Consolidated operating revenues in 2015 amounted to NOK 1,131 million, compared with NOK 1,049 million in 2014.

EBITDA in 2015 was NOK 403 million, compared with NOK 299 million in 2014.

Depreciation and amortisation in 2015 totalled NOK 124 million, NOK 28 million of which refers to depreciation of quotas. In 2014, depreciation and amortisation amounted to NOK 130 million. There were no non-recurring items in 2015. The consolidated operating profit (EBIT) was NOK 279 million in 2015, as against NOK 169 million in 2014.

Net financial expenses in 2015 were NOK 51 million. In 2014 net financial items were a positive NOK 91 million. This is because the provision of NOK 158 million in connection with the Glitnir case was reversed in the annual accounts for 2014; see Note 7 in the consolidated financial statements.

Tax expenses were NOK 55 million in 2015, as against NOK 64 million in 2014. Consolidated net profit amounted to NOK 173 million, compared with NOK 197 million in 2014 after the reversal of provisions for the Glitnir case.

The group's equity ratio at the end of 2015 was 38 per cent of a balance sheet totalling NOK 2,595 million. The balance sheet total increased by NOK 91 million from the end of 2014. The change was mainly due to increased inventories and trade receivables, as well as bank deposits. Unlike in 2014, all the vessels were in operation right up to year end, which meant that they had considerable catch volumes on board at year end. Non-current assets were reduced in 2015 compared with 2014.

Available liquidity totalled NOK 320 million at the end of the year, including NOK 87 million in undrawn drawing rights.

Harvested volume in 2015 fell by 1,081 tonnes compared with 2014. The reduction in harvested volume was mainly due to reduced cod quotas, as well as a lower harvest volume of saithe in the North Sea. Catches of haddock were at the same level as in 2014, while the volume of shrimps, redfish and other species was considerably higher in 2015 than the previous year. Price trends for most fish species have been positive in 2015, compared with 2014. The exception is the prices of haddock and redfish, which fell compared with 2014. The prices of cod and saithe have risen by 39 and 16 per cent respectively, while the price of haddock fell by 28 per cent.

At the end of the financial year, HAVFISK owned 100 per cent of the shares in Nordland Havfiske, 60 per cent of the shares in Hammerfest Industrifiske and 97.62 per cent of the shares in Finnmark Havfiske. The group operated ten trawlers in 2015, with 29.6 associated cod licences.

In February 2016, HAVFISK entered into an agreement with Vard to build a new vessel as a replacement for the Stamsund. The contract value is NOK 325 million. The new build will be a combination trawler (fresh and frozen) of 80.4 x 16.7 metres. The vessel will have good catch capacity for both white fish and shrimps and all residual raw material will be made use of. The new build will be delivered at the beginning of 2018 and the group will have nine vessels in operation in 2016, which is expected to give certain savings in operating costs. The quotas that the new vessel will fish will be used by the group’s other vessels under the vessel lease scheme. The new build has been financed by a bank loan and will have little effect on the company’s liquidity.

The group has licence rights to harvest just over 10 per cent of the total Norwegian cod quotas north of 62°N. This corresponds to over 30 per cent of the quotas allocated to the trawler fleet for 2015.

HAVFISK owns several processing plants that are mainly leased to Norway Seafoods Group on long-term contracts. There is an activity obligation for these plants linked to HAVFISK's trawler licenses.

HAVFISK had 381 employees at the end of 2015. The company's head office lies in Ålesund. Its administration is mainly located in Ålesund, with offices also in Hammerfest and Stamsund.

• better utilisation of all quota rights.
• increasing production capacities in order to exploit periods of good fishing and thereby improve profitability.
• flexible vessels to boost earnings potential from the various species and product categories, including the supply of fresh fish.
• enhanced quality of products delivered.
• enhancing the skills of employees.

The strategy calls among other things for a renewal of the fleet, whereby older trawlers are replaced by newer ones and existing vessels are upgraded. The first new build project was completed with the delivery of the three Gadus vessels. The remaining fleet is aged 15-21 years, so there is therefore a need for further fleet renewal. Contracting a new vessel for delivery in 2018 is a stage in this fleet renewal plan. The aim is to make a gradual renewal of the fleet. However the renewal is conditional on satisfactory earnings and financing so that the dividend capacity can be maintained.

