Quarterly Report • Aug 13, 2015
Quarterly Report
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Austevoll Seafood ASA
Alfabygget N-5392 Storebø NORWAY
www.auss.no
| Key figures for the Group 04 | |
|---|---|
| Q2 2015 05 | |
| Operating segments 05 | |
| Cash flows 07 | |
| Financial information, first half 2015 07 | |
| Cash flows 07 | |
| Statement of financial position as at 30 June 2015 07 | |
| Risks and uncertainties 07 | |
| Shareholders 08 | |
| Market and outlook 08 | |
| The Group 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 Business combinations 15 | |
| Note 7 List of the 20 largest shareholders 16 | |
| Statement of the Board of Directors and CEO 16 |
High level of activity and good earnings for the pelagic segment
Good fishing season in Peru, with Austral Group fishing 100% of its quota for the season compared with 78% in Q2 2014
Good results within farming despite higher release from stock costs in the quarter compared with Q2 2014
During the quarter, Austevoll Seafood ASA issued a new unsecured bond loan of NOK 500 million with maturity of 6 years at 3-month NIBOR +2.90%
| (restated) | (restated) | ||||
|---|---|---|---|---|---|
| All figures in NOK 1,000 | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Operating revenue | 4 107 801 | 3 606 154 | 7 653 630 | 7 248 147 | 14 344 177 |
| EBITDA | 777 727 | 729 162 | 1 294 692 | 1 498 594 | 2 516 189 |
| EBITDA % | 19% | 20% | 17% | 21% | 18% |
| EBIT | 605 116 | 580 400 | 953 823 | 1 200 796 | 1 855 768 |
| Pre tax profit | 353 491 | 319 805 | 299 866 | 447 235 | 1 346 473 |
| Earnings per share (EPS) from continuing operations | 0,91 | 0,66 | 0,81 | 1,14 | 2,76 |
| Total assets | 23 246 239 | 20 806 350 | 23 343 997 | ||
| Equity | 12 132 248 | 11 227 309 | 12 360 106 | ||
| Equity ratio | 52% | 54% | 53% | ||
| Net interest bearing debt (NIBD)/ | 4 559 598 | 3 868 660 | 3 959 866 |
Group operating revenue in Q2 2015 totalled NOK 4,108 million, compared with NOK 3,606 million in Q2 2014.
The Group's operating profit before depreciation and value adjustment for biomass (EBITDA) for Q2 2015 was NOK 778 million, up from NOK 729 million in Q2 2014.
The Group reported an increase in revenue from the salmon and trout segment but a lower EBITDA, mainly caused by higher release from stock costs in the quarter compared with Q2 2014. The fishing season for anchoveta in Central/North Peru started on 1 April. The quota for the season was set at 2,580,000 tonnes. The earlier start to the season and better fishing conditions meant that almost the full quota had been caught by the end of the second quarter. In addition, significant volumes of fishmeal from the season's production were realised in the second quarter, leading to an increase in revenue and EBITDA compared with Q2 2014.
EBIT before value adjustment for biomass in Q2 2015 was NOK 605 million (Q2 2014: NOK 580 million). EBIT after value adjustment for biomass in Q2 2015 was NOK 380 million (Q2 2014: NOK 357 million). The IFRS biomass adjustment for the quarter was negative at NOK 225 million (Q2 2014: negative at NOK 224 million).
Income from associates in Q2 2015 totalled NOK 46 million (Q2 2014: NOK 5 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 Q2 2015 totalled NOK 60 million (Q2 2014: NOK 46 million).
Profit before tax and IFRS biomass adjustment for Q2 2015 amounted to NOK 586 million, compared with NOK 571 million in Q2 2014.
Profit before tax for the quarter totalled NOK 353 million (Q2 2014: NOK 320 million). Profit after tax was NOK 231 million (Q2 2014: NOK 233 million).
The Group is financially sound with an equity ratio of 52%. The Group had net interest-bearing debt totalling NOK 4,560 million at 30 June 2015, compared with NOK 3,869 million at 30 June 2014. The Group paid dividends of NOK 684 million in Q2 2015, compared with NOK 564 million in Q2 2014.
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 oil factories in Coishco and Pisco.
The fishing season for anchoveta in Central/North Peru started on 1 April, and the total quota for the season was set at 2,580,000 tonnes; the equivalent quota in 2014 was 2,530,000 tonnes. The season originally ended on 30 June but was extended until 31 July. By the end of Q2 2015, Austral had caught almost its entire quota for the first season, whereas challenging fishing conditions in 2014 meant that only 66% of the total national quota had been caught at the end of the season on 10 August 2014. However, Austral had caught 78% of its quota for the first season of 2014.
The earlier start to the season in 2015 and better fishing conditions have resulted in significant volumes of fishmeal from the season's production being sold in the second quarter, leading to a marked increase in revenue and EBITDA compared with Q2 2014.
