SalMar's Salmon Harvesting Down in Q4

The price of salmon (NOS spot) in the quarter averaged NOK 26.4 per kg, an increase of NOK 1.1 per kg from the previous quarter and NOK 3.7 per kg higher than in the fourth quarter 2011.

The company posted an operational EBIT before fair value adjustments of NOK 126 million in the fourth quarter, compared with NOK 80 million in the same period last year. The increase can be ascribed partly to higher salmon prices and partly to improved operational efficiency, particularly in SalMar Central Norway and SalMar Northern Norway's fish farming operations.

SalMar Northern Norway continued to improve its cost situation, harvesting largely from high-performing sites in the fourth quarter. The segment achieved an operating profit of NOK 5.36 per kg during the period, up from a profit of NOK 3.14 per kg in the third quarter and from an operating loss of NOK 2.33 per kg in the fourth quarter 2011. In addition to efficient operations, the improvement derives from the general rise in prices. SalMar Central Norway also improved its performance during the period, achieving an operating profit of NOK 3.64 per kg.

"We note that costs are moving in the right direction, and are particularly pleased with SalMar Northern Norway's performance. The biological status at the close of the year is good. This, combined with operational improvement projects, leads us to expect a fall in production costs in 2013. Price developments in 2013 so far have been strong, and expectations for the rest of the year mean we are confident that 2013 will be a good year for the SalMar Group," says SalMar CEO Yngve Myhre.

Results from the Rauma segment's fish farming operations were affected by the fact that the bulk of the volume harvested was taken from locations infected with PD. Since the fourth quarter 2012, however, all the PD-infected fish have been harvested, which will considerably improve cost levels in the time ahead.

The Sales and Processing segment is showing signs of improved performance, but remains affected by challenging market conditions. In addition, the decision to postpone harvesting had a negative impact on sales volumes. For the year as a whole InnovaMar set a new record, with just over 100 million kg of fish being harvested.

As a result of the postponement in harvesting volumes, SalMar has increased its forecast for 2013, and now expects to harvest around 116,000 tonnes of salmon during the year.