SalMar ends 2017 with Q4 high

Fish Farmer - - News -

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.

Above: SalMar CEO Trond Wil­lik­sen

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.