Quarterly Report • Aug 18, 2016
Quarterly Report
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Financial report Q2 and H1 2016
| key figures for the group 03 | |
|---|---|
| Q2 2016 04 | |
| Operating segments 04 | |
| Cash Flows, Q2 2016 06 | |
| Financial information, H1 2016 07 | |
| Cash Flow, H1 201607 | |
| Balance sheet at 30 June 2016 07 | |
| Risks and uncertainties 07 | |
| Shareholders 08 | |
| Market and outlook 08 | |
| Income Statement 10 | |
| Condensed Statement of Comprehensive income 10 | |
| Statement of Financial Position 11 | |
| Condensed Statement of changes in equity 11 | |
| Cash flow statement 12 | |
| Note 1 Accounting policies 13 | |
| Note 2 Related party transactions 13 | |
| Note 3 Biological assets 13 | |
| Note 4 Operating segments 14 | |
| Note 5 Associates 15 | |
| Note 6 Issue of shares in Lerøy Seafood Group ASA 16 | |
| Note 7 List of the 20 biggest shareholders 16 | |
| Note 8 Information about acquisition in progress 17 | |
| Responsibility Statement 18 |
Austevoll Seafood ASA
Alfabygget N-5392 Storebø NORWAY
www.auss.no
Best quarter in the Group's history
Good contribution from fish farming
Late start-up of the first fishing season for anchoveta in Peru meant difficult fishing conditions
Seasonally lower activity within pelagic in Europe
Lerøy Seafood Group ASA (LSG) entered into an agreement in June to acquire 64.4% of Havfisk ASA and 73.6% of Norway Seafoods Group AS
In June, LSG carried out a private placement of 5 million new shares at a price of NOK 415.00 per share
AUSS paid a dividend of NOK 7.00 per share on 3 June 2016, in total NOK 1.4 billion
| All figures in NOK 1,000 | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
|---|---|---|---|---|---|
| Operating revenue | 4 558 229 | 4 107 801 | 8 970 468 | 7 653 630 | 15 273 494 |
| EBITDA | 984 919 | 777 727 | 1 870 663 | 1 294 692 | 2 244 076 |
| EBITDA % | 22 % | 19 % | 21 % | 17 % | 15 % |
| EBIT | 789 594 | 605 116 | 1 485 585 | 953 823 | 1 386 436 |
| Pre tax profit | 659 092 | 353 491 | 1 566 788 | 299 866 | 1 572 137 |
| Earnings per share (EPS) from continuing operations | 1.09 | 0.91 | 2.92 | 0.81 | 3.59 |
| Total assets | 28 039 359 | 23 246 239 | 28 039 359 | 23 246 239 | 25 793 964 |
| Equity | 16 004 776 | 12 132 248 | 16 004 776 | 12 132 248 | 13 610 808 |
| Equity ratio | 57 % | 52 % | 57 % | 52 % | 53 % |
| Net interest bearing debt (NIBD)/ | 1 911 029 | 4 559 598 | 1 911 029 | 4 559 598 | 4 838 160 |
Group operating revenue in Q2 2016 totalled NOK 4,558 million, compared with NOK 4,108 million in Q2 2015.
Compared with the same period in 2015, there has been an increase in revenue in Atlantic salmon/trout and a decline in revenue in the pelagic segment. This can mainly be attributed to the late start-up of the first fishing season in Peru and, as a result, restricted sales of finished products from this season compared with last year.
EBITDA in Q2 was NOK 985 million, up from NOK 778 million in the same quarter of 2015. The increase in EBITDA came within the Atlantic salmon/trout operating segment. There has been a decline in total EBITDA from the pelagic segment in Q2 2016 compared with the same quarter of 2015, mainly because of the late start-up of the fishing season in Peru.
EBIT before fair value adjustment of biomass in Q2 2016 was NOK 790 million (Q2 2015: NOK 605 million). EBIT after fair value adjustment of biomass in Q2 2016 was NOK 639 million (Q2 2015: NOK 380 million). The IFRS biomass adjustment for the quarter was negative at NOK 150 million (Q2 2015: NOK -225 million).
Income from associates for Q2 2016 totalled NOK 69 million (Q2 2015: NOK 46 million). 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 2016 totalled NOK 58 million (Q2 2015: NOK 60 million).
Profit before tax for the quarter totalled NOK 659 million (Q2 2015: NOK 353 million). Profit after tax was NOK 504 million (Q2 2015: NOK 231 million).
The Group is financially sound with an equity ratio of 57%.
The Group had net interest-bearing debt totalling NOK 1,911 million at 30 June 2016, compared with NOK 4,560 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 worth a total of NOK 2,075 million. A total of 5 million new LSG shares were issued at a price of NOK 415.00 per share. The proceeds from the share issue will be used to part-finance the acquisitions of 64.4% of Havfisk ASA and 73.6% of Norway Seafoods Group AS announced by LSG.
Austral Group S.A.A. (Austral) is involved in fishing, production of fishmeal and oil, and consumer products. Austral holds 6.87% 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 oil, while horse mackerel/mackerel is fished for consumer products.
The main fishing seasons for anchoveta in Central/North Peru run from April to July and November to January.
Following restructuring, fishmeal and oil are now produced in four factories, located in Coishco, Chancay, Pisco and Ilo. The company also has two factories producing consumer products that share premises with the fishmeal and oil factories in Coishco and Pisco.
The first fishing season for anchoveta in Central/North Peru started on 18 June, and the total quota for the season was set at 1,800,000 tonnes. The late start-up to the season meant that fishing was taking place in a period normally characterised by poor weather (winter), which among other things meant that some ports were closed for periods. Moreover, the fishing overlapped to some extent with the fish spawning. As a result of this, the first season finished as early as 27 July. The late start-up of the season meant that only a limited part of the quota was fished. At the end of the season, the company had fished approx. 55% of its total quota.
For the industry as a whole, approx. 50% of the quota had been fished by the end of the season.
The company has experienced low sales volumes in the quarter. As communicated in previous reporting, the company entered the second quarter with extremely low volumes in stock. Combined with the late start-up of the first fishing season of 2016, this also meant that extremely low volumes of fishmeal and oil from the current season were sold in the quarter.
