Quarterly Report • May 12, 2016
Quarterly Report
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Financial Report Q1 2016
Austevoll Seafood ASA
Alfabygget N-5392 Storebø NORWAY
www.auss.no
| Key figures for the Group 04 | |
|---|---|
| Q1 2016 05 | |
| Operating segments 05 | |
| Cash flows Q1 2016 07 | |
| Balance sheet as at 31 March 2016 07 | |
| Risks and uncertainties 07 | |
| Shareholders 08 | |
| Market and outlook 08 | |
| Income Statement 09 | |
| Condensed Statement of Comprehensive income 09 | |
| Statement of Financial Position 10 | |
| Condensed Statement of changes in equity 10 | |
| Cash flow statement 11 | |
| Note 1 Accounting policies 12 | |
| Note 2 Related party transactions 12 | |
| Note 3 Biological assets 12 | |
| Note 4 Operating segments 14 | |
| Note 5 Associates 15 | |
| Note 6 Sale of shares in Lerøy Seafood Group ASA 15 | |
| Note 7 List of the 20 largest shareholders 16 |
Good prices for Atlantic salmon throughout the quarter
Good pelagic season in the North Atlantic
Seasonal low activity in South America
AUSS has sold 2,750,000 shares in Lerøy Seafood Group ASA and, following this transaction, now owns 57.52% of the company
The Board of Directors recommends a dividend payment of NOK 7.00 per share for 2015.
| (restated) | |||
|---|---|---|---|
| All figures in NOK 1,000 | Q1 2016 | Q1 2015 | 2015 |
| Operating revenue | 4 412 239 | 3 545 829 | 15 273 494 |
| EBITDA | 885 744 | 516 965 | 2 244 076 |
| EBITDA % | 20 % | 15 % | 15 % |
| EBIT | 695 991 | 348 707 | 1 386 436 |
| Pre tax profit | 907 696 | -53 625 | 1 572 137 |
| Earnings per share (EPS) from continuing operations | 1.83 | -0.10 | 3.59 |
| Total assets | 26 951 445 | 23 240 672 | 25 793 964 |
| Equity | 15 043 229 | 12 571 290 | 13 610 808 |
| Equity ratio | 56 % | 54 % | 53 % |
| Net interest bearing debt (NIBD) | 3 252 656 | 3 967 138 | 4 838 160 |
The Group reported operating revenue of NOK 4,412 million in the quarter, compared with NOK 3,546 million in Q1 2015.
There has been an increase in revenue in both Atlantic salmon/ trout and in the pelagic segment compared with the same period in 2015.
EBITDA in Q1 was NOK 886 million, up from NOK 517 million in the same quarter of 2015. The increase in EBITDA came within both operating segments: Atlantic salmon/trout and the pelagic segment.
EBIT before value adjustment of biomass in Q1 2016 was NOK 696 million (Q1 2015: NOK 349 million). EBIT after value adjustment of biomass in Q1 2016 was NOK 860 million (Q1 2015: NOK -20 million). The IFRS biomass adjustment for the quarter was positive at NOK 164 million (Q1 2015: NOK -368 million).
Income from associates for Q1 2016 totalled NOK 96 million (Q1 2015: NOK 56 million). The largest associates are Norskott Havbruk AS (owner of the Scottish fish-farming company Scottish Sea Farms Ltd.) and Pelagia AS.
The Group's net interest expense in Q1 2016 totalled NOK 60 million (Q1 2015: NOK 52 million).
Profit before tax and IFRS biomass adjustment for Q1 2016 amounted to NOK 724 million, compared with NOK 314 million in Q1 2015.
Profit before tax for the quarter totalled NOK 908 million (Q1 2015: NOK -54 million). Profit after tax was NOK 693 million (Q1 2015: NOK -26 million).
The Group is financially sound with an equity ratio of 56 %.
The Group had net interest-bearing debt totalling NOK 3,253 million at the end of Q1 2016, compared with NOK 3,967 million at the end of the same quarter last year.
Net interest-bearing debt at the end of March 2016 was affected by the parent company, AUSS, having sold 2,750,000 shares in Lerøy Seafood Group ASA in March. The shares were sold for a price of NOK 355.00 per share, in total NOK 976 million. In a stock exchange announcement of 18 March 2016, the Board of Directors proposed that the net proceeds from the sale of the shares be distributed as dividends, with the proposed dividend per share for 2015 being NOK 7.00.
