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SalMar ASA: SalMar - Results for the first quarter 2014

Record prices gave record results

SalMar achieved its strongest ever operational EBIT in the first quarter 2014
as a result of record high salmon prices. Although biological challenges once
again had an impact on earnings during the period, the company's ongoing
programmes are now bearing fruit and are leading to a steady improvement in
underlying operational performance. SalMar made an operational EBIT of NOK
485 million during the period, a rise of NOK 137 million from the previous
quarter and a substantial NOK 250 million more than in the corresponding
period last year.

- The result is due to high salmon prices, but we are also seeing indications
of improved operating performance and reductions in underlying costs from
some of our farming segments," says SalMar's CEO Leif Inge Nordhammer. "At
the same time, the biological situation remains challenging. The growing
intensity of salmon lice infestation and increasing resistance to treatment
that we see ahead could affect fish growth rates and harvesting plans in
coming quarters, with attendant consequences for costs."

The average price of salmon was 32 per cent higher in the first quarter 2014
than in the same quarter last year. SalMar's gross operating revenues rose to
NOK 1.6 billion, up around NOK 350 million from the first quarter 2013. In
total the Group harvested some 27,800 tonnes of salmon during the period
(23,200 tonnes). As a result, operational EBIT per kg in the quarter came to
NOK 17.45 (NOK 10.14).

All the fish farming segments posted satisfactory results, although regional
differences remain considerable. Operations at SalMar Central Norway and the
Rauma segment were affected by biological and logistical challenges, with
EBIT per kg closing the quarter at NOK 19.35 and NOK 15.68 respectively.
SalMar Northern Norway, on the other hand, posted a record EBIT per kg of NOK

The Sales and Processing segment is now able to keep PD-infected fish in
holding pens prior to harvesting, which has improved production efficiency.
However, lower than normal harvesting volumes reduced capacity utilisation.
The segment's results were also negatively affected by the Group's
fixed-price contracts, which accounted for 35 per cent of the total harvested
volume during the period. From sales revenues of just under NOK 1.4 billion
in the period, the segment made an operating loss of NOK 28 million.
Contracts are expected to account for approx. 40 per cent of volume in the
coming quarter.

The current average weight of the fish transferred to the sea in the spring of
2013 is lower than the corresponding 2012 generation had at the same point
last year. Although this will have an impact on the volume harvested in the
coming quarter, the overall level is still expected to be slightly higher
than in the first quarter.

Based on the estimated standing biomass at the close of the period, the global
output of Atlantic salmon is forecast to grow by around 7 per cent in 2014 as
a whole. SalMar is experiencing strong demand in all the company's core
markets, and expects the salmon market to remain strong for the rest of the

SalMar is keeping its harvesting forecast unchanged, and still expects to
harvest 133,000 tonnes in Norway in 2014. Norskott Havbruk (Scottish
Seafarms) expects to produce a total of 25,000 tonnes in 2014, with SalMar's
50 per cent share coming to 12,500 tonnes.

The full report for the first quarter 2014 is attached.

For more information, please contact:
CEO Leif Inge Nordhammer,
Tel: + 47 916 85 250

CFO Trond Tuvstein,
Tel: + 47 918 53 139


This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

SalMar Q1 2014 presentation
SalMar Q1 2014 report


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions 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


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