The Bakkafrost Group delivered a total operating EBIT
of DKK 208.7 million in Q3 2014. The combined farming
and VAP segment made an operational EBIT of DKK 193.4
million in Q3 2014. The Farming segment made an
operational EBIT of DKK 166.9 million. The global
salmon spot prices decreased during the quarter,
while Bakkafrost's VAP contract prices stayed on a
record high level, consequently the VAP segment made
an operational EBIT of DKK 26.5 million in Q3 2014.
The EBITDA for the FOF segment was DKK 61.7 million
in Q3 2014.
Commenting on the results, CEO Regin Jacobsen said:
"The third quarter was strong and all segments
delivered positive result. It is confirming our
strategy that we continue to deliver positive results
in the VAP segment. The outlook for the farming
industry are bright, both concerning market and
concerning biological development. With Bakkafrost's
investment plan, we are able to develop the company
further, making the company more efficient, reduce
the biological risk and carry out organic growth. "
The Group made a profit for the quarter of DKK 211.2
million (DKK 199.6 million). For the first nine
months of 2014, the profit was DKK 424.7 million (DKK
451.4 million).
The total volumes harvested in Q3 2014 were 10,881
tonnes gutted weight (11,335 tgw). The total
harvested volumes the first nine months of 2014 were
31,362 tonnes gutted weight (30,171 tgw). The reason
for the increase in the harvested volumes year on
year is that Bakkafrost will harvest higher volumes
this year compared to the year before.
Bakkafrost transferred 2.2 million smolts in Q3 2014
(2.8 million), which is in line with the company's
plans. Year to date 7.2 million have been trans-
ferred (6.7 million). The smolt release is higher in
2014 compared to 2013, due to available sites for
smolt release.
In Q3 2014, the associated company P/F Faroe Farming
harvested 776 tonnes gutted weight (866 tgw). For the
first nine months of 2014, Faroe Farming harvested
2,988 tonnes gutted weight (4,164 tgw).
The combined farming and VAP segment made an
operational EBIT of DKK 193.4 million (DKK 167.9
million) in Q3 2014. For the first nine months of
2014, the combined farming and VAP segment made an
operational EBIT of DKK 550.1 million (DKK 427.0
million).
The farming segment made an operational EBIT of DKK
166.9 million (DKK 187.5 million) in Q3 2014. The
reason for the decrease are lower spot prices,
combined with lower harvested volumes this quarter,
compared to the same quarter in 2013. For the first
nine months of 2014, the operational EBIT was DKK
512.6 million (DKK 511.6 million).
The VAP segment made an operational EBIT of DKK 26.5
million (DKK -19.6 million) for Q3 2014. The improved
result is primarily due to a combi-nation of improved
contract prices and lower raw material prices. There
is normally a time lag be-tween the changes in the
spot prices and the changes in the contract prices.
The contract prices have increased significantly from
the level in 2013, due to the high salmon spot
prices. When the spot prices decreased during the
quarter, the contracts became profitable, compared to
selling the salmon on the spot market. For the first
nine months of 2014, the operational EBIT was DKK
37.5 million (DKK -84.6 million).
The third segment - FOF (fishmeal, oil and feed),
made an operational EBITDA of DKK 61.7 million (DKK
48.8 million) in Q3 2014, and for the first nine
months of 2014, the operational EBITDA amounted to
DKK 140.8 million (DKK 104.4 million). The increase
in the EBITDA year to date is primarily due to higher
production of fishmeal and fish oil, as the raw
material intake has increased significantly.
In Q3 2014, Havsbrún sourced 19,782 tonnes of raw
material (68,430 tonnes) and in the first nine months
of 2014, Havsbrún sourced 171,313 tonnes of raw
material (142,150 tonnes).
Bakkafrost has established a share saving plan for
its employees for 2014. Employees can purchase shares
for maximum 5 percent of the monthly basic salary.
After two full years of ownership and continuous
employment, which is 1st January 2017, the company
will allocate one bonus share, for every share bought
in connection with this offer for 2014.
On the 24th of April 2014, Bakkafrost - via its 100%
owned subsidiary Havsbrún - acquired an addition-al
41.15% in Hanstholm Fiskemelsfabrik. After the
acquisition, Bakkafrost owned 81.01% of the company.
The 9th of May 2014, Bakkafrost divested all its
shares in Hanstholm Fiskemelsfabrik to FF Skagen A/S.
