Quarterly Report • Feb 15, 2024
Quarterly Report
Open in ViewerOpens in native device viewer
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 8,019 | 6,406 | 28,219 | 20,158 |
| Operational EBIT | 2,158 | 1,006 | 8,088 | 4,465 |
| Production tax | -78 | -28 | -208 | -85 |
| Fair value adjustments & onerous contracts | -804 | -944 | 630 | 359 |
| Income from investments in associates and joint ventures | 35 | -101 | -27 | 66 |
| Profit before tax from continuing operations | 974 | -222 | 7,279 | 4,562 |
| Profit for the period from continuing operations | 1,259 | -177 | 2,746 | 3,608 |
| EPS - Adjusted | 13.8 | 4.5 | 33.5 | 25.3 |
| NIBD incl. leasing liabilities | 14,952 | 20,505 | 14,952 | 20,505 |
| Equity ratio % | 43.3% | 38.6 % | 43.3% | 38.6% |
| Harvested volume (1,000 tgw) | 83.1 | 62.7 | 254.1 | 193.7 |
| EBIT/kg (NOK) | 26.0 | 16.1 | 31.8 | 23.1 |
1 Results from Norway are group results excluding segments SalMar Aker Ocean and Icelandic Salmon.
Fish Farming Central Norway and Fish Farming Northern Norway demonstrated solid operational performance, albeit impacted by the jellyfish attacks. Farming Northern Norway, in particular, had to cull significant number of fish with adverse effect on cost per kg.
Sales and Industry delivered continued solid operational performance. The operational set-up in the value chain continued to show strength by handling large volume with good capacity utilization.
Icelandic Salmon faced challenges with ongoing high costs related to biological challenges.
SalMar Aker Ocean currently has two semi-offshore projects in operation, as Arctic Offshore Farming was made part of the segment from Q4 2023.
In the fourth quarter 2023, the SalMar Group in total harvested 83,100 tonnes of salmon, up from 62,700 tonnes in the fourth quarter 2022.
The Norskott Havbruk joint venture (Scottish Sea Farms) reported modest results but showed improvement from the previous quarters.
In the fourth quarter 2023, the price of salmon (NASDAQ Salmon Index) averaged NOK 82.2 per kg up from NOK 73.3 per kg in the fourth quarter in 2022.
Operating revenues amounted to NOK 8,019 million in the fourth quarter 2023, compared with NOK 6,406 million in the fourth quarter 2022.
SalMar's most important key performance indicator is operational EBIT, an alternative performance measure, see note 12 for further details. This shows the result of the Group's underlying operations during the period. Specific items not associated with underlying operations are presented on separate lines.
The SalMar Group achieved an operational EBIT of NOK 2,158 million in the quarter, up from NOK 1,006 million in the corresponding quarter the year before. The increase is due to higher harvest volume and achieved prices.
The SalMar Group achieved an operational EBIT per kg of NOK 26.0 in the fourth quarter 2023, up from NOK 16.1 per kg in the fourth quarter 2022.
A production tax has been payable by the Norwegian operation since 1 January 2021. From 1 July 2023 the production tax increased to NOK 0.90 per kg, see note 11 for further details. The production tax in Norway and the resource tax in Iceland amounted to negative NOK 78 million in the fourth quarter 2023. In the same period in 2022, this amounted to negative NOK 28 million.
The change in provisions for onerous contracts was negative NOK 227 million in the quarter. The fair value adjustment was negative with NOK 467 million and fair value adjustment included in cost of goods sold due to business combination was negative NOK 111 million in the quarter. See Note 4 for further details.
SalMar posted an operating profit of NOK 1,275 million in the fourth quarter 2023, up from NOK 35 million in the same period in 2022.
Income from investments in associates and joint ventures was positive NOK 35 million in the period, compared with negative NOK 101 million in the corresponding quarter in 2022. See note 8 for further details.
Net interest expenses totalled NOK 285 million in the fourth quarter 2023, compared with NOK 171 million in the corresponding quarter last year. The increase is due to increased interest-bearing debt and higher interest rates.
Other financial items were NOK -51 million in the period, compared with NOK 16 million in the fourth quarter 2022.
