Strong prices gave record year-end results

Operational EBIT came to NOK 348 million at the close of the period, a marginal decrease from the previous quarter, but a substantial NOK 222 million increase compared with the same period the year before. Operational EBIT for 2013 as a whole totalled just over NOK 1.2 billion, the highest in the Group's history.

"We are pleased with the results, but are conscious that they are due mainly to a strong market and high salmon prices. Biological challenges linked to PD and salmon lice remain an issue, with the impact on cost levels that this entails," says SalMar's CEO, Leif Inge Nordhammer. The average price of salmon was 55 per cent higher in the fourth quarter than in the corresponding period the year before. SalMar's gross operating revenues totalled NOK 1.8 billion, up some NOK 500 million on the fourth quarter 2012.

The Group harvested a total of 34,100 tonnes of salmon during the period (29,600 tonnes), which resulted in an overall operational EBIT per kg in the fourth quarter of NOK 10.20 (NOK 4.26).

Operational developments during the quarter may still be described as challenging, though regional variations are substantial. Operations and profitability in the SalMar Central Norway and Rauma segments remain affected by efforts to deal with PD-related issues, while salmon lice are a growing problem in both areas. Profitability in SalMar Northern Norway has returned to historic high levels. Villa Organic also made progress with regard to cost levels, although it will still be some time before SalMar reaches its targeted cost level in the segment.

The Sales & Processing segment achieved a consistently high level of productivity through the quarter, despite the increased proportion of PD-infected fish being harvested. However, the segment's financial performance was negatively affected by the Group's fixed-price contracts. 2013 was an extremely good year for SalMar. High salmon prices and substantial non-recurring gains resulted in record earnings for the Group. The board of directors considers SalMar's financial position to be very good, and is therefore recommending a dividend of NOK 8 per share. In the opinion of the board, SalMar has ample financial capacity for further growth.

Based on estimates of existing biomass at the close of the year, growth in the supply of Atlantic salmon is expected to be limited in 2014. SalMar is experiencing strong demand in all the company's core markets. SalMar expects to harvest 133,000 tonnes in Norway in 2014. Output from Norskott Havbruk (Scottish Seafarms) is forecast at 25,000 tonnes in 2014.