Operating revenue in Q2 2015 totalled NOK 534 million (Q2 2014: NOK 242 million) and EBITDA NOK 242 million (Q2 2014: NOK 57 million).
Approx. 32,600 tonnes of fishmeal and oil were sold in Q2 2015, compared with approx. 16,800 tonnes in the same quarter of 2014.
Peru is one of the largest producers of fishmeal and oil in the world, and production volumes here normally influence fishmeal prices worldwide. The extraordinarily low catches in the second season of 2014 led to substantial increases in fishmeal prices in the second half of the year. The prices for fishmeal and oil underwent a downwards correction after the quotas were set for the first season of 2015.
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 period starts in March and lasts until July/August, and the second period starts in October/November.
The horse mackerel-fishing season started in January but there was no fishing in February and large parts of March. Fishing restarted at the end of March and has been stable since then. This year's fishing pattern means that the volume of horse mackerel caught in Q2 2015 is higher than in Q2 2014 (31,000 tonnes against 28,000), while the total volume caught in the first half of the year is lower than in the same period of 2014 (37,000 tonnes against 48,000 tonnes). By the end of Q2 2015, FC had caught approx. 70% of its total 2015 quota of horse mackerel. By the end of Q2 2014, FC had caught 91% of its total 2014 quota of horse mackerel.
As normal, the fishing season for sardine/anchoveta started in mid-March, and FC caught its 2015 quota in the first quarter. FC also buys in a significant volume of sardine/anchoveta from the coastal fleet. The coastal fleet experienced a difficult start to the season with a predominance of small fish. As a result, fishing was suspended in some areas but later resumed for this group, with a good second quarter.
Operating revenue in Q2 2015 totalled NOK 133 million (Q2 2014: NOK 178 million) and EBITDA amounted to NOK 40 million (Q2 2014: NOK 53 million).
Lower volumes of finished products were sold in Q2 2015 compared with Q2 2014.
Chile has seen a significant decline in horse mackerel fishing since 2008/2009. Fish stock management was introduced in 2012, under the auspices of the South Pacific Regional Fisheries Management Organization. A total quota for fish stocks was introduced for the first time in 2012 in order to replenish biomass, and has been increased slightly in subsequent years. 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 2015, LSG reported operating revenue of NOK 3,352 million (Q2 2014: NOK 3,176 million) and EBITDA before value adjustment for biomass of NOK 470 million (Q2 2014: NOK 590 million).
The company has harvested 40,000 tonnes gutted weight of salmon and trout in the quarter, down 2% on 41,000 tonnes in Q2 2014. The main reason for the reduction in EBITDA from Q2 2014 to Q2 2015 is higher release from stock costs for ownproduced salmon and trout. The industry's spot price for salmon in Q2 2015 was down by an average of 6% compared with Q2 2014 and by NOK 3 compared with Q1 2015. The prices LSG realised for salmon fell less than this thanks to contract coverage; the share of contracts in Q2 2015 was 27%. The prices realised for trout in Q2 2015 were again below the prices realised for salmon. Release from stock costs were marginally up in Q2 2015 compared with Q1 2015, and remain at an extraordinarily high level historically. The release from stock costs for trout are particularly high. Measures implemented and investments made by LSG in 2014 and 2015, especially those involving cleaner fish, will reduce production costs throughout 2015 and into 2016.
On 7 August 2014, Russia introduced a ban on various imports, including Norwegian salmon and trout. This import ban remains in place and is particularly affecting the market for trout. There is good growth in markets outside Europe but, nevertheless, the main trend indicates that the volume sold to Russia in Q2 2014 was sold to Europe in Q2 2015. As a result, the growth in supply on important end markets in Europe is much higher than indicated by the figures for growth in exports from Norway. This dynamic has also had a negative impact on the prices for Atlantic salmon in the first half of 2015, although the impact on the price of trout has been significantly greater. Major efforts are under way to boost sales to alternative markets and will produce results in the long-term. However, the prices realised for trout in Q2 2015 were again significantly below the prices realised for salmon. As the world's largest producer of trout, this means LSG has suffered a significant negative impact on its realised prices in Q2 2015.
LSG has a total of 142 licences: 26 in Troms, 55 in Central Norway and 61 in West Norway.
LSG has invested significantly in increasing its capacity for high-value processed salmon and trout in recent years, and its marketing work, coupled with good domestic 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 a quota of 650 basic tonnes for ring nets and a trawling quota of 1,425 tonnes for blue whiting. 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.
BRBI reported operating revenue of NOK 141 million in Q2 2015 (Q2 2014: NOK 118 million) and EBITDA before value adjustment for biomass of NOK 21 million (Q2 2014: NOK 27 million).
BRBI harvested 2,374 tonnes of salmon and trout in Q2 2015, with an EBIT per kg of NOK 0.4. The comparative figures for Q2 2014 are 2,529 tonnes and EBIT per kg of NOK 9.2. During the second quarter, the company's vessels have fished for blue whiting and snow crab.