Profit before tax in the fourth quarter 2023 was NOK 974 million, compared with NOK -222 million in the corresponding quarter last year. A tax expense of NOK -285 million has been recognised for the quarter. This amount includes calculated resource rent tax. See note 11 for further details.
This results in a net profit for the period from continuing operations of NOK 1,259 million. The profit after tax from discontinued operations was NOK 2 million, resulting in a profit for the period of NOK 1,261 million. The tax expense recognised in the corresponding quarter last year was NOK -45 million, while profit for the period last year totalled NOK -69 million.
Currency exchange effects through the quarter resulted in translation differences of NOK -15 million with respect to associates and subsidiaries. Change in fair value of financial instruments net after tax was NOK 206 million. This resulted in a total other comprehensive income of NOK 191 million in the quarter. These are items that may subsequently be reclassified to profit and loss and increase the period's total comprehensive income to NOK 1,452 million.
The SalMar Group generated gross operating revenues of NOK 28,219 million in 2023, up from NOK 20,158 million in 2022.
The harvest volume for 2023 was 254,100 tonnes. In 2022, the Group harvested 193,700 tonnes. The price of salmon (NASDAQ Salmon Index) averaged NOK 93.0 per kg in 2023, compared with NOK 82.6 per kg in 2022.
Operational EBIT for 2023 totalled NOK 8,088 million, up from NOK 4,465 million in 2022. This gives an Operational EBIT per kg of NOK 31.8 for 2023, compared with NOK 23.1 in 2022.
The production tax in Norway and the resource tax in Iceland amounted to NOK 208 million in total in 2023.
Onerous contracts reduced profits by NOK 237 million. The fair value adjustment was positive with NOK 1,590 million and fair value adjustment included in cost of goods sold due to business combination was negative NOK 723 million in 2023.
Operating profit for 2023 ended at NOK 8,509 million, up from NOK 4,738 million in 2022.
Income from associates and joint ventures was NOK -27 million in 2023. The negative contribution is primarily a result of SalMar's share of the profit from Norskott Havbruk, which amounted to NOK -168 million in 2023. In 2022, associates contributed NOK 66 million.
Net interest expenses totalled NOK 1,172 million in 2023, compared with NOK 336 million in 2022. Net other financial items totalled NOK -30 million in the period. In the corresponding period last year, the Group reported other financial items totalling NOK 93 million.
Profit before tax in 2023 therefore totalled NOK 7,279 million, compared with NOK 4,562 million in 2022. A tax expense of NOK 4,534 million has been calculated for 2023, compared to NOK 954 million in the same period in 2022. The amount for 2023 includes NOK 2,080 million in implementation effect for the resource rent tax and NOK 837 for the resource rent tax for 2023. See note 11 for further information.
This results in a net profit for 2023 from continuing operations of NOK 2,746 million. The profit after tax from discontinued operations was NOK 657 million, resulting in a profit for the period of NOK 3,402 million. The profit for the corresponding period last year totalled NOK 3,715 million.
Other comprehensive income totalled NOK 466 million for 2023 where translation differences in associates and joint ventures and subsidiaries was NOK 257 million and change in fair value of financial instruments net after tax was NOK 209 million. These are items that may subsequently be reclassified to profit and loss and increase the period's total comprehensive income to NOK 3,868 million in 2023.
Cash flow from operating activities for the SalMar Group was NOK 2,284 million in the fourth quarter 2023, compared with NOK 198 million in the same period in 2022.
Net cash flow from investing activities in the fourth quarter totalled NOK -647 million, compared with NOK -547 million in the fourth quarter last year.
Investments in the value chain in the quarter related to purchase and sale of property, plant and equipment, licenses and other non-current assets was NOK -637 million, cash flow from other investing activities at NOK -10 million.
The Group had a net cash flow from financing activities of NOK -1,601 million in the fourth quarter 2023, compared with NOK 2,214 million in the same period last year.
During the quarter the Group's interest-bearing liabilities decreased with NOK -1,111 million, instalments on lease liabilities and net interest paid totalled NOK -366 million. In the same quarter last year, interest-bearing liabilities increased with 6,321 million, while instalments on leasing liabilities and net interest paid totalled NOK -191 million.
SalMar had a net change in cash and cash equivalents of NOK 37 million in the fourth quarter 2023, compared with NOK 1,865 million in the same period in 2022. Adjusted for NOK -2 million in currency effects, cash holding at the close of the quarter stood at NOK 785 million.
