A limited supply of salmon and strong demand has pushed up prices leading to a strong quarterly performance for SalMar.
The Norway-headquartered group recorded operational EBIT of NOK 1.745 billion (€150.70 million) in Q2 2023. Total harvest was 44,300 tonnes and operational EBIT per kg was NOK 39.4 (€3.40).
The group is continuing its integration of acquired businesses NTS, NRS and SalmoNor as well as selling a majority share of subsidiary Frøy to Goldman Sachs Asset Management.
“We are reporting strong performance, largely in with our expectations, and good progress in our ongoing efforts to integrate business from NRS, NTS and SalmoNor,” said chief executive, Froder Arntsen.
“We have recently signed a refinancing agreement at competitive terms and strengthened our balance sheet through the sale of shares in Frøy, thereby creating an even stronger foundation for further growth.”
Like other producers, SalMar has been affected by the Norwegian government’s decision to impose a 25% rent tax on salmon farms. Arntsen estimates that the ‘salmon tax’ has cost the company NOK 2.3 billion (€200 million) so far.
“SalMar strongly opposes the resource rent tax model and level,” said Arntsen. “The company will continue to argue for a review of the tax system and tax level for Norwegian aquaculture through close and fact-based dialogue with authorities and decision-makers. SalMar is open to legal steps in due course.”
The company has been focusing on its ambitions to be a world-leading producer of sustainable salmon with the opening of its Arctic Offshore Farming and Ocean Farm 1 operations, along with increased smolt at its new facility in Tjuin.
Outlook
Volume guidance for 2023 remains unchanged at 243,000 tonnes in Norway and 16,000 in Iceland. Guidance at Scottish Sea Farms has been reduced to 27,000 in response to biological challenges.