In return, Bakkafrost, via its subsidiary P/F
Havsbrún, received a 17% share interest in FF Skagen
A/S. The investment is a strategic investment and
part of the consolidation of the fishmeal and fish
oil industry.
In accordance with the Group's dividend policy,
Bakkafrost paid out DKK 4.50 (NOK 4.98) per share in
April 2014. The amount corresponds to approx-imately
DKK 219.9 million (NOK 243.3 million).
In February 2014, a routine surveillance test
detected a possible pathogenic ISA-virus at
Bakkafrost's farming site A-80. There was no increase
in mortality and no impact on fish health or fish
welfare, however. Bakkafrost decided to activate the
ISA-contingency plan immediately and hence enforced
slaughtering of the last cage at the farming site
A-80 Selatrað. The detected site, together with all
the neighbouring sites, are now empty. No signs of
ISA have been observed since, and no cost increase
was related to the detection.
The farming companies and the authorities have put a
lot of work into maintaining the good biological
status in the Faroe Islands. Regular surveillance
tests for ISA-viruses have been performed at all
farms during the last approx. 10 years at sea sites
in the Faroes. Bakkafrost and the other farmers in
the Faroe Islands will keep working with the Faroese
Food and Veterinary authority to avoid the
introduction of AGD and ISA.
The Bakkafrost Group had a net interest bearing debt
at the end of Q3 2014 amounting to DKK 356.8 million
(DKK 638.6 million at year-end 2013) including
deposits and losses on financial derive-atives
relating to the interest bearing debt. Bakka-frost
had undrawn credit facilities of approximately DKK
921.4 million, of which DKK 15.4 million were
restricted at the end of Q3 2014.
Bakkafrost's equity ratio is 57%, compared to 54% at
the end of 2013.
Income Statement
The operating revenues amounted to DKK 584.1 million
in Q3 2014 (DKK 741.1 million). The de-crease is due
to lower revenue in the Farming and FOF segments. For
the first nine months of 2014, the operating revenues
amounted to DKK 1,926.0 million (DKK 1,824.4
million).
Operational EBIT was DKK 208.7 million in Q3 2014
(DKK 186.8 million). The improved operational EBIT
margin is due to higher margins in the VAP and FOF
segments offset by lower margins in the farming
segment. For the first nine months of 2014, the
operational EBIT was DKK 606.3 million (DKK 461.1
million).
A fair value adjustment of the Group's biological
assets has been recognized in Q3 2014 amounting to
DKK 60.4 million (DKK -12.7 million). The adjust-ment
is mainly due to higher biomass at the end of Q3
2014, compared to the beginning of the quarter. For
the first nine months of 2014, the fair value
adjustment is DKK -63.2 million (DKK 21.2 million).
In Q3 2014, no changes were made to the provis-ions
of onerous contracts, as no contracts were onerous at
the beginning and at the end of the quarter. For the
first nine months of 2014, Bakkafrost has made
reversion of previous made provisions for onerous
contracts of DKK 70.9 million (DKK 39.8 million). The
reversion is mainly due to lower salmon spot prices.
At the end of 2013, the NOS salmon price was NOK
53.08, compared to NOK 32.92 at the end of Q3 2014.
In Q3 2014, there was a profit from associated
companies amounting to DKK 0.1 million (DKK 0.4
million). For the first nine months of 2014, the
result from associates was DKK 3.1 million (DKK
12.5).
Net interests in Q3 2014 were DKK -14.1 million (DKK
2.8 million). For the first nine months of 2014, net
interests were DKK -32.0 million (DKK 18.8 million).
Net taxes in Q3 2014 amounted to DKK -43.9 million
(DKK -44.5 million). For the first nine months of
2014, net taxes amounted to DKK -160.4 million (DKK
-102.1 million).
For Q3 2014, the result was DKK 211.3 million (DKK
199.6 million), and for the first nine months of
2014, the result was DKK 424.7 million (DKK 451.4
million).
Segments
Of the total harvested volumes in Q3 2014, 39% (37%)
went for the production of VAP products, and 61%
(63%) were sold as whole gutted salmon. For the first
nine months of 2014, 48% (44%) percent vent for the
VAP production, and 52% (56%) were sold fresh.
Farming:
The operating revenue for Bakkafrost's farming
segment was DKK 435.4 million in Q3 2014 (DKK 520.3
million) and DKK 1,469.1 million for the first nine
months of 2014 (DKK 1,465.6 million).