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 this report, the financial information comprises 50% of Pelagia AS's total revenue, EBITDA, EBIT and sales volume. This corresponds to AUSS's equity interest in the company.
The operating segment had revenue of NOK 647 million in Q2 2015 (Q2 2014: NOK 535 million) and EBITDA of NOK 79 million (Q2 2014: NOK 20 million).
As normal, the second quarter is the low season for raw material volume. The later start to the fishing season for blue whiting in 2015 and good catches of sand eel mean that the total volume of raw materials received for the production of fishmeal and oil was higher in Q2 2015 than in Q2 2014. The total raw material volume received by the Group (100%) for the production of fishmeal and oil was approx. 311,000 tonnes for the quarter, compared with approx. 276,000 tonnes in the same quarter of 2014. The volume of raw materials received for consumer products was 46,000 tonnes, compared with 35,000 tonnes in Q2 2014.
Cash flow from operating activities for Q2 2015 was NOK 295 million (Q2 2014: NOK 345 million). Cash flow from investing activities for Q2 2015 was NOK -196 million (Q2 2014: NOK -192 million). Cash flow from financing activities for Q2 2015 was NOK -21 million (Q2 2014: NOK -535 million). Cash flow from financing activities mainly comprises payment of ordinary instalments and changes in short-term credits. During the quarter, AUSS established an unsecured bond loan of NOK 500 million. Net change in cash for the Group in Q2 2015 was NOK 77 million (Q2 2014: NOK -382 million). The Group's cash and cash equivalents at 30 June 2015 totalled NOK 2,218 million, compared with NOK 1,618 million at 30 June 2014.
The Group reported operating revenue of NOK 7,654 million for the first half of 2015 (H1 2014: NOK 7,248 million). EBITDA before value adjustment for biomass in the first half of 2015 was NOK 1,295 million (H1 2014: NOK 1,499 million).
The increase in revenue has been generated by activities within both the salmon and trout and the pelagic segments. The decline in EBITDA can be attributed to the salmon and trout segment, and is mainly a result of higher release from stock costs. EBIT before value adjustment for biomass in the first half of 2015 was NOK 950 million (H1 2014: NOK 1,197 million). The IFRS biomass adjustment for the first half of 2015 was negative at NOK 593 million (H1 2014: negative at NOK 743 million). EBIT after value adjustment for biomass in the first half of 2015 was NOK 360 million (H1 2014: NOK 458 million).
Income from associates for the first half of 2015 totalled NOK 102 million (H1 2014: NOK 75 million). The Group's net interest expenses in the first half of 2015 totalled NOK -112 million (H1 2014: NOK -97 million).
Profit before tax and biomass adjustment for the first half of 2015 was NOK 900 million, compared with NOK 1,257 million in the first half of 2014.
Profit after tax for the first half of 2015 was NOK 205 million (H1 2014: NOK 351 million).
Cash flow from operating activities for the first half of 2015 was NOK 719 million (H1 2014: NOK 1,193 million). Tax payments in the first half of 2015 totalled NOK 379 million (H1 2014: NOK 377 million). Cash flow from investing activities for the first half of 2015 was NOK -493 million (H1 2014: NOK 749 million). The positive cash flow in the first half of 2014 resulted from a cash inflow of more than NOK 1,000 million to AUSS in connection with the establishment of Pelagia AS. Cash flow from financing activities for the first half of 2015 was NOK -211 million (H1 2014: NOK -1,771 million). The Group paid dividends of NOK 684 million in the first half of 2015, compared with NOK 594 million in the first half of 2014. During the second quarter, AUSS established an unsecured bond loan of NOK 500 million. In the first half of 2014, AUSS reduced a long-term credit facility by NOK 740 million. Net change in cash for the Group in the first half of 2015 was NOK 15 million (H1 2014: NOK 171 million). The Group's cash and cash equivalents at 30 June 2015 totalled NOK 2,218 million, compared with NOK 1,618 million at 30 June 2014.
At 30 June 2015, the Group had a balance sheet total of NOK 23,246 million, compared with NOK 20,806 million at 30 June 2014 and NOK 23,244 million at 31 December 2014. The increase on the figure from June 2014 is partly because Villa Organic (owned by LSG) changed from being an associate to a consolidated business, with effect from Q3 2014.
The Group is financially sound with book equity at 30 June 2015 of NOK 12,132 million, equivalent to an equity ratio of 52%. At 30 June 2014, the Group had book equity of NOK 11,227 million, equivalent to an equity ratio of 54%.
Net interest-bearing debt at 30 June 2015 was NOK 4,560 million, compared with NOK 3,869 million at 30 June 2014. The Group's cash and cash equivalents excluding unused lines of credit totalled NOK 2,218 million at 30 June 2015, compared with NOK 1,618 million at 30 June 2014. The Group paid dividends of NOK 684 million in the first half of 2015, compared with NOK 594 million in the first half of 2014.
