Quarterly Report • May 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 | |
|---|---|
| Q1 2015 05 | |
| Operating segments 05 | |
| Cash flows 07 | |
| Balance sheet as of 31 March 2015 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 Business combinations 15 | |
| Note 7 Top 20 shareholders per 31 March, 2015 15 |
Positive results for salmon and trout despite a decline in market prices and an increase in release from stock costs in Q1 2015 when compared with Q1 2014
A high level of activity for the pelagic segment in the North Atlantic
A low level of activity for the pelagic segment in South America, but with a positive outlook
In April 2015, 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) | |||
|---|---|---|---|
| All figures in NOK 1,000 | Q1 2015 | Q1 2014 | 2014 |
| Operating revenue | 3 545 829 | 3 641 992 | 14 344 177 |
| EBITDA | 516 965 | 769 431 | 2 516 189 |
| EBITDA % | 15 % | 21 % | 18 % |
| EBIT | 348 707 | 620 394 | 1 855 768 |
| Pre tax profit | -53 625 | 127 429 | 1 346 473 |
| Earnings per share (EPS) from continuing operations | -0,10 | 0,48 | 2,76 |
| Total assets | 23 240 672 | 21 137 540 | 23 343 997 |
| Equity | 12 571 290 | 11 450 329 | 12 360 106 |
| Equity ratio | 54 % | 54 % | 53 % |
| Net interest bearing debt (NIBD)/ | 3 967 138 | 3 380 336 | 3 959 866 |
The Group reported operating revenue of NOK 3,546 million in the quarter, compared with NOK 3,642 million in Q1 2014.
EBITDA achieved in the first quarter was NOK 517 million, down from NOK 769 million in the same quarter of last year.
The Group reported an increase in revenue from salmon and trout but a lower EBITDA. This was caused by the decline in market prices and higher release from stock costs in the quarter when compared with Q1 2014. The businesses in South America reported a decline in both revenue and EBITDA due to a significantly lower sales volume during the quarter, when compared with Q1 2014. This is attributed to the extraordinarily difficult situation involving quotas in Peru in 2014, resulting in a very low inventory at the start of 2015 when compared with the start of 2014.
EBIT before value adjustment of biomass in Q1 2015 was NOK 349 million (Q1 2014: NOK 620 million). EBIT after value adjustment of biomass in Q1 2015 was NOK -20 million (Q1 2014: NOK 101 million). The IFRS biomass adjustment for the quarter was negative at NOK 368 million (Q1 2014 was negative at NOK 520 million).
Income from associates in Q1 2015 totalled NOK 56 million (Q1 2014: NOK 70 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 expenses in Q1 2015 totalled NOK 52 million (Q1 2014: NOK 51 million).
The Group reported a loss before tax in Q1 2015 of NOK 54 million (Q1 2014: profit of NOK 127 million). The loss after tax was NOK 26 million (Q1 2014 NOK 118).
The Group is financially sound with an equity ratio of 54%. The Group had net interest-bearing debt totalling NOK 3,967 million at the close of Q1 2015. The comparative figure at the end of Q1 2014 was NOK 3,380 million.
Austral Group S.A.A. (Austral) is involved in fishing, production of fishmeal and oil and products for consumption. 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 utilised to produce fishmeal and oil, and horse mackerel/mackerel is fished for consumption. The main fishing seasons for anchoveta in Central/North Peru are from April to July and November to January. The company has production of fishmeal and fish oil in four factories, located in Coishco, Chancay, Pisco and Ilo. The company has two factories producing fish for consumption that share premises with the fishmeal and fish oil factories in Coishco and Pisco.
IMARPE carried out a research cruise in the autumn of 2014 that indicated low biomass figures. As a result, the researchers recommended the cancellation of the second fishing season in 2014 (November-January). The company's vessels and processing facilities have therefore had no activity since August 2014. The level of activity was close to zero also during Q1 2015. The total volume of fish caught was 1,715 tonnes, and this was mainly anchoveta in South Peru. Due to the extraordinary difficulties involving quotas in 2014, the company started 2015 with a low inventory of fishmeal and fish oil. This has naturally resulted in a considerable decrease in sales volume in Q1 2015 compared with Q1 2014.
