694 038 | 4 481 993 | 3 694 038 | 4 481 993 | 4 462 765 |
This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the related standard for interim financial reporting (IAS 34). All figures not included in the financial statements for 2020 are unaudited. The interim financial statements, including historical comparative amounts, are based on current IFRS standards and interpretations. Changes in the standards and interpretations may result in changes to the result. This interim report does not include all the information required by the International Financial Reporting Standards (IFRS) for a set of financial statements and should therefore be read in conjunction with the Group's financial statements for 2020.
Please refer to the Group's financial statements for 2020 for information on standards and interpretations applicable as of 1 January 2020.
There were related party transactions in Q2 2021. Related party transactions take place on market terms, and the relevant types of transactions are described in more detail in the Annual Report 2020.
The Group recognises and measures biological assets at fair value according to IAS 41 and IFRS 13. For salmon and trout, including parent fish, a present value model is applied to estimate fair value. For roe, fry, smolt and cleaner fish, historical cost is assumed to be the best estimate of fair value. The value of fish in the sea is estimated as a function of the estimated biomass at the time of release from stock, multiplied by the estimated sales price. For fish not ready for harvest, a deduction is made to cover estimated residual costs to grow the fish to harvest weight. The cash flow is discounted monthly by a discount rate. The discount rate comprises three main components: (1) the risk of incidents that have an effect on cash flow, (2) hypothetical licence lease and (3) the time value of money.
Estimated biomass (volume) is based on the actual number of individuals in the sea on the date of the statement of financial position, adjusted to cover projected mortality up to harvest time and multiplied by the estimated harvest weight per individual at harvest time. The measurement unit is the individual fish. However, for practical reasons, these estimates are carried out per locality. The live weight of fish in the sea is translated to gutted weight in order to arrive at the same measurement unit as for pricing.
Pricing is based on the Fish Pool forward prices. The forward price for the month in which the fish is expected to be harvested is applied in order to estimate cash flow. The price stipulated by Fish Pool is adjusted to take into account export costs and clearing costs, and represents the reference price. This price is then adjusted to account for estimated harvesting cost (well boat, slaughter and boxing) and transport to Oslo. Adjustments are also made for any projected differences in size and quality. The adjustments to the reference price are made per locality. Joint regional parameters are applied, unless factors specific to an individual locality require otherwise.
Valuation and classification are based on the principle of highest and best use according to IFRS 13. The actual market price per kilo may vary in relation to fish weight. When estimating fair value, the optimal harvest weight, i.e. the weight when the fish is ready for harvest, is defined as the live weight that results in a gutted weight of 4 kg. This corresponds to a live weight of 4.7 kg for salmon and 4.8 kg for trout. The optimal harvest weight may, however, be lowered slightly if required by factors at an individual locality (biological challenges etc.). In terms of valuation, only fish that have achieved an optimal harvest weight are classified as fish ready for harvest.
The Group enters into contracts related to future deliveries of salmon and trout. As biological assets are recognised at fair value, the fair value adjustment of the biological assets will be included in the estimated expenses required to fulfil the contract. This implies that the Group may experience loss-making (onerous) contracts according to IAS 37 even if the contract price for physical delivery contracts is higher than the actual production cost for the products. In such a scenario, a provision is made for the estimated negative value. The provision is classified in the financial statements as other current liabilities.
The fair value adjustment related to biological assets recognised in the income statement for the period comprises (1) fair value adjustment related to biological assets, (2) change in fair value (provision) related to onerous contracts and (3) change in unrealised gain/loss related to financial sale and purchase contracts (derivatives) for fish in Fish Pool. Fish Pool contracts are treated as financial instruments on the statement of financial position, where unrealised gain is recognised as other current receivables and unrealised loss as other current liabilities.
The figures for harvested volume and net growth in the tables below have been estimated on the basis of gutted weight (GWT) and converted to live weight (LWT). The gutting loss ratios applied in this conversion are 14% for salmon and 16% for trout. The table for Lerøy Seafood Group ASA includes salmon and trout. The table for Br. Birkeland Farming AS only includes salmon.