At the end of the fourth quarter 2023, SalMar Group's assets totalled NOK 53,331 million, up from NOK 53,256 million at the end of the third quarter 2023.
Non-current assets amounted to NOK 35,533 million at the end of fourth quarter 2023, up from NOK 34,714 million at the end of third quarter 2023.
Non-current intangible assets totalled NOK 18,685 million at the end of the quarter, up from NOK 18,409 million at the end of third quarter 2023.
The book value of the Group's non-current tangible assets was NOK 12,371 million at the close of the quarter, up from NOK 12,078 million at the end of September 2023.
The Group's right-of-use assets totalled NOK 1,798 million, up from NOK 1,442 million at the end of September 2023.
Non-current financial assets was NOK 2,679 million, down from NOK 2,784 million at the end of the third quarter 2023.
At the end of the fourth quarter 2023, SalMar had current assets totalling NOK 17,798 million, down from NOK 18,542 million at the end of the third quarter 2023.
The book value of inventory stood at NOK 14,494 million at the end of fourth quarter 2023, down from NOK 15,501 million at the end of the third quarter. Trade receivables totalled NOK 1,457 million, down from NOK 1,567 million at the end of the previous quarter. Other current receivables were NOK 1,061 million, up from NOK 723 million at the end of the third quarter 2023.
As of 31 December 2023, the SalMar Group had cash and cash equivalents of NOK 785 million, up from NOK 751 million at the end of September 2023.
As of 31 December 2023, the Group's total equity amounted to NOK 23,079 million, corresponding to an equity ratio of 43.3 per cent, compared to NOK 21,475 million at the end of September 2023 and an equity ratio of 40.3 per cent. For further details, reference is made to the attached separate presentation of movements in equity.
As of end December 2023, the SalMar Group had total interest-bearing liabilities of NOK 13,892 million. Of this amount, non-current interest-bearing debts amounted to NOK 12,211million, while current interest-bearing liabilities was NOK 1,681 million. By comparison, total interestbearing liabilities at the end of September 2023 was NOK 14,995 million. See notes to the financial statements for further details.
The Group's lease liabilities totalled NOK 1,845 million at the close of the fourth quarter 2023, compared to NOK 1,479 million at the end of the third quarter 2023.
At the end of the fourth quarter 2023, pension liabilities, deferred tax liability, trade creditors and other current liabilities totalled NOK 14,515 million, compared to NOK 15,308 million at the end of the previous quarter.
As of 31 December 2023, the SalMar Group had net interest-bearing debts, including lease liabilities of NOK 14,952 million, compared to NOK 15,722 million at the end of the third quarter 2023.
SalMar reports its operations in five segments: Fish Farming Central Norway, Fish Farming Northern Norway, Icelandic Salmon, Sales and Industry and SalMar Aker Ocean. From November 2022 the results from NTS, NRS and SalmoNor have been included in respective segments further described below.
Fish Farming Central Norway is SalMar's largest segment. It encompasses the Group's operations in the Møre og Romsdal and Trøndelag counties, production area 5-7.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 3,424 | 2,298 | 12,419 | 8,872 |
| Operational EBIT | 1,178 | 484 | 4,612 | 3,599 |
| Operational EBIT % | 34% | 21 % | 37% | 41 % |
| Harvested volume (1,000 tgw) |
42.3 | 32.6 | 141.1 | 114.1 |
| EBIT/kg gw (NOK) | 27.9 | 14.8 | 32.7 | 31.5 |
Fish Farming Central Norway harvested 42,300 tonnes of salmon in the fourth quarter 2023, compared with 32,600 tonnes in the fourth quarter 2022.
SalmoNor sites accounted for approx. 31 per cent of the harvested volume in the quarter.
The segment generated operating income of NOK 3,424 million in the quarter, compared with NOK 2,381 million in the corresponding quarter last year.
The segment delivered a solid operational performance in the quarter, with reduced cost level compared to third quarter 2023. At the end of 2023 the segment experienced some environmental challenges related to the jellyfish attack at some of its sites, affecting growth. Together with harsh weather conditions at the end of the year this led to slightly lower volume for 2023.
