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SalMar - Continued solid operational performance and record high salmon prices has led to strong results in Q1 2022
Total Operational EBIT for the first quarter was NOK 1,262 million, 28.02 NOK per kg
Total operational EBIT for Norway for the first quarter was NOK 1,201 million, 28.83 NOK per kg
Farming segments in Norway deliver record high results, where in particular Fish Farming Northern Norway has strong results. Northern Norway has its third quarter in a row with low cost level and continues to deliver a strong result. Fish Farming Central Norway delivers positive cost development and continued strong operational performance.
High salmon prices affecting price achievement from contracts within Sales & Industry, but underlying operations improving performance from previous quarters
Icelandic operations with solid results due to strong price achievement, strong capacity utilization at harvest plant and stable cost level
SalMar Aker Ocean, which was formally established in 2021, reports as a separate segment from Q1 2022.
SalMar keeps the volume guiding for all regions in 2022 unchanged.
The offer period for the announced voluntary offer for all outstanding shares in NTS ASA ended at the end of April 2022 where 52.7% of the shareholders in NTS ASA accepted the offer.
Continued solid performance in the value chain and record high salmon prices
SalMar reported an operational EBIT of NOK 1,262 million in the first quarter 2022, up from NOK 890 million in the previous quarter and NOK 627 in the first quarter last year. SalMar harvested a total of 45,000 tonnes, which resulted in a strong operational EBIT of NOK 28.02 per kg, up from NOK 15.78 per kg in the fourth quarter 2021 and NOK 17.02 per kg in the first quarter 2021.
“Our team has again delivered impressive performance, resulting in excellent quality of our products and a very strong operational and financial key numbers. Central Norway and especially Northern Norway reported strong biological and operational performance and our activities in Iceland showed solid results due to strong capacity utilisation at harvest plant and stable cost level,” said Linda K. Aase, who on 9 May joined SalMar as the company’s new CEO.
“Record high salmon prices have also contributed to the strong result, although 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 said.
Strong platform for further sustainable growth in all regions
With a strong corporate culture built and nurtured by competent, dedicated, and employees with a passion for salmon, SalMar will continue to grow. And in recent years, SalMar has taken significant steps to equip the company for further sustainable growth along the entire value chain in all regions. This work will continue with full force going forward, where SalMar’s ambition to be leading both within traditional coastal farming, as well as in farming in more exposed areas along the coast and in the open ocean.
In the first quarter and s 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 per cent of NTS shareholders have accepted the offer. SalMar is satisfied with the acceptance rate, which will make NTS a subsidiary of SalMar upon a 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 in accordance with applicable legislation.
Outlook
SalMar has an optimistic outlook for the future of the aquaculture industry and expects the global supply in 2022 to be at the same level as in 2021.
SalMar expects 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 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 for Scotland 46,000 tonnes. The contract share for the year 2022 is around 35 percent.
The complete report and presentation for the first quarter 2022 is attached.
SalMar’s CEO Linda Litlekalsøy Aase and CFO Gunnar Nielsen will present the company’s results in Hotel Continental, Stortingsgata 24-26, Oslo, Norway today at 8am CEST. The presentation will also be available as webcast on www.salmar.no.
For further information, please contact:
Linda Litlekalsøy Aase, CEO
Tel: +47 900 74 413
Email: linda.aase@salmar.no
Gunnar Nielsen, CFO
Tel: +47 960 97 005
Email: gunnar.nielsen@salmar.no
Håkon Husby, Head of Investor Relations
Tel: +47 936 30 449
Email: hakon.husby@salmar.no
About SalMar
SalMar is one of the world's largest and most efficient producers of salmon. The Group has farming operations in Central Norway, Northern Norway and Iceland, as well as substantial harvesting and secondary processing operations in Norway, at InnovaMar in Frøya, InnovaNor in Senja and Vikenco in Aukra. In addition, the company is operating within offshore aquaculture through the company SalMar Aker Ocean. SalMar also owns 50% of the shares in Scottish Sea Farms Ltd.
See www.salmar.no for more information about the company.
This information is subject to the disclosure requirements stipulated in section 5-12 of the Norwegian Securities Trading Act.
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