In Q2 2016, operating revenue was NOK 55 million (Q2 2015: NOK 534 million) and EBITDA was NOK -28 million (Q2 2015: NOK 242 million).
Peru is one of the largest producers of fishmeal and oil in the world. Production volumes in Peru normally have a direct influence on the prices for fishmeal worldwide. Over the last two years, Peru has struggled with low quotas and difficult operating conditions.
Foodcorp Chile S.A (FC) is involved in fishing, consumer products, and production of fishmeal and oil. FC has a quota of 9.1% for horse mackerel in South Chile in addition to a quota for sardine/anchoveta.
All FC's facilities share the same premises in Coronel.
The main season for horse mackerel fishing runs 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.
At the end of the second quarter, the company had fished almost its entire quota for horse mackerel.
The coastal fleet has had a difficult season, something that has also affected the availability of raw materials in the quarter under review. The company has, however, had good access to squid, which has become an important raw material source for the company in a period of limited access to horse mackerel.
Some of the main markets for frozen horse mackerel continue to be affected by currency restrictions, which has a negative impact on the company's margins and increases funds tied up in finished product stocks. Market conditions for the remaining products – squid, fishmeal and oil – are good.
Operating revenue in Q2 2016 totalled NOK 151 million (Q2 2015: NOK 133 million) and EBITDA amounted to NOK 22 million (Q2 2015: NOK 40 million).
There has been a marked decline in fishing for horse mackerel in Chile since 2008/2009. International fish stock management was introduced in 2012, along with the first total quota. Responsibility for the scheme is assigned to the South Pacific Regional Fisheries Management Organization. The quotas established in subsequent years have seen only a minor increase, in order to build up the biomass. We consider that the current practice of conservative management lays the foundations for a sustainable biomass in the long term and, consequently, increased activities for the Group's business in Chile.
In Q2 2016, LSG reported operating revenue of NOK 4,262 million (Q2 2015: NOK 3,352 million) and EBITDA before fair value adjustment of biomass of NOK 876 million (Q2 2015: NOK 470 million).
The company has harvested 41,132 tonnes gutted weight of salmon and trout in the quarter, compared with 40,295 tonnes in the same quarter of 2015, representing a 2% increase in harvesting volume.
Historically high realised prices are the key driver for profit in Q2 2016. The spot price for salmon in Q2 2016 was NOK 63.50, up NOK 5.40 per kg compared with Q1 2016, and up by 70% compared with the same quarter in 2015. Prices realised by the company in Q2 2016 were negatively affected by a 31% contract share (salmon and trout), and by 25% of the company's harvested volume in the quarter being trout. Prices realised for trout remain lower than those for salmon, with prices realised for trout in the quarter more than NOK 5.00 lower than the company achieved for salmon.
Russia's ban on imports of Norwegian salmon and trout, introduced on 7 August 2014, led to a significant increase in exports to the main European markets through most of 2015. For 2015, salmon prices measured in Euros were marginally down, while the weak Norwegian krone resulted in a price increase measured in Norwegian krone. Towards the end of 2015, the growth in supply to the main markets came to a halt, and in Q2 2016 there has been a decline in available volume in the global salmon market. This, together with a high willingness to pay in the end market and the weak Norwegian krone, resulted in record-high prices for salmon in the quarter. Prices for trout also increased significantly in Q2 2016, though remain considerably below those for salmon.
Release from stock costs were significantly higher in Q2 2016 than Q2 2015, with higher feed costs the key driver. To optimise prices realised and reduce risk, in Q2 2016 the company harvested fish of lower average weight than those harvested in both Q1 2016 and Q2 2015. In addition, the company continues to suffer from the extremely high direct and indirect costs involved in complying with statutory limits for salmon lice. The company believes there is potential for considerable cost reduction from the current level and, as previously communicated, has implemented a number of measures intended to reduce production costs for salmon and trout. In that respect, it is pleasing to report that the number of treatments was significantly down in the first half of 2016 compared with the first half of 2015, and treatments in the second quarter were largely mechanical.
A challenging situation in parts of Central Norway in the second half of 2015 also negatively affected the cost level in Q2 2016. This, together with the company's decision to harvest earlier, and at lower average weights, has resulted in a cost level in Central Norway that the company considers to be higher than normal. As of today's date, release from stock costs in Central Norway are expected to be lower in the second half of 2016 than in the first half.
Release from stock costs for Lerøy Sjøtroll in Q2 2016 remain extremely high, but slightly lower than in Q1 2016. However, the positive development in production has continued, and costs in the coming quarters are now expected to fall as new generations start to be released.
LSG has a total of 146 licences: 26 in Troms, 57 in Central Norway and 63 in West Norway.
LSG has made significant investments in increased capacity for high-value processing (VAP) of salmon and trout in recent years, and LSG's marketing work, together with good national and international customers, has improved capacity utilisation. The company's strategy has included making significant investments in processing facilities, in order to be part of the 'revolution' in the distribution of fresh seafood. These investments involve what are known as 'fish-cuts': processing facilities where freshness, service and proximity to the customer are key. Today, LSG has a number of fish-cut facilities across Europe.
On 2 June 2016, LSG entered into an agreement to acquire 64.4% of the shares in Havfisk ASA and 73.6% of the shares in Norway Seafoods Group AS.
The acquisitions are subject to the approval of the Norwegian Ministry of Trade, Industry and Fisheries and the relevant competition authorities. The completion date for the transactions will depend on when the necessary regulatory approvals are in place.
Completion will trigger a mandatory offer of NOK 36.50 per share for the outstanding shares in Havfisk ASA. LSG also intends to make a voluntary offer of NOK 1.00 per share for the remaining outstanding shares in Norway Seafoods Group AS. The total consideration for 100% of the shares in the two companies in that case will be NOK 3.2 billion.
The Board of Directors is pleased that LSG has entered into an agreement to acquire the shares in question. The acquisition is in line with the Group's strategy and consolidates the Group's position as a fully integrated supplier of seafood.
BRBI owns two combined pelagic ring net/trawling vessels, each with 650 basic tonnes for ring nets and 1,425 trawling quota for blue whiting. In addition, the company owns a ring net vessel with 471 basic tonnes. In 2015, the company invested in a vessel to fish for snow crab. In addition, BRBI owns seven licences for farming Atlantic salmon/trout in Hordaland.
