Presentation of the results of SalMar for the fourth quarter of 2018.

SalMar harvests salmon record volume in 2018 last quarter

NORWAY
Friday, February 15, 2019, 03:10 (GMT + 9)

SalMar ASA obtained a record harvest of salmon in the fourth quarter of 2018 and recorded very good financial results, thanks to the growth of its production and the reduction of costs as a result of operational improvements.

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In its report for the fourth quarter of 2018, the company indicated that the operating EBIT in this period was NOK 934.9 million (USD 108.2 million), compared to NOK 707.2 million (USD 81.5 million) in the fourth quarter of 2017. This made 2018 a record year for SalMar, with operating income in excess of NOK 11,300 million (USD 1307.9 million) and operating EBIT of almost NOK 3,500 million (USD 405.1 million).

"A good operational performance from all our business segments, strong demand and our highest ever harvested volume have all contributed to another satisfactory quarter for SalMar,” said CEO Olav-Andreas Ervik in SalMar.

“The first generation from Ocean Farm 1 was also harvested during the quarter. The project's biological results have been good and strengthened our confidence in fish farming further out to sea," he stressed.

Besides, he pointed out that by continuing to invest in the entire supply chain, as well as further developing our ocean farming strategy, "SalMar is building a strong platform for sustainable development and further growth." 

               Farming Central Norway

SalMar generated gross operating revenues of NOK 3.1 billion in the fourth quarter 2018, an increase from NOK 2.8 billion in the fourth quarter 2017.

The volume harvested in the last three months of 2018 was 40,500 tons, compared to 36,100 tons in the previous quarter and 39,900 tons in the fourth quarter of 2017.

                Farming Northern Norway

Operating EBIT per kg was NOK 23.11, an increase of NOK 5.41 per kg compared to the fourth quarter of 2017.

SalMar's Fish Farming Central Norway segment saw a good operational result in the fourth quarter. The volume harvested in the period were fish transferred to the sea in the autumn of 2017, which had a more challenging production cycle than the spring 2017 generation. As a result, we harvested a larger number of fish at lower average weights than budgeted were harvested. SalMar expects the segment's costs to remain stable in the first quarter 2019.

The Fish Farming Northern Norway segment harvested 12,200 tonnes of salmon in the quarter, 9,000 tonnes more than in the previous quarter. This higher volume has contributed to lower costs in the period.

        Norskott Havbruk

For its part, InnovaMar harvested 38,700 tonnes of fish were during the quarter, compared with 32,700 tonnes in the fourth quarter 2017.

Around 35 percent of the volume was sold under contract at higher average prices than the average spot price in the period. Due to seasonal variations in the supply of raw materials, the company expects the industrial part to operate at a slightly lower level in the coming quarters.

          Arnarlax HF

SalMar plans to harvest 145,000 tonnes of salmon in Norway in 2019: 95,000 tonnes in central Norway and 50,000 tonnes in the north. It also expects Norskott Havbruk (Scottish Seafarms) to harvest around 30,000 tonnes, and Arnalax to contribute another 10,000 tonnes.

Based on the results for 2018, SalMar's board of directors proposed a dividend of NOK 23 per share.

(1 NOK = USD 0.11574)

 
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