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SalMar: 85 Per Cent Increase In Q1

NORWAY - Salmon farming group SalMar has reported an operating profit of NOK 282 million in the first quarter 2011, an increase of 85 per cent on the same quarter in 2010.

The SalMar Group generated gross operating revenues of around NOK 1 billion in the first quarter 2011, compared with NOK 617.9 million for the first quarter of 2010.

The Group made an operating profit before fair value adjustment of the biomass of NOK 282.0 million, compared with NOK 152.7 million in the same quarter last year.

This resulted in an operating profit per kg gutted weight of NOK 16.02 for SalMar Central Norway, NOK 16.94 for SalMar Northern Norway and NOK 17.15 for Rauma.

CEO Leif Inge Nordhammer commented on the SalMar group preformence saying, "The first quarter was another good quarter.

"It is particularly satisfying to see that both SalMar Northern Norway and the Rauma segment have followed up a strong 2010 with a successful first quarter in 2011.

"We would have liked to see SalMar Central Norway post higher margins, but the results were negatively affected by a relatively large proportion of fixed price contract positions.

"Also, the secondary processing facility did not go into operation until the end of March, and the results for the quarter are therefore affected by both start-up costs and a lack of contributions from the secondary processing to cover fixed costs."

SalMar considers its outlook to be very good. Despite record high salmon prices, the company is experiencing strong demand.

SalMar believes this strong demand combined with developments in the global output of salmon provide grounds for prices to remain high in the second half of 2011. At the same time, Norway's aquaculture industry has considerable growth potential.

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