In Q2 2016, the BRBI segment reported operating revenue of NOK 210 million (Q2 2015: NOK 141 million) and EBITDA before fair value adjustment of biomass of NOK 105 million (Q2 2015: NOK 21 million).
As usual, the ring net vessels have had a low level of activity in the second quarter, but have fished parts of their North Sea herring quota. 2,341 tonnes of salmon and trout were harvested in Q2 2016, compared with 2,374 tonnes in Q2 2015. Very good prices for salmon were realised in the quarter. The snow crab-fishing vessel had a productive quarter, and there is good demand for its products.
In accordance with IFRS 11, AUSS's consolidated financial statements report the joint venture Pelagia AS as an associate. In the notes to the financial statements for this segment (Note 4) and in the description of the segment in the present report, the financial information comprises 50% of Pelagia AS's total revenue, EBITDA, EBIT and sales volume. This corresponds to AUSS's ownership interest in Pelagia AS.
Revenue for the quarter was NOK 533 million (Q2 2015: NOK 647 million) and EBITDA was NOK 60 million (Q2 2015: NOK 79 million).
Activity is normally lower in the second quarter than the first and, within consumer products, it is mainly North Sea herring that is sold. Total receipt of raw materials in the Group (100%) for fishmeal/FPC and oil production was approx. 211,000 tonnes for the quarter, compared with approx. 311,000 tonnes in the same quarter of 2015. The volume of raw materials received for consumer products was 51,000 tonnes, compared with 46,000 tonnes in 2015.
Cash flow from operating activities for Q2 2016 was NOK 1,032 million (Q2 2015: NOK 295 million). Cash flow from investing activities for Q2 2016 was NOK 22 million (Q2 2015: NOK -196 million). Cash flow from investing activities in Q2 2016 was affected by LSG selling 300,000 treasury shares in June, with total proceeds of NOK 124.5 million. In addition, the Group has received dividends from associates totalling NOK 227 million. Cash flow from financing activities for Q2 2016 was NOK 164 million (Q2 2015: NOK -21 million). Cash flow from financing activities in Q2 2016 was affected by LSG carrying out a private placement in June. A total of 5 million new LSG shares were issued at a price of NOK 415.00 per share, in total NOK 2,075 million. In addition, the Group paid dividends of NOK 1,695 million in Q2 2016, compared with NOK 684 million in Q2 2015. Apart from this, cash flow from financing activities mainly comprises payment of ordinary instalments and changes in short-term credits. Net change in cash for the Group in Q2 2016 was NOK 1,219 million (Q2 2015: NOK 77 million).
The Group's cash and cash equivalents at the end of Q2 2016 totalled NOK 4,979 million, compared with NOK 2,218 million at the end of Q2 2015.
The Group reported operating revenue of NOK 8,970 million for H1 2016 (H1 2015: NOK 7,654 million). EBITDA before fair value adjustment for biomass in H1 2016 was NOK 1,871 million (H1 2015: NOK 1,295 million).
The increase in turnover has been generated by activities within salmon and trout. The increase in EBITDA can also be attributed to the salmon and trout segment, and is mainly a result of very good prices realised for Atlantic salmon. EBIT before fair value adjustment for biomass in H1 2016 was NOK 1,486 million (H1 2015: NOK 954 million). The IFRS biomass adjustment in H1 2016 was positive at NOK 14 million. The corresponding IFRS biomass adjustment for the same period in 2015 was negative at NOK 593 million. EBIT after fair value adjustment of biomass in H1 2016 was NOK 1,499 million (H1 2015: NOK 360 million).
Income from associates for H1 2016 totalled NOK 165 million (H1 2015: NOK 102 million). The Group's net interest expense in H1 2016 totalled NOK -119 million (H1 2015: NOK -112 million).
Profit after tax for H1 2016 was NOK 1,197 million (H1 2015: NOK 205 million).
Cash flow from operating activities for H1 2016 was NOK 1,822 million (H1 2015: NOK 719 million). Tax payments in H1 2016 totalled NOK 217 million (H1 2015: NOK 379 million). Cash flow from investing activities for H1 2016 was NOK 828 million (H1 2015: NOK -493 million). The positive cash flow in H1 2016 came from AUSS's sale of LSG shares in the first quarter and LSG's sale of treasury shares in the second quarter. Cash flow from financing activities for H1 2016 was NOK -138 million (H1 2015: NOK -211 million). Cash flow from financing activities was impacted by LSG carrying out a private placement in June, in which a total of 5 million new shares in LSG were issued at a price of NOK 415.00 per share. The Group paid dividends of NOK 1,695 million in H1 2016, compared with NOK 684 million in the same period in 2015. Net change in cash for the Group in H1 2016 was NOK 2,512 million (H1 2015: NOK 15 million). The Group's cash and cash equivalents at 30 June 2016 totalled NOK 4,979 million, compared with NOK 2,218 million at 30 June 2015.
The Group had a balance sheet total at 30 June 2016 of NOK 28,039 million, compared with NOK 23,246 million at 30 June 2015.
The Group is financially sound, with book equity at 30 June 2016 of NOK 16,005 million, equivalent to an equity ratio of 57%. At 30 June 2015, the Group had book equity of NOK 12,132 million, equivalent to an equity ratio of 52%.
Net interest-bearing debt was NOK 1,911 million at 30 June 2016, compared with NOK 4,560 million at 30 June 2015.
The parent company is financially sound, with book equity of NOK 4,107 million (NOK 4,211 million) and net interestbearing debt of NOK 480 million (NOK 671 million) at 30 June 2016. The company has good access to external financing on competitive terms.
The Group's risk exposure is described in the Annual Report 2015. The Group's activities are essentially global and will always be impacted to some degree 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 normal. Although this situation may have negative effects on the real economy in most markets, we are confident that AUSS's core activities are 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.
Changes in fishing patterns and quota adjustments mean fluctuations in catch volumes from quarter to quarter and year to year, and hence in utilisation of the Group's production facilities. The seasonal fluctuations in catch volumes cause similar fluctuations in the quarterly key figures.