LWT = live weight measured in tonnes
GWT = gutted weight measured in tonnes
| Fair value adjustments over profit and loss | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | 2020 |
|---|---|---|---|---|---|
| Change FV adj. of biological assets | 688 308 | 291 582 | 1 056 788 | -263 509 | -853 236 |
| Change in FV of onerous contracts | -2 439 | -83 | -6 169 | 26 434 | 26 485 |
| Change in FV of fishpool contracts | 14 | 0 | -1 563 | 0 | 0 |
| Total FV adjustments over profit and loss | 685 882 | 291 499 | 1 049 057 | -237 075 | -826 751 |
| Change in FV of fishpool contracts * | 1 505 | -290 | 4 240 | -4 241 | -3 183 |
|---|---|---|---|---|---|
| Total FV adjustments over OCI | 1 505 | -290 | 4 240 | -4 241 | -3 183 |
* Included in change in FV financial instruments (hedges) in statement of comprehensive income
Positive amounts are assets and negative amounts are liabilities
| Carrying amount on biological assets | 30/06/2021 | 30/06/2020 | 31/12/2020 |
|---|---|---|---|
| Cost on stock for fish in sea | 4 088 829 | 3 828 311 | 4 231 901 |
| Cost on stock for fry, brood, smolt and cleaning fish | 333 895 | 278 444 | 362 065 |
| Total cost on stock for biological assets * | 4 422 725 | 4 106 755 | 4 593 966 |
| FV adj. of fish in sea | 1 376 334 | 909 272 | 319 546 |
| FV adj. of fry, brood, smolt and cleaning fish | 0 | 0 | 0 |
| Total FV adj. of biological assets | 1 376 334 | 909 272 | 319 546 |
| Monthly discount rate applied | 5% | 5% | 5% |
| FV of fish in sea | 5 465 164 | 4 737 583 | 4 551 447 |
| FV of fry, brood, smolt and cleaning fish | 333 895 | 278 444 | 362 065 |
| Carrying amount of biological assets | 5 799 059 | 5 016 027 | 4 913 512 |
| Carrying amount on onerous contracts (liability) | |||
| Carrying amount of onerous contracts | -6 201 | -82 | -32 |
| Carrying amount on fishpool contracts | |||
| Carrying amount of Fish Pool contracts | 395 | -3 404 | -2 939 |
* Cost on stock is historic costs after expensed mortality
| HARVESTED VOLUME: | |||||
|---|---|---|---|---|---|
| Volume in gutted weight (GWT) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | 2020 |
| Salmon | 32 274 | 32 024 | 70 217 | 64 995 | 142 841 |
| Trout | 4 482 | 6 871 | 8 689 | 13 277 | 28 007 |
| Total harvested volume | 36 756 | 38 896 | 78 906 | 78 273 | 170 849 |
| VOLUME | |||||
| Volume of fish in sea (LWT) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | 2020 |
| Volume at beginning of period | 103 978 | 100 339 | 119 407 | 111 263 | 111 263 |
| Net growht during the period | 47 334 | 41 951 | 81 033 | 77 905 | 210 396 |
| Harvested volume during the period | -42 864 | -46 304 | -91 992 | -93 182 | -202 252 |
| Volume at end of period (LWT) | 108 448 | 95 986 | 108 448 | 95 986 | 119 407 |
| Specification of fish in sea (LWT) | 30/06/2021 | 30/06/2020 | 31/12/2020 | ||
| Salmon | 91 780 | 81 012 | 105 745 | ||
| Trout | 16 668 | 14 974 | 13 662 | ||
| Total | 108 448 | 95 986 | 119 407 | ||
| Salmon > 4,7 kg (live weight) * | 3 386 | 16 711 | 7 802 | ||
| Trout > 4,8 kg (live weight) * | 4 019 | 1 889 | 0 | ||
| * Defined as mature biological assets | |||||
| FAIR VALUE ADJUSTMENTS RELATED TO BIOLOGICAL ASSETS Fair value adjustment over profit and loss |
Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| Change FV adj. biological assets | -32 894 | 15 390 | 3 873 | -69 970 | -127 293 |
| FV adj. related to biological assets | -32 894 | 15 390 | 3 873 | -69 970 | -127 293 |