EBIT per kg gutted weight was NOK 27.9 in the fourth quarter 2023, up from NOK 14.8 per kg in the same period last year.
The volume harvested in the quarter originated from fish that were transferred to sea in the autumn 2022 and spring 2022.
Despite still some challenges, overall there is a good biological status and in the first quarter 2024 the segment will continue to harvest from the autumn 2022 generation and start with the spring 2023 generation. The segment expects similar cost level in the first quarter 2024 as in the fourth quarter 2023. The harvest volume is expected to be slightly higher compared to volume harvested in first quarter 2023.
The volume guidance for 2024 146,000 tonnes.
Fish Farming Northern Norway encompasses the Group's operations in Troms and Finnmark county, production area 10-13.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 2,436 | 1,757 | 7,894 | 4,883 |
| Operational EBIT | 840 | 777 | 3,402 | 2,526 |
| Operational EBIT % | 34 % | 44 % | 43 % | 52 % |
| Harvested volume (1,000 tgw) |
31.4 | 24.1 | 92.8 | 63.4 |
| EBIT/kg gw (NOK) | 26.8 | 32.3 | 36.7 | 39.8 |
Fish Farming Northern Norway harvested 31,400 tonnes in the fourth quarter 2023, compared with 24,100 tonnes in the fourth quarter 2022.
NRS sites accounted for approx. 33 per cent of the harvested volume in the quarter.
The segment generated operating income of NOK 2,628 million in the quarter 2023, compared with NOK 1,835 million in the fourth quarter 2022.
The results in the period where negatively affected by environmental challenges related to string jellyfish, where several sites have been culled and several sites has been harvested earlier than planned. The jellyfish attack impacted the average harvest weight and cost per kg in the quarter. One-off costs related to the incidents was NOK 4 per kg, thereby leading to increased cost compared to third quarter 2023.
Despite challenging conditions, the operational performance has been solid where the employees have stepped up to handle a very challenging situation.
Fish Farming Northern Norway achieved NOK 26.8 EBIT per kg gutted weight in fourth quarter 2023, compared to NOK 32.3 in the same period the year before.
In the period harvest volume came from the spring 2022 and autumn 2022 generation.
The biological situation is challenging due to the string jellyfish and in the first quarter of 2024 the segment will continue to harvest from the spring 2022 and autumn 2022 generation. The segment expects similar cost level compared the level in fourth quarter 2023. The harvest volume is expected slightly lower compared to the harvest volume in the first quarter 2023.
The volume guidance for 2024 is 91,000 tonnes, where the mentioned environmental challenges affect the volume.
The Sales and Industry segment sells all fish that the Group harvests in Norway. The harvested volume is sold primarily to markets in Europe, Asia, and America. The harvesting and secondary processing plants are InnovaMar and Vikenco in Central Norway, and InnovaNor in Northern Norway.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 7,617 | 6,015 | 27,094 | 19,141 |
| Operational EBIT | 166 | -100 | 254 | -1,286 |
| Operational EBIT % | 2.2% | -1.7 % | 0.9% | -6.7 % |
Sales and Industry generated gross operating income of NOK 7,617 million in the fourth quarter 2023, compared with NOK 6,015 million in the corresponding period in the year before.
The segment continued to deliver strong operational performance, showcasing its high flexibility in processing capacity and its ability to optimise capacity utilisation of raw materials. And the operational set-up showcases its strength when there are challenges at the farming sites, being rapidly able to handle volume that need to be harvested.
In total the segment harvested 68,300 tonnes of salmon in the fourth quarter 2023, compared with 56,700 tonnes in the fourth quarter 2022.
The price achievement from spot sales in the quarter was good, and the fixed price contract shares in the fourth quarter 2023 was 16 per cent, with a positive contribution.
The segment delivered an operational EBIT of NOK 166 million in the period, compared with NOK -100 million in the same period last year.
In the first quarter 2024, the contract rate is expected to be around 40 per cent. For the full year of 2024, the contract rate is expected to be around 25 per cent. Where the price point of contracts is higher compared to 2023.