The Group's risk exposure is described in the Annual report 2014. 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 political 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 assess 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 developments 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 difficult situation encountered by Austral Group in 2014 provides a practical illustration of this. 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. 17% of its 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 multicurrency overdraft facilities. Furthermore, parts of the long-term debt are adjusted in relation to earnings in the same currency.
At 30 June 2015, the company had 3,932 shareholders. The number of shareholders at the start of the period was 4,039.
The share price was NOK 43.10 at the start of Q2 2015 and NOK 41.10 at the end.
A list of the 20 largest shareholders will be found in Note 7.
There was a downwards price correction for fishmeal in the North Atlantic after the season started in 2015, specifically as a result of high catch volumes of capelin off the coast of Iceland and high catch volumes of blue whiting.
The total quota for the first season in 2015 in Peru was set at 2.58 million tonnes, exceeding the expectations of market participants. This has resulted in a certain pressure on prices for fishmeal. Realised prices for fishmeal FOB Peru (superprime) are currently USD 1,600, while CIF Hamburg prices for fishmeal (standard 64%/65%) are USD 1,440.
The Group's production of consumer products takes place in Europe and South America. Most of the fish received in Europe in the second quarter was herring. In South America, there has been a good level of activity in Chile in the second quarter. No fish for consumer products was caught in the quarter in Peru because this period included the first season for anchoveta. The ban on imports to Russia introduced on 7 August 2014 and the introduction of import quotas to Nigeria in 2014 have led to the companies working actively to find alternative markets for the products traditionally sold mainly to Russia and Nigeria. The weakness of the Norwegian krone has on the whole helped to make Norwegian seafood products most 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.
The ban on imports to Russia represents a significant short-term challenge for both the Norwegian seafood industry and market participants in Russia and some of its neighbouring countries. Major efforts are under way to boost sales to alternative markets and will produce results in the long-term. However, the prices realised for trout in Q2 2015 were again significantly below the prices realised for salmon. The market for high-quality seafood is global and is experiencing strong growth. In light of the market prospects and the segment's potential for cost reductions, 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.
Bearing in mind the prevailing framework conditions for the Group's operations, the Board of Directors is essentially satisfied with the Group's results for Q2 2015.
The Group's strong position within the global seafood business gives grounds for a positive outlook for the Group's future development.
Storebø, 12 August 2015 The Board of Directors of Austevoll Seafood ASA
| (restated) | (restated) | ||||
|---|---|---|---|---|---|
| All figures in NOK 1.000 | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Operating revenue | 4 107 801 | 3 606 154 | 7 653 630 | 7 248 147 | 14 344 177 |
| Raw material and consumables used | 2 426 531 | 2 127 631 | 4 644 435 | 4 229 261 | 8 529 316 |
| Salaries and personnel expenses | 406 176 | 353 467 | 814 218 | 724 282 | 1 607 412 |
| Other operating expenses | 497 367 | 395 894 | 900 285 | 796 010 | 1 691 260 |
| Operating profit before depreciation (EBITDA) | 777 727 | 729 162 | 1 294 692 | 1 498 594 | 2 516 189 |
| Depreciation and amortisation | 174 640 | 150 631 | 345 047 | 301 541 | 630 308 |
| Impairment | -2 029 | -1 869 | -4 178 | -3 743 | 30 113 |
| EBIT before fair value biomass adjustment | 605 116 | 580 400 | 953 823 | 1 200 796 | 1 855 768 |
| Fair value adjustment biomass | -225 156 | -223 635 | -593 378 | -743 194 | -379 758 |
| Operating profit | 379 960 | 356 765 | 360 445 | 457 602 | 1 476 010 |
| Income from associated companies | 45 725 | 5 434 | 101 668 | 75 489 | 217 381 |
| Net interest expenses | -60 141 | -46 006 | -112 470 | -96 527 | -197 074 |
| Net other financial items (incl. agio/disagio) | -12 053 | 3 612 | -49 777 | 10 671 | -149 844 |
