SalMar - Results for the first quarter 2019
May 22 2019 - 12:30AM
SalMar ASA posted an Operational EBIT of NOK 806.2
million in the first quarter 2019, compared with NOK 708.1 million
in the same period last year.
SalMar increased its shareholding in the Icelandic
aquaculture company Arnarlax from 42 per cent to 54 per cent during
the quarter. In April, the Group increased its shareholding
further, to 62 per cent, by means of a compulsory share purchase
offer. Arnarlax has been consolidated into SalMar's financial
statements for February and March. Combined with a higher volume
harvested in Northern Norway, this contributed to the Group's
highest ever first-quarter Operational EBIT and harvest volume.
"We continue to deliver good financial results.
During the period, we also increased our shareholding in the
Icelandic aquaculture company Arnarlax. As an industrial owner,
SalMar will contribute to the sustainable development of fish
farming on Iceland," says SalMar's CEO Olav-Andreas Ervik.
SalMar's gross operating revenues ended at NOK 3.0
billion in the quarter, up from NOK 2.5 billion in the first
quarter 2018. The Group harvested 35,500 tonnes, compared with
31,900 tonnes in the corresponding period last year. SalMar made an
Operational EBIT of NOK 22.71 per kg in the first quarter, a
year-on-year increase of NOK 0.50 per kg.
After several quarters of strong biological
performance and a significant drop in production costs, Fish
Farming Central Norway's first-quarter results had a rise in
production costs. Outbreaks of disease at certain sites led to
premature harvesting and, consequently, higher production costs. In
the second quarter 2019, SalMar expects the segment to have a
higher volume and somewhat lower costs compared with the first
quarter.
Fish Farming Northern Norway harvested a large
volume of fish in the quarter. The segment's results were affected
by biological challenges, including the harvesting of fish from the
ISA zone where additional infection-prevention measures increased
costs. SalMar expects the segment to have a lower volume and
somewhat lower costs in the second quarter than in the first
quarter.
The Sales and Processing segment posted a profit
of NOK 14.3 million in the quarter. In the same period last year,
the segment made a loss of NOK 15.3 million. Improvement in result
is driven by fixed price contracts having a higher price point than
for the corresponding quarter last year. Seasonally lower volumes
have influenced the profit contribution from the harvesting and
secondary processing activities.
With effect from 1 February 2019, Arnarlax's
results have been consolidated into the Group's financial
statements, and the company is reported as a separate segment.
Operational improvements on Iceland contributed to a positive
financial result in the period, despite costs associated with high
mortality caused by winter wounds. SalMar has great faith in the
future of Arnarlax and salmon farming in Iceland, but it will take
time before the segment is able to perform at the same level as the
Group's operations in Norway.
As at 22 May, the contract rate stands at 25 per
cent for the second quarter 2019 and 20 per cent for the year.
Contract prices are slightly up from last year.
The global supply of Atlantic salmon is expected
to grow by around 7 per cent in 2019. Combined with expectations of
good demand, this indicates a balanced salmon market with the
outlook for continued strong earnings.
SalMar maintains its expectations to harvest
155,000 tonnes in 2019, with 145,000 tonnes coming from the
Norwegian segments and 10,000 tonnes from Iceland (Arnarlax).
Norskott Havbruk (Scottish Seafarms) is expected to harvest 30,000
tonnes.
The complete report and presentation for the first
quarter 2019 is attached.
For further information,
please contact:
CEO Olav-Andreas Ervik,
Tel: + 47 918 68 100
Email: olav.andreas.ervik@salmar.no
CFO Trond Tuvstein,
Tel: + 47 918 53 139
Email: trond.tuvstein@salmar.no
See also www.salmar.no for more information about
the company.
This information is subject to the disclosure
requirements stipulated in section 5-12 of the Norwegian Securities
Trading Act.
SalMar Q1 2019 report
SalMar Q1 2019 presentation
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: SalMar ASA via Globenewswire
Salem Media (NASDAQ:SALM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Salem Media (NASDAQ:SALM)
Historical Stock Chart
From Apr 2023 to Apr 2024