SalMar delivers first results after NTS acquisition
SALMAR’S results for the final quarter of 2022 reflect its new position as the world’s second largest Atlantic salmon farmer, after acquiring the NTS group.
Group-wide Q4 operating revenues totalled just over NOK 6.4bn (£525m) against NOK 4.67bn (£383m) 12 month earlier.
The operating EBIT or profit came to just over NOK 1bn (£82.5m) up from NOK 890m (£72m) for Q4 2021.
SalMar said the final quarter last year marked the end of an eventful year for the group, which saw SalMar winning a tough bidding war for NTS (and the NTS subsidiaries Norway Royal Salmon and SalmoNor) against Mowi, the world’s biggest salmon farmer.
However, SalMar’s results were affected by biological issues in central Norway and Scotland.
Norskott Havbruk (Scottish Sea Farms), which is owned jointly between SalMar and the Lerøy group, had a very weak result in the period because of its biological challenges. Even though the harvest at Scottish Sea Farms (SSF) increased from 4,900 tonnes in Q4 2021 to 7,300 tonnes this time, and operating revenue rose from NOK 344m (£28m) to NOK 693m (56m), the biological issues saw operating loss or EBIT increase from NOK 29m (£2.3m) to NOK 128m (£10.4m) between October and December last year.
SSF had a harvest volume of 7,300 tonnes of salmon in the quarter. By comparison, the company harvested 4,900 tonnes in the corresponding period last year.
Norskott Havbruk harvested 7,300 tonnes in the quarter compared with 4,900 tonnes in the fourth quarter of 2021.
Norskott Havbruk generated operating revenues of NOK 693m (£54.1m) in the fourth quarter 2022, compared with NOK 344m (£26.8m) in the fourth quarter last year.
The increase is due to more volume harvested. EBIT per kg gutted weight was a loss of NOK 17.46 (£1.36) in the period. This is up from a loss of NOK 5.84 (£0.45) per kg in the same period last year.
SalMar CEO Frode Arntsen said SalMar was considering strategic alternatives for ownership of its wellboat and aquaculture support business, Frøy ASA, with strong interest from several parties. On the group performance, he said: “As a result of the acquisition of NTS, Norway Royal Salmon (NRS) and SalmoNor, which has given us more than 500 new colleagues and a strengthened operational structure along our entire value chain, SalMar has grown to become the world’s second largest salmon producer.
“We have thus created an even stronger platform for further growth in SalMar. We will continue to deliver healthy and sustainable salmon, and always strive for further improvements in our industry at sea and on land.”