SalMar Aker Ocean is a partnership between SalMar (85 per cent ownership) and Aker (15 per cent) that specialise in offshore farming. The company has two semi-offshore units in operation, Ocean Farm 1 in Central Norway and Arctic Offshore Farming in Northern Norway.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 173 | 32 | 173 | 32 |
| Operational EBIT | 11 | -48 | -53 | -155 |
| Harvested volume (1,000 tgw) |
2.3 | - | 2.3 | - |
| EBIT/kg gw (NOK) | 4.8 | - | -23.2 | - |
In the fourth quarter of 2023, SalMar Aker Ocean had an operational EBIT of NOK 11 million.
The segment had two semi-offshore projects in operation in the quarter, as Arctic Offshore Farm was made part of SalMar Aker Ocean from the fourth quarter 2023.
The company harvested 2,300 tonnes in the fourth quarter from the Arctic Offshore Farming project, slightly below the guidance of 4,000 tonnes. Remaining volumes were harvested in January 2024, to optimise harvest profile. Note that EBIT per kg is lower for the semi-offshore projects compared to traditional farming due to higher deprecation.
The Arctic Offshore Farming unit is a development project and after completion of the first production cycle a conversion application to ordinary licenses will be sent.
The planned harvest from Ocean Farm 1 continues to be on track for 2024. The volume guidance for 2024 is 7,000 tonnes.
In end September 2023, site approval for one open ocean unit was granted to SalMar Aker Ocean's Smart Fish Farm, approximately 50 nautical miles west of Frøya in Central Norway. Due to regulatory uncertainty SalMar Aker Ocean decided that further work on offshore aquaculture in Norway is currently on hold. The company will now fully focus on growth semi-offshore and utilize the capacity of its existing two semi-offshore units for the production of sustainable Norwegian salmon. It will also continue to explore opportunities outside of Norway.
Icelandic Salmon is Iceland's largest producer and processor of farmed salmon. The company is vertically integrated, with its own hatchery, sea farms, harvesting plant and sales force.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 605 | 539 | 1,871 | 1,595 |
| Operational EBIT | 26 | 98 | 230 | 366 |
| Operational EBIT % | 4 % | 18 % | 12 % | 23 % |
| Harvested volume (1,000 tgw) |
7.2 | 6.0 | 17.9 | 16.1 |
| EBIT/kg gw (NOK) | 3.6 | 16.4 | 12.8 | 22.7 |
Icelandic Salmon harvested 7,200 tonnes in the fourth quarter 2023.
The business generated operating income of NOK 605 million in the fourth quarter, up from NOK 539 million in the same period in 2022.
Operational EBIT per kg in the quarter was NOK 3.6 per kg, in comparison to NOK 16.4 per kg in the same period last year. The result is negatively affected by biological challenges that encountered at the beginning of the quarter related to sea lice. A one-off cost related to this incident of EUR 5.2 million or NOK 8 per kg has affected the result in the period.
The 2022 generation accounted for the harvest volume in the quarter.
Icelandic Salmon expects lower harvest volumes in the first quarter 2024 compared to volume in the first quarter 2023. The cost level in the first quarter is expected to be high due to the mentioned biological challenges.
Volume guidance for 2024 is kept unchanged at 15,000 tonnes.
In the fourth quarter, Arnarlax ehf, a wholly owned subsidiary of Icelandic Salmon AS, entered into a new sustainable linked credit facility with a total of EUR 100 million with a three-year tenor. The facility encompasses a term loan facility, a revolving facility, and an overdraft facility, complete with the added flexibility of two one-year extension options.
Research and development (R&D) costs are included as eliminations in the segments' reported results. Of a total harvested volume of 83,100 tonnes in the fourth quarter 2023, R&D costs accounted for NOK 0.6 per kg.
Norskott Havbruk (Scottish Sea Farms) is accounted for as a joint venture, with SalMar's share (50 per cent) of the company's profit/loss after tax (and fair value adjustment of the biomass) being included as financial income. The figures in the table below reflect the company's performance on a hundred percent basis.
| NOK million | Q4 2023 | Q4 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Operating income | 497 | 693 | 2,561 | 3,188 |
| Operational EBIT | -47 | -128 | -304 | 214 |
| Harvested volume (1,000 tgw) |
4.6 | 7.3 | 24.9 | 35.9 |
| EBIT/kg gw (NOK) | -10.3 | -17.5 | -12.2 | 6.0 |
| Fair value adj. biomass | -5 | -118 | 16 | 31 |
| Profit/loss before tax | -101 | -273 | -482 | 166 |
| SalMar's share after tax | -18 | -122 | -168 | 41 |
| NIBD (NOKm) | 2,803 | 2,037 | 2,803 | 2,037 |
Scottish Sea Farms harvested 4,600 tonnes in the fourth quarter 2023, compared with 7,300 tonnes harvested in the fourth quarter 2022.
