Norwegian farmed salmon producer SalMar announced its strongest ever operational EBIT in the first quarter of 2014 as a result of record high salmon prices.
The operational EBIT reached NOK 485 million (USD 81.6 million, EUR 59.7 million), up NOK 137 million (USD 23.1 million, EUR 16.9 million) from the previous quarter and NOK 250 million (USD 42.1 million, EUR 30.8 million) more than the same period last year.
The average price of salmon was 32 percent higher in the first quarter of 2014 than in the same quarter in 2013. The company harvested 27,800 metric tons (MT) of salmon during the period, up from 23,000 MT.
“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,” said Leif Inge Nordhammer, CEO. “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.”
Operations at SalMar Central Norway and the Rauma segment were affected by logistical challenges, with EBIT per kilogram (kg) closing the quarter at NOK 19.35 (USD 3.26, EUR 2.38) and NOK 15.68 (USD 2.64, EUR 1.93) respectively. SalMar Northern Norway posted a record EBIT per kg of NOK 21.05 (USD 3.54, EUR 2.59).
The sales and processing segment saw an operating loss of NOK 28 million (USD 4.7 million, EUR 3.5 million).
SalMar is keeping its harvesting forecast unchanged at 133,000 MT in Norway in 2014.