| BALANCE SHEET ITEMS RELATED TO BIOLOGICAL ASSETS Positive amounts are assets and negative amounts are liabilities |
|||||
| Carrying amount of biological assets | H1 2021 | H1 2020 | 2020 | ||
| Cost on stock for fish in sea | 219 750 | 244 672 | 265 042 | ||
| Fair value adjustment fish in sea | -8 709 | 44 741 | -12 582 | ||
| Fair value fish in sea | 211 041 | 289 413 | 252 460 | ||
| Fry, brood and smolt | - | - | - | ||
| Carrying amount of biological assets | 211 041 | 289 413 | 252 460 | ||
| HARVESTED VOLUME | |||||
| Harvested volume in gutted weight (GWT) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| Total volume | 2 217 | 1 239 | 4 048 | 2 680 | 6 790 |
| - Salmon | 2 217 | 1 239 | 4 048 | 2 680 | 6 790 |
| VOLUME | |||||
| Volume of fish in sea (LWT) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| Volume at beginning of period | 5 079 | 5 397 | 5 693 | 5 033 | 5 033 |
| Net growth during the period | 2 358 | 1 956 | 3 989 | 3 726 | 9 291 |
| Harvested volume during the period | -2 702 | -2 152 | -4 947 | -3 551 | -8 631 |
Volume at end of period (LWT) 4 735 5 201 4 735 5 208 5 693
Fish > 4,8 kg (live weight) - - - - -
| All figures in NOK 1,000 |
Lerøy Seafood Group ASA |
Austral Group S.A.A |
Foodcorp Chile S.A |
Br. Birkeland AS |
Br. Birkeland Farming AS |
Other/ elimina tions |
Total Group |
Pelagia (50% of figures and volumes) |
Total Group incl. Pelagia (50%) |
|---|---|---|---|---|---|---|---|---|---|
| Q2 2021 | |||||||||
| Operating revenue | 5 348 672 | 389 181 | 321 512 | 55 520 | 138 961 | 8 945 | 6 262 791 | 875 304 | 7 138 095 |
| EBITDA* | 899 109 | 161 519 | 126 802 | 32 618 | 41 076 | 912 | 1 262 036 | 39 858 | 1 301 894 |
| EBITDA% | 17% | 42% | 39% | 59% | 30% | 20% | 5% | 18% | |
| EBIT* | 582 767 | 119 935 | 118 612 | 22 303 | 27 413 | -3 860 | 867 170 | 9 307 | 876 477 |
| Volumes sold: | |||||||||
| Salmon (GWT tonnes) | 36 756 | 2 217 | 38 973 | 38 973 | |||||
| Fishmeal/oil/FPC (tonnes) | 23 335 | 8 277 | 31 612 | 26 050 | 57 662 | ||||
| Frozen/fresh fish (tonnes) | 4 406 | 19 472 | 23 878 | 24 400 | 48 278 | ||||
| Q2 2020 | 4 712 659 | 186 912 | 301 130 | 35 846 | 57 346 | 12 163 | |||
| Operating revenue | 5 306 056 | 979 025 | 6 285 081 | ||||||
| EBITDA* | 606 419 | 60 359 | 129 701 | 15 844 | 4 132 | 10 105 | 826 560 | 99 327 | 925 887 |
| EBITDA% | 13% | 32% | 43% | 44% | 7% | 16% | 10% | 15% | |
| EBIT* | 322 333 | 3 498 | 118 823 | 5 063 | -7 813 | 4 331 | 446 235 | 68 809 | 515 044 |
| Volumes sold: | |||||||||
| Salmon (GWT tonnes) | 38 896 | 1 239 | 40 135 | 40 135 | |||||
| Fishmeal/oil/FPC (tonnes) | 5 773 | 8 993 | 14 766 | 19 650 | 34 416 | ||||
| Frozen fish (tonnes) | 3 772 | 14 971 | 18 743 | 23 800 | 42 543 | ||||
| H1 2021 | |||||||||
| Operating revenue | 10 275 553 | 1 089 121 | 478 696 | 126 396 | 225 808 | 20 032 | 12 215 606 | 2 041 148 | 14 256 754 |
| EBITDA* | 1 658 427 | 386 633 | 193 245 | 60 518 | 56 632 | 1 568 | 106 531 | ||
| 2 357 023 | 2 463 554 | ||||||||
| EBITDA% EBIT* |
16% 1 038 201 |
35% 301 503 |
40% 176 278 |
48% 39 949 |
25% 25 561 |
-7 974 | 19% 1 573 518 |
5% 45 608 |
17% 1 619 126 |
| Volumes sold: | |||||||||
| Salmon (GWT tonnes) | 78 906 | 4 048 | 82 954 | 82 954 | |||||
| Fishmeal/oil/FPC (tonnes) | 68 989 | 11 650 | 80 639 | 48 850 | 129 489 | ||||
| Frozen/fresh fish (tonnes) | 13 639 | 30 062 | 43 701 | 71 850 | 115 551 | ||||
| H1 2020 | |||||||||