The company generated operating revenues of NOK 497 million in the fourth quarter 2023, compared with NOK 693 million in the corresponding quarter last year. 87 per cent of the volume was sold on contracts.
EBIT per kg gutted weight was NOK -10.3 in the period, an increase from NOK -17.5 per kg in the corresponding period last year.
SalMar's share of Norskott Havbruk's net profit was NOK -18 million in the fourth quarter 2023.
The results were still weak in the quarter, due to continued biological challenges, but conditions have improved, and the company sees improved biological situation for generations to be harvested during 2024.
Volume guidance for 2024 is kept unchanged at 37,000 tonnes.
In the fourth quarter 2023, the global supply of Atlantic salmon totalled approximately 776,500 tonnes, a decrease of 1.8 per cent on the same period in 2022.
At 434,000 tonnes, output in Norway in the quarter was 3.4 per cent less than in the same period a year before. The output decreased with 17.7 per cent in UK and 7.0 per cent in Faroe Island. The output increased with 0.9 per cent in Chile, 8.9 per cent in North America and 10.6 per cent in other regions.
According to figures from Kontali, the standing biomass in Norway at the end of the fourth quarter 2023 is estimated to be 0.6 per cent higher than the end of fourth quarter 2022. The standing biomass is estimated to be 3.7 per cent lower in Chile, 5.2 per cent higher in the UK, and 12.1 per cent higher in the Faroe Islands.
NASDAQ Salmon Index was traded at NOK 78.0 per kg at the start of the fourth quarter 2023. At the end of the quarter, it was traded at a price of NOK 99.8 per kg.
The NASDAQ Salmon Index in the period averaged NOK 82.2 per kg in the fourth quarter 2023, up from NOK 73.3 per kg in the fourth quarter 2022.
Against the most important trading currencies for salmon the Norwegian krone (NOK) strengthened 1.7 per cent against EUR, and weakened 0.6 per cent against the GBP, and weakened 0.5 against the USD through the quarter.
Norwegian export of salmon was around 415,000 tonnes (round weight) in the fourth quarter 2023, down 2 per cent from 424,000 tonnes in the same period last year. The value of these exports rose by 11 per cent year-on-year, from NOK 29.8 billion to NOK 33.0 billion.
A substantial secondary processing industry makes Poland the largest single market for Norwegian salmon. In the fourth quarter 2023, around 69,500 tonnes of salmon in total were exported to this market, a 4 per cent increase from the corresponding quarter in 2022.
Compared to the fourth quarter 2022 exports increased by 44 per cent to Vietnam/China/Hong Kong and 2 per cent to UK. The export fell with 10 per cent to USA, 3 per cent to France, 14 per cent to Denmark and 2 per cent to Spain.
As of 31 December 2023, SalMar had a total of 132,038,920 shares outstanding, divided between 22,998 shareholders.
The company's largest shareholder, Kverva Industrier AS, owned 45.4 per cent of the shares at the end the quarter. The 20 largest shareholders owned a total of 64.7 per cent of the shares.
As of 31 December 2023, SalMar ASA owned 278,854 treasury shares. This corresponds to 0.2 per cent of the total number of shares outstanding as of 31 December 2023.
SalMar's share price fluctuated between NOK 504.8 and NOK 593.4 in the fourth quarter 2023. The price at the close of the quarter was NOK 569.2 compared with NOK 543.4 at the close of the previous quarter.
A total of 11.8 million shares were traded in the quarter, which corresponds to 8.9 per cent of the total number of shares outstanding. The volume of shares traded daily averaged 186,548.
SalMar held an extraordinary general meeting (EGM) on 23 October 2023 regarding capital reduction following completion of intra-group merger with NTS AS.
In December 2023, SalMar completed the share capital reduction which implied that SalMar reduced its share capital by NOK 3,275,000 from 36,284,730 to NOK 33,009,730 by deletion of 13,100,000 own shares.
