September 2, 2022

 

SalMar continues its solid operational performance

 

 

SalMar's strong operational performance continued into the second quarter of 2022. This, along with salmon prices that were at record highs, produced positive financial results, Fish Information & Services reported.

 

SalMar harvested 32,400 tonnes of salmon during the second quarter of 2022, reporting an operational EBIT of NOK 1.048 million (~US$104,590; NOK 1 = US$0.10). A strong operational EBIT of NOK 32.35 (~US$3.23) per kg was produced as a result.

 

Linda L. Aase, CEO of SalMar ASA, said their persistent and unwavering efforts to operate on the terms of the salmon and with sustainability mindset in everything they do, have again proven to be a successful recipe.

 

Strong biological and operational performance was maintained by Fish Farming Central Norway and Fish Farming Northern Norway, which led to record operational EBIT per kilo values of NOK 58.64 (~US$5.85) and NOK 69.12 (~US$6.90), respectively.

 

Although the Sales and Industry segment's core business was performing well, record-high salmon prices had a negative impact on contract profitability. Icelandic Salmon produced strong results in the third quarter, which were fueled by strong price achievement, good biological performance, and steady cost development.

 

Although this favourable market situation weakens the financial results in Sales and Industry due to profitability on contracts, high salmon prices in the market were a major contributor to our financial results, Aase said.

 

SalMar has a positive outlook for the aquaculture sector's future. SalMar is preparing for and making investments in additional sustainable growth thanks to a strong corporate culture that has been developed and fostered by capable, committed, and enthusiastic employees.

 

The Senja smolt facility's expansion is almost finished; the first roe was installed there and the first smolt delivery is scheduled for 2023. The Tjuin facility is anticipated to deliver its first smolt in 2024. The ramp-up of volume at both harvesting and value-adding processing at the InnovaNor harvesting and processing facility in Northern Norway continues through 2022.

 

Through its ownership of and position as the largest shareholder in SalMar Aker Ocean, SalMar is also setting the standard for offshore aquaculture. The design of new units and the upgrade of Ocean Farm 1 are proceeding as planned, and the company is committed to making new offshore investments as soon as the necessary regulatory framework is in place. Within 2030, the company hopes to produce 150,000 tonnes of salmon offshore.

 

SalMar anticipates a contract share of about 35%, an increase in harvest volume, and marginally higher cost levels in the third quarter of 2022.

 

The volume guidance that was previously communicated for 2022 is still in effect for all regions. 175,000 tonnes are anticipated to be harvested in Norway, 16,000 tonnes in Iceland, and 46,000 tonnes in Scotland.

 

-      Fish Information & Services