SalMar Reports Positive Biological Development
Operational Results
In the second quarter of 2024, SalMar recorded an operational EBIT of NOK 1,466 million for Norway. The company achieved a harvest volume of 44,100 tonnes, resulting in an operational EBIT per kilogram of NOK 33.2.
For the entire Group, the operational EBIT stood at NOK 1,393 million in the same quarter, with a total harvest volume of 44,800 tonnes and an operational EBIT per kilogram of NOK 31.1.
The Fish Farming segment in Norway has shown improved biological performance. However, the harsh winter and extreme weather conditions experienced earlier this year have continued to negatively affect the company’s share and price achievements, especially for Farming Northern Norway.
In the Sales and Industry sector, SalMar demonstrated an efficient and flexible operational setup, achieving a contract share of 46 percent. Unfortunately, this, combined with high spot prices, led to a negative contribution.
Icelandic Salmon faced high costs due to ongoing biological challenges during the quarter, alongside low harvest volumes, which impacted the results.
SalMar Aker Ocean successfully transferred smolt for a new production cycle at Ocean Farm 1, with plans for harvest in 2025.
Scottish Sea Farms had a strong quarter, reporting increased harvest volume, improved weights, and a robust biological status across all regions.
Sustainable Growth
“SalMar has made strategic decisions to fulfill our ambitions for sustainable growth. We recently acquired additional production capacity in a government-managed auction in Norway and have been granted 10,000 tons of MAB in Iceland,” stated Frode Arntsen, CEO of SalMar ASA.
Recently, a well-known magazine recognized SalMar as one of the world’s most sustainable companies, highlighting its commitment to sustainability. Additionally, the company’s revolving credit facility and term loan are now tied to ESG performance indicators, marking a significant advancement in financial sustainability.
In line with these developments, SalMar has introduced an updated green bond framework aimed at financing sustainable initiatives throughout its value chain.
Innovation and Research
SalMar has recently launched the Salmon Living Lab in partnership with a global food corporation, focusing on developing sustainable solutions for salmon farming. This initiative has attracted considerable interest from various stakeholders across the value chain.
Kristine Hartmann has been appointed as the head of the Salmon Living Lab, where she will lead the initiative's development moving forward.
Volume Guidance and Outlook
The harvest guidance for Norway remains steady at 237,000 tonnes, with an additional 7,000 tonnes expected from SalMar Aker Ocean, and 37,000 tonnes from Scotland (on a 100% basis). However, the forecast for Iceland has been adjusted down to 13,000 tonnes.
“We are well-prepared to continue our growth. While we celebrate our successes, we also recognize the importance of enhancing our operational efficiency across all areas of the company,” concluded Arntsen.
The complete report and presentation for the second quarter can be reviewed for further details.
For more information, please reach out to:
Frode Arntsen, CEO
Tel: +47 482 06 665
Email: frode.arntsen@salmar.no
Ulrik Steinvik, CFO
Tel: +47 900 84 538
Email: ulrik.steinvik@salmar.no
Håkon Husby, Head of Investor Relations
Tel: +47 936 30 449
Email: hakon.husby@salmar.no
About SalMar
SalMar is among the largest and most efficient salmon producers globally, with farming operations in various regions and a strong commitment to sustainable aquaculture practices.
Frequently Asked Questions
What was the operational EBIT for Norway in Q2 2024?
The operational EBIT for Norway in Q2 2024 was NOK 1,466 million.
How many tonnes were harvested by SalMar in the second quarter?
SalMar harvested 44,800 tonnes in the second quarter.
What sustainability initiatives has SalMar undertaken?
SalMar has launched a green bond framework and linked its loans to ESG performance metrics.
Who is the head of the Salmon Living Lab?
The head of the Salmon Living Lab is Kristine Hartmann.
What is SalMar's future harvest guidance?
SalMar's future harvest guidance remains at 237,000 tonnes in Norway, along with forecasts for other regions.