Operational EBIT, which is EBIT before fair value
adjustments on biological assets, provisions for
onerous contracts and income from associates,
amounted to DKK 166.9 million in Q3 2014 (DKK 187.5
million), and for the first nine months of 2014, it
was DKK 512.6 million (DKK 511.6 million).
Operational EBIT/kg for the farming segment was DKK
15.34 (NOK 17.02) in Q3 2014, compared to DKK 16.54
(NOK 17.59) in Q3 2013. The salmon prices in Q3 2014
have been weaker in average, compared to Q3 2013, and
thus lower margins. Operational EBIT/kg for the first
nine months of 2014 was DKK 16.34 (NOK 18.15),
compared to DKK 16.96 (NOK 17.02) for the first nine
months of 2013.
Value Added Products (VAP):
The operating revenue for the value added segment
amounted to DKK 155.2 million in Q3 2014 (DKK 147.7
million). For the first nine months of 2014, the
revenue was DKK 654.4 million (DKK 463.6 million).
The increase in the revenue from Q3 2013 to Q3 2014
is 5%, while the volumes used for VAP products
increased by 4%. The reason for the relative low
increase in the revenue, compared to the increase in
the contract prices and the volumes used for VAP, is
a build-up of inventory of finished products, at the
end of the quarter.
Operational EBIT amounted to DKK 26.5 million in Q3
2014 (DKK -19.6 million), corresponding to an
operational EBIT of DKK 6.10 (NOK 6.77) per kg gutted
weight in Q3 2014 (DKK -4.66 (NOK -4.96) per kg
gutted weight). The increase in the operation-al EBIT
margins is due to both higher contract prices and a
decrease in the raw material prices. The VAP segment
acquires its raw material (fresh salmon) at spot
prices each week. For the first nine months of 2014,
operational EBIT amounted to DKK 37.5 million (DKK
-84.6 million), corresponding to an operational EBIT
of DKK 2.33 (NOK 2.58) per kg gutted weight (DKK
-6.36 (NOK -6.38) per kg gutted weight).
FOF (Fishmeal, Fish Oil and Fish Feed):
The operating revenue for the FOF segment amounted to
DKK 287.4 million (DKK 422.3 million) in Q3 2014, of
which DKK 200.6 million (DKK 211.5 million)
represents sales to Bakkafrost's farming segment
corresponding to 69.8% (50.1%). For the first nine
months of 2014, the revenue was DKK 745.5 million
(DKK 830.5 million), of which DKK 440.3 million (DKK
480.7 million) represents sales to Bakkafrost's
farming segment corresponding to 59.1% (57.9%).
Operational EBITDA was DKK 61.7 million (DKK 48.8
million) in Q3 2014, and the operational EBITDA
margin was 21.46% (11.55%). The margin reflects the
favourable development in raw material prices.
Havsbrún sources raw pelagic fish for the fishmeal
and fish oil production, which are part of the recipe
for the production of salmon feed. In Q2, the raw
fish was purchased, while the production and sale of
the salmon feed took place in Q3. For the first nine
months of 2014, the EBITDA was DKK 140.8 million (DKK
104.4 million), and the margin was 18.88% (12.57%).
Sales of feed amounted to 29,808 tonnes (31,961
tonnes) in Q3 2014, of which the farming segment
internally used 23,587 tonnes (23,681 tonnes). For
the first nine months of 2014, the feed sale was
62,591 tonnes (65,063 tonnes). The internal sale was
48,969 tonnes (49,084 tonnes).
In the quarter, Havsbrún received 19,782 tonnes
(68,430 tonnes) of raw material for the production of
fishmeal and fish oil. The intake in Q3 2013 was
extraordinary high due to the dispute regarding
mackerel fishing in the North Atlantic. In general,
the raw material intake depends on the fishery in the
North Atlantic and available species of fish. For the
first nine months of 2014, Havsbrún received 171,313
tonnes (142,150 tonnes) of raw material. The increase
year to date is due to high intake of blue whiting in
Q2 2104.
The production of fishmeal in Q3 2014 was 4,219
tonnes (13,656 tonnes). For the first nine months of
2014, Havsbrún produced 36,158 tonnes (29,423 tonnes)
of fishmeal.
The production of fish oil in Q3 2014 was 3,011
tonnes (10,836 tonnes). For the first nine months of
2014, Havsbrún produced 4,671 tonnes (14,377 tonnes)
of fish oil. The production of fish oil varies,
depending on the species of fish sourced for
production. In Q2, the raw material intake of blue
whiting was high, but the blue whiting has a low
content of fish oil.