It is therefore encouraging to see a total quota of 2,580,000 tonnes announced on 8 April for the first season of 2015. This season lasts until 30 June 2015.
The fishing season has been successful to date and Austral has caught approx. 60% of its quota up to the start of May. The total quota for the first season of 2014 was 2.5 million tonnes. Only 66% of the total quota was caught by the end of the season on 10 August.
Operating revenue in Q1 2015 totalled NOK 163 million (Q1 2014: NOK 356 million) and EBITDA amounted to NOK 7 million (Q1 2014: NOK 82 million).
Approx. 6,700 tonnes of fishmeal and oil were sold in Q1 2015, compared with approx. 31,300 tonnes in the same quarter of 2014.
Peru is one of the largest producers of fishmeal and fish oil in the world. Production volumes in Peru have a direct influence on the prices for fishmeal worldwide. Due to the extraordinarily low catches in the first season in 2014, fishmeal prices saw a substantial increase in the second half of the year. The prices for fishmeal and fish oil have seen a downward correction after the quotas were established for the first season.
Foodcorp Chile S.A (FC) is involved in fishing, production of fish for consumption and production of fishmeal and fish 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 are in 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. 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, although the majority of horse mackerel caught during this period were small. Due to the fishing patterns in 2014, the company had a much lower volume of fish caught in Q1 2015 when compared with the same quarter in 2014 (6,000 tonnes compared with 20,000 tonnes). FC had fished approx. 32% of their total quota for 2015 by the end of May.
The squid fishing season has been good. The company's own fleet was utilised to fish for squid during the first quarter, and the total volume, including squid purchased from the coastal fleet, was just under 14,000 tonnes. The corresponding volume for Q1 2014 was approx. 8,000 tonnes. As normal, the fishing season for sardine/anchoveta started in mid-March, and FC's fleet has fished its total quota for 2015. FC also purchases 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 cancelled in some areas. The fishing season for this group has now fully restarted.
Operating revenue in Q1 2015 totalled NOK 74 million (Q1 2014: NOK 93 million) and EBITDA amounted to NOK -1 million (Q1 2014: NOK 24 million).
Chile has seen a decline in horse mackerel fishing since 2008/2009. Fish stock management was introduced in 2012, with responsibility for this assigned to South Pacific Regional Fisheries Management Organization. A total quota for fish stocks was introduced for the first time in 2012 in order to rebuild biomass. The total quota has subsequently seen a slight increase over the years. It is our assessment 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 Q1 2015, LSG reported operating revenue of NOK 3,279 million (Q1 2014: NOK 3,180 million) and EBITDA before value adjustment of biomass of NOK 501 million (Q1 2014: NOK 639 million).
The segment has harvested 35,000 tonnes gutted weight of salmon and trout in the quarter, compared with 33,300 tonnes in Q1 2014. The lower EBITDA figure reported for Q1 2015 compared with the same period last year is attributed to lower prices realised and higher release from stock costs. The salmon spot price in Q1 2015 was up on average by NOK 2 per kg when compared with Q4 2014, while the industry spot price for whole superior salmon was down 14%. Release from stock costs in Q1 2015 are on a par with those reported for Q4 2014, and remain at an extraordinarily high level historically. The release from stock costs for trout are expected to fall, but will remain high throughout the second and third quarters. The extraordinarily high costs, particularly for trout, are not expected to last as measures implemented have an impact. LSG's measures and investments in 2014 and 2015, specially those involving cleaner fish, will provide a significant reduction in production costs throughout 2015 and as we enter 2016.
Russia introduced a ban on the import of Norwegian salmon and trout on 7 August 2014. The ban remains and continues to have an impact on the market for trout at the start of 2015. The market outside of Europe reports positive growth, but the main trend indicates that the volume formerly sold to Russia in Q1 2014 has now been sold to Europe in Q1 2015. As a result, the growth in supply on important end markets in Europe is much higher than indicated by the growth in export from Norway.
This dynamic has also had a negative impact on the prices for Atlantic salmon, although the impact on the trout market is much more predominant. As the world's largest producer of trout, LSG has suffered a significantly negative impact on its realised prices in Q1 2015.