| Profit before tax | 353 491 | 319 805 | 299 866 | 447 235 | 1 346 473 |
| Income tax expenses | -122 452 | -87 188 | -95 139 | -96 677 | -345 802 |
| Net profit | 231 039 | 232 617 | 204 727 | 350 558 | 1 000 671 |
| Profit to non-controlling interest | 47 387 | 99 835 | 41 674 | 121 855 | 445 561 |
| Profit to controlling interests | 183 652 | 132 782 | 163 053 | 228 703 | 555 110 |
| Earnings per share (EPS) | 0,91 | 0,66 | 0,81 | 1,14 | 2,76 |
| Diluted EPS | 0,91 | 0,66 | 0,81 | 1,14 | 2,76 |
| (restated) | (restated) | ||||
|---|---|---|---|---|---|
| All figures in NOK 1.000 | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Net earnings in the period | 231 039 | 232 617 | 204 727 | 350 558 | 1 000 671 |
| Other comprehensive income | |||||
| Currency translation differences | -12 461 | 141 519 | 180 862 | 41 904 | 562 141 |
| Other comprehensive income from associated companies | -5 | -25 | -16 | ||
| Cash flow hedges | 23 764 | -19 069 | 71 756 | -31 077 | -72 200 |
| Change in value available for sale financial assets | - | ||||
| Others incl. tax effect | 2 748 | -3 349 | -1 143 | -1 407 | - |
| Total other comprehensive income | 14 051 | 119 096 | 251 475 | 9 395 | 489 925 |
| Comprehensive income in the period | 245 090 | 351 713 | 456 202 | 359 953 | 1 490 596 |
| Allocated to; | |||||
| Minority interests | 61 828 | 85 213 | 58 834 | 89 120 | 501 732 |
| Majority interests | 183 262 | 266 500 | 397 368 | 270 833 | 988 864 |
| All figures in NOK 1.000 | 30.06.15 | 30.06.2014 (restated) | 31.12.14 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 7 539 115 | 7 049 038 | 7 480 567 |
| Vessels | 678 984 | 634 702 | 699 923 |
| Property, plant and equipment | 4 405 198 | 3 796 787 | 4 249 364 |
| Investments in associated companies | 1 837 114 | 1 602 030 | 1 563 187 |
| Investments in other shares | 34 321 | 31 714 | 35 773 |
| Other long-term receivables | 51 320 | 66 024 | 64 775 |
| Total non-current assets | 14 546 052 | 13 180 295 | 14 093 589 |
| Inventories | 4 240 684 | 3 931 571 | 4 721 989 |
| Accounts receivable | 1 580 170 | 1 562 780 | 1 637 571 |
| Other current receivables | 661 146 | 513 912 | 692 700 |
| Cash and cash equivalents | 2 218 187 | 1 617 792 | 2 198 148 |
| Total current assets | 8 700 187 | 7 626 055 | 9 250 408 |
| Total assets | 23 246 239 | 20 806 350 | 23 343 997 |
| 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 | 4 536 845 | 3 798 821 | 4 541 467 |
| Non-controlling interests | 3 815 801 | 3 648 886 | 4 039 037 |
| Total equity | 12 132 248 | 11 227 309 | 12 360 106 |
| Deferred tax liabilities | 2 245 941 | 2 155 084 | 2 407 445 |
| Pensions and other obligations | 131 022 | 109 779 | 169 447 |
| Borrowings | 5 224 786 | 4 266 872 | 4 794 922 |
| Other long-term liabilities | 13 350 | 12 182 | 16 104 |
| Total non-current liabilities | 7 615 099 | 6 543 917 | 7 387 918 |
| Short term borrowings | 807 846 | 711 188 | 741 009 |
| Overdraft facilities | 745 153 | 508 392 | 622 083 |
| Account payable | 1 073 648 | 984 845 | 1 172 648 |
| Other current liabilities | 872 245 | 830 699 | 1 060 233 |
| Total current liabilities | 3 498 892 | 3 035 124 | 3 595 973 |
| Total liabilities | 11 113 991 | 9 579 041 | 10 983 891 |
| Total equity and liabilities | 23 246 239 | 20 806 350 | 23 343 997 |
| NIBD | 4 559 598 | 3 868 660 | 3 959 866 |
| Equity ratio | 52% | 54% | 53% |
| All figures in NOK 1.000 | 30.06.15 | 30.06.2014 (restated) | 31.12.14 |
|---|---|---|---|
| Equity period start | 12 360 106 | 11 464 191 | 11 464 191 |
| Comprehensive income in the period | 456 202 | 359 953 | 1 490 596 |
| Dividends | -684 060 | -593 725 | -593 599 |
| Transactions with non-controlling interest | - | -1 050 | -1 082 |
| Other | - | -2 060 | - |
| Total changes in equity in the period | -227 858 | -236 882 | 895 915 |
| Equity at period end | 12 132 248 | 11 227 309 | 12 360 106 |
| (restated) | (restated) | ||||
|---|---|---|---|---|---|
| All figures in NOK 1.000 | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Cash flow from operating activities | |||||
| Profit before income taxes | 353 492 | 319 805 | 299 867 | 447 234 | 1 346 472 |
| Fair value adjustment of biological assets | 225 156 | 223 635 | 593 378 | 743 194 | 379 758 |
| Taxes paid in the period | -235 845 | -295 898 | -379 221 | -376 989 | -438 602 |
| Depreciation and amortisation | 174 640 | 150 630 | 345 047 | 301 541 | 630 307 |
| Impairments | -2 029 | -1 869 | -4 178 | -3 743 | 30 114 |
| Associated companies - net | -45 725 | -5 434 | -101 668 | -75 489 | -217 381 |
