Austevoll Seafood ASA

Earnings Release • May 14, 2020

Financial report Q1 2020

Financial report Q1 2020

Group operating revenue in Q1 2020 totalled NOK 5,856 million, compared with NOK 5,563 million in Q1 2019.

Group EBIDTA in Q1 2020 totalled NOK 1,200 million compared with NOK 1,157 million in Q1 2019.

The increase in revenue and earnings is explained by a higher harvest volume for Atlantic salmon and trout and higher catch volumes for whitefish when compared with the same period in 2019. The disappointing fishing season in Peru in Q4 2019, including a significant decline in sales volume for fishmeal and oil, resulted in a reduction in revenue and earnings for this segment in the quarter, when compared with the same quarter of 2019.

EBIT before fair value adjustment related to biological assets in Q1 2020 was NOK 834 million (Q1 2019: NOK 837 million).

The various restrictions implemented both in Norway and internationally in the wake of the COVID-19 outbreak have affected the market for salmon and trout. At the end of Q1 2020, the spot price for salmon, measured according to the NSI (sales price FCA Oslo), was substantially lower than at the start of the year. This had a significantly negative impact on the fair value adjustment related to biological assets at the end of the quarter. Fair value adjustment related to biological assets in Q1 2020 totalled NOK -614 million. The fair value adjustment for Q1 2019 was also negative, NOK -174 million. EBIT after fair value adjustment related to biological assets in Q1 2020 was NOK 220 million (Q1 2019: NOK 663 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 was negative at NOK -50 million in the quarter (Q1 2019: NOK 131 million). For Norskott Havbruk AS, fair value adjustment related to biological assets was negative and amounted to NOK -29 million in the quarter. The corresponding fair value adjustment for Q1 2019 was NOK -21 million. Unrealised foreign exchange losses linked to the extraordinary depreciation of the Norwegian krone in the quarter had a significantly negative impact on Pelagia’s earnings. Accounting policies specify that unrealised losses on forward contracts must be recognised consecutively. The accounting impact, however, is expected to be reversed as the goods are shipped to the customers. Pelagia’s underlying operations are satisfactory.

The Group’s net interest expense in Q1 2020 totalled NOK 73 million (Q1 2019: NOK 58 million). Net other financial expenses in Q1 2020 were NOK -80 million, of which the main share is unrealised foreign exchange losses. Net other financial expenses in Q1 2019 totalled NOK 8 million.

Profit before tax and fair value adjustment related to biological assets for Q1 2020 amounted to NOK 659 million, compared with NOK 939 million in Q1 2019.

Profit before tax in the quarter was NOK 17 million (Q1 2019: NOK 745 million). The Group reported a loss after tax of NOK 4 million (Q1 2019: profit of NOK 593 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).