SalMar reported solid Q3
Christian Fernsby ▼ | November 10, 2022
SalMar reported results for Q3.Article continues below
Highlights
Continued solid operational performance have led to strong results in the third quarter. Total Group operational EBIT was NOK 1,313 million and total harvest was 53,600 tonnes. This resulted in an operational EBIT of NOK 24.51 per kg.
Total operational EBIT for Norway for the third quarter was NOK 1,309 million (NOK 26.29 per kg).
Fish Farming Central Norway and Northern Norway continued to deliver solid results despite general cost inflation.
Sales and Industry had high levels of activity at its harvesting and processing plants and increased its results significantly from the previous quarter.
The underlying operational performance of the Icelandic operation was stable, but lower spot prices reduced the margins.
Upgrade of Ocean Farm 1 is progressing according to plan.
31st of October 2022 clearance was received from the European Commission for the acquisition of a majority of the shares in NTS ASA, and consequently also the merger between SalMar and Norway Royal Salmon ASA (NRS). As part of the transactions Arctic Fish to be sold for 115 NOK/share, NOK 1.9 billion.
Following completion of the transactions SalMar increases volume guiding in Norway with 5,000 tonnes to 180,000 tonnes for 2022. Volume guidance Iceland is kept unchanged and for Scottish Sea Farms the volume guidance is reduced with 8,000 tonnes.
In 2023 SalMar expects significant volume growth from 215,000 tonnes up to over 280 000 tonnes including its relative share in Scottish Sea Farms.
The Norwegian government proposed to introduce a resource tax on aquaculture of 40% with effect from the tax year 2023 for volumes above 4-5,000 tonnes MAB. A hearing is underway with feedback due in January 2023. If this proposal is adopted this will have major impact on the capacity for innovation and investments in the Norwegian aquaculture industry. ■ What to read next
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