Group operating revenue in Q2 2023 totalled NOK 8,452 million, compared with NOK
7,852 million in Q2 2022, an increase of 8%. The growth in revenue comes from
the farming companies and is driven by strong prices as well as by the weak
Norwegian krone.
Operating EBIT in Q2 2023 was NOK 982 million, against NOK 1,465 million in Q2
2022. The decrease in operating EBIT is mainly because the first fishing season
in Peru was cancelled after just a few days' trial fishery. This has resulted in
negative performance for the Peruvian operation in Q2. Inflation over the past
year means higher selling prices for the Group's products but also rising prices
for virtually all input factors, impacting costs. The operating EBIT margin for
Q2 2023 was 12%, compared with 19% in Q2 2022.
Norskott Havbruk AS and Pelagia Holding AS are joint ventures and the two
largest associates. Income from associates before fair value adjustment related
to biological assets in Q2 2023 totalled NOK 14 million (Q2 2022: NOK 110
million). The equivalent figure including fair value adjustment of biological
assets was NOK 20 million (Q2 2022: NOK 164 million). Pelagia has continued its
positive development and improved its results compared with Q2 2022. Cost
focus/rationalisation, growth and good sales volumes for end products combined
with higher prices realised for fishmeal, protein concentrate and fish oil all
contributed to the earnings improvement. However, Norskott's earnings continued
to be affected by the challenging biological situation in the second half of
2022. The company posted a loss for the quarter. The Group's joint ventures and
associates have generated good results over time, are significant enterprises in
their segments and represent substantial values for Austevoll Seafood ASA.
Please refer to note 5 for more detailed information on associates.
Operating profit after fair value adjustment of biological assets and income
from joint ventures and associates totalled NOK 992 million in Q2 2023 (Q2 2022:
NOK 2,356 million). Fair value adjustment related to biological assets was NOK
76 million, a significant decrease from NOK 1,053 million in the equivalent
quarter of 2022.
The Group's net interest expense in Q2 2023 totalled NOK -142 million (Q2 2022:
NOK -108 million). A rising interest rate level means higher interest expenses
for the Group. Net other financial items for the quarter were positive at NOK 7
million. The equivalent figure in Q2 2022 was NOK -25 million.
The Group reported profit before tax in the quarter of NOK 857 million (Q2 2022:
NOK 2,223 million).
On 31 May 2023, the Storting voted to introduce resource rent tax of 25% on
earnings from sea-based production of salmon and trout. The enactment was
retroactive from 1 January 2023. The resource rent tax comes on top of ordinary
tax of 22%, giving a total tax rate of 47% for the activity concerned. The
resource rent tax in 2023 will comprise both an implementation effect (one-time
effect) and the resource rent tax for the period.
The implementation effect of the tax being applied retroactively has been
estimated at NOK 1.8 billion for the Group. The breakdown into tax
payable/deferred tax, and hence the liquidity effect, depends on the change in
inventory and will not be known until the final tax computation for 2023 is
available. The Group is fully integrated by means of an extensive and complex
value chain from "roe to market". The new, extraordinary tax of 25% creates a
"tax wedge" for taxation of the value creation in the sea-based phase. This tax
wedge imposes rigorous requirements in terms of using the correct tax base. The
Group is working to ensure that its systems, routines and documentation support
the correct tax base. Until this work is complete, we do not consider it
possible to provide a sound estimate of the so-called resource rent tax for the
period. The Group will report its estimate of the relevant tax no later than in
connection with the reporting of its tax accounts for 2023. Please refer to note
9 for further details.
The Group posted a loss of NOK -1,139 million for H1 2023, including the
implementation effects mentioned above (Q2 2022: profit of NOK 1,752 million).
For further information please see attached report and presentation.
Questions and comments may be addressed to the company's CEO, Arne Møgster, or
to CFO, Britt Kathrine Drivenes.
This information is subject of the disclosure requirements acc. to Section 5-12
vphl (Norwegian Securities Trading Act).