SalMar de­liv­ers strong per­for­mance

Fish Farmer - - News European -

SALMAR de­liv­ered higher prof­its and earn­ings on the back of in­creased prices and strong de­mand dur­ing both the fi­nal quar­ter of 2018 and for the full year.

The com­pany an­nounced a fourth quar­ter op­er­at­ing profit (EBIT) of 934.9 mil­lion kro­ner, up from NOK 707.2 mil­lion on the same pe­riod in 2017.

It re­ported ‘good’ op­er­a­tions from all its busi­ness ar­eas, in­clud­ing Scot­tish Sea Farms in which it has a 50 per cent share. SalMar is propos­ing a div­i­dend of NOK 23 per share.

Fourth quar­ter rev­enue from Scot­tish Sea Farms rose from NOK 485 mil­lion in 2017 to NOK 512 mil­lion last year, with op­er­at­ing prof­its up from NOK 115 mil­lion to NOK 158 mil­lion.

For the whole of 2018, in­come dropped slightly from NOK 2,088 mil­lion to NOK 2,057 mil­lion and the EBIT from NOK 669 mil­lion to NOK 661 mil­lion. The har­vest vol­ume, how­ever, fell from 8,100 tonnes to 6,700 tonnes dur­ing the quar­ter. Har­vest vol­umes for the year were down by 3,500 tonnes to 27,500 tonnes at SSF, but SalMar said the busi­ness de­liv­ered good re­sults dur­ing the fi­nal pe­riod.

Un­der­ly­ing op­er­a­tions were also good, re­sult­ing in high av­er­age har­vest weights, strong prices and lower costs. Har­vest vol­umes for Scot­tish Sea Farms are ex­pected to to­tal 30,000 tonnes this year.

To­tal group rev­enues for 2018 rose from NOK 10,817 mil­lion to NOK 11,342 mil­lion and the op­er­a­tional EBIT (profit) was up from NOK 3,162 mil­lion to NOK 3,460 mil­lion.

Both the com­pany’s op­er­a­tions in North­ern and Cen­tral Nor­way posted good op­er­a­tional re­sults, al­though the cen­tral sec­tion had higher costs.

The com­pany has also en­tered into an agree­ment to ac­quire a fur­ther 3,268,670 shares in its Ice­landic sub­sidiary Arnarlax, with the in­ten­tion of tak­ing to­tal con­trol by buy­ing the re­main­ing 12 mil­lion plus shares.

CEO Olav-An­dreas Ervik said: ‘A good op­er­a­tional per­for­mance from all our busi­ness seg­ments, strong de­mand and our high­est ever har­vested vol­ume have all con­trib­uted to an­other sat­is­fac­tory quar­ter for SalMar. The first gen­er­a­tion from Ocean Farm 1 was also har­vested dur­ing the quar­ter. The project’s bi­o­log­i­cal re­sults have been good and strength­ened our con­fi­dence in fish farm­ing fur­ther out to sea.’

Above: SalMar CEO Olav-An­dreas Ervik

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