August 18, 2010

Norway's SalMar Q2 operating profit soars 70%

The SalMar Group announced its results for the second quarter of 2010, including a 70% increase in operating profit to NOK173.4 million (US$28.2 million).

In addition, all of SalMar's divisions, including Central Norway, Northern Norway and Scotland, achieved record high margins during the quarter.

One of the world's largest farmed salmon producers credited the increase in profits to a combination of high salmon prices and continued satisfactory biological developments.

Operating revenues also increased to NOK659.5 million, up from NOK456.3 million during the same period last year. SalMar also posted an operating profit before fair value adjustment of the biomass of NOK173.4 million, compared with NOK102.2 million during 2009.

SalMar CEO Leif Inge Nordhammer noted that the salmon market is still very strong, and so far in 2010 both salmon prices and export volumes have been at record levels for the time of year.

Nordhammer also said that global supply of salmon is expected to fall by around 5% in 2010. Combined with a continued strong demand, this should result in salmon prices stabilising at a relatively high level for a long time to come, he said.

Despite the low sea temperatures in parts of Norway this year, SalMar is maintaining its 2010 harvesting estimate of 85,000 tonnes gutted weight. Despite historically high prices, the company said demand is strong.