SalMar delivers bumper Q3 results

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SalMar today announced a strong third quarter performance with an operational EBIT or profit of NOK 1.313 billion (£110m), resulting in an operational EBIT per kg of NOK 24.51.

This compares with an operational EBIT of NOK 748m (£63m) in Q3 last year.

The figure also included a substantial increase in income from Scottish Sea Farms (also known as Norskott Havbruk) which, thanks to high salmon prices, rose from NOK 773m (£65m) a year ago to NOK 972 (£82m) this quarter. SalMar is the joint owner, with Lerøy Seafood, of Scottish Sea Farms.

However, results in Scotland were affected by biological and environmental issues such as gill health and micro-jellyfish.

SalMar said: “This has led to a high cost base and low average weight of harvested fish. In addition, results are negatively impacted by the contract level of 44%.”

SalMar’s share of Scottish Sea Farms’ results resulted in a net loss of NOK 55m (£4.6m) compared with a profit of NOK 7m (£593,000) in Q3 last year.

Next year Scottish Sea Farms is expected to harvest a higher volume, at 43,000 tonnes.

SalMar, which took control of Norway Royal Salmon earlier this week, said a continued solid performance for the group produced strong results during the July-September period with Northern Norway and Mid-Norway performing particularly well.

The underlying operational performance of SalMar’s Iceland business, Arnarlax, was stable.  Lower spot prices weakened margins, however, while the upgrade of Ocean Farm 1 (its offshore farm platform) was continuing according to plan.

The group now expects a large increase in harvest output from 215,000 tonnes this year to 280,000 tonnes in 2023.

However, the company has warned that the Norwegian government’s controversial ground rent tax plan, if approved, will adversely impact innovation and investment.

SalMar’s new CEO Frode Arntsen said: “Our committed and highly skilled employees have continued to deliver solid operational results within our key areas.

“This has resulted in another quarter with strong results. There is significant inflationary pressure in the entire aquaculture industry, but we stick to our strategy of operating our business on salmon’s terms and delivering products of excellent quality.

“Despite cost growth for feed, the farming segments Mid-Norway and Northern Norway continue to deliver solid results, driven by consistently good operational performance. The operational performance is particularly impressive in Northern Norway, which once again has a very good result.”

He added: “Through the third quarter, we have had a record high volume through our slaughterhouse and further processing facilities.”

Frode Arnsten, CEO SalMar

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