Statement of Financial Position
The Group's total assets as of end Q3 2014 amounted
to DKK 3,327.1 million, compared to DKK 3,112.2
million at the end of 2013.
The Group's intangible assets are unchanged, compared
to the beginning of the year, and amounted to DKK
294.7 million. Intangible assets comprise primarily
the fair value of acquired farming licences. No
licences in the North region are recorded with a
value in the Bakkafrost accounts.
Property, plant and equipment amounted to DKK 973.3
million at the end of Q3 2014, compared to DKK 916.7
million at the end of 2013. In Q3 2014, Bakkafrost
made investments in PP&E amounting to DKK 48.0
million, and for the first nine months of 2014,
investments were made for DKK 126.7 million.
Financial assets amounted to DKK 131.8 million at the
end of Q3 2014, compared to DKK 115.3 million at the
end of 2013. The increase in the financial assets
relates mainly to the investment in the new pelagic
processing company Pelagos next to Havsbrún in
Fuglafjørður, but also to the ownership in Hanstholm
Fiskemelsfabrik, that was sold to FF Skagen.
Long-term receivables have increased from DKK 1.5
million to DKK 14.4 million due to a feed financing
agreement.
The Group's carrying amount (fair value) of
biological assets amounted to DKK 960.3 million at
the end of Q3 2014, compared to DKK 965.9 million at
the end of 2013. Included in the carrying amount of
the biological assets is a fair value adjustment
amounting to DKK 233.2 million, compared to DKK 296.4
million at the end of 2013. The decrease is due to
lower salmon prices at the end of Q3 2014 compared to
end 2013, as the biomass at sea is higher than at the
beginning of the year.
The Group's total inventories amounted to DKK 285.8
million as of end Q3 2014, compared to DKK 235.5
million at year-end 2013. The inventory primarily
represents Havsbrún's inventory of fishmeal, fish oil
and fish feed in addition to feed at the feed
stations, finished products, packing materials and
other raw materials.
The Group's total receivables amounted to DKK 298.4
million as of end Q3 2014, compared to DKK 400.6
million at the end of 2013. The reason for the
decrease is mainly that Bakkafrost has entered into
a factoring agreement for a significant part of its
sale.
The Group's equity at the end of Q3 2014 is DKK
1,892.4 million, compared to DKK 1,665.3 million at
the end of 2013. The change in equity consists
primarily of the positive result for the first nine
months of 2014 and the dividend paid out in April.
The Group's total non-current liabilities amounted to
DKK 1,088.9 million at the end of Q3 2014, com-pared
to DKK 1,071.0 million at the end of 2013.
Deferred and other taxes payable in 2015 amounted to
DKK 451.2 million, compared to DKK 310.9 million at
the end of 2013. Because of the increase in the
special tax on farming companies and the change from
a provisional tax to a permanent tax, the deferred
tax has increased by DKK 42.6 million from end 2013
to end Q3 2014.
Long-term debt was DKK 583.4 million at the end of Q3
2014, compared to DKK 685.2 million at the end of
2013. Derivatives amounted to DKK 54.2 million at the
end of Q3 2014, compared to DKK 74.9 million at the
end of 2013.
Bakkafrost's interests bearing debt consists of two
bank loans and a bond loan. The bank loans are an
instalment loan of DKK 225 million, payable with DKK
25 million each quarter, and an overdraft facility
payable in 2016 with the full amount of DKK
553 million. The bond loan of NOK 500 million has a
five-year maturity and is payable 14 February 2018.
The interest rate of the bonds is NIBOR 3m + 4.15%.
Following the issuance of the bonds, Bakkafrost has
entered into a currency/interest rate swap, hedging
the exchange rate, and has switched
the interest rate from NIBOR 3m to CIBOR 3m.
Bakkafrost has entered the swap due to its exposure
to DKK, as a large part of the income and costs are
in DKK and EUR.
At the end of Q3 2014, the Group's total current
liabilities are DKK 345.8 million, compared to DKK
376.0 million at the end of 2013. Short-term interest
bearing debt amounts to DKK 100.0 million and relates
to a short-term part of long-term debt as described
above. Accounts payable amount to DKK 245.8 million,
compared to DKK 276.0 million at the beginning of the
year. The decrease is primarily due to lower
provisions for onerous contracts.