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, and horse mackerel/mackerel is fished for consumer products.
The main fishing seasons for anchoveta in Central/North Peru are 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 fish oil factories in Coishco and Pisco.
The second fishing season for anchoveta in Central/North Peru started on 17 November, and the total quota for the season was set at 1,110,000 tonnes. Austral fished approx. 77% of its quota in Q4 2015 and the remaining quota was fished in January 2016. Activity was otherwise seasonally low, as normal.
Just about the entire production of fishmeal and oil was sold by the end of March. The company is therefore going into Q2 2016 with extremely low stocks.
In Q1 2016, operating revenue was NOK 422 million (Q1 2015: NOK 163 million) and EBITDA was NOK 78 million (Q1 2015: NOK 7 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.
Imarpe has completed its survey but we do not yet have any information as to the final outcome.
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 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.
Horse mackerel fishing started in January. The fishing was good, though with an average fish weight that was slightly lower than desired. Fishing fell off in February and March, but resumed in earnest in April.
The main markets for frozen horse mackerel continue to be characterised by currency restrictions in some main markets, affecting the turnover time of finished product stocks.
Anchoveta fishing by the coastal fleet started in March as normal, though it has been beset by difficulty.
In Q1 2016, operating revenue was NOK 104 million (Q1 2015: NOK 74 million) and EBITDA was NOK 19 million (Q1 2015: NOK -1 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.
Since 2012, FC had an operating partnership with Alimar S.A. This partnership was terminated on 31 December 2015. From the start of 2016, the two companies have been operating their vessels and factories separately.
In Q1 2016, LSG reported operating revenue of NOK 3,816 million (Q1 2015: NOK 3,279 million) and EBITDA before value adjustment of biomass of NOK 697 million (Q1 2015: NOK 501 million).
The company has harvested 38,163 tonnes gutted weight of salmon and trout in the quarter, compared with 35,023 tonnes in the same quarter of 2015, representing an increase in harvesting volume of 9%.
The spot price for salmon in Q1 2016 was NOK 58.10, up NOK 13.10 per kg compared with Q4 2015, and up by 44% compared with Q1 2015. Prices realised by the company in the quarter were negatively affected by a contract share (salmon and trout) of 32%.
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 an end. This, together with a weak Norwegian krone, has resulted in record-high prices for salmon in the quarter. Prices for trout have also increased in Q1 2016, though remain considerably lower than those for salmon.
Release from stock costs in Q1 2016 are higher than in Q4 2015, which is mainly due to higher feed costs. LSG continues to suffer from the 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 reported, has implemented a number of measures intended to reduce production costs for salmon and trout. In that respect, the Group is glad to be able to report that the number of treatments has more than halved in Q1 2016 compared with Q1 2015.
As previously reported, higher feed costs will gradually lead to higher release from stock costs in Lerøy Aurora in 2016, the release from stock cost in Q1 2016 having been higher than in Q4 2015.
A challenging situation in parts of Central Norway in the second half of 2015 negatively affected the autumn 2014 generation in Lerøy Midt. The company is still harvesting from this generation, which is associated with high costs. Release from stock costs are currently expected to fall in connection with the generational change to the spring 2015 generation, especially in the second half of 2016.
There are clear signs of positive development in Lerøy Sjøtroll, particularly in growth for salmon and trout. Release from stock costs in Q1 2016 remain extremely high, but costs in the coming quarters are currently expected to fall.
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 resulted in 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.
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 is the majority shareholder in a ring net vessel with 471 basic tonnes. In 2014, 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 Q1 2016, the BRBI segment reported operating revenue of NOK 179 million (Q1 2015: NOK 112 million) and EBITDA before value adjustment of biomass of NOK 87 million (Q1 2015: NOK 15 million).
In the first quarter, the ring net vessels fished for herring, capelin and blue whiting. The company has seen good operations and good earnings. Approximately 1,700 tonnes of salmon and trout were harvested in Q1 2016, compared with 1,950 tonnes in Q1 2015. Good prices for salmon were realised in the quarter, and the fish were harvested at a site with good biology and low release from stock costs.