The group has reviewed and audited the strategy annually. The main elements of the strategy remain, but with a clarification of the objective of being "Norway's best trawler company", under which HAVFISK is to:

• be the industry leader in the operation of vessels, as well as in health & safety and the environment.
• increase catches of other species in addition to cod, saithe and haddock, including shrimps, redfish and Greenland halibut.
• be the most attractive workplace in fishing.

In 2015, total harvested volume of cod fell compared with 2014, mainly as a result of the quota reduction. The positive price trend for cod that we experienced in 2014 has continued. The price of cod increased by 39 per cent in 2015, compared with 2014. The same is true for saithe, where prices rose by 16 per cent in 2015. There was good demand for cod, haddock and saithe at the end of 2015. The weakness of the Norwegian krone against EUR and USD has also been significant for the price trend.

HAVFISK sells its products through the Norwegian Fishermen's Sales Organisation (Norges Råfisklag) and the Sunnmøre & Romsdal Fishermen's Sales Organisation.

Frozen products have two primary applications - domestic production of salted/dried fish and exports for further processing into consumer products.

The group's sales of fresh products are largely made to Norway Seafoods, and are based to a great extent on long-term delivery agreements which rest in turn on HAVFISK's supply obligations. Norway Seafoods undertakes further processing of the fish, largely into fillet products. HAVFISK delivered 7,540 tonnes of fresh and 2,052 tonnes of frozen cod to Norway Seafoods in 2015. 56 per cent of the fresh volume was delivered during the second half of 2015.

Prices for fresh products are based on the minimum prices established by the Norwegian Fishermen's Sales Organisation, with adjustments for quality. For part of the year (February-April), supplies of fresh fish - particularly cod - from the coastal fishing fleet are normally very good. During this period, the trawlers are usually engaged in other fisheries in order to retain quotas until the autumn season when the processing industry is in great need of raw material.

At the annual general meeting of 10 April 2015, the board was authorised to pay a dividend based on the 2014 accounts. On 6 May 2015, the board decided to pay a dividend of NOK 0.75 per share for 2014.

In 2013, HAVFISK entered into a contract regarding the sale of the vessel Jergul, including 1.35 quota units for cod and haddock. The agreement did not come into effect due to lack of approval by the authorities, which was a prerequisite for the implementation of the agreement. In 2015, HAVFISK received a summons from Hermes AS in this case, with a claim for compensation for loss up to an upper limit of NOK 150 million including interest. During proceedings in the district court, the claim was reduced to NOK 110 million. HAVFISK won the case, which was heard in Nord-Troms District Court in November 2015. In its judgement of 11 November, the court concluded that the claim against HAVFISK should be dismissed and HAVFISK awarded costs. Hermes AS has appealed the verdict to the Court of Appeal and it is expected that the case will be heard during 2016.

In October 2015, HAVFISK entered into an agreement for the sale of the vessel Stamsund to an Icelandic company. The sale has now been completed and the vessel was handed over to its new owners on 28 January 2016.

Report to the Storting (white paper) No. 10 “A competitive seafood industry” was presented on 13 November 2015. The white paper contains measures that are intended to contribute to the competitiveness of the seafood industry in Norway. Among other things, the government proposes changes in the initial sale of fish, the delivery, processing and activity obligations and the rules for production on board. In total, the measures are intended to give the industry more flexibility and simplify the rules. The measures will also promote efficiency and coordination in the value chain for seafood, which will help to increase competitiveness and value creation in both the immediate seafood industry and the sector as a whole. The white paper will be debated in the Storting in April 5, 2016.
‎

HAVFISK had operating revenues of NOK 1,131 million in 2015, compared with NOK 1,049 million in 2014. EBITDA was NOK 403 million in 2015, an increase of NOK 104 million from 2014.

Depreciation and amortisation in 2015 totalled NOK 124 million, NOK 28 million of which refers to depreciation of quotas. In 2014, depreciation and amortisation amounted to NOK 130 million. HAVFISK had no non-recurring items in 2015. The consolidated operating profit (EBIT) was NOK 279 million in 2015 as against NOK 169 million in 2014. Net financial expenses for the group amounted to NOK 51 million in 2015 (NOK +91 million in 2014). The net financial items in 2014 include reversal of a provision of NOK 158 million relating to the Glitnir case, as described under "important events in 2015". Tax expenses were NOK 55 million in 2014, as against NOK 64 million in 2012. Consolidated net profit for 2015 was NOK 173 million (2014: NOK 197 million).