Contract coverage for the first quarter of 2015 was 33%. Following a downward trend throughout the quarter, the spot price for salmon was up NOK 2 per kg when compared with Q4 2014. However, the prices realised by LSG saw a slightly higher increase than this due to a minor increase in contract prices and improved timing of spot sales. The above includes trout, where the prices realised in Q1 2015 were NOK 3 per kg lower than for salmon.
LSG has a total of 142 licences – 26 licences in Troms, 55 in Central Norway and 61 in West Norway.
In recent years, LSG has invested significantly in increasing its capacity for high value processed salmon and trout (VAP). LSG's work on marketing, along with good national and international customers, has resulted in improvements to utilisation of total capacity. As part of the overall strategy, LSG has also made significant investments in recent years in processing facilities, in order to be able to drive a "revolution" in the distribution of fresh seafood. The investments have been made in what is known as "fish-cuts", processing facilities where freshness, service and closeness to end customer are key. Today, LSG has a number of fish-cut facilities across Europe.
There is good demand for LSG's products, and the operating segment has a strong position within the major global fish markets.
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 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 2015, BRBI reported operating revenue of NOK 112 million (Q1 2014: NOK 87 million) and EBITDA before value adjustment of biomass of NOK 15 million (Q1 2014: NOK 25 million).
BRBI harvested 1,947 tonnes of salmon and trout in Q1 2015, with an EBIT per kg of NOK 6.4. The comparative figures for Q1 2014 are 1,534 tonnes and EBIT per kg of NOK 15.2. During the first quarter, the company's vessels have fished for capelin, blue whiting and snow crab.
AUSS's consolidated financial statements report the joint venture Pelagia AS as an associate, in accordance with IFRS 11. In the notes to the financial statements for this segment (note 4), and 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 shareholding in the company.
In Q1 2015, the operating segment had revenue of NOK 636 million (Q1 2014: NOK 647 million) and EBITDA of NOK 66 million (Q1 2014: NOK 60 million).
As normal, the first quarter is the high season for receipt of raw materials, and the total volume of raw materials received by the Group (100%) was approx. 409,000 tonnes for the quarter, compared with approx. 352,000 tonnes in the same quarter of 2014. There has been a particularly high level of activity within the production of fishmeal and fish oil, based on the increased quotas for blue whiting.
Cash flow from operating activities for Q1 2015 was NOK 425 million (NOK 848 million in Q1 2014). Cash flow from investing activities for Q1 2015 was NOK -296 million (NOK 941 million in Q1 2014). During Q1 2015, LSG has purchased shares/taken part in share issues in various companies, totalling NOK 129 million. During the same quarter of 2014, Pelagia was founded and AUSS sold shares for a figure exceeding NOK 1,000 million. Cash flow from financing activities for Q1 2015 was NOK -190 million (NOK -1,236 million in Q1 2014). Cash flow from financing activities mainly comprises payment of ordinary instalments and changes in short-term credits. In Q1 2014, downpayments on long-term overdraft facilities totalled NOK 740 million. Net change in cash for the Group in Q1 2015 was NOK -62 million (Q1 2014: NOK 554 million). The Group's cash and cash equivalents at the end of Q1 2015 totalled NOK 2,152 million compared with NOK 1,993 million at the end of Q1 2014.
At the end of March 2015, the Group had a balance sheet total of NOK 23,241 million compared with NOK 21,138 million at the end of March 2014. The increase is partly attributed to the fact that Villa Organic (owned by LSG) is now a consolidated business and no longer an associate, with effect from Q3 2014.
The Group is financially sound with book equity at the end of Q1 2015 of NOK 12,571 million, which corresponds to an equity ratio of 54%. At end-March 2014, the book equity for the Group was NOK 11,450 million, also representing an equity ratio of 54%.
Net interest-bearing debt at end-March 2015 was NOK 3,967 million compared with NOK 3,380 million at end-March 2014. The Group's cash and cash equivalents excluding unused lines of credit at the end of March 2015 totalled NOK 2,152 million compared with NOK 1,993 million at the end of March 2014.
The Group's risk exposure is described in the consolidated financial statements for 2014. The Group's activities are mainly 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, in addition to political trade barriers and geopolitical risk, the general consensus is that macro-economic uncertainty is still greater than normal. Although this situation may have a negative impact on the real economy in most markets, it is our opinion that AUSS's core business is 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 ability to compete and its 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 regulations result in fluctuating catch volumes from quarter to quarter and from year to year, and subsequently in the utilisation of the company's production facilities. Practical evidence of this is provided with the difficult situation encountered by Austral in 2014. The seasonal fluctuations in catch volumes create similar fluctuations in the interim key figures.
