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Steady Progress in a Strong Salmon Market for SalMar

30 May 2013

NORWAY - SalMar generated almost NOK 1.3 billion in gross operating revenues in the first quarter of 2013, up 58 per cent on the same quarter in 2012. The increase is mainly a result of a substantial rise in the price of salmon, but also a 34 per cent hike in the volume harvested, which totalled 23,200 tonnes this quarter.

The company posted an Operational EBIT before fair value adjustments of NOK 235 million during the period, compared with NOK 41 million in the same quarter last year. All of SalMar's fish farming segments posted satisfactory results. Overall the Group made an Operational EBIT of NOK 10.14 per kg gutted weight.

"We are pleased with the performance of all our fish farming segments, and are particularly delighted to see that the Rauma segment is back delivering strong margins. SalMar Northern Norway also did well during the quarter, considering that 70 per cent of the fish is from Finnmark, where costs are higher, and that all the fish was harvested in January and February, when the price of salmon was lower than in March," said SalMar CEO Yngve Myhre.

The Sales and Processing segment achieved stable results from its processing operations, though the contribution from this segment was reduced by an almost 30 per cent fixed-price contract rate.

Following the close of the first quarter 2013 SalMar completed the acquisition of Atlantic Cod Farms AS and increased its shareholding in Villa Organic AS to 49.72 per cent. At the same time SalMar reduced its shareholding in P/f Bakkafrost from 29.9 per cent to 14.9 per cent, and agreed to 'lock up' its remaining shares until 1 January 2014.

The company is also in the process of selling its shares in Nordskag Næringspark AS, the implementation of the agreement is contingent on the acquisitionists financing.

The outlook for the rest of 2013 is good. At the end of May Fish Pool forward prices point to an average salmon price for 2013 of NOK 35 per kg. Sea temperatures have been significantly lower in the first quarter this year than last, which has to some degree affected the growth of marine-phase fish stocks. Despite this, however, SalMar is maintaining its harvesting forecast of 116,000 tonnes for 2013, an increase of 13 per cent compared with the 102,600 tonnes harvested in 2012.

TheFishSite News Desk



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