In accordance with IFRS 11, AUSS' 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 this report, the financial information comprises 50% of Pelagia AS' total revenue, EBITDA, EBIT and sales volume. This corresponds to AUSS' equity interest in Pelagia AS.
Revenue for the quarter was NOK 632 million (Q1 2015: NOK 636 million) and EBITDA was NOK 63 million (Q1 2015: NOK 66 million).
Q1 is normally high season for receipt of raw materials. Total receipt of raw materials in the Group (100%) for fishmeal/ FPC and fish oil production was approx. 294,000 tonnes for the quarter, compared with approx. 321,000 tonnes in the same quarter of 2015. The volume of raw materials received for consumer products was 104,000 tonnes, compared with 88,000 tonnes in 2015.
Cash flow from operating activities for Q1 2016 was NOK 790 million (Q1 2015: NOK 425 million). Cash flow from investing activities for Q1 2016 was NOK 806 million (Q1 2015: NOK -296 million). Cash flow from investment was affected by the parent company, AUSS, having sold 2,750,000 shares in LSG in March, with total proceeds of NOK 976 million. Cash flow from financing activities for Q1 2016 was NOK -303 million (Q1 2015: NOK -190 million). 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 Q1 2016 was NOK 1,293 million (Q1 2015: NOK -62 million).
The Group's cash and cash equivalents at the end of Q1 2016 was NOK 3,752 million, compared with NOK 2,152 million at the end of Q1 2015.
The Group had a balance sheet total at 31 March 2016 of NOK 26,951 million compared with NOK 23,241 million at 31 March 2015.
The Group is financially sound with book equity at 31 March 2016 of NOK 15,043 million, equivalent to an equity ratio of 56%. At 31 March 2015, the book equity for the Group was NOK 12,571 million, equivalent to an equity ratio of 54%.
Net interest-bearing debt was NOK 3,253 million as at 31 March 2016, compared with NOK 3,967 million at 31 March 2015.
Net interest-bearing debt at 31 March 2016 was affected by AUSS having sold off shares in LSG, which raised NOK 976 million in cash.
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 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 normal. Although this situation may have negative effects on the real economy in most markets, we are confident that AUSS' 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 4,913 shareholders as at 31 March 2016. The number of shareholders at the start of the quarter was 4,086.
The share price was NOK 54.00 at the start of Q1 2016 and NOK 68.00 at the end of the quarter.
A list of the 20 largest shareholders can be found in Note 7.
The Board of Directors has proposed to the annual general meeting in 2016 that a dividend of NOK 7.00 per share is paid for the 2015 financial year. The proposed dividend is influenced by AUSS having sold shares in LSG in March 2016 and the proposal that the proceeds be paid out in dividends. The annual general meeting will take place on 25 May 2016 and the dividend will be paid on 3 June 2016, subject to approval at the annual general meeting. Similarly, a dividend of NOK 2.00 per share was paid out in 2015, which was equivalent to 32% of net profit adjusted for biomass.
Europe, in the first quarter, has been in its low season for sales, and producers have as normal built up inventory in this quarter. However, production is expected to be lower in Europe during 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 fish oil. Imarpe has completed its survey ahead of the first season 2016 but there is as yet no information as to the final outcome. The industry and market closely monitor information available on conditions that may have an impact on the fishing season. Subsequent to a fall in Q4 2015, price trends for fishmeal in Europe have been stable to rising in 2016. In South America, the price trend for fishmeal remained stable in Q4 2015, though it has fallen in 2016. Realised prices for fishmeal FOB Peru (super prime) are now USD 1,700, while the CIF Hamburg prices for fishmeal (standard 64%/65%) are USD 1,475.
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 introduction of import quotas and currency restrictions in 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 helped to make 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 on these markets will fare well in competition with alternative sources of protein.
At the time of writing, it appears that there are very limited opportunities for growth in the global supply of salmon and trout in the next few years. This gives rise to expectations for a good market in 2016 and subsequent years. In light of the market prospects and the segment's potential for improvements in own production, the outlook is good.
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.
Bearing in mind the prevailing framework conditions, the Board of Directors is essentially satisfied with the Group's results for Q1 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 this year compared with last year.