The majority of the Group's debt is at floating interest rates, but fixed-rate contracts have been entered into for approx. 16% 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 include forward contracts and multi-currency overdraft facilities. Furthermore, parts of the long-term debt are adjusted in relation to earnings in the same currency.
The company had 5,028 shareholders at 30 June 2016, compared with 4,913 at the start of the period.
The closing price of the share was NOK 68.00 at the start of Q2 2016 and NOK 69.75 at the end.
A list of the 20 largest shareholders can be found in Note 7.
The dividend of NOK 7.00 per share approved at the company's annual general meeting on 25 May 2016 was paid on 3 June 2016, in total NOK 1,419 million. This was higher than the company's dividend policy provides for and must be seen in the context of the wish for shareholders to benefit from the value generated in recent years, including by means of an extraordinary direct return.
In Europe, the second quarter is the low season for both production and sales. However, production has also been lower in Europe in the first half of the year compared with the same period last year, due to a decline in quotas for important fish species normally used for production of fishmeal and oil. The third quarter is high season in market terms, because of sales to fish feed producers. Price trends for fishmeal in Europe have been stable to rising in 2016. The quota set for the first fishing season for anchoveta in Peru was 1.8 million tonnes. The season started unusually late this year, on 18 June, and finished on 27 July, at which point approx. 50% of the total quota had been fished. Price trends for fishmeal initially fell after the fishing quota for Peru was announced, but there was a rising trend through the season. Realised prices for fishmeal FOB Peru (super prime) are now USD 1,850, while the CIF Hamburg prices for fishmeal (standard 64%/65%) are USD 1,580.
The Group's production of consumer products takes place in Europe and South America. In Europe, the season for herring, mackerel and capelin is, as normal, in the period January to April, and the season for North Sea herring from May onwards. The first half of the year is the season for horse mackerel in South America. The ban on imports into Russia, introduced on 7 August 2014, and the subsequent introduction of import quotas and currency restrictions on sales to Nigeria have required the companies to actively seek alternative markets for those products traditionally sold mainly to Russia and Nigeria. The weak Norwegian krone has made Norwegian seafood products more competitive globally. However, we are also aware that the local currencies in some of our traditional herring markets (including Ukraine) are falling against the USD, resulting in higher prices for consumers in the markets concerned. Despite this, we are confident that the Group's products will fare well in competition with alternative sources of protein in these markets too.
At the time of writing, there appear to be very limited opportunities for growth in the global supply of salmon and trout in the next few years. In light of the market prospects and the segment's potential for improvements in own production, the outlook is positive.
The Group is financially sound, has shown good development and currently has a strong position on a number of seafood markets worldwide. 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.
Given the prevailing framework conditions, the Board of Directors is essentially satisfied with the Group's results for Q2 2016. The Group's strong position within the global seafood business gives grounds for a positive outlook for the Group's future development. The Board of Directors currently expects a better result in the second half of 2016 than the Group achieved in the second half of 2015.
Storebø, 17 August 2016 The Board of Directors of Austevoll Seafood ASA
Chairman of the Board
Deputy Chairman of the Board
CEO
| All figures in NOK 1.000 | Note | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
|---|---|---|---|---|---|---|
| Operating revenue | 4 | 4 558 229 | 4 107 801 | 8 970 468 | 7 653 630 | 15 273 494 |
| Raw material and consumables used | 2 648 753 | 2 426 531 | 5 239 069 | 4 644 435 | 9 373 171 | |
| Salaries and personnel expenses | 437 288 | 406 176 | 926 789 | 814 218 | 1 797 059 | |
| Other operating expenses | 487 269 | 497 367 | 933 947 | 900 285 | 1 859 188 | |
| Operating profit before depreciation (EBITDA) | 984 919 | 777 727 | 1 870 663 | 1 294 692 | 2 244 076 | |
| Depreciation and amortisation | 196 846 | 174 640 | 388 558 | 345 047 | 749 754 | |
| Impairment | -1 521 | -2 029 | -3 480 | -4 178 | 107 886 | |
| EBIT before fair value biomass adjustment | 789 594 | 605 116 | 1 485 585 | 953 823 | 1 386 436 | |
| Fair value adjustment biomass | 3 | -150 187 | -225 156 | 13 641 | -593 378 | 246 567 |
| Operating profit | 639 407 | 379 960 | 1 499 226 | 360 445 | 1 633 003 | |
| Income from associated companies | 69 093 | 45 725 | 165 462 | 101 668 | 264 279 | |
| Net interest expenses | -58 381 | -60 141 | -118 568 | -112 470 | -223 215 | |
| Net other financial items (incl. agio/disagio) | 8 973 | -12 053 | 20 668 | -49 777 | -101 930 | |
| Profit before tax | 659 092 | 353 491 | 1 566 788 | 299 866 | 1 572 137 | |
| Income tax expenses | -154 933 | -122 452 | -369 975 | -95 139 | -289 031 | |
| Net profit | 504 159 | 231 039 | 1 196 813 | 204 727 | 1 283 106 | |
| Profit to non-controlling interest | 285 833 | 47 387 | 609 957 | 41 674 | 560 863 | |
| Profit to controlling interests | 218 326 | 183 652 | 586 856 | 163 053 | 722 243 | |
| Earnings per share (EPS) | 1.09 | 0.91 | 2.92 | 0.81 | 3.59 | |
| Diluted EPS | 1.09 | 0.91 | 2.92 | 0.81 | 3.59 |
| All figures in NOK 1.000 | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
|---|---|---|---|---|---|
| Net earnings in the period | 504 159 | 231 039 | 1 196 813 | 204 727 | 1 283 106 |
| Other comprehensive income | |||||
| Currency translation differences | -20 008 | -12 461 | -213 716 | 180 862 | 419 618 |
| Other comprehensive income from associated companies | - | - | |||
| Cash flow hedges | 3 248 | 23 764 | -13 310 | 71 756 | 45 127 |
| Change in value available for sale financial assets | - | - | |||
| Others incl. tax effect | -2 255 | 2 748 | 7 051 | -1 143 | -14 552 |