The Group has a floating interest rate for the main share of its debt, but has signed fixed interest rate contracts for approx. 18% of its interest-bearing debt.
The Group is exposed to fluctuations in foreign exchange rates, particularly in EUR, GBP, USD, Chilean Peso and Peruvian Soles. Measures to reduce this risk include forward contracts and multi-currency overdraft facilities. Furthermore, parts of the long-term debt are adapted in relation to earnings in the same currency.
At 31 March 2015, the company had 4,039 shareholders. The
number of shareholders at the start of the first quarter was 4,089.
The share price was NOK 46.50 at the start of the first quarter 2015 and NOK 43.10 at the close of the period.
Provided that the Board of Director's proposal to distribute a dividend of NOK 2 per share is adopted by the General Shareholders' Meeting on 22 May 2015, the total dividend will be NOK 405,434,748 to be paid on 5 June 2015. This dividend will be paid to those shareholders registered by the company as of 22 May 2015. The shares will be traded ex dividend with effect from 26 May 2015.
Fishmeal and fish oil prices in South America have remained at a stable high throughout Q1 2015, although with a very low sales volume. There has been a downwards price correction for fishmeal in the North Atlantic after the season started in 2015, particularly as a result of high catch volumes of capelin off the coast of Iceland.
The total quota for the first season in 2015 in Peru was set at 2.58 million tonnes, slightly exceeding market projections. This has resulted in slight pressure on prices for fishmeal. Realised prices for fishmeal FOB Peru (super prime) are now USD 1,800-1,850, while the CIF Hamburg prices for fishmeal (standard 64%/65%) are USD 1,530.
The Group's production of fish for consumption is mainly in Europe and South America. The Group received catches of herring and capelin during the first quarter in Europe. As previously mentioned, there has been a very low level of activity in South America. In addition to the extraordinarily low level of activity in Peru, the fishing pattern in Chile was different in Q1 2015 than in the same quarter of 2014. However, Chilean catches increased at the end of March, following on from a poor period from February to mid- March. The ban on imports into Russia introduced on 7 August 2014, in addition to the introduction of import quotas to Nigeria in 2014, have required the companies to actively seek alternative markets for those products traditionally sold to Russia and Nigeria as the main markets. The weakening Norwegian currency has in the main helped strengthen the competitive edge of Norwegian seafood producers on the global market. 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 increased prices for consumers on this market. 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 into Russia represents a significant, shortterm challenge for both the Norwegian seafood industry and the industry in Russia and some of its neighbouring states. The Group is working hard to increase sales to alternative markets, but unfortunately there was little we could do to prevent the import bans from having a negative impact on the prices realised by the Group in the first quarter of 2015, and particularly for trout. Although the situation is taking longer than expected to resolve, we currently expect the market to gradually return to normal, due to an underlying strong growth in demand, and successful marketing initiatives, but also as a result of a change in the global trade flows for salmon and trout. Demand for high-quality seafood is high, and clear trends can be identified that substantiate increased demand for fresh products. Based on the market prospects and the substantial potential within the segment to achieve lower costs, the Group has a positive outlook to the future.
The Group is financially sound, reports a positive development and currently has a strong position on a number of seafood markets worldwide. The Group's strategy is to continue to grow and further develop over time within its current operating segments.
Bearing in mind the prevailing framework conditions for the Group's operations, the Board of Directors is largely very satisfied with the Group's results for Q1 2015.
The Group's strong position within the global seafood business provides grounds for a positive outlook for the Group's future development.
