Group operating revenue in Q3 2023 totalled NOK 8,566 million, compared with NOK 9,094 million in Q3 2022, down 6%. The decrease in revenue is mainly because the first fishing season in Peru was cancelled after just a few days’ trial fisheries. The Farming companies have seen an increase in revenue from Q3 2022 to Q3 2023, but this has not compensated for the decline in revenue from the operations in Peru.
Operating EBIT in Q3 2023 was NOK 592 million, against NOK 1,455 million in Q3 2022. The fall in operating EBIT is essentially a direct consequence of the cancellation of the first fishing season in Peru. Moreover, and as previously mentioned in the Q2 2023 report, earnings have also been negatively affected by one-off effects related to the forced harvest of fish found to be infected with ISA at Lerøy Sjøtroll. On top of this, the prices for practically all input factors have risen.
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The operating EBIT margin for Q3 2023 was 7%, against 16% in Q3 2022.
Norskott Havbruk AS (Scottish Sea Farms) and Pelagia Holding AS are the two largest joint ventures. Income from associates before fair value adjustment related to biological assets in Q3 2023 totalled NOK 79 million (Q3 2022: NOK 173 million). The equivalent figure including fair value adjustment of biological assets was NOK 89 million (Q3 2022: NOK 107 million). Pelagia sustains a positive development via successful operations, economies of scale, synergies through the value chain and good market conditions, particularly within fishmeal, protein concentrate and oil. Norskott Havbruk (Scottish Sea Farms) has had a very challenging operating year to date in 2023, and the company reported a loss in 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.
The operating result after fair value adjustment of biological assets and income from joint ventures and associates totalled NOK -171 million in Q3 2023 (Q3 2022: NOK 1,480 million). Fair value adjustment related to biological assets was negative at NOK 710 million, a significant fall from the positive figure of NOK 94 million in Q3 2022.
The Group’s net interest expense in Q3 2023 totalled NOK -178 million (Q3 2022: NOK -94 million). A rising interest rate level means higher interest expenses for the Group. Net other financial expenses in the quarter totalled NOK -50 million. The equivalent figure in Q3 2022 was NOK -19 million.
For the third quarter of 2023, the result before tax was a loss of NOK -399 million (Q3 2022: profit of NOK 1,367 million).
On 31 May 2023, the Storting voted to introduce a so-called 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 estimate for the so-called resource rent tax expense in 2023 comprises the implementation effect (one-off effect) and a tax effect for the period.
The estimated implementation effect is NOK 1,765 million. The estimate was recognised in the quarter when the legislation was adopted. The Group has estimated a figure for the so-called resource rent tax of NOK 258 million for the period from 1 January 2023 to 30 September 2023. Based on the authorities’ management of the implementation of the extra tax, the Group would like to emphasise that uncertainties regarding this estimate are higher than normal for this type of estimate. The best estimate for the extra tax for the first nine months of 2023 is NOK 2,023 million. Please refer to note 9 for further details.
The result after tax, including the estimate for the so-called resource rent tax, was a loss of NOK -508 million (Q3 2022: profit of NOK 1,041 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).
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