| Total other comprehensive income | -19 015 | 14 051 | -219 975 | 251 475 | 450 193 |
| Comprehensive income in the period | 485 144 | 245 090 | 976 838 | 456 202 | 1 733 299 |
| Allocated to; | |||||
| Minority interests | 218 426 | 61 828 | 473 009 | 58 834 | 616 348 |
| Majority interests | 266 718 | 183 262 | 503 829 | 397 368 | 1 116 951 |
| All figures in NOK 1.000 | Note | 30.06.2016 | 30.06.2015 | 31.12.2015 |
|---|---|---|---|---|
| Assets | ||||
| Intangible assets | 8 049 524 | 7 539 115 | 8 115 351 | |
| Vessels | 905 814 | 678 984 | 949 354 | |
| Property, plant and equipment | 4 584 406 | 4 405 198 | 4 581 699 | |
| Investments in associated companies | 5 | 1 602 057 | 1 837 114 | 1 766 591 |
| Investments in other shares | 113 902 | 34 321 | 33 428 | |
| Other long-term receivables | 55 997 | 51 320 | 61 159 | |
| Total non-current assets | 15 311 700 | 14 546 052 | 15 507 582 | |
| Inventories | 3 | 5 030 351 | 4 240 684 | 5 539 913 |
| Accounts receivable | 1 971 350 | 1 580 170 | 1 655 026 | |
| Other current receivables | 747 151 | 661 146 | 621 048 | |
| Cash and cash equivalents | 4 978 807 | 2 218 187 | 2 470 395 | |
| Total current assets | 12 727 659 | 8 700 187 | 10 286 382 | |
| Total assets | 28 039 359 | 23 246 239 | 25 793 964 | |
| Equity and liabilities | ||||
| Share capital | 101 359 | 101 359 | 101 359 | |
| Own shares | -35 306 | -35 306 | -35 306 | |
| Share premium | 3 713 549 | 3 713 549 | 3 713 549 | |
| Retained earnings and other reserves | 4 501 788 | 4 536 845 | 5 256 429 | |
| Non-controlling interests | 7 723 386 | 3 815 801 | 4 574 777 | |
| Total equity | 16 004 776 | 12 132 248 | 13 610 808 | |
| Deferred tax liabilities | 2 745 025 | 2 245 941 | 2 731 728 | |
| Pensions and other obligations | 170 592 | 131 022 | 154 385 | |
| Borrowings | 4 973 232 | 5 224 786 | 5 322 635 | |
| Other long-term liabilities | 24 605 | 13 350 | 29 693 | |
| Total non-current liabilities | 7 913 454 | 7 615 099 | 8 238 441 | |
| Short term borrowings | 1 518 495 | 807 846 | 1 078 286 | |
| Overdraft facilities | 373 504 | 745 153 | 877 941 | |
| Account payable | 1 185 630 | 1 073 648 | 1 004 075 | |
| Other current liabilities | 1 043 500 | 872 245 | 984 413 | |
| Total current liabilities | 4 121 129 | 3 498 892 | 3 944 715 | |
| Total liabilities | 12 034 583 | 11 113 991 | 12 183 156 | |
| Total equity and liabilities | 28 039 359 | 23 246 239 | 25 793 964 | |
| NIBD | 1 911 029 | 4 559 598 | 4 838 160 | |
| Equity ratio | 57 % | 52 % | 53 % |
| All figures in NOK 1.000 | 30.06.2016 | 30.06.2015 | 31.12.2015 |
|---|---|---|---|
| Equity period start | 13 610 808 | 12 360 106 | 12 360 106 |
| Comprehensive income in the period | 976 838 | 456 202 | 1 733 299 |
| Dividends | -1 694 645 | -684 060 | -684 061 |
| Business combinations/acquisition | - | - | 201 464 |
| Transactions with non-controlling interest | 3 111 775 | - | - |
| Effect option programme | - | - | - |
| Other | - | - | - |
| Total changes in equity in the period | 2 393 968 | -227 858 | 1 250 702 |
| Equity at period end | 16 004 776 | 12 132 248 | 13 610 808 |
| All figures in NOK 1.000 | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Profit before income taxes | 659 092 | 353 492 | 1 566 788 | 299 867 | 1 572 137 |
| Fair value adjustment of biological assets | 150 187 | 225 156 | -13 641 | 593 378 | -246 567 |
| Taxes paid in the period | -36 419 | -235 845 | -216 935 | -379 221 | -427 611 |
| Depreciation and amortisation | 196 846 | 174 640 | 388 557 | 345 047 | 749 754 |
| Impairments | -1 521 | -2 029 | -3 480 | -4 178 | 107 886 |
| Associated companies - net | -69 093 | -45 725 | -165 462 | -101 668 | -264 279 |
| Interest expense | 68 172 | 69 245 | 137 109 | 130 578 | 261 532 |
| Interest income | -9 791 | -9 104 | -18 541 | -18 108 | -38 317 |
| Change in inventories | 180 172 | -151 814 | 523 204 | -96 261 | -557 886 |
| Change in receivables | -204 729 | -29 924 | -442 428 | 131 734 | 94 476 |
| Change in payables | 50 509 | 32 622 | 181 555 | -110 912 | -181 541 |
| Other operating cash flow incl currency exchange | 49 087 | -86 012 | -114 358 | -71 014 | 141 544 |
| Net cash flow from operating activities | 1 032 512 | 294 702 | 1 822 368 | 719 242 | 1 211 128 |
| Cash flow from investing activities | |||||
| Purchase of intangible and fixed assets | -273 200 | -219 451 | -431 193 | -408 788 | -1 125 674 |
| Purchase of shares and equity investments | -80 475 | -536 | -108 968 | -129 986 | -149 080 |
| Proceeds from sale of fixed assets/equity investments | 132 149 | -1 416 | 1 119 589 | 4 938 | 101 692 |
| Cash inflow from business combinations | - | - | - | 7 732 | 12 858 |
| Dividend received | 227 000 | - | 227 000 | - | 174 000 |
| Interest income | 9 791 | 9 104 | 18 541 | 18 108 | 38 317 |
| Other investing activities - net | 6 755 | 15 802 | 3 008 | 15 312 | 10 141 |
| Net cash flow from investing activities | 22 020 | -196 497 | 827 977 | -492 684 | -937 746 |
| Cash flow from financing activities | |||||
| Proceeds from new long term debt | 359 291 | 751 158 | 1 048 370 | 849 438 | 1 379 786 |
| Repayment of long term debt | -405 825 | -272 051 | -896 839 | -427 656 | -734 557 |
| Change in short term debt | -76 264 | 256 055 | -504 437 | 181 833 | 275 754 |
| Interest paid | -69 793 | -72 240 | -142 502 | -130 654 | -255 959 |
| Dividends paid | -1 694 645 | -684 060 | -1 694 645 | -684 060 | -684 061 |
| Other finance cash flow - net | 2 051 656 | - | 2 051 656 | - | |
| Net cash flow from financing activities | 164 420 | -21 138 | -138 397 | -211 099 | -19 037 |
| Net change in cash and cash equivalents | 1 218 952 | 77 067 | 2 511 948 | 15 459 | 254 345 |
| Cash, and cash equivalents at start of period | 3 752 486 | 2 151 982 | 2 470 222 | 2 198 148 | 2 198 148 |
| Exchange gains/losses (-) | 7 209 | -10 862 | -3 523 | 4 580 | 17 727 |
| Cash and cash equivalents at period end | 4 978 647 | 2 218 187 | 4 978 647 | 2 218 187 | 2 470 220 |
This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the related standard for interim financial reporting (IAS 34). 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 results. The interim report has been prepared in accordance with the same policies applied to the most recent annual report, but does not contain all the information and notes required for an annual report. This report must therefore be read in the context of the company's most recent annual report (2015).