Earnings per share in 2015 were NOK 2.04, compared with NOK 2.32 per share in 2014.

Net cash flow from investing activities was NOK -50 million in 2015. Investment in vessels and plant amounted to NOK -51 million. The investments were mainly connected with the upgrade of the existing fleet and the rebuilding and upgrade of the plant in Forsøl, which is leased to Norway Seafoods. Net cash flow from financing activities in 2014 was NOK -184 million.

Cash flow from financing activities was a negative NOK 141 million in 2015, compared with a positive cash flow of NOK 61 million in 2014. Cash flow from financing activities in 2014 included borrowing in connection with the new build project. In both 2014 and 2015, NOK 78 million was paid in ordinary instalment payments on long-term liabilities. NOK 64 million in dividend was paid in 2015.

Cash in hand and unused drawing rights totalled NOK 233 million at the end of 2015, compared with NOK 146 million in 2014. At the end of 2015, the group also had unused drawing rights amounting to NOK 87 million.

Net interest-bearing liabilities (interest-bearing liabilities less cash in hand and interest-bearing assets) were reduced to NOK 766 million as of 31 December 2015, from NOK 925 million at the end of 2014.

The group's working capital (interest-free current assets less interest-free current liabilities) was NOK -85 million at year end. This represented a change of NOK 60 million from NOK -145 million at the end of 2014. HAVFISK's overall balance total increased from NOK 2,504 million in 2014 to NOK 2,595 million in 2015. Group equity increased over the same period from NOK 876 million to NOK 986 million. This yielded an equity ratio of 38 per cent at 31 December 2015, compared with 35 per cent at 31 December 2014.

HAVFISK had ten active trawlers in Norway as of 31 December 2015, including one fresh-fish trawler, four freezer trawlers and five combination trawlers (fresh-fish trawlers with freezing capacity). The fresh fish trawler Stamsund was sold, for delivery in January 2016. Altogether, the group holds 29.6 cod and haddock licenses, 31.9 saithe licences, eight shrimp trawling licences and three greater silver smelt licences.

HAVFISK also owns several onshore processing plants that are mainly leased to Norway Seafoods Group on long-term contracts.

HAVFISK's total harvested volume in 2015 was 58,214 tonnes headed and gutted weight. This is a reduction of 2 per cent from 59,295 tonnes in 2014. The reduction in volume is mainly due to lower cod and saithe quotas. In 2015 the quotas for cod were reduced by approximately 10 per cent compared with 2014, while the quotas for saithe in the north and in the North Sea were reduced by 5 and 17 per cent respectively. At the start of 2015, haddock quotas were set at the same level as in 2014. However in June 2015 there was a quota increase of 24 per cent. The unexpected increase in the haddock quota made planning haddock fishing difficult. This meant that the harvested quantity of haddock was at the same level as in 2014.

The reduction in cod and saithe volumes was compensated to a great extent by increased volumes of other species such as shrimps, redfish and Greenland halibut.

Prices achieved for the most important fish species were higher in 2015 than in 2014. The exception was the prices of haddock and redfish, which fell in 2015. Cod is HAVFISK's most important species and accounts for approximately 50 per cent of the quantity harvested. Price trends for cod have been positive throughout 2015 and the average price increased by 39 per cent compared with 2014.

The average harvest value per operating day in 2015 was NOK 363,000 per vessel. This is an increase from NOK 321,000 in 2014 and is the highest achieved in the company’s history.

The price of fuel in 2015 lower than in 2014. The consequences of changes in the price of oil over the year are somewhat reduced through hedging contracts and the weakened Norwegian krone. The price of bunker oil was reduced during the year however as a result of the general reduction in oil prices. Total consumption of bunker oil increased in 2015 compared with 2014 however, as a result of more operating days. Bunker fuel and lubricant expenses were NOK 8 million lower in 2015, compared with 2014. Costs of repairs and maintenance of the fleet were also lower in 2015 than in 2014. Other operations-related costs were higher in 2015 than in 2014. This is mainly due to there being more operating days, as well as a higher harvest value.

