SalMar ends 2017 with Q4 high
SALMAR, one of the world’s largest salmon farming companies, announced impressive results for the fourth quarter of 2017, with a group operating profit (EBIT) of NOK 707.2 million, up from NOK 557 million for the same period in 2016.
The announcement follows an equally strong performance for the third quarter of last year when the EBIT was NOK 801.3 million.
SalMar, which partly owns Scottish Sea Farms, said the improvement is largely attributable to a higher harvested volume, combined with improved underlying operations and enhanced biological control. It has also reduced its costs for the fourth quarter in a row.
CEO Trond Williksen said: ‘A higher harvested volume, an improved biological situation and efficient operations have helped SalMar to post yet another strong financial result.
‘The improvement in underlying operations for the fourth quarter in a row is the result of investments in competence and capacity over time. And these investments will continue. Our ambition to be the lowest cost producer remains in place.
‘SalMar remains determined to increase its production volume, and is therefore working actively along several lines to realise this objective.’I
The company generated gross operating revenues of NOK 2.8 billion in the fourth quarter 2017, up from NOK 2.5 billion in the corresponding period in 2016. The group harvested 39,900 tonnes in the quarter, compared with 26,500 tonnes in the same quarter the year before.
EBIT per kg came to NOK 17.70, down from NOK 20.98 per kg in the fourth quarter 2016. The average spot price in the same period fell by NOK 17.74 per kg. The increased delousing treatments needed will push up costs in the coming quarters. SalMar says it is well equipped to deal with the segment’s lice situation in the future. In 2018 as a whole, SalMar expects to harvest around 143,000 tonnes in Norway (96,000 tonnes in Central Norway and 47,000 tonnes in Northern Norway). Scottish Sea Farms expects to harvest approximately 26,000 tonnes, while Arnarlax in Iceland expects to harvest some 11,000 tonnes.