There were related party transactions in Q2 2016. Related party transactions take place on market terms, and the relevant types of transactions are described in detail in the Annual Report 2015.
The Group recognises and measures biological assets (fish in sea) at fair value. When estimating fair value, the price is adjusted for quality differences (superior, ordinary and process) and logistics costs. The volume is adjusted for gutting loss. Fair value of fish in sea with an average weight below 4 kg is adjusted based on the stage reached in the growth cycle. The value is not adjusted to a lower amount than historical cost, unless a loss is expected on future sales. For roe, fry, smolt and cleaner fish, historical cost is assumed to be the best estimate of fair value. The fair value adjustment for biomass recognised in the income statement includes change in unrealised gain/loss on financial sales and purchase contracts (derivatives) with Fish Pool, an international regulated marketplace for buying and selling financial salmon contracts. Fish Pool contracts are treated as financial instruments on the balance sheet, with unrealised gain recognised as other current receivables and unrealised loss as other current debt.
| Carrying amount of biological assets | 30.06.2016 | 30.06.2015 | 31.12.2015 | ||
|---|---|---|---|---|---|
| Fish in sea at historic cost | 2 693 042 | 2 693 583 | 3 105 620 | ||
| FV adjustment fish in sea | 996 661 | 222 590 | 971 070 | ||
| Fair value fish in sea | 3 689 702 | 2 916 174 | 4 076 689 | ||
| Fry, brood, smolt and cleaning fish | 277 472 | 210 356 | 244 141 | ||
| Carrying amount of biological assets | 3 967 174 | 3 126 530 | 4 320 830 | ||
| Total biological assets at historic cost | 2 970 514 | 2 903 939 | 3 349 760 | ||
| FV adjustment on biological assets | 996 661 | 222 590 | 971 070 | ||
| Carrying amount of biological assets | 3 967 174 | 3 126 530 | 4 320 830 | ||
| Fair value adjustment | Q2 2016 | Q2 2015 | YTD 2016 | YTD 2015 | 2015 |
| Change IFRS adj. biolocigal assets | -148 620 | -213 281 | 25 591 | -561 955 | 186 524 |
| Change IFRS adj. derivatives | 1 157 | -2 058 | -1 545 | -1 518 | 1 984 |
| FV adj. biological assets | -147 464 | -215 339 | 24 045 | -563 473 | 188 508 |
| Volume of fish in sea (LWT) | Q2 2016 | Q2 2015 | YTD 2016 | YTD 2015 | 2015 |
| Volume at beginning of period | 96 097 | 99 535 | 108 270 | 107 505 | 107 505 |
| Growht during the period | 35 627 | 39 902 | 69 812 | 74 316 | 191 731 |
| Harvested volume during the period | -50 024 | -48 776 | -96 382 | -91 160 | -190 966 |
| Volume at end of period | 81 700 | 90 661 | 81 700 | 90 661 | 108 270 |
| Fish > 4kg | 13 327 | 16 003 | 13 327 | 16 003 | 31 686 |
The figures for harvested volume and growth in the table above have been estimated on the basis of gutted weight (GWT) and converted to live weight (LWT). The gutting loss ratios for salmon and trout applied in this conversion are 17% and 20% respectively. The table includes salmon and trout.
| Carrying amount of biological assets | 30.06.2016 | 30.06.2015 | 2015 | ||
|---|---|---|---|---|---|
| Fish in sea at historic cost | 169 879 | 138 772 | 172 475 | ||
| FV adjustment fish in sea | 70 778 | -6 782 | 81 182 | ||
| Fair value fish in sea | - | - | 240 657 | 131 990 | 253 657 |
| Fry, brood and smolt | - | - | - | ||
| Carrying amount of biological assets | - | - | 240 657 | 131 990 | 253 657 |
| Fair value adjustment | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
| Change IFRS adj. biolocigal assets | -2 723 | -9 817 | -10 404 | -29 905 | 58 059 |
| Change IFRS adj. derivatives | - | - | - | - | - |
| FV adj. biological assets | -2 723 | -9 817 | -10 404 | -29 905 | 58 059 |
| Volume of fish in sea (LWT) | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2015 |
| Volume at beginning of period | 5 357 | 5 320 | 5 755 | 5 893 | 5 893 |
| Growht during the period | 2 099 | 876 | 3 792 | 2 682 | 8 947 |
| Harvested volume during the period | -2 669 | -2 374 | -4 763 | -4 753 | -9 085 |
| Volume at end of period | 4 787 | 3 822 | 4 784 | 3 822 | 5 755 |
| Fish > 4kg | - | - | 3 421 |
The figures for harvested volume and growth in the table above have been estimated on the basis of gutted weight (GWT) and converted to live weight (LWT). The gutting loss ratios for salmon and trout applied in this conversion are 17% and 20% respectively.