Storebø, 12 May 2015 The Board of Directors of Austevoll Seafood ASA
| (Restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | Q1 2015 | Q1 2014 | 2014 |
| Operating income | 3 545 829 | 3 641 992 | 14 344 177 |
| Raw material and consumables used | 2 217 904 | 2 101 631 | 8 529 316 |
| Salaries and personnel expenses | 408 042 | 370 814 | 1 607 412 |
| Other operating expenses | 402 918 | 400 116 | 1 691 260 |
| Operating profit before depreciation (EBITDA) | 516 965 | 769 431 | 2 516 189 |
| Depreciation and amortisation | 170 407 | 150 911 | 630 308 |
| Impairment | -2 149 | -1 874 | 30 113 |
| EBIT before fair value biomass adjustment | 348 707 | 620 394 | 1 855 768 |
| Fair value adjustment biomass | -368 222 | -519 559 | -379 758 |
| Operating profit | -19 515 | 100 835 | 1 476 010 |
| Income from associated companies | 55 943 | 70 055 | 217 381 |
| Net interest expenses | -52 329 | -50 521 | -197 074 |
| Net other financial items (incl. agio/disagio) | -37 724 | 7 060 | -149 844 |
| Profit before tax | -53 625 | 127 429 | 1 346 473 |
| Income tax expenses | 27 313 | -9 488 | -345 802 |
| Net profit | -26 312 | 117 941 | 1 000 671 |
| Profit to non-controlling interest | -5 713 | 22 020 | 445 561 |
| Profit to controlling interests | -20 599 | 95 921 | 555 110 |
| Earnings per share (EPS) | -0,10 | 0,48 | 2,76 |
| Diluted EPS | -0,10 | 0,48 | 2,76 |
| (Restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | Q1 2015 | Q1 2014 | 2014 |
| Net earnings in the period | -26 312 | 117 941 | 1 000 671 |
| Other comprehensive income | |||
| Currency translation differences | 193 324 | -99 615 | 562 141 |
| Other comprehensive income from associated companies | - | -20 | -16 |
| Cash flow hedges | 47 992 | -12 008 | -72 200 |
| Change in value available for sale financial assets | - | - | - |
| Others incl. tax effect | -3 820 | 1 939 | - |
| Total other comprehensive income | 237 496 | -109 704 | 489 925 |
| Comprehensive income in the period | 211 184 | 8 237 | 1 490 596 |
| Allocated to; | |||
| Minority interests | -2 994 | 3 907 | 501 732 |
| Majority interests | 214 178 | 4 330 | 988 864 |
| All figures in NOK 1.000 | 31.03.2015 | (restated) 31.03.2014 |
31.12.2014 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 7 634 655 | 7 029 936 | 7 480 567 |
| Vessels | 698 013 | 644 077 | 699 923 |
| Property, plant and equipment | 4 421 734 | 3 675 304 | 4 249 364 |
| Investments in associated companies | 1 706 690 | 1 595 804 | 1 563 187 |
| Investments in other shares | 33 805 | 31 414 | 35 773 |
| Other long-term receivables | 68 374 | 64 603 | 64 775 |
| Total non-current assets | 14 563 271 | 13 041 138 | 14 093 589 |
| Inventories | 4 314 027 | 4 093 434 | 4 721 989 |
| Accounts receivable | 1 560 349 | 1 515 201 | 1 637 571 |
| Other current receivables | 651 043 | 494 566 | 692 700 |
| Cash and cash equivalents | 2 151 982 | 1 993 201 | 2 198 148 |
| Total current assets | 8 677 401 | 8 096 402 | 9 250 408 |
| Total assets | 23 240 672 | 21 137 540 | 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 | 4 755 645 | 3 889 828 | 4 541 467 |
| Non-controlling interests | 4 036 043 | 3 780 899 | 4 039 037 |
| Total equity | 12 571 290 | 11 450 329 | 12 360 106 |
| Deferred tax liabilities | 2 320 353 | 2 216 828 | 2 407 445 |
| Pensions and other obligations | 164 559 | 83 543 | 169 447 |
| Borrowings | 4 863 983 | 4 322 739 | 4 794 922 |
| Other long-term liabilities | 18 295 | 10 914 | 16 104 |
| Total non-current liabilities | 7 367 190 | 6 634 024 | 7 387 918 |
| Short term borrowings | 676 435 | 738 006 | 741 009 |
| Overdraft facilities | 578 702 | 312 792 | 622 083 |
| Account payable | 1 041 026 | 1 009 442 | 1 172 648 |
| Other current liabilities | 1 006 029 | 992 947 | 1 060 233 |
| Total current liabilities | 3 302 192 | 3 053 187 | 3 595 973 |
| Total liabilities | 10 669 382 | 9 687 211 | 10 983 891 |