Storebø, 11 May 2016 The Board of Directors of Austevoll Seafood ASA
| (restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | Q1 2016 | Q1 2015 | 2015 |
| Operating revenue | 4 412 239 | 3 545 829 | 15 273 494 |
| Raw material and consumables used | 2 590 316 | 2 217 904 | 9 373 171 |
| Salaries and personnel expenses | 489 501 | 408 042 | 1 797 059 |
| Other operating expenses | 446 678 | 402 918 | 1 859 188 |
| Operating profit before depreciation (EBITDA) | 885 744 | 516 965 | 2 244 076 |
| Depreciation and amortisation | 191 712 | 170 407 | 749 754 |
| Impairment | -1 959 | -2 149 | 107 886 |
| EBIT before fair value biomass adjustment | 695 991 | 348 707 | 1 386 436 |
| Fair value adjustment biomass | 163 828 | -368 222 | 246 567 |
| Operating profit | 859 819 | -19 515 | 1 633 003 |
| Income from associated companies | 96 369 | 55 943 | 264 279 |
| Net interest expenses | -60 187 | -52 329 | -223 215 |
| Net other financial items (incl. agio/disagio) | 11 695 | -37 724 | -101 930 |
| Profit before tax | 907 696 | -53 625 | 1 572 137 |
| Income tax expenses | -215 042 | 27 313 | -289 031 |
| Net profit | 692 654 | -26 312 | 1 283 106 |
| Profit to non-controlling interest | 324 124 | -5 713 | 560 863 |
| Profit to controlling interests | 368 530 | -20 599 | 722 243 |
| Earnings per share (EPS) | 1.83 | -0.10 | 3.59 |
| Diluted EPS | 1.83 | -0.10 | 3.59 |
| (restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | Q1 2016 | Q1 2015 | 2015 |
| Net earnings in the period | 692 654 | -26 312 | 1 283 106 |
| Other comprehensive income | |||
| Currency translation differences | -193 725 | 193 324 | 419 618 |
| Other comprehensive income from associated companies | - | ||
| Cash flow hedges | -16 558 | 47 992 | 45 127 |
| Change in value available for sale financial assets | - | ||
| Others incl. tax effect | 9 305 | -3 820 | -14 552 |
| Total other comprehensive income | -200 978 | 237 496 | 450 193 |
| Comprehensive income in the period | 491 676 | 211 184 | 1 733 299 |
| Allocated to; | |||
| Minority interests | 254 582 | -2 994 | 616 348 |
| Majority interests | 237 094 | 214 178 | 1 116 951 |
| (restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | 31.03.2016 | 31.03.2015 | 31.12.2015 |
| Assets | |||
| Intangible assets | 8 035 619 | 7 634 655 | 8 115 351 |
| Vessels | 900 506 | 698 013 | 949 354 |
| Property, plant and equipment | 4 498 690 | 4 421 734 | 4 581 699 |
| Investments in associated companies | 1 793 965 | 1 706 690 | 1 766 591 |
| Investments in other shares | 33 262 | 33 805 | 33 428 |
| Other long-term receivables | 62 262 | 68 374 | 61 159 |
| Total non-current assets | 15 324 304 | 14 563 271 | 15 507 582 |
| Inventories | 5 360 709 | 4 314 027 | 5 539 913 |
| Accounts receivable | 1 878 646 | 1 560 349 | 1 655 026 |
| Other current receivables | 635 127 | 651 043 | 621 048 |
| Cash and cash equivalents | 3 752 659 | 2 151 982 | 2 470 395 |
| Total current assets | 11 627 141 | 8 677 401 | 10 286 382 |
| Total assets | 26 951 445 | 23 240 672 | 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 | 6 007 931 | 4 755 645 | 5 256 429 |
| Non-controlling interests | 5 255 696 | 4 036 043 | 4 574 777 |
| Total equity | 15 043 229 | 12 571 290 | 13 610 808 |
| Deferred tax liabilities | 2 781 118 | 2 320 353 | 2 731 728 |
| Pensions and other obligations | 175 267 | 164 559 | 154 385 |
| Borrowings | 5 015 181 | 4 863 983 | 5 322 635 |
| Other long-term liabilities | 23 956 | 18 295 | 29 693 |