Guidelines established by the board are observed in the company when entering into ongoing hedging transactions related to the purchase of fuel for the fleet. This means that all hedging transactions are related to expected future consumption of bunkers. Current settlement of hedging contracts is recognised in operating costs. Changes in the present value of hedging agreements that mature in the future are recognised in comprehensive income under changes in fair value of cash flow hedges.

Exposure to risk posed by changes in the level of interest rates is identified and assessed on an on-going basis. Fixed interest agreements have been concluded for part of the group's non-current interest-bearing debt. Current settlement of hedging contracts is recognised in financial expenses. Changes in the present value of hedging agreements that mature in the future are recognised in comprehensive income under changes in fair value of cash flow hedges.

The Norway Seafoods group is the group's largest customer and a close partner. HAVFISK owns several processing plants that are rented by Norway Seafoods group on long-term contracts. A long-term lease agreement with HAVFISK regarding production equipment is recognised as a finance lease and presented as an interest-bearing non-current asset investment on the balance sheet. The lease agreement for buildings is treated as an operating lease in the accounts and the annual rent is recognised under other operating revenues in the income statement; see Note 12 in the consolidated financial statements. At the end of the fourth quarter, total receivables from the Norway Seafoods group amounted to NOK 209 million, including NOK 67 million relating to finance leases for equipment in the company's production plants and NOK 142 million, which is a subordinated loan and other receivables including cumulative interest. The total balance with Norway Seafoods was reduced by NOK 2 million compared with the end of 2014.

Because of Norway Seafoods' financial situation, the company has been unable to pay ongoing rents and accumulated interest. After a total assessment of the exposure in Norway Seafoods, as well as the company's equity situation and earnings, objective indications of loss of value are considered to exist. HAVFISK has therefore decided with effect from 1 January 2015 to make ongoing loss provisions for rent and interest on outstanding receivables from Norway Seafoods, so as to take into account that the estimated present value of future cash flows is lower than the originally entered book values.The situation is being constantly reviewed in the light of Norway Seafoods' financial situation.

HAVFISK sells a substantial share of its fresh volume to Norway Seafoods. Settlement takes place through the Norwegian Fishermen's Sales Organisation, which guarantees the settlements. The company therefore has practically no credit risk related to this type of sale.

In February 2016, HAVFISK received confirmation from DNB and Nordea regarding refinancing of the company's long-term liabilities, including an increase in the loan ceiling to NOK 1,500 million.

The credit facility together with earnings from operations are regarded as satisfactory for meeting the group's liquidity requirements in the time to come. Available liquidity at 31 December was NOK 320 million, including NOK 87 million in undrawn drawing rights.

HAVFISK has no current hedging instruments related to sales in foreign currencies.

In February 2016, HAVFISK received confirmation from DNB and Nordea on refinancing of the company’s long-term liabilities, including financing of a new build. The total borrowing ceiling is NOK 1,500 million. The loan agreement has a term of five years and has been entered on terms that the company considers to be competitive.

EBITDA for the parent company was NOK -21 million in 2015, compared with NOK -12 million in 2014. The change in EBITDA is mainly due to provisions for losses on the outstanding balance with the sister company Norway Seafoods. Depreciation and amortisation totalled NOK 602 000 in 2015, compared with NOK 584 000 in 2014. The parent company accordingly showed a loss before interest and taxes (EBIT) of NOK 22 million in 2015 (NOK 13 million in 2014).

The parent company had net financial income of NOK 28 million in 2015. The company's net financial income in 2014 was NOK 192 million. Net financial expenses in 2014 include reversed provisions of NOK 158 million relating to the Glitnir case.

Profit after financial items was NOK 6 million in 2015 (2014: NOK 179 million).

The parent company had tax income of NOK 6 million in 2015 as against NOK 42 million in 2014.

The net cash flow from investing activities was NOK +71 million in 2015 (2014: NOK -7 million).

Net cash flow from financing activities was NOK -46 million (2014: NOK +67 million).

Cash in hand at end 2015 totalled NOK 1 million, compared with NOK 29 million at the end of 2014.

Working capital for the company (interest-free current assets less interest-free current liabilities) at year end was NOK -169 million, compared with NOK -49 million at the end of 2014.

