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SalMar Reports Record Margins

NORWAY - The SalMar Group posted an operating profit before fair value adjustment of the biomass of NOK 173.4 million in the second quarter 2010, 70 per cent up on the same quarter in 2009. All the Group's segments (Central Norway, Northern Norway and Scotland) achieved record high margins during the quarter.

The Group's performance can be ascribed to a combination of high salmon prices and continued satisfactory biological developments. Relatively low sea temperatures throughout 2010 have affected growth rates and put some pressure on production costs.

Commenting on the results, CEO Leif Inge Nordhammer said that in terms of profits the second quarter 2010 was yet another record quarter for the SalMar Group.

"Every segment delivered the highest operating profit per kg gutted weight they have ever achieved. The record high price of salmon during the quarter is a strong part of the reason for the record margins, but our uncompromising focus on the biomass and operational efficiency is a precondition for achieving the results that we have delivered.

"It is particularly pleasing to see that SalMar Northern Norway has delivered another strong quarter, and has gained a biological platform which bodes very well for the second half of the year. The relatively low sea temperatures we have seen in Norway so far this year have not given us optimal feeding and growth conditions, and this has had a negative effect on production costs.

"The salmon market is still very strong, and so far in 2010 both salmon prices and export volumes have been at record levels for the time of year. The global supply of salmon is expected to fall by around five per cent in 2010. Combined with a continued strong demand in our most important markets, this should result in salmon prices stabilising at a relatively high level for a long time to come."

the Fish Site Editor

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