SalMar ASA delivered operational earnings before interest and taxes (EBIT) of NOK 732 million (USD 89.1 million, EUR 79 million) in the second-quarter of this year, more than double that achieved in the corresponding period of 2015 and its highest on record, citing unprecedented high prices for the improved financial performance.
Operating income in the last quarter neared NOK 2.3 billion (USD 280 million, EUR 248.2 million), up from NOK 1.8 billion (USD 219.1 million, EUR 194.3 million) in Q2 2015, while the Norwegian-headquartered company’s operating profit increased from NOK 274.9 million (USD 33.5 million, EUR 29.7 million) to NOK 508.1 million (USD 61.9 million, EUR 54.8 million).
The average price of salmon in Q2 2016 was NOK 64.22 (USD 7.82, EUR 6.93) per kg, compared to NOK 38 (USD 4.62, EUR 4.10) per kg a year previously.
SalMar expects to harvest 126,000 metric tons (MT) of salmon from its Norwegian operations this year, and a further 26,000 MT in Shetland. It also anticipates the salmon market will continue to tighten further, supporting strong prices, with the global supply falling 6 percent this year, incorporating a 3 percent reduction in the Norwegian supply.
Meanwhile, the company said progress continues to be made with its offshore salmon farm, Ocean Farm 1, and anticipates putting its first fish in the sea in Q3 2017.