| Total equity and liabilities | 23 240 672 | 21 137 540 | 23 343 997 |
| Equity at period end | 12 571 290 | 11 450 329 | 12 360 106 |
|---|---|---|---|
| Total changes in equity in the period | 211 184 | -13 862 | 895 915 |
| Other | - | - | |
| Effect option programme | - | - | - |
| Transactions with non-controlling interest | -1 050 | -1 082 | |
| Business combinations/acquisition | 8 527 | ||
| Dividends | -29 576 | -593 599 | |
| Comprehensive income in the period | 211 184 | 8 237 | 1 490 596 |
| Equity period start | 12 360 106 | 11 464 191 | 11 464 191 |
| All figures in NOK 1.000 | 31.03.2015 | 31.03.2014 | 31.12.2014 |
| (restated) |
| (restated) | |||
|---|---|---|---|
| All figures in NOK 1.000 | Q1 2015 | Q1 2014 | 2014 |
| Cash flow from operating activities | |||
| Profit before income taxes | -53 625 | 127 429 | 1 346 472 |
| Fair value adjustment of biological assets | 368 222 | 519 559 | 379 758 |
| Taxes paid in the period | -143 376 | -81 091 | -438 602 |
| Depreciation and amortisation | 170 407 | 150 911 | 630 307 |
| Impairments | -2 149 | -1 874 | 30 114 |
| Associated companies - net | -55 943 | -70 055 | -217 381 |
| Interest expense | 61 333 | 56 650 | 244 673 |
| Interest income | -9 004 | -10 149 | -47 599 |
| Change in inventories | 55 553 | 94 233 | -316 082 |
| Change in receivables | 161 658 | 334 310 | 63 834 |
| Change in payables | -143 534 | -216 694 | 10 168 |
| Other operating cash flow incl currency exchange | 14 998 | -55 344 | 109 076 |
| Net cash flow from operating activities | 424 540 | 847 885 | 1 794 738 |
| Cash flow from investing activities | |||
| Purchase of intangible and fixed assets | -189 336 | -168 711 | -994 489 |
| Purchase of shares and equity investments | -129 450 | -390 | -64 418 |
| Proceeds from sale of fixed assets/equity investments | 6 354 | 1 114 010 | 1 191 035 |
| Cash inflow from business combinations | 7 732 | - | 133 656 |
| Dividend received | - | - | 36 250 |
| Interest income | 9 004 | 10 149 | 47 599 |
| Other investing activities - net | -490 | -13 690 | 24 970 |
| Net cash flow from investing activities | -296 186 | 941 368 | 374 603 |
| Cash flow from financing activities | |||
| Proceeds from new long term debt | 98 280 | 49 213 | 881 174 |
| Repayment of long term debt | -155 605 | -862 488 | -1 394 642 |
| Change in short term debt | -74 222 | -343 919 | -106 721 |
| Interest paid | -58 414 | -48 976 | -238 067 |
| Dividends paid | -29 576 | -592 222 | |
| Other finance cash flow - net | - | - | -1 082 |
| Net cash flow from financing activities | -189 961 | -1 235 746 | -1 451 560 |
| Net change in cash and cash equivalents | -61 607 | 553 507 | 717 781 |
| Cash, and cash equivalents at start of period | 2 198 148 | 1 443 314 | 1 443 314 |
| Exchange gains/losses (-) | 15 441 | -3 620 | 37 053 |
| Cash and cash equivalents at period end | 2 151 982 | 1 993 201 | 2 198 148 |
This interim report has been prepared in accordance with the International Financial Reporting Standards (IFRS) and the related standard for interim financial reporting (IAS 34). The interim report, including historical comparative amounts, is 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 most recent annual report from the company (2014).
There were related party transactions in Q1 2015. Related party transactions take place on market terms, and the relevant types of transactions are described in detail in the 2014 annual report.
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) together with cost of logistics. The volume is adjusted to account for gutting loss. Fair value of biological assets with an average weight below 4 kg is adjusted based on stage of completion in relation to the growth cycle. The value is not adjusted to a lower amount than historical cost, unless a loss is expected on future sales.