| Total non-current liabilities | 7 995 522 | 7 367 190 | 8 238 441 |
| Short term borrowings | 1 516 415 | 676 435 | 1 078 286 |
| Overdraft facilities | 449 763 | 578 702 | 877 941 |
| Account payable | 1 135 121 | 1 041 026 | 1 004 075 |
| Other current liabilities | 811 395 | 1 006 029 | 984 413 |
| Total current liabilities | 3 912 694 | 3 302 192 | 3 944 715 |
| Total liabilities | 11 908 216 | 10 669 382 | 12 183 156 |
| Total equity and liabilities | 26 951 445 | 23 240 672 | 25 793 964 |
| NIBD | 3 252 656 | 3 967 138 | 4 838 160 |
| Equity ratio | 56 % | 54 % | 53 % |
| Equity at period end | 15 043 229 | 12 571 290 | 13 610 808 |
|---|---|---|---|
| Total changes in equity in the period | 1 432 421 | 211 184 | 1 250 702 |
| Other | - | - | - |
| Effect option programme | - | - | - |
| Transactions with non-controlling interest | 940 745 | - | - |
| Business combinations/acquisition | - | - | 201 464 |
| Dividends | - | - | -684 061 |
| Comprehensive income in the period | 491 676 | 211 184 | 1 733 299 |
| Equity period start | 13 610 808 | 12 360 106 | 12 360 106 |
| All figures in NOK 1.000 | 31.03.2016 | 31.03.2015 | 31.12.2015 |
| (restated) |
| All figures in NOK 1.000 Q1 2016 Q1 2015 2015 |
|---|
| Cash flow from operating activities |
| Profit before income taxes 907 696 -53 625 1 572 137 |
| Fair value adjustment of biological assets -163 828 368 222 -246 567 |
| Taxes paid in the period -180 515 -143 376 -427 611 |
| Depreciation and amortisation 191 711 170 407 749 754 |
| Impairments -1 959 -2 149 107 886 |
| Associated companies - net -96 369 -55 943 -264 279 |
| Interest expense 68 937 61 333 261 532 |
| Interest income -8 750 -9 004 -38 317 |
| Change in inventories 343 032 55 553 -557 886 |
| Change in receivables -237 699 161 658 94 476 |
| Change in payables 131 046 -143 534 -181 541 |
| Other operating cash flow incl currency exchange -163 444 14 998 141 544 |
| Net cash flow from operating activities 789 858 424 540 1 211 128 |
| Cash flow from investing activities |
| Purchase of intangible and fixed assets -157 993 -189 336 -1 125 674 |
| Purchase of shares and equity investments -28 493 -129 450 -149 080 |
| Proceeds from sale of fixed assets/equity investments 987 440 6 354 101 692 |
| Cash inflow from business combinations - 7 732 12 858 |
| Dividend received - - 174 000 |
| Interest income 8 750 9 004 38 317 |
| Other investing activities - net -3 747 -490 10 141 |
| Net cash flow from investing activities 805 957 -296 186 -937 746 |
| Cash flow from financing activities |
| Proceeds from new long term debt 689 078 98 280 1 379 786 |
| Repayment of long term debt -491 014 -155 605 -734 557 |
| Change in short term debt -428 174 -74 222 275 754 |
| Interest paid -72 709 -58 414 -255 959 |
| Dividends paid - - -684 061 |
| Other finance cash flow - net - - |
| Net cash flow from financing activities -302 819 -189 961 -19 037 |
| Net change in cash and cash equivalents 1 292 996 -61 607 254 345 |
| Cash, and cash equivalents at start of period 2 470 222 2 198 148 2 198 148 |
| Exchange gains/losses (-) -10 732 15 441 17 727 |
| Cash and cash equivalents at period end 3 752 486 2 151 982 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 the result. 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 Q1 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, where unrealised gain is recognised as other current receivables and unrealised loss as other current debt.
