News

PJSC Russian Aquaculture announces financial highlights for the first half of 2017
26.07.2017

Moscow, 26 July 2017. Russian Aquaculture (the “Company”) (Moscow Exchange ticker: AQUA), Russia’s largest commercial fish farmer, today publishes its financial results based on unaudited management accounts for the first half of 2017.

 

·         Good results from the Company’s core business confirmed the effectiveness of its new business model focusing on high-margin aquaculture.

·         The purchase of a smolt mill in Norway in July was an important step towards building an efficient vertically integrated aquaculture holding using advanced Norwegian technology.

·         Commercial fish production volumes increased more than seven-fold year-on-year, reaching 8.4 thousand tonnes of biomass.

·         Biomass in water amounted to 3.3 thousand tonnes as of 30 June 2017, 38% lower than the same period last year, due to fishing at the Company’s farms.

Financial Indicators

·         Consolidated revenue amounted to RUB 3,343 million, driven by continued extraction and sale of marketable products from the Company’s farms at Ura Guba and continued high prices for finished products.

·         Operating EBITDA reached RUB 1,481 million, compared to a loss of RUB 10.3 million a year earlier. The EBITDA margin was 44%.

·         Net debt significantly decreased to RUB 1,256 million as of 30 June 2017, compared with RUB 3,162 million at the end of 2016 and RUB 4,430 million as of 30 June 2016.

Ilya Sosnov, CEO of Russia Aquaculture, said:

“The Company’s positive operating and financial results for the first half of 2017 demonstrate the effectiveness of our chosen strategy, focusing on high-margin aquaculture and increasing operational efficiency. Revenue for the first half of 2017 surpassed that for the whole of 2016, while our EBITDA margin was 44%.

“The company continues to move towards its goal of creating the largest vertically integrated player in the aquaculture market. The next step in this direction was the purchase of a smelt plant, which will allow us to better control the health of the fish, as well as adopt technology and invaluable experience from Norwegian specialists with a successful ten year history.

“In the first half of 2017 we invested in new fish farming in the Barents Sea and plan to sell more than 1.5 thousand tonnes of fish by the end of the year. In parallel with removal of fish, the company also carries out stocking.”

 

Operational and financial highlights

Indicator

1H 2017

1H 2016

Change

Production volume, thousand tonnes of live weight

8.4

1.1

664%

Revenue, RUB million

3,343

357

836%

Biomass of fish in water at period end, thousand tonnes

3.3

5.3

-38%

Operating EBITDA, RUB million

1,481

-10.3

-

EBITDA margin, %

44%

-3%

-

 

30.06.2017

31.12.2016

Change

Net debt, RUB million

1,256

3,162

-60%

 

The company plans to disclose its unaudited financial statements in accordance with International Financial Reporting Standards (IFRS) for the first half of 2017 at the end of August. Materials will be made available at http://russaquaculture.ru/shareholders-and-investors/reports-and-publications/financial-statements/

About Russian Aquaculture

Russian Aquaculture is one of Russia’s leading producers of red fish. The Company’s core business areas are:

·         Commercial farming of Atlantic Salmon in the Barents Sea off Murmansk region;

·         Commercial farming of trout in lakes of the Karelia region.

Russian Aquaculture’s core strategic focus is on growing its aquaculture business. The Company currently owns salmon and trout cultivation rights for 29 sites.

The Company’s long-term development strategy involves the creation of the largest vertically integrated player in the aquaculture market, including production of own fry, primary processing and distribution of the Company’s own products.

 

Contacts:

EM

Denis Denisov

Tel.: +7-985-410-3544

E-mail: denisov@em-comms.com

Irina Logutenkova

Tel.: +7-910-438-4843

E-mail: logutenkova@em-comms.com