Bakkafrost's equity ratio is 57%, compared to 54% at
the end of 2013.
Cash Flow
The cash flow from operations improved signifi-cantly
in Q3 2014 compared to Q3 2013. The cash flow from
operations in Q3 2014 was DKK 280.4 million (DKK
130.6 million). The Cash flow from operations has
been positively affected from reduction in working
capital as Bakkafrost has entered into a factoring
agreement for some of its sale. For the first nine
months of 2014, the cash flow from operations was DKK
696.5 million (DKK 330.4 million).
The cash flow from investment activities in Q3 2014
amounted to DKK -47.4 million (DKK -38.4 million).
The amount relates mainly to investments in fixed
assets. For the first nine months of 2014, the cash
flow from investments amounted to DKK -153.1 million
(DKK -107.7 million).
Cash flow from financing activities totalled DKK
-127.0 million in Q3 2014 (DKK -15.4 million). The
interest bearing debt decreased by DKK 91.0 million,
and financing of an associated company contributed
positively with DKK 28.7 million. For the first nine
months of 2014, cash flow from financing amounted to
DKK -357.1 million (DKK -83.9 million).
Net change in cash flow in Q3 2014 amounted to DKK
105.6 million (DKK 76.8 million) and for the first
nine months of 2014 DKK 186.3 million (DKK 138.8
million).
At the end of Q3 2014, Bakkafrost had unused credit
facilities of approximately DKK 921.4 million of
which DKK 15.4 million are restricted.
Outlook
MARKET
The expected increase in supply of farmed salmon for
2014 is around 8%, compared with 2013. The reason for
the increase is mainly due to higher sea-water
temperatures in Norway and higher produc-tion in
Chile. Norway will increase its production by 4% and
Chile by 22%.
The supply increase commenced in Q2 and con-tinued
during Q3. In Q4, there is no significant expected
increase in the supply compared to the year before.
Therefore, the market is expected to be tighter in Q4
than the previous quarters. However, the import ban
of Norwegian salmon into Russia may affect the salmon
prices negatively on other markets - especially short
term. The outlook for 2015 is favourable for the
salmon farming industry as only a limited supply
growth is expected.
The market place is one of Bakkafrost's most signifi-
cant risk areas. To reduce the exposure to the market
risk, Bakkafrost has a geographical app-roach and a
market price approach. To diversify the geographical
market risk, Bakkafrost sells its pro-ducts to some
of the largest salmon markets in the world, US, the
Far East, Europe and Russia. The sale to Russia has
previously been low, but in-creased in Q3 due to the
favourable market access for Faroese salmon.
FARMING
The outlook for the farming segment is good. The
biological situation is good, and the price outlook
in the spot market is good.
Bakkafrost's expected harvest is unchanged at 45,000-
48,000 tonnes gutted weight in 2014 of which 55% will
be sold on the spot market, while 45% is planned to
be sold as value added products (VAP). Bakkafrost
expects to harvest 49,000-51,000 tonnes gutted weight
in 2015.
Faroe Farming, a company in which Bakkafrost holds
49%, expects to harvest around 5,000 tonnes in 2014
and 6,000 tonnes in 2015.
The number of smolts released is one key element of
predicting the future production for the Group.
Bakkafrost's forecast for the smolt release in 2014
is 10.7 million pieces, down from 11.6 million as
estimated previously. The reason is that some smolts
planned to be released in December 2014, will be
released early 2015 and thus not have any significant
financial effect. The smolt release for 2014 shall be
compared to the smolts released in 2012, which also
was 10.7 million. The same sites are available for
smolt release in 2014 as in 2012. The forecast for
smolt release for 2015 is 10.4 million, compared to
9.5 million in 2013.
The estimates for harvesting volumes and smolt
releases is as always dependent on the biological
situation. The biological situation in the Faroe
Islands is good, and Bakkafrost will continue to
focus on a good biological situation and improve
procedures where possible.
Value added products (VAP)
The outlook for the sale of value added products is
good. Bakkafrost has signed contracts covering all
the VAP capacity for the rest of 2014. This corre-
sponds around 30% of the expected harvested vol-umes
for the rest of 2014. The VAP contracts are at fixed
prices, based on the salmon prices at the time they
are agreed and the expectations for the salmon spot
price for the contract period.
The contracts last for 6 to 12 months. The long-term
strategy is to sell around 40-50% of the harvested
volumes of salmon as VAP products on fixed price
contracts. Selling the products at fixed prices re-
duces the financial risk with fluctuating salmon
prices. The market price for contracted VAP pro-ducts
follows a more stable pattern with trends instead of
short-term fluctuations as in the spot market.
