SALM Salem Media Group Inc

STRONG OPERATIONS AND IMPROVING BIOLOGY

An improved biological situation and strong operations in all the Group's segments contributed to lower costs and a strong result for the SalMar Group in the third quarter 2017. The Group's Operational EBIT for the period came to NOK 801.3 million, up from NOK 576.3 million in the third quarter last year.

"Strong operations in all segments and an improving biological situation have enabled SalMar to once again deliver strong financial results, despite a fall in salmon prices through the quarter," says SalMar's CEO Trond Williksen. "It is particularly pleasing that the steady reduction in costs we have achieved in recent periods continued in the third quarter, and that the extensive efforts and substantial investments we have made over time to deal with salmon lice are now starting to pay off."

SalMar generated gross operating revenues of NOK 2.7 billion in the third quarter, up from NOK 2.3 billion in the corresponding period last year. The Group harvested 34,000 tonnes, compared with 29,600 tonnes in the third quarter 2016. This gave an EBIT per kg of NOK 23.60 in the third quarter, while EBIT per kg in the second quarter came to NOK 28.12.

Fish Farming Central Norway's cost per kg biomass harvested fell for the third successive quarter. The strong performance is the result of good underlying operations and the company's systematic efforts to strengthen its preparedness, capacity and expertise with regard to managing biological challenges. The segment's biological situation has improved through the quarter, and costs are expected to hold steady in the fourth quarter.

The biological situation for Fish Farming Northern Norway is good. Combined with strong operations, this has resulted in a high level of output from the generations that have been harvested during the quarter. Furthermore, it has led to a fall in costs from the previous quarter. As in previous years, SalMar experienced a slight increase in lice numbers in the third quarter. However, SalMar is well equipped to meet any biological challenges, and costs are expected to hold steady in the coming quarter.

The Sales and Processing segment posted an operating profit of NOK 46.2 million in the quarter. High capacity utilisation in the secondary processing business, positive contributions from contracts and good dispositions in the spot market all resulted in a substantial improvement in the segment's financial results. Contract sales accounted for 45 per cent of the volume in the quarter. The contract rate in the fourth quarter 2017 will be around 40 per cent, with price levels similar to the first half of 2017.

SalMar expects to harvest around 134,000 tonnes in Norway in 2017 as a whole (Fish Farming Central Norway, 86,000 tonnes; Fish Farming Northern Norway, 48,000 tonnes). Norskott Havbruk (Scottish Seafarms) and Arnarlax are expected to harvest 32,000 tonnes and 9 500 tonnes respectively.

SalMar expects to harvest around 143,000 tonnes in Norway in 2018 as a whole. Norskott Havbruk (Scottish Seafarms) and Arnarlax expect to harvest 27,000 tonnes and 11,000 tonnes respectively in 2018.

For further information, please contact:
CEO Trond Williksen
Tel: + 47 916 30 173
Email: trond.williksen@salmar.no

CFO Trond Tuvstein
Tel: + 47 918 53 139
Email: trond.tuvstein@salmar.no

See 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.

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