SalMar CEO Frode Arntsen.
Seafood Norway
SalMar ASA has reported strong operational results for the second quarter of 2024, showing recovery following a difficult winter season marked by extreme weather.
“SalMar showed solid operational performance, improved biological results and delivered acceptable financial results in a period marked by the aftermath of a challenging winter season. Strong commitment from all segments has resulted in a positive development of key performance indicators,” said SalMar CEO Frode Arntsen, announcing the results this morning.
The company achieved an operational EBIT of NOK 1,466 million (EUR 125.27 million / USD 135.13 million) in its Norwegian operations, with a harvest volume of 44,100 tonnes, translating to an operational EBIT per kilogram of NOK 33.2 (EUR 2.84 / USD 3.06).
Across the entire group, operational EBIT stood at NOK 1,393 million (EUR 119.04 million / USD 128.44 million), with a slightly higher harvest volume of 44,800 tonnes and an EBIT per kilogram of NOK 31.1 (EUR 2.66 / USD 2.87).
SalMar’s Fish Farming segment in Norway showed significant biological improvements, although the harsh winter conditions continued to impact the superior share and price achievement, especially in Northern Norway.
Despite these challenges, the company’s Sales and Industry segment maintained operational efficiency, although the high contract share and elevated spot prices resulted in a negative contribution.
In Iceland, however, SalMar faced continued biological challenges, leading to higher costs and lower harvest volumes, which affected overall results.
Conversely, Scottish Sea Farms, SalMar’s joint venture with Lerøy Seafood Group, reported a solid quarter with increased harvest volumes, improved fish weights, and strong biological status across all regions.
“In parallel we have taken several decisions aimed at delivering on our ambitions to deliver sustainable growth. We acquired additional production capacity in a recent government managed auction in Norway and we been granted 10,000 tons of MAB in Iceland,” Arntsen said.
In June, SalMar was recognized by Time magazine as one of the world’s most sustainable companies, ranking 481 in a list of 500 firms, with competitor Mowi coming in at 311.
“We are proud to receive such recognition and awards and note with appreciation that our efforts are also well received by the capital market," Arntsen said.
"Our revolving credit facility and term loan are now linked to certain ESG performance indicators, and we have published updated green bond framework for which S&P Global Ratings has provided a second party opinion of alignment with internationally well respected methodology,” he added.
In a further move to drive innovation in sustainable salmon farming, SalMar launched the Salmon Living Lab in March 2024, in collaboration with Cargill. This initiative aims to develop more sustainable solutions for the industry and has garnered interest from various stakeholders, including NGOs and companies in the value chain.
The company announced a further development on this front today, with the appointment of Kristine Hartmann as Chief Executive of the initiatve. Previously Director of Development at SalMar Aker Ocean, Hartmann will now be responsible for Salmon Living Lab as it progresses towards key milestones, the company said.
Looking ahead, SalMar has maintained its harvest guidance for 2024, with expectations of 237,000 tonnes in Norway, 7,000 tonnes from SalMar Aker Ocean, and 37,000 tonnes in Scotland. The forecast for Iceland has been reduced to 13,000 tonnes.
Arntsen concluded by emphasizing the company’s preparedness to continue its growth trajectory. "We celebrate our achievements, but there is no time to rest," he said.
"We are reinforcing our efforts to further improve operational control and efficiency across the company and throughout the value chain."