| Interest expense | 69 245 | 52 568 | 130 578 | 109 218 | 244 673 |
| Interest income | -9 104 | -10 505 | -18 108 | -20 654 | -47 599 |
| Change in inventories | -151 814 | -61 794 | -96 261 | 32 439 | -316 082 |
| Change in receivables | -29 924 | -59 518 | 131 734 | 274 792 | 63 834 |
| Change in payables | 32 622 | 10 403 | -110 912 | -206 291 | 10 168 |
| Other operating cash flow incl currency exchange | -86 012 | 23 087 | -71 014 | -32 257 | 109 076 |
| Net cash flow from operating activities | 294 702 | 345 110 | 719 242 | 1 192 995 | 1 794 738 |
| Cash flow from investing activities | |||||
| Purchase of intangible and fixed assets | -219 451 | -231 416 | -408 788 | -400 127 | -994 489 |
| Purchase of shares and equity investments | -536 | -1 551 | -129 986 | -1 941 | -64 418 |
| Proceeds from sale of fixed assets/equity investments | -1 416 | 10 666 | 4 938 | 1 124 676 | 1 191 035 |
| Cash inflow from business combinations | - | - | 7 732 | - | 133 656 |
| Dividend received | - | 17 499 | - | 17 499 | 36 250 |
| Interest income | 9 104 | 10 505 | 18 108 | 20 654 | 47 599 |
| Other investing activities - net | 15 802 | 2 097 | 15 312 | -11 593 | 24 970 |
| Net cash flow from investing activities | -196 497 | -192 200 | -492 684 | 749 168 | 374 603 |
| Cash flow from financing activities | |||||
| Proceeds from new long term debt | 751 158 | 95 237 | 849 438 | 144 450 | 881 174 |
| Repayment of long term debt | -272 051 | -201 386 | -427 656 | -1 063 874 | -1 394 642 |
| Change in short term debt | 256 055 | 188 157 | 181 833 | -155 762 | -106 721 |
| Interest paid | -72 240 | -52 839 | -130 654 | -101 815 | -238 067 |
| Dividends paid | -684 060 | -564 104 | -684 060 | -593 680 | -592 222 |
| Other finance cash flow - net | - | - | - | -1 082 | |
| Net cash flow from financing activities | -21 138 | -534 935 | -211 099 | -1 770 681 | -1 451 560 |
| Net change in cash and cash equivalents | 77 067 | -382 025 | 15 459 | 171 482 | 717 781 |
| Cash, and cash equivalents at start of period | 2 151 982 | 1 993 201 | 2 198 148 | 1 443 314 | 1 443 314 |
| Exchange gains/losses (-) | -10 862 | 6 616 | 4 580 | 2 996 | 37 053 |
| Cash and cash equivalents at period end | 2 218 187 | 1 617 792 | 2 218 187 | 1 617 792 | 2 198 148 |
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 figures, are based on current IFRS standards and interpretations. Changes in the standards and interpretations may result in changes to the result. The quarterly 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 (2014).
There were related party transactions in Q2 2015. Related party transactions take place on market terms, and the relevant types of transactions are described in more detail in the Annual report 2014.
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.
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 in the Statement of financial position, where unrealised gain is recognised as other current receivables and unrealised loss as other current debt.
| Carrying amount of biological assets | H1 2015 | H1 2014 | 2014 | ||
|---|---|---|---|---|---|
| Fish in sea at historic cost | 2 693 583 | 2 380 112 | 2 694 863 | ||
| FV adjustment fish in sea | 222 590 | 427 827 | 784 546 | ||
| Fair value fish in sea | 2 916 173 | 2 807 939 | 3 479 409 | ||
| Fry, brood and smolt | 210 356 | 154 422 | 202 584 | ||
| Carrying amount of biological assets | 3 126 529 | 2 962 361 | 3 681 993 | ||
| Total biological assets at historic cost | 2 903 939 | 2 534 534 | 2 897 447 | ||
| FV adjustment on biological assets | 222 590 | 427 827 | 784 546 | ||
| Carrying amount of biological assets | 3 126 529 | 2 962 361 | 3 681 993 | ||
| Fair value adjustment | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Change IFRS adj. biolocigal assets | -213 281 | -205 648 | -561 955 | -682 675 | -325 957 |
| Change IFRS adj. derivatives | -2 058 | -1 059 | -1 518 | -1 667 | -1 457 |
| FV adj. biological assets | -215 339 | -206 707 | -563 473 | -684 342 | -327 414 |
| Volume of fish in sea (LWT) | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Volume at beginning of period | 99 535 | 96 852 | 107 505 | 103 107 | 103 107 |
| Business combinations | - | - | - | - | 2 574 |
| Growht during the period | 39 902 | 40 814 | 74 316 | 74 960 | 193 666 |
| Harvested volume during the period | -48 776 | -49 618 | -91 160 | -90 019 | -191 842 |
| Volume at end of period | 90 661 | 88 048 | 90 661 | 88 048 | 107 505 |
| Fish > 4kg | 16 003 | 27 491 | 16 003 | 27 491 | 37 871 |
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.
