- Continued solid operational performance have led to strong results in the third quarter.
Total Group operational EBIT wasNOK 1,313 million and total harvest was 53,600 tonnes. This resulted in an operational EBIT ofNOK 24.51 per kg. - Total operational EBIT for
Norway for the third quarter wasNOK 1,309 million (NOK 26.29 per kg). - Fish Farming Central Norway and
Northern Norway continued to deliver solid results despite general cost inflation. - Sales and Industry had high levels of activity at its harvesting and processing plants and increased its results significantly from the previous quarter.
- The underlying operational performance of the Icelandic operation was stable, but lower spot prices reduced the margins.
- Upgrade of
Ocean Farm 1 is progressing according to plan. - 31st of
October 2022 clearance was received from theEuropean Commission for the acquisition of a majority of the shares in NTS ASA, and consequently also the merger betweenSalMar and Norway Royal Salmon ASA (NRS). As part of the transactions Arctic Fish to be sold for115 NOK /share,NOK 1.9 billion . - Following completion of the transactions
SalMar increases volume guiding inNorway with 5,000 tonnes to 180,000 tonnes for 2022. Volume guidanceIceland is kept unchanged and forScottish Sea Farms the volume guidance is reduced with 8,000 tonnes. - In 2023
SalMar expects significant volume growth from 215,000 tonnes up to over 280 000 tonnes including its relative share inScottish Sea Farms . - The Norwegian government proposed to introduce a resource tax on aquaculture of 40% with effect from the tax year 2023 for volumes above 4-5,000 tonnes MAB. A hearing is underway with feedback due in
January 2023 . If this proposal is adopted this will have major impact on the capacity for innovation and investments in the Norwegian aquaculture industry
Continued solid performance
“Our committed and highly skilled employees have continued to deliver solid operational performance in key areas, resulting in yet another quarter with strong results. The whole aquaculture industry is experiencing inflationary pressure, but we remain committed to our strategy, operating on the terms of the salmon and delivering products of excellent quality,” said SalMar’s CEO
“Despite cost inflation on feed, Fish Farming Central Norway and Fish Farming Northern Norway continue to deliver solid results, driven by a consistently good operational performance. The operational performance is particularly impressive in
Sales and Industry maintained a high level of activity through the quarter, reversing the negative effects of high contract share seen in the previous quarter.
- Through the third quarter, we have had a record high volume through our harvesting and processing facilities. And I am particularly pleased to see that the development in our new facility at Senja in northern
Icelandic Salmon delivered solid performance, but results were affected by the lower spot prices compared with the previous quarter.
Robust platform for further sustainable growth, despite uncertainty caused by new resource tax proposal
For over 30 years, sustainable food production has been
The position has been created through creativity, effort and passion over decades, from employees, management and shareholders. We believe, in spite of a tax proposal creating uncertainty in this industry, that striving for continued sustainability, operational excellence, and efficient use of resources remains the best path to protect jobs and value creation in Norways most important export industry after petroleum. This is crucial for the further development of the industry and the supplier industry along the coast in
“In the light of the uncertainty surrounding the Norwegian government’s tax proposal,
“The proposal that has been submitted for consultation involves an increase on the tax on seafood production, from 22 to 62 per cent. No other country has introduced a tax of this kind and at this level on its food production. Both level and structure will divert investments from aquaculture in
Completion of merger with NRS and voluntary offer for shares in NTS
In October, the
“The strategic and operational rationale linked to the transaction is still good, and even if the industry has to scale back and reduce other planned investments, the need for increased efficiency and economies of scale has now become even greater. We are therefore very happy to have completed this important transaction,” says
Outlook
In accordance to estimates from Kontali Analyse one expects low supply growth for
Following completion of the transactions
In the fourth quarter, costs are expected to be higher than in the third quarter.
In 2023
The complete report and presentation for the third quarter is attached.
For further information, please contact:
Tel: +47 482 06 665
Email: frode.arntsen@salmar.no
Ulrik Steinvik, CFO
Tel: +47 900 84 538
Email: ulrik.steinvik@salmar.no
Tlf: +47 936 30 449
Email: hakon.husby@salmar.no
About
Group has farming operations in
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.
Attachments
SalMar Q3 22 - ReportSalMar Q3 22 - Presentation
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