SalMar - Results for the first quarter 2015

SATISFACTORY RESULTS DRIVEN BY GOOD PRICES

Despite falling prices through the period, the average price for the first quarter 2015 was higher than in the previous three months. Operational EBIT per kg rose to NOK 12.85 during the period. Although the average price per kg was NOK 6.46 lower than in the first quarter last year, improved underlying operations and reduced costs helped diminish the fall in profit.

"The result in the first quarter is characterized by uneven results from our fish farming segments, but with satisfactory results from the Sales and Processing activities. We are experiencing biological issues which increase costs, particularly in the Central Norway and Rauma segments. Challenges relating to MAB at one particular site in Northern Norway had a negative impact on the average weight harvested and price realised in this segment. Efficient operation of the harvesting and processing departments, however, resulted in a continuation of the positive trend achieved by the Sales and Processing segment," says SalMar's CEO Leif Inge Nordhammer.

Gross operating revenues came to NOK 1.6 billion in the first quarter 2015, unchanged from the corresponding period last year. A total of 28,100 tonnes was harvested, compared with 27,800 tonnes in the corresponding quarter the year before. Operational EBIT came to NOK 360.8 million, down from NOK 485.2 million in the first quarter 2014. In the fourth quarter last year, Operational EBIT came to NOK 508.7 million, driven by a harvested volume of 41,700 tonnes.

The Central Norway and Rauma segments remain affected by issues relating to lice and PD. Delousing treatments are costly and affect fish growth.

The Northern Norway segment's operations in the first quarter were negatively affected by the additional harvesting necessary to comply with the regulations regarding maximum allowable biomass (MAB). However, the overall biological situation for the segment is good.

In the Sales and Processing segment, around 55 per cent of the volume was sold under contract at prices on a par with the average spot price. Furthermore, the productivity of the harvesting and processing departments was good during the period. A total of 28,800 tonnes was harvested during the quarter, around 5,400 tonnes more than in the corresponding period last year. The processing department handled high volumes, and also demonstrated efficient operations during the quarter.

On the 20 March 2015, the government published a White Paper that intend to pave the way for further predictable growth in the aquaculture industry. SalMars response to this White Paper is a new structural concept for an open-ocean fish farm, which will make it possible to exploit areas that are less sheltered and more exposed to harsh weather conditions. The structural concept has been made in cooperation with leading international maritime research environments. The open-ocean fish farming facilities design will allow a usage in more exposed offshore locations - making it suitable for reducing biological challenges such as disease and salmon lice. Realisation of the open-ocean fish farming project will be cost-intensive, and will depend on the authorities licensing production volumes at terms that make it possible to realize the project.

Based on estimates of the standing biomass at the close of the quarter, the global supply of Atlantic salmon is expected to increase by around 4 per cent in 2015.

In 2015 SalMar expects to harvest around 139,000 tonnes in Norway, while Norskott Havbruk (Scottish Seafarms) is expected to harvest 31,000 tonnes in 2015.

The full report for the first quarter 2015 is enclosed.

For more information, please contact:
CEO Leif Inge Nordhammer,
Tel: +47 916 85 250

CFO Trond Tuvstein,
Tel: +47 918 53 139
Email: trond.tuvstein@salmar.no
Web: www.salmar.no

This information is subject to the disclosure requirements stipulated in section 5-12 of the Norwegian Securities Trading Act.