FOF (Fish oil, -meal and feed)
The outlook for the production of fish oil and fish-
meal has improved as the available raw material for
the production of fish oil and -meal has increased.
The quotas for catching blue whiting in the North
Atlantic has increased, and the opening of a new
pelagic processing plant next to Havsbrún's
production facilities improved the possibilities for
getting access to offcuts and raw material that
cannot be used for human consumption, but for the
production of fishmeal and oil.
However, depending on supply, demand and the price
level, the sourcing of raw material for the
production of fish oil and -meal is very uncertain.
An alternative to Havsbrún's production of fish oil
and -meal is purchasing these raw materials from
other producers, which has been common in recent
years. Fish oil and -meal is the most important raw
material in the production of a high quality fish
feed for the Bakkafrost salmon.
The major market for Havsbrún´s fish feed is the
local Faroese market including Bakkafrost's internal
use of fish feed.
It is expected that the total consumption of fish
feed in the Faroe Islands will be approximately
90,000-95,000 tons in 2014. Depending on the purchase
from external customers in the Faroe Islands and
abroad, the sale of fish feed will be approximately
83,000-87,000 tonnes.
Investments
Bakkafrost has announced an investment plan for the
period until 2017, latest updated in August 2014. The
purpose of the investment plan is to continue to have
one of the most costs efficient value chains in the
farming industry, carry out organic growth, increase
flexibility and reduce the biological risk to meet
the future consumers' trends and to be more end-
customer orientated.
The total investments for the period 2014-2017 will
be DKK 1,370 million including maintenance CAPEX.
Included in the investment plan, is a new Harvest/VAP
factory estimated to DKK 450 million, resulting in
operational savings of DKK 70-90 million per year
from 2017. The plant will be up running in 2016.
A new 3,000 m3 wellboat operated by Bakkafrost is
under construction and planned for delivery 25th
April 2015. The investment in the wellboat amounts to
DKK 230 million.
Another part of the plan is to increase the smolt
capacity, making Bakkafrost self-supplied with smolt
at a size of 200-300g apiece before end 2017. The
investment amounts to DKK 420 million. The benefits
are shorter production time at sea and reduced
biological risk. Due to the shorter time at sea,
Bakkafrost can gradually increase the farming
production by 10-15%.
In addition to the above-mentioned projects, that are
under construction or will start up shortly, Bakka-
frost has invested in a new packaging plant and a new
hatchery. Maintenance CAPEX is also part of the
investment plan.
Free cash flow from operations, existing financing
facilities and partly new financing if advantageous
will finance the investments. In addition, Bakkafrost
has the possibility to postpone investments in case
of adverse events. The dividend policy will be un-
changed.
Financial
Improved market balances in the world market for
salmon products and costs effective production will
likely improve the financial flexibility going
forward. A high equity ratio together with the
Group's bank financing and the issuance of bonds,
makes Bakka-frost's financial situation strong, which
enables Bakkafrost to carry out its investment plans
to fur-ther focus on strengthening the Group, M&A's,
organic growth opportunities and fulfil its dividend
policy in the future.
Contacts:
Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01
(mobile)
Teitur Samuelsen, CFO of P/F Bakkafrost: +298 23 51 11
(mobile)
This information is subject of the disclosure
requirements acc. to §5-12 vphl (Norwegian Securities
Trading Act)
About Bakkafrost:
Bakkafrost is the largest salmon farmer in the Faroe
Islands. The Group is fully integrated from feed
production to smolt, farming, VAP and sales. The
Group has production of fish meal, fish oil and
salmon feed in Fuglafjørður. The Group operates
licenses on 14 farming fjords. The Group has primary
processing in Klaksvík, Kollafjørð and Strendur and
secondary processing (VAP) in Glyvrar and
Fuglafjørður. The headquarters are located in
Glyvrar, and the company has a total of 640 employees.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN
AUSTRALIA,CANADA, JAPAN OR THE UNITED STATES. This
press release does not constitute or form part of an
offer or solicitation to purchase or subscribe for
securities.
The securities referred to herein may not be offered
or sold in the United States absent registration or
an exemption from registration as provided in the
U.S. Securities Act of 1933, as amended. Copies of
this announcement are not being made and may not be
distributed or sent into the United States,
Australia,Canada or Japan.