Br Birkeland AS
| Carrying amount of biological assets | H1 2015 | H1 2014 | 2014 | ||
|---|---|---|---|---|---|
| Fish in sea at historic cost | 138 772 | 142 300 | 177 463 | ||
| Fair value adjustment fish in sea | -6 782 | 16 615 | 23 123 | ||
| Fair value fish in sea | - | - | 131 990 | 158 915 | 200 586 |
| Carrying amount of biological assets | - | - | 131 990 | 158 915 | 200 586 |
| Fair value adjustment | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Change IFRS adj. biolocigal assets | -9 817 | -16 928 | -29 905 | -58 852 | -52 344 |
| Fair value adj. biological assets | -9 817 | -16 928 | -29 905 | -58 852 | -52 344 |
| Volume of fish in sea (LWT) | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2014 |
| Volume at beginning of period | 5 320 | 5 657 | 5 893 | 5 915 | 5 915 |
| Growht during the period | 876 | 1 773 | 2 682 | 3 403 | 8 847 |
| Harvested volume during the period | -2 374 | -2 529 | -4 753 | -4 417 | -8 869 |
| Volume at end of period | 3 822 | 4 901 | 3 822 | 4 901 | 5 893 |
| Fish > 4kg | - | 773 | - | 773 | 1 489 |
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 | Other/ eliminations |
Total Group | figures and volumes) |
incl. Pelagia AS (50%) |
| AS | ||||||||
| Q2 2015 | ||||||||
| 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 | ||||
| Q2 2014 (restated) | ||||||||
| Operating revenue | 3 176 402 | 241 539 | 178 335 | 117 889 | -108 011 | 3 606 154 | 535 389 | 4 141 543 |
| EBITDA | 589 676 | 57 127 | 52 840 | 26 819 | 2 700 | 729 162 | 20 081 | 749 243 |
| EBITDA % | 19% | 24% | 30% | 23% | 20% | 4% | 18% | |
| EBIT ex. Impairment | 500 315 | 28 861 | 40 299 | 14 305 | -1 511 | 582 269 | -1 128 | 581 141 |
| EBIT | 500 315 | 26 992 | 40 299 | 14 305 | -1 511 | 580 400 | -1 128 | 579 272 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 40 944 | 2 529 | 43 473 | 43 473 | ||||
| Fishmeal/oil/FPC (tonnes) | 16 808 | 10 979 | 27 787 | 24 279 | 52 066 | |||
| Frozen fish (tonnes) | 571 | 5 689 | 6 260 | 26 607 | 32 867 | |||
| Canning (cases) | 146 379 | 27 981 | 174 360 | - | 174 360 | |||
| 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 | 6 305 | 6 331 | 55 212 | 61 543 | |||
| Canning (cases) | 239 397 | 10 422 | 249 819 | 249 819 | ||||
| FPC/Oil (tonnes) | - |
| 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%) |
| H1 2014 (restated) | ||||||||
| Operating revenue | 6 356 666 | 597 574 | 271 078 | 205 209 | -182 380 | 7 248 147 | 1 181 907 | 8 430 054 |
| EBITDA | 1 228 528 | 139 581 | 77 240 | 51 515 | 1 729 | 1 498 593 | 79 694 | 1 578 287 |
| EBITDA % | 19% | 23% | 28% | 25% | 21% | 7% | 19% | |
| EBIT ex. Impairment | 1 050 675 | 74 568 | 51 819 | 26 565 | -6 575 | 1 197 052 | 38 981 | 1 236 033 |
| EBIT | 1 050 675 | 78 311 | 51 819 | 26 565 | -6 575 | 1 200 795 | 38 981 | 1 239 776 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 74 280 | 4 064 | 78 344 | 78 344 | ||||
| Fishmeal/oil/FPC (tonnes) | 48 148 | 13 927 | 62 075 | 42 960 | 105 035 | |||
| Frozen fish/fresh (tonnes) | 750 | 10 225 | 10 975 | 71 821 | 82 796 | |||
| Canning (cases) | 349 480 | 32 835 | 382 315 | - | 382 315 | |||
| 2014 | ||||||||
| Operating revenue | 12 696 874 | 1 067 299 | 500 696 | 429 190 | -349 882 | 14 344 177 | 2 822 806 | 17 166 983 |
| EBITDA | 2 160 138 | 180 137 | 79 483 | 91 523 | 4 907 | 2 516 188 | 294 634 | 2 810 822 |
| EBITDA % | 17% | 17% | 16% | 21% | 18% | 10% | 16% | |
| EBIT ex. Impairment | 1 790 625 | 42 045 | 26 341 | 39 117 | -12 247 | 1 885 881 | 209 942 | 2 095 823 |
| EBIT | 1 788 676 | 38 977 | 1 243 | 39 117 | -12 247 | 1 855 766 | 209 942 | 2 065 708 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 158 258 | 158 258 | 158 258 | |||||
| Fishmeal/oil/FPC (tonnes) | 79 075 | 21 994 | 7 520 | 108 589 | 87 432 | 196 021 | ||
| Frozen fish/fresh (tonnes) | 2 626 | 16 823 | 19 449 | 194 808 | 214 257 | |||
