Solid results in 2007 following increased volume and strong biological production
SalMar Group had gross operating revenues of NOK 1,679.2 million in 2007, an increase of NOK 430.6 million from 2006 (NOK 1,248.6 million). Operating profit before adjustment of fair value of biomass was NOK 411.4 million, compared with NOK 447.4 million in 2006. The Group harvested a total of approx. 64,100 tonnes in 2007, up from 44,000 tonnes in 2006.
SalMar Group generated gross operating revenues of NOK 454.3 million in the fourth quarter 2007, an increase of NOK 18.1 million compared fourth quarter 2006. Harvest volumes in Norway were slightly higher than in the corresponding quarter in 2006. Operating profit before adjustment of fair value of biomass was NOK 68.9 million in the fourth quarter 2007.
The board of directors proposes the payment of a dividend for 2007 of NOK 1.10 per share, NOK 113.3 million in total.
-"We are satisfied with our performance in the fourth quarter and in 2007 as a whole. Salmon prices were considerably lower in the fourth quarter 2007 compared with the same period in 2006, so we are pleased that SalMar once again has succeeded in posting good operating margins. We still have a sound biological situation at our salmon farms, and a high level of activity within the processing business. Focus on biological and operational issues is, and will continue to be, the most important driver of continued good results," says SalMar's CEO Leif Inge Nordhammer.
The SalMar Group had gross operating revenues of NOK 454.3 million in the fourth quarter 2007, compared with NOK 436.2 million in the corresponding period in 2006. The increase can be ascribed to higher volumes harvested, though the generally lower price of salmon had a negative impact.
The SalMar Group made an operating profit before adjustment of fair value of biomass of NOK 68.9 million in the fourth quarter 2007, compared with NOK 161.8 million in the corresponding quarter in 2006. The main reason for this reduction is the lower price of salmon during the quarter compared with the fourth quarter 2006. Consequently, operating profit per kilo gutted weight totalled NOK 5.83 for SalMar Central Norway, and NOK 2.53 for SalMar Northern Norway (Senja Sjøfarm) in the fourth quarter 2007.
The SalMar Group, including its 50 per cent shareholding in Norskott Havbruk AS, achieved an operating profit of NOK 71.3 million in the fourth quarter 2007, compared with NOK 206.6 million in the corresponding quarter in 2006.
SalMar's key figure for profit performance under IFRS is EBIT (operating profit) before adjustment of fair value of biomass. Value adjustment of the biomass results from the requirement to value biological assets (the biomass) at fair value instead of cost price. Changes in price and the composition of the biomass during a period can therefore have a major impact on this value, as is the case in this quarter. SalMar reports EBIT before adjustment of fair value of biomass in order to show the underlying performance of its operations during the period.
The SalMar Group made a profit before tax of NOK 218.4 million in the fourth quarter 2007, compared with NOK 158.4 million in the corresponding quarter the year before. Earnings per share in the quarter totalled NOK 1.50, compared with NOK 1.25 in the same period in 2006. SalMar's share of Norskott Havbruk AS's profit after tax totalled NOK 1.9 million in the fourth quarter 2007, compared with NOK 20.4 million in the same quarter the year before. Norskott Havbruk AS's reduced operating revenues and operating profit can largely be ascribed to falling prices, lower volumes and some biological challenges.
The price of salmon in the fourth quarter 2007 was lower than in the corresponding quarter in 2006. 2008 has started in a positive way and volumes are up from the same period in 2007.
The SalMar Group, including Norskott Havbruk AS, expects to harvest some 73,000 tonnes gutted weight in 2008: SalMar Central Norway accounting for approx. 47,000 tonnes gutted weight and SalMar Northern Norway for approx. 13,000 tonnes gutted weight. Norskott Havbruk expects to harvest around 26,000 tonnes gutted weight, with SalMar's share of this being 50 %, approx. 13,000 tonnes gutted weight.
For further information, please contact:
Leif Inge Nordhammer, CEO, +47 916 85 250
Roar Husby CFO, +47 982 06 974
Please also see: www.salmar.no