| Operating revenue | 10 018 520 | 451 053 | 438 308 | 84 440 | 144 808 | 25 381 | 11 162 510 | 2 053 976 | 13 216 486 |
| EBITDA* | 1 703 219 | 83 360 | 168 797 | 26 290 | 31 077 | 14 212 | 2 026 955 | 138 800 | 2 165 755 |
| EBITDA% | 17% | 18% | 39% | 31% | 21% | 18% | 7% | 16% | |
| EBIT* | 1 138 057 | -25 972 | 150 486 | 4 771 | 9 938 | 2 773 | 1 280 053 | 78 130 | 1 358 183 |
| Volumes sold: | |||||||||
| Salmon (GWT tonnes) | 78 273 | 2 680 | 80 953 | 80 953 | |||||
| Fishmeal/oil/FPC (tonnes) | 20 775 | 12 156 | 32 931 | 36 300 | 69 231 | ||||
| Frozen fish (tonnes) | 15 220 | 25 283 | 40 503 | 78 450 | 118 953 | ||||
| 2020 | |||||||||
| Operating revenue | 19 966 221 | 1 240 525 | 637 911 | 248 827 | 306 404 | 47 038 | 22 446 926 | 4 406 951 | 26 853 877 |
| EBITDA* | 3 108 795 | 337 944 | 137 834 | 102 657 | -30 291 | 18 039 | 3 674 978 | 327 387 | 4 002 365 |
| EBITDA% | 16% | 27% | 22% | 41% | -10% | 16% | 7% | 15% | |
| EBIT* | 1 949 655 | 133 956 | 100 934 | 59 400 | -79 814 | -5 424 | 2 158 707 | 204 201 | 2 362 908 |
| Volumes sold: | |||||||||
| Salmon (GWT tonnes) | 170 849 | 6 790 | 177 639 | 177 639 | |||||
| Fishmeal/oil/FPC (tonnes) | 69 498 | 17 722 | 87 220 | 90 400 | 177 620 | ||||
| Frozen/fresh fish (tonnes) | 17 222 | 36 987 | 54 209 | 157 200 | 211 409 |
* Before fair value adjustments related to biological assets
| Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 | ||
|---|---|---|---|---|---|---|
| Norskott Havbruk AS* a) | 50,0% | 51 182 | 7 505 | 97 092 | -19 099 | 48 986 |
| Pelagia Holding AS b) | 50,0% | 6 889 | 62 725 | 26 569 | 29 102 | 127 312 |
| Others | 3 607 | 11 868 | 12 820 | 22 420 | 73 823 | |
| Income from associates | 61 678 | 82 098 | 136 481 | 32 423 | 250 121 | |
| * Fair value adjustment biological assets | 7 558 | -25 523 | 26 066 | -54 379 | -55 666 | |
| Income from associates before FV adj. | 54 120 | 107 621 | 110 415 | 86 802 | 305 787 | |
| Investment in associates: | ||||||
| Norskott Havbruk | 820 311 | 661 638 | 713 502 | |||
| Pelagia Holding AS | 1 205 723 | 1 307 768 | 1 288 903 | |||
| Others | 388 998 | 451 418 | 524 370 | |||
| Total investment | - | - | 2 415 032 | 2 420 824 | 2 526 775 | |
| Dividend received | ||||||
| Norskott Havbruk | - | |||||
| Pelagia Holding AS | 100 000 | - | 100 000 | - | 100 000 | |
| Others | 13 514 | - | 13 514 | 24 440 | 29 548 | |
| Total dividend received from associates | 113 514 | - | 113 514 | 24 440 | 129 548 |
a) Lerøy Seafood Group ASA owns 50% of Norskott Havbruk AS
b) Austevoll Seafood ASA owns 50% of Pelagia Holding AS
| Investor | Number of shares | % of top 20 | % of total |
|---|---|---|---|
| LACO AS | 112 605 876 | 73,15 | 55,55 |
| STATE STREET BANK AND TRUST COMP | 6 997 555 | 4,55 | 3,45 |
| STATE STREET BANK AND TRUST COMP | 4 805 005 | 3,12 | 2,37 |
| J.P. MORGAN BANK LUXEMBOURG S.A. | 4 586 989 | 2,98 | 2,26 |
| FOLKETRYGDFONDET | 3 299 380 | 2,14 | 1,63 |
| SIX SIS AG | 2 847 836 | 1,85 | 1,4 |
| OM HOLDING AS | 2 199 279 | 1,43 | 1,08 |
| PARETO AKSJE NORGE VERDIPAPIRFOND | 2 058 655 | 1,34 | 1,02 |
| THE NORTHERN TRUST COMP, LONDON BR | 1 714 660 | 1,11 | 0,85 |
| THE BANK OF NEW YORK MELLON SA/NV | 1 580 004 | 1,03 | 0,78 |
| JPMORGAN CHASE BANK, N.A., LONDON | 1 494 907 | 0,97 | 0,74 |
| DANSKE INVEST NORSKE INSTIT. II. | 1 355 863 | 0,88 | 0,67 |
| STATE STREET BANK AND TRUST COMP | 1 252 462 | 0,81 | 0,62 |
| CLEARSTREAM BANKING S.A. | 1 166 470 | 0,76 | 0,58 |
| J.P. MORGAN BANK LUXEMBOURG S.A. | 1 138 200 | 0,74 | 0,56 |