| Canning (cases) | 557 046 | 60 021 | 617 067 | - | 617 067 |
| (restated) | (restated) | |||||
|---|---|---|---|---|---|---|
| Q2 2015 | Q2 2014 | H1 2015 | H1 2014 | 2 014 | ||
| Norskott Havbruk AS | 50,0 % | 6 241 | 18 181 | 22 369 | 54 610 | 95 540 |
| Pelagia AS | 50,0 % | 33 551 | -7 621 | 69 633 | 25 143 | 124 744 |
| Villa Organic AS | 47,8 % | - | -6 184 | - | -5 418 | -5 418 |
| Others | 5 932 | 1 058 | 9 666 | 1 154 | 2 515 | |
| Total income from ass.companies | 45 724 | 5 434 | 101 668 | 75 489 | 217 381 | |
| Total investment | 1 837 114 | 1 602 030 | 1 563 187 |
Business combinations have taken place in Lerøy Seafood Group ASA (LSG) in the first half of 2015. The two farming companies in North Norway, Lerøy Aurora AS and Lerøy Finnmark AS, were merged to form one unit at the start of 2015, with Lerøy Aurora AS as the acquiring party. LSG has increased its equity interest in Alfarm Alarko Lerøy from 50% to 100% by purchasing the remaining 50% of the shares. In connection with the acquisition, the company changed its name to Lerøy Turkey A.S., and has moved from being an associate to a subsidiary. LSG has further acquired 100% of the shares in the Norwegian company Senja Akvakultursenter AS via Lerøy Aurora AS. The company owns a large plot of land regulated for aquaculture and is currently a major producer of lumpfish. At the start of 2015, LSG acquired 91% of the shares in the Norwegian company Preline Fishfarming System AS. For more detailed information, please refer to LSG's financial report for Q2 2015, available at www.leroy.no
| Investor | Number of shares | % of top 20 | % of total |
|---|---|---|---|
| LACO A/S | 112 605 876 | 76.29% | 55.55% |
| STATE STREET BANK & TRUST CO. | 5 003 587 | 3.39% | 2.47% |
| PARETO AKSJE NORGE | 4 093 773 | 2.77% | 2.02% |
| STATE STREET BANK AND TRUST CO. | 3 169 195 | 2.15% | 1.56% |
| PARETO AKTIV | 2 653 651 | 1.80% | 1.31% |
| FOLKETRYGDFONDET | 1 938 691 | 1.31% | 0.96% |
| MITSUI AND CO., LTD | 1 782 236 | 1.21% | 0.88% |
| BR.BIRKELAND AS | 1 722 223 | 1.17% | 0.85% |
| PACTUM AS | 1 700 000 | 1.15% | 0.84% |
| THE BANK OF NEW YORK MELLON | 1 453 171 | 0.98% | 0.72% |
| DANSKE INVEST NORSKE INSTIT. II. | 1 388 982 | 0.94% | 0.69% |
| JP MORGAN BANK LUXEMBOURG S.A | 1 371 400 | 0.93% | 0.68% |
| JP MORGAN CHASE BANK, NA | 1 365 000 | 0.92% | 0.67% |
| PARETO VERDI VPF | 1 301 480 | 0.88% | 0.64% |
| MP PENSJON PK | 1 182 000 | 0.80% | 0.58% |
| CITIBANK, N.A. | 1 155 176 | 0.78% | 0.57% |
| HOLBERG NORDEN VERDIPAPIRFONDET | 982 540 | 0.67% | 0.48% |
| PARETO AS | 921 000 | 0.62% | 0.45% |
| OM HOLDING AS | 920 000 | 0.62% | 0.45% |
| FORSVARETS PERSONELLSERVICE | 896 346 | 0.61% | 0.44% |
| Total number owned by top 20 | 147 606 327 | 100% | 72.81% |
| Total number of shares | 202 717 374 | 100% |
We declare that, to the best of our knowledge, the half-year financial statements for the period 1 January – 30 June 2015 have been prepared in accordance with IAS 34 – Interim Financial Reporting, and that the information in the financial statements provides a fair presentation of the Group's assets, liabilities, financial position and results as a whole. We also declare that, to the best of our knowledge, the half-year report provides a fair presentation of significant events during the accounting period and their impact on the half-year financial statements, the key risks and uncertainties faced by the Group in the coming accounting period, and significant transactions with related parties.
Storebø, 12 August 2015 The Board of Directors of Austevoll Seafood ASA
Helge Singelstad Chairman of the Board Lill Maren Møgster
Oddvar Skjegstad Deputy Chairman of the Board Leif Teksum
Inga Lise L. Moldestad Helge Møgster Siren M. Grønhaug
Arne Møgster CEO
www.auss.no
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