Norway's Salmar posts strong Q4

 

 

The Norwegian SalMar Group made an operating profit of NOK175.3 million in the fourth quarter 2009, 30% more than in the same quarter in 2008, proposing a dividend of NOK2.20 per share, totalling NOK226.6 million.

 

SalMar Central Norway continues to make progress on the back of further sound biological developments and operational efficiency, and posted very strong results for the quarter.

 

SalMar Northern Norway had a challenging quarter, while stable prices and cost levels led to good results in Scotland.

 

For 2009 as a whole, the SalMar Group posted an operating profit of NOK584.8 million, some 73% up on 2008.

 

The SalMar Group generated gross operating revenues of NOK756.5 million in the fourth quarter 2009, compared with NOK556.3 million in the same quarter in 2008.

 

The group made an operating profit before fair value adjustment of the biomass of NOK175.3 million in the fourth quarter 2009, compared with NOK134.5 million in the same quarter in 2008.

 

For SalMar Central Norway, this corresponded to an operating profit of NOK10.54 per kg gutted weight in the fourth quarter 2009, and NOK1.03 for SalMar Northern Norway.

 

SalMar's CEO Leif Inge Nordhammer said contract prices for processed products also made a positive contribution to the business's fourth-quarter results, noting that the sea lice situation is under control and all sites have a lower number of sea lice than the authorities' threshold.

 

SalMar owns 50% of Norskott Havbruk AS, which operates fish farms in mainland Scotland, the Orkneys and Shetland. The business generated gross operating revenues of NOK295.5 million in the fourth quarter 2009, and made an operating profit before fair value adjustment of the biomass of NOK52.2 million, up from NOK10.1 million in the corresponding quarter in 2008.

 

In 2010, SalMar expects to harvest around 85,000 tonnes gutted weight, with SalMar Central Norway harvesting 56,000 tonnes and SalMar Northern Norway 17,000 tonnes. Norskott Havbruk aims to harvest around 24,000 tonnes, of which SalMar has a 50% share, ie 12,000 tonnes.

 

During the quarter SalMar acquired 66% of the shares in Volstad Seafood AS, bringing SalMar's shareholding in the company to 100%. The transaction was completed on December 1. The acquisition of Volstad Seafood AS further strengthens SalMar's capacity and competence with regard to the sale and distribution of Atlantic salmon, particularly in Asian markets.

 

SalMar considers the business outlook to be very positive. A sharp drop in volumes from Chile has led to a reduction in the global supply, while demand remains very strong.

 

Therefore, SalMar expects good salmon prices both in the near and medium term, and believes that there is considerable growth potential for the aquaculture industry in Norway.