| Pelagia AS * | ||||||||
|---|---|---|---|---|---|---|---|---|
| Lerøy | Austral | Foodcorp | Br. | (50 % of | Total Group | |||
| All figures in | Seafood | Group | Chile | Birkeland | Other/ | figures and | incl. Pelagia | |
| NOK 1.000 | Group ASA | S.A.A | S.A | AS | eliminations | Total Group | volumes) | AS (50 %) |
| Q2 2016 | ||||||||
| Operating revenue | 4 261 897 | 54 964 | 151 000 | 210 425 | -120 057 | 4 558 229 | 532 911 | 5 091 140 |
| EBITDA | 875 633 | -28 093 | 21 685 | 104 594 | 11 100 | 984 919 | 60 124 | 1 045 043 |
| EBITDA % | 21 % | -51 % | 14 % | 50 % | 22 % | 11 % | 21 % | |
| EBIT ex. Impairment | 760 443 | -71 619 | 5 608 | 87 939 | 5 702 | 788 073 | 39 910 | 827 983 |
| EBIT | 760 443 | -70 097 | 5 608 | 87 939 | 5 701 | 789 594 | 39 910 | 829 504 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 41 132 | 2 341 | 43 473 | 43 473 | ||||
| Fishmeal/oil/FPC (tonnes) | 2 352 | 5 590 | 7 942 | 19 300 | 27 242 | |||
| Frozen fish (tonnes) | 27 | 6 727 | 6 754 | 20 178 | 26 932 | |||
| Canning (cases) | - | 6 645 | 6 645 | 6 645 | ||||
| Q2 2015 (restated) | ||||||||
| Operating revenue | 3 351 660 | 534 083 | 133 423 | 140 575 | -51 940 | 4 107 801 | 646 713 | 4 754 514 |
| EBITDA | 470 255 | 241 572 | 39 556 | 20 783 | 5 561 | 777 727 | 79 454 | 857 181 |
| EBITDA % | 14 % | 45 % | 30 % | 15 % | 19 % | 12 % | 18 % | |
| EBIT ex. Impairment | 370 054 | 202 418 | 24 197 | 6 195 | 223 | 603 087 | 54 898 | 657 985 |
| EBIT | 370 054 | 204 447 | 24 197 | 6 195 | 223 | 605 116 | 54 898 | 660 014 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 40 295 | 2 374 | 42 669 | 42 669 | ||||
| Fishmeal/oil/FPC (tonnes) | 32 558 | 1 018 | 33 576 | 26 132 | 59 708 | |||
| Frozen fish (tonnes) | - | 4 208 | 4 208 | 22 689 | 26 897 | |||
| Canning (cases) | 102 255 | 4 185 | 106 440 | 106 440 | ||||
| Pelagia AS * | ||||||||
|---|---|---|---|---|---|---|---|---|
| Lerøy | Austral | Foodcorp | Br. | (50 % of | Total Group | |||
| All figures in NOK 1.000 |
Seafood Group ASA |
Group S.A.A |
Chile S.A |
Birkeland AS |
Other/ eliminations |
Total Group | figures and volumes) |
incl. Pelagia AS (50 %) |
| H1 2016 | ||||||||
| Operating revenue | 8 077 555 | 476 788 | 254 636 | 388 934 | -227 445 | 8 970 468 | 1 165 376 | 10 135 844 |
| EBITDA | 1 572 988 | 49 742 | 41 167 | 191 443 | 15 323 | 1 870 663 | 123 489 | 1 994 152 |
| EBITDA % | 19 % | 10 % | 16 % | 49 % | 21 % | 11 % | 20 % | |
| EBIT ex. Impairment | 1 344 905 | -33 999 | 7 987 | 158 524 | 4 688 | 1 482 105 | 83 300 | 1 565 405 |
| EBIT | 1 344 905 | -30 518 | 7 987 | 158 524 | 4 688 | 1 485 586 | 83 300 | 1 568 886 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 79 295 | 4 059 | 83 354 | 83 354 | ||||
| Fishmeal/oil/FPC (tonnes) | 30 067 | 9 151 | 39 218 | 32 022 | 71 240 | |||
| Frozen fish/fresh (tonnes) | 72 | 10 651 | 10 723 | 60 361 | 71 084 | |||
| Canning (cases) | 26 185 | 15 398 | 41 583 | 41 583 | ||||
| H1 2015 | ||||||||
| Operating revenue | 6 630 187 | 697 138 | 207 418 | 252 925 | -134 038 | 7 653 630 | 1 282 697 | 8 936 327 |
| EBITDA | 971 090 | 248 845 | 38 794 | 36 262 | -299 | 1 294 692 | 145 407 | 1 440 099 |
| EBITDA % | 15 % | 36 % | 19 % | 14 % | 17 % | 11 % | 16 % | |
| EBIT ex. Impairment | 773 957 | 170 782 | 7 803 | 7 394 | -10 290 | 949 646 | 104 882 | 1 054 528 |
| EBIT | 773 957 | 174 960 | 7 803 | 7 394 | -10 290 | 953 824 | 104 882 | 1 058 706 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 75 318 | 4 321 | 79 639 | 79 639 | ||||
| Fishmeal/oil/FPC (tonnes) | 39 254 | 2 493 | 41 747 | 43 517 | 85 264 | |||
| Frozen fish/fresh (tonnes) | 26 | 6 308 | 6 334 | 55 212 | 61 546 | |||
| Canning (cases) | 239 397 | 10 422 | 249 819 | 249 819 | ||||
| 2015 | ||||||||
| Operating revenue | 13 484 931 | 1 091 246 | 490 263 | 520 433 | -313 379 | 15 273 494 | 3 045 981 | 18 319 475 |
| EBITDA | 1 813 868 | 272 637 | 46 747 | 106 398 | 4 425 | 2 244 075 | 358 710 | 2 602 785 |
| EBITDA % | 13 % | 25 % | 10 % | 20 % | 15 % | 12 % | 14 % | |
| EBIT ex. Impairment | 1 379 952 | 108 983 | -17 596 | 39 276 | -16 294 | 1 494 321 | 274 191 | 1 768 512 |
| EBIT | 1 379 952 | 117 305 | -133 804 | 39 276 | -16 293 | 1 386 436 | 274 191 | 1 660 627 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 157 697 | 7 746 | 165 443 | 165 443 | ||||
| Fishmeal/oil/FPC (tonnes) | 63 070 | 12 107 | 75 177 | 97 425 | 172 602 | |||
| Frozen fish/fresh (tonnes) | 26 | 11 968 | 11 994 | 156 399 | 168 393 | |||
| Canning (cases) | 351 543 | 23 609 | 375 152 | 375 152 | ||||
| Total investment | 1 602 057 | 1 837 114 | 1 766 591 | |||
|---|---|---|---|---|---|---|
| Total income from ass.companies | 69 093 | 45 724 | 165 462 | 101 668 | 264 279 | |
| Others | 5 187 | 5 932 | 8 657 | 9 666 | 19 549 | |
| Pelagia AS | 50.0 % | 28 436 | 33 551 | 62 958 | 69 633 | 203 322 |
| Norskott Havbruk AS | 50.0 % | 35 470 | 6 241 | 93 847 | 22 369 | 41 408 |
| Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | 2 015 |
In a private placement on 2 June, LSG issued 5 million new shares at a price of NOK 415.00 per share. The total number of shares in LSG following the new issue is 59,577,368. AUSS owns 31,394,281 shares in LSG, equivalent to an ownership interest of 52.7%.
