Strong Biological Development Marks Quarter
SalMar is pleased to report a quarter marked by significant biological development, setting the stage for improved volumes and quality in fish production. The second half of the year promises positive cost development supported by this strong foundation. However, the quarter saw some financial challenges, primarily due to a disproportionate amount of downgraded fish impacting price performance.
Operational Insights and Financial Performance
For the second quarter, operational EBIT for Norway reached NOK 696 million, supported by a harvest volume of 54,500 tonnes, yielding an EBIT of NOK 12.8 per kilogram. Overall, group operational EBIT stood at NOK 524 million, reflecting a total harvest volume of 64,500 tonnes, with an EBIT per kg of NOK 8.1. Northern Norway exhibited a particularly strong biological performance, enhancing cost efficiencies during this time.
Sales and Industry Achievements
Positive results were reported in the Sales and Industry sector, thanks to robust contract contributions and operational capabilities. SalMar Ocean successfully completed harvests from both of its units, although the harvest costs for fish sourced from Iceland were noted to be on the higher side.
Strategic Merger and Sustainable Financing
The recent merger between Wilsgård AS and SalMar has solidified SalMar’s foothold in Northern Norway, enhancing market presence with Wilsgård holding 5,844 tonnes in licenses for salmon production. This strategic move, alongside the announcement in July that SalMar would oversee all salmon production operations, strengthens the company’s growth trajectory.
Issuance of Green Bonds
SalMar has raised NOK 2 billion through the issuance of new green bonds, indicating an earnest effort to enhance access to capital while fostering sustainable initiatives. Both the merger and these bonds represent significant steps towards strengthening SalMar’s operational capacity and sustainability goals.
Increased Volume Guidance for 2025
The first half of the year showcased SalMar’s exceptional biological growth, leading to record-high biomass entering the third quarter. This ongoing growth, combined with lower costs for several inputs, creates optimism for increased production in the latter half of the year. The company projects its volume guidance to rise by 4,000 tonnes. SalMar expects to harvest 262,000 tonnes in Norway, 7,200 tonnes from SalMar Ocean, and 13,000 tonnes in Iceland, culminating in a strong forecast of 298,000 tonnes overall.
Anticipating Market Demand
Despite experiencing lower salmon prices due to enhanced global supply, SalMar continues to witness strong demand for its products. The company is optimistic about the second half of 2025, forecasting lower supply growth compared to the previous half. This positions SalMar favorably amidst global market fluctuations.
Presentation of Financial Results
Frode Arntsen, CEO, and Ulrik Steinvik, CFO of SalMar, will present the detailed financial results of the company today. Industry stakeholders and partners are encouraged to tune in to understand the full implications of this quarter’s performance. Official reporting is readily available to stakeholders to enhance transparency.
Contact Information for Further Inquiries
For additional information, please contact:
Frode Arntsen, CEO
Tel: +47 482 06 665
E-mail: frode.arntsen@salmar.no
Ulrik Steinvik, CFO
Tel: +47 900 84 538
E-mail: ulrik.steinvik@salmar.no
Håkon Husby, Head of IR
Tel: +47 936 30 449
E-mail: hakon.husby@salmar.no
Frequently Asked Questions
What are the financial highlights for SalMar in this quarter?
The operational EBIT for Norway was NOK 696 million, while the group operational EBIT was NOK 524 million.
What was discussed regarding the merger with Wilsgård?
The merger enhances SalMar's market presence in Northern Norway and optimizes salmon production capacity.
How does SalMar aim to foster sustainability?
SalMar has issued NOK 2 billion in green bonds to support sustainable initiatives and secure capital.
What is the volume guidance for the upcoming year?
SalMar has increased its volume guidance for 2025 to a projected total of 298,000 tonnes of fish.
Who can be contacted for more information about SalMar?
Frode Arntsen, CEO, and Ulrik Steinvik, CFO are available for further inquiries, along with Håkon Husby, Head of IR.
