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Scottish Sea Farms co-owner SalMar has reported an increased operating profit of NOK 1.262 billion (£105 million) in the first quarter 2022, up from NOK 890m in the previous quarter and NOK 627m in the first quarter last year.

SalMar, which is in the process of becoming the world’s second-largest salmon farmer through its acquisition of the integrated aquaculture company NTS ASA, harvested a total of 45,000 gutted weight tonnes. This resulted in a strong operational EBIT of NOK 28.02 per kg, up from NOK 15.78 per kg in Q4 2021 and NOK 17.02 per kg in Q1 2021.

“Our team has again delivered impressive performance, resulting in excellent quality of our products and a very strong operational and financial key numbers,” said Linda Aase, who took over as SalMar’s new chief executive this week.

Linda Aase:
Linda Aase: "Our team has again delivered impressive performance." Photo: SalMar.

Strong biology

“Central Norway and especially Northern Norway reported strong biological and operational performance and our activities in Iceland showed solid results due to strong capacity utilisation at harvest plant and stable cost level.

“Record high salmon prices have also contributed to the strong result, although the current market situation weakens the financial results in Sales and Industry due to price level on contracts. The underlying performance of operations in this segment continues to improve.”

Cash offer

During the quarter, SalMar launched a voluntary offer for all outstanding shares in NTS, and 52.7% of NTS shareholders have accepted the offer.

SalMar said it is satisfied with the acceptance rate, which will make NTS a subsidiary of SalMar upon a completion of the offer. Assuming the offer is completed, SalMar will meet its offer obligations by putting forward a cash offer for the remaining shares in NTS in accordance with applicable legislation.

The company said expects to harvest 175,000 gutted weight tonnes in Norway this year, with a further 16,000 tonnes being harvested by subsidiary Icelandic Salmon. Associate company Scottish Sea Farms, which SalMar owns 50/50 with Lerøy, expects to harvest 46,000 gwt following its acquisition of Grieg Seafood’s Shetland operations last December.