| VERDIPAPIRFONDET ALFRED BERG NORGE | 1 058 015 | 0,69 | 0,52 |
| J.P. MORGAN BANK LUXEMBOURG S.A. | 1 030 170 | 0,67 | 0,51 |
| STATE STREET BANK AND TRUST COMP | 963 605 | 0,63 | 0,48 |
| STOREBRAND NORGE I VERDIPAPIRFOND | 897 836 | 0,58 | 0,44 |
| AUSTEVOLL SEAFOOD ASA | 893 300 | 0,58 | 0,44 |
| Total number owned by top 20 | 153 946 067 | 100% | 75,94% |
| Total number of shares | 202 717 374 | 100% |
Austevoll Seafood Group's accounts are submitted in accordance with international standards for financial reporting (IFRS) and interpretations established by the International Accounting Standards Board (IASB) and adopted by the EU. In addition, the Board and management have chosen to present certain alternative performance measures to aid understanding of the Group's development. The Board and management are of the opinion that these performance measures are sought and utilised by investors, analysts, credit institutions and other stakeholders. The alternative performance measures are derived from the performance measures defined in IFRS. The figures are defined below. They are consistently calculated and presented in addition to other performance measures, in line with the Guidelines on Alternative Performance Measures from the European Securities and Markets Authority (ESMA).
EBIT before fair value adjustments is an alternative performance measure utilised by the Group. Pursuant to IFRS, biological assets (fish in the sea) shall be measured at fair value in the statement of financial position (IAS 41). Estimates of fair value require various assumptions about the future, including price developments. Changes in the market's price expectations may therefore result in major changes in carrying amount. As this change in value is included in the operating profit or loss (EBIT) as defined in IFRS, this figure alone is not sufficient to illustrate the Group's performance during the period. The same applies to two other items on the statement of financial position related to biological assets: onerous contracts (IFRS 37) and financial Fish Pool contracts (IFRS 9). The Group has therefore elected to present operating profit/loss as it would be presented before recognition of the above-mentioned fair value adjustments, as an alternative performance measure. By presenting (1) EBIT before fair value adjustments, (2) fair value adjustments in the period and (3) EBIT after fair value adjustments, the user of the financial statements can easily see how much of the operating profit comprises changes in fair value (fair value adjustments) and thereby compare performance with other companies in the same industry. The note on biological assets contains a detailed description of how fair value adjustment is calculated and the figures for each component. The following components are included:
| Q2 2021 | Q2 2020 | |
|---|---|---|
| Operating project (EBIT) | 1 520 158 | 753 124 |
| - Fair value adjustments | 652 988 | 306 889 |
| = EBIT before fair value adjustments | 867 170 | 446 235 |
Fair value adjustments consist of:
Change in fair value adjustment on fish in sea
Change in fair value adjustment on roe, fry and cleaning fish *
Change in fair value adjustment on onerous contracts (salmon and trout)
Change in fair value adjustment on fish pool contracts (financial contracts on salmon)
* For this group historical cost provices the best estimate of fair value. See note 3 for further details.
