SalMar looks to buy Codfarmers assets

SalMar reported operating revenues of NOK 1.3 billion (USD 227.9 million, EUR 173.6 million) in the fourth quarter of 2012, up from NOK 1.1 billion (USD 192.8 million, EUR 146.9 million) in the fourth quarter of 2011.

EBIT was also up, reaching NOK 126 million (USD 22 million, EUR 16.8 million), compared to NOK 80 million (USD 14 million, EUR 10.7 million) in the fourth quarter the previous year. The company attributed the rise in earnings to higher prices. The price of salmon averaged NOK 26.4 (USD 4.63, EUR 3.52) per kilogram in the quarter, up from NOK 22.7 (USD 3.98, EUR 3.03) in the fourth quarter of 2011.

The Norwegian salmon farmer harvested a total of 29,600 metric tons (MT) of fish, down from 31,200 MT in the same period of 2011. The drop in harvest volume was due to the company pushing back some of the volume from the fourth quarter 2012 to the first quarter of 2013.

SalMar said it expects demand to remain strong in 2013 in the most important salmon markets, and with the outlook for limited growth in supplies, salmon prices are expected to be good.

The company also announced it entered into a letter of intent with Codfarmers for the acquisition of Atlantic Cod Farms including subsidiaries, with the exception of Festoy Eiendom.

The parties agree on a purchase price of NOK 40 million (USD 7 million, EUR 5.3 million) and that ACF’s debt will be deducted when determining the price of shares.

The deal would give SalMar access to seven locations in addition to equipment and other rights.


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