The parent company's overall balance sheet at 31 December 2015 was NOK 2,006 million, compared with NOK 2,111 million on 31 December 2014. Equity for the parent company at year end 2015 was NOK 524 million, compared with NOK 713 million at the end of 2014. This gave an equity ratio at 31 December 2015 of 26 per cent as against 34 per cent on 31 December 2014.

On this basis, the Board proposes that the result for the year is allocated as follows:

A substantial part of surplus liquidity, which in the Board’s view is not needed for the company`s operations and development, including investment opportunities and payment of debt, shall form the basis for payment of dividends.

HAVFISK gives priority to work on HSE, and a high level of awareness prevails in day-to-day operations about the need to reduce the consumption of energy, packaging and chemical cleaning agents.

Sickness absence averaged 7.0 per cent in 2015, compared with 7.3 per cent the previous year. 6.8 per cent of this represents absence of more than 16 days. Sickness absence has been reduced compared to 2014, but the level is not satisfactory. Further measures have been initiated to reduce such absences. Absence owing to illness amounted to 9,635 days out of a total of 137,087 working days in 2015. Sickness absence in the parent company in 2015 was 2.6 per cent, compared with 4.1 per cent in 2014.

A total of 21 incidents during the year caused personal injuries. These were mainly cuts and compression injuries, as well as sprains. In 2015, there have been no accidents that led to medical disability. In 2014, there were 24 incidents that caused minor personal injuries. HAVFISK has an ambition of achieving zero personal injuries and will continue to implement measures targeted at reducing such incidents.

Earlier surveys of the working environment show that this is regarded as good, but improvement measures are implemented on a continuous basis.

HAVFISK participates in "Aker Active", which is the Aker group's initiative to improve the health of its employees. This programme encourages employees to be active, and expert guidance is offered in exercise and diet.

HAVFISK had 381 employees at the end of 2015.

HAVFISK focuses on sustainable exploitation of resources. For this reason, all new builds are designed to allow for 100 per cent utilisation of raw materials and the most energy-efficient solutions for machinery and technical equipment.

Norwegian Arctic cod and haddock became MSC certified in 2009 and were recertified in 2015. HAVFISK is an industrial partner in an international, interdisciplinary research collaboration, GreenMar, on the effects of climate change on the ecosystem at sea. This collaboration involves research environments in ecology, climate and marine resources and is intended to increase knowledge that could contribute to "green growth" by means of the sustainable management and use of our marine areas.

HAVFISK contributes one vessel for use in the Institute of Marine Research reference fleet. In this way, HAVFISK assists in the collection of a range of biological data that can be used in research into fish stocks. HAVFISK also contributes to the development of equipment technology, for example by participation in trial schemes for new technology organised by the Directorate of Fisheries.

The group's trawlers use bunker oil as fuel. In 2015, the company consumed 32.9 million litres of bunker oil. The 2015 energy and climate accounting for HAVFISK is available on our website, www.havfisk.no (link to report). The group is concerned to implement measures which can reduce bunker oil consumption and the likelihood of fuel spills. There were no spillages of oil or diesel in 2015. All waste oil is collected and returned to land for delivery to treatment facilities.

The board takes the view that the companies in HAVFISK do not cause significant emissions or discharges to the natural environment, and are not considered to burden the natural environment to any substantial extent over and above the level normal for this type of industry.

At yearend 2015, women accounted for 7 per cent of the workforce, compared with 6 per cent in 2014. The group management team includes one woman.

Two of the company's five shareholder-elected board members were women. In July 2015, Trine Sæther Romuld decided to withdraw from the board, due to an employment change to a position that does not permit board service. The nomination committee decided not to propose a replacement for Trine Sæther Romuld before the next annual general meeting. All three employee representatives on the board are men.

Demand for cod is good and the price of cod has seen a positive trend. After a considerable price correction in 2015, demand for haddock has stabilised.

The contracting of a new vessel, to be delivered in 2018, gives HAVFISK the opportunity to use a vessel leasing scheme for fishing the replacement vessel’s quotas. These quotas will therefore be fished by the company’s other vessels during the build period. HAVFISK will therefore have nine vessels in operation in 2016, which is expected to give certain savings in operating costs. Financing of the new build will have little effect on the company’s liquidity.