The operating profit/loss before depreciation and fair value adjustments is an alternative performance measure. This is estimated in the same way as for "Operating profit/loss before fair value adjustments" (above).
The profit/loss before tax and fair value adjustments is an alternative performance measure utilised by the Group. Pursuant to IFRS, biological assets shall be measured at fair value in the statement of financial position (IAS 41). The alternative performance measure shows what the profit/loss before tax would have been if IAS 41 had not been applied. This requires reversal of fair value adjustments made for fish in the sea. The reversal comprises the Group's own fair value adjustment in addition to fair value adjustments included in the share of profit/loss from associates carried according to the equity method, also in accordance with IAS 41. The following components are included:
| Q2 2021 | Q2 2020 | |
|---|---|---|
| Profit before tax | 1 489 372 | 714 194 |
| - Fair value adjustment | 652 988 | 306 889 |
| - Fair value adjustments incl. in income from associates | 7 558 | -25 523 |
| = Profit before tax and fair value adjustments | 828 826 | 432 828 |
NIBD is an alternative performance measure used by the Group. The figure shows how much capital the Group employs and is an important key figure for stakeholders who are planning to provide financing to the Group and for those who want to value the company. The Group therefore defines NIBD as interest-bearing liabilities, both short-term and long-term, to persons or institutions where the main objective is to provide financing and/or credit, minus interest-bearing cash or cash equivalents. This implies that long-term interest-bearing receivables (asset) and other lease liabilities exceeding lease commitments to credit institutions (liability) are not included. The latter component covers the majority of the new lease liabilities capitalised in connection with the implementation of IFRS 16. The following components from the statement of financial position are included:
| 30/06/2021 | 30/06/2020 | 31/12/2020 | |
|---|---|---|---|
| Loans from credit institutions * | |||
| + Lease liabilities to credit institutions * | 1 294 752 | 1 193 925 | 1 364 635 |
| + Other long term loans * | 6 459 877 | 6 991 384 | 6 699 484 |
| + Overdrafts and other short term credits | 877 582 | 1 371 157 | 1 049 683 |
| - Cash and cash equivalents | -3 694 038 | -4 481 993 | -4 462 765 |
| = Net interest bearing debt (NIBD) | 4 938 173 | 5 074 473 | 4 651 037 |
* Both long-term and short-term portion
The Group implemented IFRS 16 Leases on 1 January 2019. This new standard requires practically all leases to be capitalised, as there is no longer a distinction, for the lessee, between operating and finance leases. Under the new standard, the asset (right of use) and the liability to pay rent are recognised in the financial statements. Exemptions are made for short-term leases and low-value leases.
The lease liabilities (previously operating leases) are recognised at the present value of the future lease payments. The lease payments are discounted by the Group's estimated marginal average interest rate on loans (4%). The interest on the lease liability in each accounting period of the lease period shall be the amount that provides a constant periodic interest rate for the remaining balance of the lease liability (annuity principle). The interest expense related to the liability is presented as a financial expense. Lease costs that were previously included in cost of goods sold and other operating expenses are now presented in the income statement as depreciation and interest expense.
The right-of-use assets are depreciated on a straight-line basis from the date of commissioning until the end of the useful life of the right-of-use asset or the end of the lease period, whichever comes first. In the statement of cash flows, cash payments for the lease liability's principal (instalment component) are presented under financing activities. The same applies to cash payments for the interest component of the lease liability.
The table shows the breakdown of right-of-use assets by asset group.
| Right-of-use assets | Land | Buildings | equipment and other fixtures |
Vessels | Total |
|---|---|---|---|---|---|
| Carrying value 01.01.2021 | 40 272 | 588 398 | 1 411 464 | 1 065 562 | 3 105 696 |
| Foreign currency translation differences | - | -6 763 | -7 457 | -14 192 | -28 412 |
| Right-of-use assets acquired | 8 499 | 11 587 | 179 390 | 395 670 | 595 146 |
| Disposal | -11 612 | - | - | -11 612 | |
| Depreciation | -2 980 | -30 473 | -154 944 | -109 252 | -297 649 |
| Impairment loss | - | - | 1 522 | - | 1 522 |
| Reclassification | - | -33 403 | 33 403 | - | - |
| Carrying value 30.06.2021 | 45 791 | 517 734 | 1 463 378 | 1 337 378 | 3 364 691 |
www.auss.no
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.