| Carrying amount of biological assets | 31.03.2016 | 31.12.2015 | ||
|---|---|---|---|---|
| Fish in sea at historic cost | 2 944 453 | 3 105 620 | ||
| FV adjustment fish in sea | 1 145 281 | 971 070 | ||
| Fair value fish in sea | 4 089 733 | 4 076 689 | ||
| Fry, brood, smolt and cleaning fish | 277 472 | 244 141 | ||
| Carrying amount of biological assets | 4 367 205 | 4 320 830 | ||
| Total biological assets at historic cost | 3 221 925 | 3 349 760 | ||
| FV adjustment on biological assets | 1 145 281 | 971 070 | ||
| Carrying amount of biological assets | 4 367 205 | 4 320 830 | ||
| Fair value adjustment | Q1 2016 | Q1 2015 | YTD 2016 | 2015 |
| Change IFRS adj. biolocigal assets | 174 211 | -348 674 | 174 211 | 186 524 |
| Change IFRS adj. derivatives | -2 702 | 540 | -2 702 | 1 984 |
| FV adj. biological assets | 171 509 | -348 134 | 171 509 | 188 508 |
| Volume of fish in sea (LWT) | Q1 2016 | Q1 2015 | YTD 2016 | 2015 |
| Volume at beginning of period | 108 270 | 107 505 | 108 270 | 107 505 |
| Growht during the period | 34 184 | 34 414 | 34 184 | 191 731 |
| Harvested volume during the period | -46 357 | -42 384 | -46 357 | -190 966 |
| Volume at end of period | 96 097 | 99 535 | 96 097 | 108 270 |
| Fish > 4kg | 34 510 | 34 105 | 34 510 | 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 | 31.03.2016 | 2015 | ||
|---|---|---|---|---|
| Fish in sea at historic cost | 165 392 | 172 475 | ||
| FV adjustment fish in sea | 73 501 | 81 182 | ||
| Fair value fish in sea | - | - | 238 893 | 253 657 |
| Fry, brood and smolt | - | - | ||
| Carrying amount of biological assets | - | - | 238 893 | 253 657 |
| Fair value adjustment | Q1 2016 | Q1 2015 | YTD 2016 | 2015 |
| Change IFRS adj. biolocigal assets | -7 681 | -20 088 | -7 681 | 58 059 |
| Change IFRS adj. derivatives | - | - | - | - |
| FV adj. biological assets | -7 681 | -20 088 | -7 681 | 58 059 |
| Volume of fish in sea (LWT) | Q1 2016 | Q1 2015 | YTD 2016 | 2015 |
| Volume at beginning of period | 5 755 | 5 893 | 5 755 | 5 893 |
| Growht during the period | 1 696 | 1 806 | 1 696 | 8 947 |
| Harvested volume during the period | -2 094 | -2 379 | -2 094 | -9 085 |
| Volume at end of period | 5 357 | 5 320 | 5 357 | 5 755 |
| Fish > 4kg | 1 947 | 2 698 | 1 947 | 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 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%) |
| Q1 2016 | ||||||||
| Operating revenue | 3 815 658 | 421 824 | 103 636 | 178 509 | -107 388 | 4 412 239 | 632 465 | 5 044 704 |
| EBITDA | 697 355 | 77 835 | 19 482 | 86 849 | 4 222 | 885 743 | 63 365 | 949 108 |
| EBITDA % | 18 % | 18 % | 19 % | 49 % | 20 % | 10 % | 19 % | |
| EBIT ex. Impairment | 584 462 | 37 620 | 2 379 | 70 585 | -1 014 | 694 032 | 43 390 | 737 422 |
| EBIT | 584 462 | 39 579 | 2 379 | 70 585 | -1 014 | 695 991 | 43 390 | 739 381 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 38 163 | 1 717 | 39 880 | 39 880 | ||||
| Fishmeal/oil/FPC (tonnes) | 27 715 | 3 561 | 31 276 | 12 722 | 43 998 | |||
| Frozen fish (tonnes) | 45 | 3 924 | 3 969 | 40 183 | 44 152 | |||
| Canning (cases) | 26 209 | 8 753 | 34 962 | 34 962 | ||||
