Austevoll Seafood ASA

Earnings Release • Aug 24, 2017

Interim report Q2 and first half 2017

Interim report Q2 and first half 2017

Group operating revenue in Q2 2017 totalled NOK 5,019

million, compared with NOK 4,558 million in Q2 2016.

The increase in revenue was generated by the pelagic segment

as a result of increased quotas in Peru and an earlier start

for the first fishing season in 2017 when compared with the

same season in 2016. This gave rise to a higher sales volume

for fishmeal in Q2 2017 compared with Q2 2016.

EBITDA in Q2 2017 was NOK 1,322 million, up from NOK 985

million in the same quarter of 2016. The increase in EBITDA

comes from the operating segment for Atlantic

salmon/trout/whitefish and the pelagic segment. The increase

in EBITDA from salmon/trout/whitefish is attributed to the

very high prices realised for salmon and trout in the

quarter, in addition to the contribution to profit from

whitefish (Havfisk/Lerøy Norway Seafoods). Havfisk and Lerøy

Norway Seafoods were not part of the Group in Q2 2016. The

improvement in profit for the pelagic segment is attributed

to increased quotas and higher sales volume in Peru in Q2

2017 when compared with the same period in 2016.

EBIT before fair value adjustment related to biological

assets in Q2 2017 was NOK 1,090 million (Q2 2016: NOK 790

million). EBIT after fair value adjustment related to

biological assets in Q2 2017 was NOK 1,792 million (Q2 2016:

NOK 639 million). The fair value adjustment related to

biological assets for the quarter was positive at NOK 702

million (Q2 2016: NOK -150 million).

Income from associates in Q2 2017 totalled NOK 116 million

(Q2 2016: NOK 69 million). The increase in profit from

associates from Q2 2016 to Q2 2017 is attributed to Norskott

Havbruk AS, and as a result of good operations and very good

prices realised for salmon. The largest associates are

Norskott Havbruk AS (owner of the Scotland-based fish

farming company Scottish Sea Farms Ltd.) and Pelagia AS.

The Group's net interest expense in Q2 2017 totalled NOK 68

million (Q2 2016: NOK 58 million).

Profit before tax and fair value adjustment related to

biological assets for Q2 2017 amounted to NOK 1,104 million,

compared with NOK 810 million in Q2 2016.

Profit before tax for the quarter totalled NOK 1,817 million

(Q2 2016: NOK 659 million). Profit after tax was NOK 1,398

million (Q2 2016: NOK 504 million).

The Group is financially sound with an equity ratio of 54%.

The Group had net interest-bearing debt totalling NOK 5,169

million at the end of Q2 2017, compared with NOK 1,911

million at the same time last year.

Net interest-bearing debt at the end of Q2 2016 was impacted

by Lerøy Seafood Group ASA (LSG) carrying out a private

placement in June 2016 worth a total of NOK 2,075 million.

The proceeds from the placement were used to part-finance

LSG's acquisitions of Havfisk ASA and Lerøy Norway Seafoods

(former Norway Seafoods Group AS) in August 2016.

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).