High salmon prices drive good results in SalMar Q1 2021

High salmon prices drive good results in SalMar Q1 2021

SalMar continues with its solid operational performance while high salmon prices allow good results in the first quarter of 2022. The company reported an operational EBIT of NOK 1,262M in the first quarter of 2022, up from NOK 627 in the first quarter of last year.

Besides, SalMar harvested a total of 45,000 tonnes. This resulted in a strong operational EBIT of NOK 28.02/kg, up from NOK 17.02/kg in the first quarter of 2021.

Firstly, Linda K. Aase, CEO of SalMar, pointed out: "Our team has again delivered an impressive performance. Resulting in the excellent quality of our products and a very strong operational and financial key numbers."

More in detail, she said that Central Norway and especially Northern Norway had a strong biological and operational performance. "Our activities in Iceland showed solid results due to strong capacity utilization at harvest plant and stable cost level," she added.

Despite the good result, Aase explained that "the current market situation weakens the financial results in Sales and Industry due to price level on contracts". "The underlying performance of operations in this segment continues to improve", Aase concluded.

Continue growing

In the first quarter and as part of its growth strategy, SalMar launched a voluntary offer for all outstanding shares in the integrated aquaculture company NTS ASA. A total of 52.7% of NTS shareholders have accepted the offer.

SalMar confirmed its satisfaction with the acceptance rate. It will make NTS a subsidiary of SalMar upon the completion of the offer. Assuming the offer is completed, SalMar will meet its offer obligations by putting forward a cash offer for the remaining shares in NTS by applicable legislation.

The future

SalMar hopes the global supply in 2022 to be at the same level as in 2021. On the other side, it expects a similar cost level, lower harvest volume, and a contract share of around 60% in the second quarter of 2022. The contract share in the second quarter is higher than normal due to the lower harvest volume.

The company keeps its previously communicated volume guidance for 2022 unchanged. The expected harvest volume for Norway is 175,000 tonnes, for Iceland 16,000 tonnes, and 46,000 tonnes for Scotland. The contract share for the year 2022 is around 35%.

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