Aquaculture for all

More records tumble in salmon sector

Atlantic Salmon Post-harvest +2 more

2018 was a record year for SalMar, with operating revenues in excess of 11.3 billion kroner and an Operational EBIT of almost 3.5 billion kroner.

The news comes after Norway Royal Salmon reported that 2018 was their best year on record, while Mowi reported their second-best year.

SalMar's result was helped by its highest-ever harvest volume (40,500 tonnes) in Q4, “due to good operational performance”, with operating EBIT per kg came to NOK 23.11, up by NOK 5.41 per kg from the corresponding period in 2017. Overall operational EBIT for the quarter reached 934.9 million kroner, up from 707.2 million in Q4 2017.

SalMar are pleased by the performance of Ocean Farm 1

"A good operational performance from all our business segments, strong demand and our highest ever harvested volume have all contributed to another satisfactory quarter for SalMar. The first generation from Ocean Farm 1 [SalMar's pilot offshore farming system] was also harvested during the quarter. The project's biological results have been good and strengthened our confidence in fish farming further out to sea. Our operations must be on the salmon's terms and not on the equipment's limitations.

“By continuing to invest in the entire supply chain, as well as further developing our ocean farming strategy, SalMar is building a strong platform for sustainable development and further growth," says CEO, Olav-Andreas Ervik.

In their operations in central Norway in Q4 they harvested fish transferred to the sea in the autumn of 2017. “This generation has had a more challenging production cycle than the spring 2017 generation. As a result, we harvested a larger number of fish at lower average weights than budgeted. This increased costs somewhat compared with the previous quarter,” states their Q4 report, published today.

Meanwhile their operations in northern Norway segment harvested 12,200 tonnes – 9,000 tonnes more than in the previous quarter.

“The volume harvested during the period were fish transferred to the sea in the spring of 2017. Although this generation grew more slowly than planned, its development in the last period was good. This resulted in high average harvest weights and good price achievement in the quarter. The segment expects costs to remain stable going into the first quarter 2019,” the report continues.

Based on estimates of the standing biomass at the close of the fourth quarter 2018, the report states, the “global supply of Atlantic salmon is expected to rise by around 6 per cent in 2019. Combined with expectations of strong demand, this indicates a balanced salmon market, with the prospect of continued high earnings.”

SalMar maintains guiding to harvest 145,000 tonnes in Norway in 2019: 95,000 tonnes in the Central Norway segment and 50,000 tonnes in the Northern Norway segment. Its subsidiaries Norskott Havbruk (Scottish Seafarms) is expected to harvest 30,000 tonnes, while Arnarlax – in Iceland – is expected to harvest 10,000 tonnes.

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