The change in fair value adjustment of biomass in the income statement includes unrealised gain/loss on financial sales and purchase contracts (derivatives) on Fish Pool. Fish Pool contracts are treated as financial instruments in the balance sheet statement, where unrealised gain is recognised as other short-term receivables, and unrealised loss is recognised as other short-term debt.
| Carrying amount of biological assets | 31.03.2015 | 31.03.2014 | 2014 |
|---|---|---|---|
| Fish in sea at historic cost | 2 662 983 | 2 383 547 | 2 694 863 |
| Fair value adjustment fish in sea | 435 872 | 633 475 | 784 546 |
| Fair value fish in sea | 3 098 855 | 3 017 022 | 3 479 409 |
| Fry, brood and smolt | 293 024 | 254 963 | 202 584 |
| Carrying amount of biological assets | 3 391 879 | 3 271 985 | 3 681 993 |
| Total biological assets at historic cost | 2 956 007 | 2 638 510 | 2 897 447 |
| Fair value adjustment on biological assets | 435 872 | 633 475 | 784 546 |
| Carrying amount of biological assets | 3 391 879 | 3 271 985 | 3 681 993 |
| Fair value adjustment | Q1 2015 | Q1 2014 | 2014 |
| Change IFRS adj. biolocigal assets | -348 674 | -477 027 | -325 957 |
| Change IFRS adj. derivatives | 540 | -608 | -1 457 |
| Fair value adj. biological assets | -348 134 | -477 635 | -327 414 |
| Volume of fish in sea (LWT) | Q1 2015 | Q1 2014 | 2014 |
| Volume at beginning of period | 107 505 | 103 107 | 103 107 |
| Business combinations | 0 | 0 | 2 574 |
| Growht during the period | 34 414 | 34 146 | 193 666 |
| Harvested volume during the period | -42 384 | -40 401 | -191 842 |
| Volume at end of period | 99 535 | 96 852 | 107 505 |
| Fish > 4kg | 34 105 | 39 408 | 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 ratios for loss during gutting of salmon and trout applied for this conversion are 17% and 20% respectively.
Br Birkeland AS
| Carrying amount of biological assets | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Fish in sea at historic cost | 169 990 | 152 388 | 177 463 |
| Fair value adjustment fish in sea | 3 035 | 33 543 | 23 123 |
| Fair value fish in sea | 173 025 | 185 931 | 200 586 |
| Fry, brood and smolt | - | - | - |
| Carrying amount of biological assets | 173 025 | 185 931 | 200 586 |
| Fair value adjustment | Q1 2015 | Q1 2014 | 2014 |
| Change IFRS adj. biolocigal assets | -20 088 | -41 924 | -52 344 |
| Change IFRS adj. derivatives | - | - | - |
| Fair value adj. biological assets | -20 088 | -41 924 | -52 344 |
| Mengde fisk i sjø (LWT)/ Volume of fish in sea (LWT) | Q1 2015 | Q1 2014 | 2014 |
| Mengde ved periodens begynnelse / Volume at beginning of period | 5 893 | 5 915 | 5 915 |
| Growht during the period | 1 806 | 1 630 | 8 847 |
| Harvested volume during the period | -2 379 | -1 888 | -8 869 |
| Volume at end of period | 5 320 | 5 657 | 5 893 |
| Fish > 4kg | 2 699 | 2 504 | 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 ratios for loss during gutting of salmon and trout applied for this conversion are 17% and 20% respectively.
