Difficult 2Q for SalMar

By

SeafoodSource staff

Published on
August 18, 2011

SalMar on Friday released its financial results for the second quarter of 2011 including an increase in operating income by 4 percent to NOK 681.7 million, up from NOK 659.5 million in the second quarter of 2010.

That was the only figure to increase, as the Norwegian company was hit with a drop in salmon prices.

Operating profit for the company fell to NOK 112 million, compared to NOK 173.4 million during the same time period in 2010.

The company harvested about 13,630 metric tons gutted weight in the quarter, with central Norway accounting for 7,850 metric tons, northern Norway for 1,650 metric tons, Rauma segment harvested 1,960 metric tons and operations in Scotland/Orkneys/Shetland harvested 2,170 metric tons.

"The second quarter was a mixed period for the SalMar Group. Both SalMar Northern Norway and segment Rauma continue to post very strong results. SalMar Central Norway's performance was affected by a number of factors, including a low harvest volume, which resulted in low capacity utilization at the InnovaMar plant. Furthermore, around 50 percent of SalMar Central Norway's volume was sold in the month of June, when salmon prices were at their lowest, at the same time as a not insignificant proportion of the quarter's volume derived from partner licenses where earnings are not as high as in the Group's wholly owned licenses,” said Yngve Myhre, CEO. “In light of these factors it is important to point out that the marine-phase biomass is developing well, and that we are maintaining our production guidance for 2011. This will lead to good capacity utilization at the InnovaMar plant in the time ahead. We therefore expect that SalMar Central Norway will once again post margins in line with the best performing farmers in the second half of the year."

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