Austevoll Seafood ASA

Interim / Quarterly Report • Aug 20, 2020

Interim report Q2 and first half 2020

Interim report Q2 and first half 2020

Group operating revenue in Q2 2020 totalled NOK 5,306 million, compared with NOK 6,079 million in Q2 2019.

Group EBITDA in Q2 2020 totalled NOK 827 million compared with NOK 1,206 million in Q2 2019.

The decline in revenue is attributed to significantly lower prices realised for Atlantic salmon and trout, and lower sales volumes for fishmeal, fish oil and frozen pelagic products compared with the same period in 2019. The most significant factor behind the fall in earnings from the same period last year is lower margins per kilo of Atlantic salmon and trout, caused by significantly lower prices realised and higher costs per harvested kilo. Earnings from pelagic operations have increased compared with the same period last year. This increase is mainly attributed to operations in Chile, where the companies have had good access to raw materials, increased production activities and a higher sales volume of finished products compared with Q2 2019. The second fishing season in Peru started in mid-May with a total quota of 2.4 million tonnes, up from 2.1 million tonnes in the same season in 2019. A late start to the season and substantially lower inventories of finished products at the start of the second quarter have resulted in a lower sales volume in Peru in Q2 2020 compared with Q2 2019. In the prevailing COVID-19 situation, the Group companies have invested considerable efforts in ensuring the safety of the Group’s employees and in keeping the value chain operational. Despite at times extremely challenging conditions relating to the pandemic, the companies in Chile and Peru have completed the fishing season and caught 100% of their respective allocated quotas for the season.

EBIT before fair value adjustment related to biological assets in Q2 2020 was NOK 446 million (Q2 2019: NOK 874 million).

Fair value adjustment related to biological assets in Q2 2020 was positive and totalled NOK 307 million. The fair value adjustment for Q2 2019 was also positive at NOK 207 million. EBIT after fair value adjustment related to biological assets in Q2 2020 was NOK 753 million (Q2 2019: NOK 1,081 million).

The largest associates are Norskott Havbruk AS and Pelagia Holding AS (Pelagia). The Group’s associates have generated good results over time, are significant enterprises in their segments and represent substantial values for Austevoll Seafood ASA. Income from associates in Q2 2020 totalled NOK 82 million (Q2 2019: NOK 151 million). For Norskott Havbruk AS, fair value adjustment related to biological assets was negative and amounted to NOK -26 million in the quarter. The corresponding fair value adjustment for Q2 2019 was positive, at NOK 8 million. As normal, the second quarter is a low season for Pelagia within production of consumer products, but the company has had a high level of activity with good access to raw materials for production of fishmeal and fish oil. Please refer to note 5 for more detailed information on associates.

The Group’s net interest expense in Q2 2020 totalled NOK 83 million (Q2 2019: NOK 67 million). Net other financial expenses in Q2 2020 were NOK 38 million, of which the main share is unrealised foreign exchange losses. Net other financial expenses in Q2 2019 totalled NOK 5 million.

Profit before tax and fair value adjustment related to biological assets for Q2 2020 amounted to NOK 433 million, compared with NOK 955 million in Q2 2019.

Profit before tax in the quarter was NOK 714 million (Q2 2019: NOK 1,170 million). Profit after tax was NOK 571 million (Q2 2019: NOK 935 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 the CFO, Britt Kathrine Drivenes.

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