May 16, 2023
SalMar reports significant increase in revenue and earnings
Norwegian-based salmon-farming company, SalMar, has recorded a substantial year-over-year increase in both revenue and earnings before interest and taxes (EBIT), attributed to high salmon prices and reduced costs, Seafood Source reported.
In the first quarter of 2023, SalMar's revenue reached NOK 6.79 billion (~US$635 million; NOK 1 = US$0.094) up from NOK 4.68 billion (~US$437 million) in the same period last year.
The company's operational EBIT also saw a significant rise, reaching NOK 1.88 billion (~US$175 million) compared to NOK 1.26 billion (~US$117 million) in Q1 2022.
During the quarter, SalMar harvested 48,500 metric tonnes (MT) of salmon and achieved an operational EBIT-per-kg of NOK 38.80 (~US$3.63). In the Norwegian market, the company's operational EBIT for its Fish Farming Central Norway and Fish Farming Northern Norway segments reached NOK 1.72 billion (~US$160 million).
The total harvest volume in Norway amounted to 42,000 MT, with central Norway alone contributing 22,200 MT of salmon. The operational EBIT-per-kg for central Norway stood at NOK 50.00 (~US$4.67).
SalMar's Fish Farming Northern Norway segment also demonstrated positive performance, with revenue amounting to NOK 1.8 billion (~US$168 million) in Q1 2023, compared to NOK 1.2 billion (~US$112 million) in the previous year. The operational EBIT for this segment increased to NOK 837 million (~US$78 million) with a harvest volume of 19,800 MT and an operational EBIT-per-kg of NOK 42.30 (~US$3.95). However, SalMar expects lower costs and volume for the Fish Farming Northern Norway segment in the second quarter of 2023.
Despite the positive financial results, SalMar expressed concerns about Norway's proposed resource tax on aquaculture.
The company stated that the government's latest proposal, although including a few minor adjustments, did not address the concerns of those who contribute value to the Norwegian coast.
SalMar said that the proposed tax, based on the assumption of excessive returns in the salmon industry, is inaccurate. The company firmly believes that the proposal should be permanently set aside, maintaining that it undermines Norway's reputation as a stable and reliable country for investment.
Operationally, SalMar provided updates on its ongoing projects. Construction is currently underway for a new smolt facility in Tjuin, Trondelag, Norway, with the first batch of smolt expected to be transferred in 2024. Additionally, the company has commenced the construction of a new closed net-pen design, which is scheduled to be operational by the summer of 2023.
- Seafood Source