| Investor | Number of shares | % of top 20 | % of total |
|---|---|---|---|
| LACO A/S | 112 605 876 | 76.18 % | 55.55 % |
| STATE STREET BANK & TRUST CO. | 5 676 191 | 3.84 % | 2.80 % |
| STATE STREET BANK AND TRUST CO. | 4 252 417 | 2.88 % | 2.10 % |
| PARETO AKSJE NORGE | 2 965 556 | 2.01 % | 1.46 % |
| FOLKETRYGDFONDET | 1 938 691 | 1.31 % | 0.96 % |
| OM HOLDING AS | 1 881 850 | 1.27 % | 0.93 % |
| MITSUI AND CO LTD | 1 782 236 | 1.21 % | 0.88 % |
| SKANDINAVISKA ENSKILDA BANKEN AB | 1 727 989 | 1.17 % | 0.85 % |
| BR.BIRKELAND AS | 1 722 223 | 1.17 % | 0.85 % |
| THE BANK OF NEW YORK MELLON | 1 614 190 | 1.09 % | 0.80 % |
| PACTUM AS | 1 600 000 | 1.08 % | 0.79 % |
| DANSKE INVEST NORSKE INSTIT. II. | 1 570 082 | 1.06 % | 0.77 % |
| JP MORGAN BANK LUXEMBOURG S.A | 1 376 696 | 0.93 % | 0.68 % |
| MP PENSJON PK | 1 178 130 | 0.80 % | 0.58 % |
| JPMORGAN CHASE BANK. N.A LONDON | 1 119 749 | 0.76 % | 0.55 % |
| CITIBANK. N.A. | 1 050 672 | 0.71 % | 0.52 % |
| JP MORGAN CHASE BANK. NA | 995 000 | 0.67 % | 0.49 % |
| STATE STREET BANK AND TRUST CO | 929 053 | 0.63 % | 0.46 % |
| PARETO AS | 921 000 | 0.62 % | 0.45 % |
| THE NORTHERN TRUST CO. | 901 879 | 0.61 % | 0.44 % |
| Total number owned by top 20 | 147 809 480 | 100 % | 72.91% |
| Total number of shares | 202 717 374 | 100 % |
The 2nd of June 2016 Lerøy Seafood Group ASA (LSG) entered into an agreement with Aker Capital AS and Aker Capital II AS to purchase 53,501,793 shares in Havfisk ASA and 62,293,254 shares in Norway Seafoods Group AS. LSG has also agreed to purchase an additional 1,026,632 shares in Havfisk ASA from Fausken Invest AS. The purchases represent 64.4% and 73.6% of the total share capital in Havfisk ASA and Norway Seafoods Group AS respectively and comprise Aker Capital AS', Aker Capital II AS' and Fausken Invest AS' entire shareholdings in the companies.
These purchases will significantly strengthen LSG`s position within the European white fish segment and secure access to more than 100,000 tonnes of white fish raw material. Through LSG's well-established integrated value chain for salmonids, there is a considerable potential to create value by further developing the market for white fish and by creating the leading fresh/refreshed seafood supplier with a complete palette of seafood products.
LSG has agreed upon a purchase price of NOK 36.50 per share of Havfisk ASA and NOK 1.00 per share of Norway Seafoods Group AS. The transaction agreement is subject to customary conditions and approvals. The purchase price for the shares shall be paid in cash after all necessary regulatory approvals are received.
LSG is still awaiting approval from The Norwegian Ministry of Trade, Industry and Fisheries, and the relevant competition authorities before the transactions can be completed. The completion date of the transactions will be dependent on the necessary regulatory approvals.
Completion of the purchase will trigger a mandatory offer for the remaining shares in Havfisk ASA at NOK 36.50 per share. Provided completion of the transaction, LSG also intends to make an offer for the remaining shares in Norway Seafoods Group AS at NOK 1.00 per share. The total combined consideration for 100% of the shares in both companies will be NOK 3.2 billion.
When the transactions are completed, LSG must remain majority owner in Havfisk ASA under existing exemptions from Norwegian regulations related to ownership of trawler licenses / catch quotas.
As part of financing the acquisitions, LSG sold 300,000 own shares and contemplated a private placement of 5,000,000 new shares. The two transactions have raised NOK 2.2 billion in cash. Additional financing for the transaction is contemplated through new debt.
We declare that, to the best of our knowledge, the half-yearly accounts for the period 1 January to 30 June 2016 have been prepared in accordance with IAS 34 – Interim reports, and that the information in the accounts provides a correct 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 most central risk and uncertainty factors faced by the Group during the next accounting period and of significant transactions with closely related parties.
Storebø, 17 August 2016 The Board of Directors of Austevoll Seafood ASA
Chairman of the Board
Deputy Chairman of the Board
President and CEO
www.auss.no
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