| Q1 2015 (restated) | ||||||||
| Operating revenue | 3 278 526 | 163 055 | 73 995 | 112 350 | -82 097 | 3 545 829 | 635 984 | 4 181 813 |
| EBITDA | 500 835 | 7 273 | -762 | 15 479 | -5 859 | 516 966 | 65 953 | 582 919 |
| EBITDA % | 15 % | 4 % | -1 % | 14 % | 15 % | 10 % | 14 % | |
| EBIT ex. Impairment | 403 902 | -31 636 | -16 394 | 1 199 | -10 513 | 346 558 | 49 984 | 396 542 |
| EBIT | 403 902 | -29 487 | -16 394 | 1 199 | -10 513 | 348 707 | 49 984 | 398 691 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 35 023 | 1 947 | 36 970 | 36 970 | ||||
| Fishmeal/oil/FPC (tonnes) | 6 696 | 1 475 | 8 171 | 16 638 | 24 809 | |||
| Frozen fish (tonnes) | 26 | 2 097 | 2 123 | 32 523 | 34 646 | |||
| Canning (cases) | 137 142 | 6 237 | 143 379 | 143 379 | ||||
| 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 | 1 793 962 | 1 706 690 | 1 766 591 | |
|---|---|---|---|---|
| Total income from ass.companies | 96 369 | 55 943 | 264 279 | |
| Others | 3 470 | 3 733 | 19 549 | |
| Pelagia AS | 50.0 % | 34 522 | 36 082 | 203 322 |
| Norskott Havbruk AS | 50.0 % | 58 377 | 16 128 | 41 408 |
| Q1 2016 | Q1 2015 | 2015 | ||
| (restated) |
In March 2016, the parent company, AUSS, sold 2,750,000 shares in Lerøy Seafood Group ASA. The selling price per share was NOK 355.00, and the total proceeds were NOK 976 million.
Following this transaction, AUSS now owns 31,394,281 shares in Lerøy Seafood Group ASA, corresponding to 57.52% of the company's shares.
As communicated in a stock exchange announcement of 18 March 2016, the Board of Directors proposes that the proceeds be utilised for the payment of dividends, with the proposed dividend for the 2015 financial year set at NOK 7.00 per share, or a total of NOK 1,419 million.
| Investor | Number of shares | % of top 20 | % of total |
|---|---|---|---|
| LACO A/S | 112,605,876 | 76.32 % | 55.55 % |
| STATE STREET BANK & TRUST CO. | 5,401,322 | 3.66 % | 2.66 % |
| STATE STREET BANK AND TRUST CO. | 3,628,724 | 2.46 % | 1.79 % |
| PARETO AKSJE NORGE | 3,163,756 | 2.14 % | 1.56 % |
| FOLKETRYGDFONDET | 1,938,691 | 1.31 % | 0.96 % |
| OM HOLDING AS | 1,821,850 | 1.23 % | 0.90 % |
| PACTUM AS | 1,800,000 | 1.22 % | 0.89 % |
| MITSUI AND CO., LTD | 1,782,236 | 1.21 % | 0.88 % |
| BR.BIRKELAND AS | 1,722,223 | 1.17 % | 0.85 % |
| JP MORGAN CHASE BANK, NA | 1,665,000 | 1.13 % | 0.82 % |
| THE BANK OF NEW YORK MELLON | 1,663,780 | 1.13 % | 0.82 % |
| DANSKE INVEST NORSKE INSTIT. II. | 1,604,382 | 1.09 % | 0.79 % |
| JP MORGAN BANK LUXEMBOURG S.A | 1,379,749 | 0.94 % | 0.68 % |
| THE NORTHERN TRUST CO. | 1,187,007 | 0.80 % | 0.59 % |
| MP PENSJON PK | 1,182,000 | 0.80 % | 0.58 % |
| CITIBANK, N.A. | 1,154,628 | 0.78 % | 0.57 % |
| SKANDINAVISKA ENSKILDA BANKEN AB | 1,083,500 | 0.73 % | 0.53 % |
| FORSVARETS PERSONELLSERVICE | 937,146 | 0.64 % | 0.46 % |
| PARETO AS | 921,000 | 0.62 % | 0.45 % |
| STATE STREET BANK AND TRUST CO | 906,119 | 0.61 % | 0.45 % |
| Total number owned by top 20 | 147,548,989 | 100 % | 72.79 % |
| Total number of shares | 202,717,374 | 100 % |
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