| Pelagia | ||||||||
|---|---|---|---|---|---|---|---|---|
| Lerøy | Austral | Foodcorp | Br. | AS * (50% of |
Total Group | |||
| All figures in NOK | Seafood | Group | Chile | Birkeland | Other/ | figures and | incl. Pelagia | |
| 1.000 | Group ASA | S.A.A | S.A | AS | eliminations | Total Group | volumes) | AS (50%) |
| Q1 2015 | ||||||||
| 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 (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 | 747 | 144 126 | |||
| FPC/Oil (tonnes) | - | |||||||
| Q1 2014 (restated) | ||||||||
| Operating revenue | 3 180 264 | 356 035 | 92 743 | 87 320 | -74 370 | 3 641 992 | 646 518 | 4 288 510 |
| EBITDA | 638 852 | 82 454 | 24 400 | 24 697 | -972 | 769 431 | 59 613 | 829 044 |
| EBITDA % | 20 % | 23 % | 26 % | 28 % | 21 % | 9 % | 19 % | |
| EBIT ex. Impairment | 550 360 | 49 445 | 11 520 | 12 260 | -5 065 | 618 520 | 40 109 | 658 629 |
| EBIT | 550 360 | 51 319 | 11 520 | 12 260 | -5 065 | 620 394 | 40 109 | 660 503 |
| Volumes sold: | ||||||||
| Salmon (gwt tonnes) | 33 336 | 1 534 | 34 870 | 34 870 | ||||
| Fishmeal/oil (tonnes) | 31 340 | 2 948 | 34 288 | 17 817 | 52 105 | |||
| Frozen fish (tonnes) | 179 | 4 535 | 4 714 | 45 214 | 49 928 | |||
| Canning (cases) | 203 101 | 4 854 | 207 955 | - | 207 955 | |||
| FPC/Oil (tonnes) | 864 | 864 | ||||||
| 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 (tonnes) | 79 075 | 21 994 | 7 520 | 108 589 | 83 524 | 192 113 | ||
| Frozen fish/fresh (tonnes) | 2 626 | 16 823 | 19 449 | 194 808 | 214 257 | |||
| Canning (cases) | 557 046 | 60 021 | 617 067 | - | 617 067 | |||
| FPC/Oil (tonnes) | 3 908 | 3 908 |
| Total investment | 1 706 690 | 1 595 804 | 1 563 187 | |
|---|---|---|---|---|
| Total income from ass.companies | 55 943 | 70 055 | 217 381 | |
| Others | 3 733 | 96 | 2 515 | |
| Villa Organic AS | 47,8 % | - | 766 | -5 418 |
| Pelagia AS | 50,0 % | 36 082 | 32 764 | 124 744 |
| Norskott Havbruk AS | 50,0 % | 16 128 | 36 429 | 95 540 |
| Q1 2015 | (Restated) Q1 2014 |
2014 |
Business combinations have been carried out in Lerøy Seafood Group ASA (LSG). 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 receiving company. LSG increased its shareholding in Alfarm Alarko Lerøy from 50% to 100% with the purchase of the remaining 50% of the shares in the company. As a result, the former associate Alfarm Alarko Lerøy is now a subsidiary. Moreover, LSG has acquired 100% of the shares in the Norwegian company Senja Akvakultursenter AS via Lerøy Aurora AS. This company owns a large plot of land set aside 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 Q1 2015 published at www.leroy.no
| Investor | Number of shares | % of top 20 | % of total |
|---|---|---|---|
| LACO A/S | 112 605 876 | 76,03 | 55,55 |
| STATE STREET BANK & TRUST CO. | 5 000 622 | 3,38 | 2,47 |
| PARETO AKSJE NORGE | 4 993 273 | 3,37 | 2,46 |
| STATE STREET BANK AND TRUST CO. | 2 980 760 | 2,01 | 1,47 |
| PARETO AKTIV | 2 892 151 | 1,95 | 1,43 |
| FOLKETRYGDFONDET | 1 938 691 | 1,31 | 0,96 |
| MITSUI AND CO., LTD | 1 782 236 | 1,20 | 0,88 |
| BR.BIRKELAND AS | 1 722 223 | 1,16 | 0,85 |
| PACTUM AS | 1 700 000 | 1,15 | 0,84 |
| PARETO VERDI | 1 373 480 | 0,93 | 0,68 |
| JP MORGAN BANK LUXEMBOURG S.A | 1 371 400 | 0,93 | 0,68 |
| DANSKE INVEST NORSKE INSTIT. II. | 1 348 982 | 0,91 | 0,67 |
| THE BANK OF NEW YORK MELLON | 1 324 158 | 0,89 | 0,65 |
| HOLBERG NORDEN | 1 281 000 | 0,86 | 0,63 |
| MP PENSJON PK | 1 182 000 | 0,80 | 0,58 |
| CITIBANK, N.A. | 1 027 624 | 0,69 | 0,51 |
| 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 |
| HOLBERG NORGE | 852 148 | 0,58 | 0,42 |
| Total number owned by top 20 | 148 113 970 | 100,00 | 73,06 |
| Total number of shares | 202 717 374 | 100,00 |
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