SalMar salmon products. (Photo: SalMar)

SalMar achieves good results but continues dealing with sealice

SalMar generated the highest operational EBIT per kg in its history, a record result the firm attributes to "continued high salmon prices, lower production costs for the harvested biomass and a higher average price on the overall contract portfolio."

The group recorded gross operating revenues of just over NOK 2.4 billion (USD 277 million) in the first three months 2017, representing an increase from around NOK 2.0 billion (USD 230 million) that it reported in the corresponding period last year.

As it was indicated by the firm’s CEO Trond Williksen the segments delivered satisfactory results, and the firm continued its systematic efforts to strengthen its preparedness for and capacity to deal with the salmon lice situation.

"SalMar's combined non-medicinal delousing capacity has been enhanced, and the company is working continuously to improve its routines and level of competence,” Williksen said.

The Group harvested 26,300 tonnes of salmon, 1,000 tonnes less than in the same period in 2016.

In the first quarter 2017, Fish Farming Central Norway harvested fish from sites with a better biological performance than was the case in the previous quarter. This contributed to a slightly higher average weight and lower production costs. Despite lower lice numbers at the close of the period than in the first quarter last year, the situation in Central Norway is still regarded as challenging.

In the first three months this year, some stocks were harvested prematurely out of consideration for fish welfare. New delousing equipment, better routines and increased competence have strengthened the company's preparedness and response capability.

Meanwhile, the biological situation for Fish Farming Northern Norway remains good. Despite seasonally lower sea temperatures, the growth rate has been satisfactory, and the harvested volume had a good average weight. Like Fish Farming Central Norway, the segment has invested in delousing equipment to strengthen its ability to respond to any future rise in lice numbers.

Sales and Processing performed much better in the first quarter 2017 than in the previous quarter.

The sales business achieved record-high prices in the quarter. However, the segment's Operational EBIT was still negative, since 60 per cent of the volume was sold under contract at prices below the average spot price in the period. Nevertheless, contract losses were substantially lower than in the previous quarter. The improvement is due to a combination of lower market prices and higher contract prices.

Although harvesting and processing activities continue to be negatively affected by the biological situation in Central Norway, high harvested volumes have contributed to good capacity utilisation and efficient operations during the period.

Based on estimates of the standing biomass at the close of the quarter, the global supply of Atlantic salmon is expected to grow by 3 per cent in 2017 as a whole.

In Norway, the group expects to harvest 131,000 tonnes compared to 115,600 tonnes harvested in 2016.

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Address:	Industriveien 51,
City:	Kverva
State/ZIP:	(NO-7266)
Country:	Norway
Phone:	+47 7244 7900
Fax:	+47 7244 7901
E-Mail:	[email protected]
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