September 6, 2019
Lower production costs help salmon producer SalMar attain higher EBIT in Q2
Attributing it largely to effective operations, lower production costs and a higher volume of fish harvested in Central Norway, Norwegian salmon farmer SalMar reported a higher operational EBIT (earnings before interest and taxes) of NOK989.8 million (US$109.9 million) in the second quarter, compared with NOK878.6 million in the same period last year.
"It is very good to see that Central Norway continues the positive trend and shows that good biological performance gives good financial results", said SalMar's CEO Olav-Andreas Ervik.
Fish Farming Central Norway increased its volume harvested in the second quarter compared with the same period last year. The majority of the fish harvested were transferred to sea farms in the spring of 2018, a generation that has performed well biologically. This resulted in increased earnings compared with both the previous quarter and the second quarter in 2018.
However, biological challenges were encountered in Northern Norway, where the fish was harvested earlier than planned to minimise the biological risk.
Meanwhile, gross operating revenues totalled NOK3.3 billion (US$366.3 million) in the second quarter, up from NOK2.9 billion in the same period last year. The Group harvested 41,400 tonnes during the quarter, compared with 34,000 tonnes in 2018.
For 2019, SalMar expects to harvest 145,000 tonnes of salmon in Norway, 10,000 tonnes in Iceland (Arnarlax) and 30,000 tonnes in Norskott Havbruk (Scottish Seafarms).