Following the registration, the share capital of SalMar is NOK 33,009,730 comprising 132,038,920 shares, each with a nominal value of NOK 0.25.
Through a series of transactions, NTS, NRS and SalmoNor became part of SalMar from November 2022. The companies merged into SalMar's existing operational structure, and the new operating structure became operational as of 1 January 2023. The estimated total restructuring cost of NOK 103 million remains unchanged.
The combination has allowed for significant cost savings. During the fourth quarter 2023, SalMar has been able to realise NOK 821 million in recurring cost savings, representing 97% per cent of the annual synergy target of NOK 844 million per annum.
The savings have been achieved through improved operational set-up, increased efficiency, and scale advantages.
In 2022, SalMar completed expansion of its smolt facility on Senja, where the first transfer of fish to sea was in April 2023. The new smolt facility under construction in Tjuin in Trøndelag, is expected to transfer the first batch of fish to sea in 2024.
In 2023, SalMar completed the construction of its second closed net pen, Marine Donut, in Central Norway, Romsdalsfjorden. This is SalMar's second closed net pen in the region. First production is scheduled to start in 2024.
The Vikenco project is on track and will expand harvesting capacity at SalMar's facility Vikenco in Rindarøy outside Molde in Central Norway.
The expansion project at InnovaMar, InnovaMar 2.0 at Frøya, aimed at doubling capacity and generating significant local ripple effects, is currently postponed due to uncertainty regarding the resource rent tax and offshore farming regulations.
In end September 2023, site approval for one open ocean unit was granted to SalMar Aker Ocean's Smart Fish Farm, approximately 50 nautical miles west of Frøya in Central Norway. Due to regulatory uncertainty SalMar Aker Ocean decided that further work on offshore aquaculture in Norway is currently on hold. The company will now fully focus on growth semi-offshore and utilize the capacity of its existing two semi-offshore units for the production of sustainable Norwegian salmon. It will also continue to explore opportunities outside of Norway.
On September 28, 2023, Havbruksutvalget, a committee appointed by the government, presented its white paper on the Norwegian aquaculture license system ("NOU 2023: 23 Helhetlig forvaltning av akvakultur for bærekraftig verdiskaping") to the Norwegian Ministry of Trade, Industry, and Fisheries.
SalMar acknowledges the committee's efforts and supports the ambition to implement measures to encourage sustainable production methods without harming the environment. However, the white paper introduces increased uncertainty about Norway's future regulatory framework, especially regarding offshore farming.
SalMar engaged in the white paper's hearing round and actively seeks an open, fact-based dialogue with authorities and decision-makers.
On 31 May 2023, with a narrow majority, the Norwegian Parliament voted for implementing an additional resource tax on aquaculture in Norway, with a tax rate of 25 per cent. This is in addition to the regular corporate tax and means that the marginal tax rate on aquaculture will increase by over 100 per cent%, from 22 per cent to 47 per cent. The new tax applied retroactively from January 1, 2023.
SalMar remains strongly opposed to this the resource rent tax and has consistently cautioned against it. The tax relies on the incorrect assumption that aquaculture food production is a location-bound resource rent industry that consistently generates extraordinary returns disproportionate to the risk involved. The high tax level and the unfavourable design of the new tax are poised to withdraw a substantial portion of investment capital from the industry. Therefore, SalMar will continue its close and fact-based dialogue with authorities and decision-makers to promptly restoring a tax system and tax level that is appropriate for Norwegian aquaculture. SalMar is open to legal steps in due course.
In December 2023, a bill was presented by the Icelandic government which could lead to changes in the regulatory framework for the country's aquaculture sector.
The aim of the proposed changes is to increase the value of Iceland's aquaculture sector, while do it in a sustainable way. The bill is expected to be finalised and implemented during the first half of 2024.
On 25 January 2024, the European Commission issued a Statement of Objections to SalMar and other producers of farmed Norwegian salmon concerning breach of EU competition rules.
As previously informed, the case commenced upon the Commission's inspection at Scottish Sea Farms in February 2019. SalMar has cooperated with the Commission throughout its entire investigation.
The Commission's preliminary assessment is that there may have occurred a breach of EU competition law in the period 2011-2019, related to spot sales into the EU of fresh, whole salmon farmed in Norway. The Commission has not concluded in the case. A Statement of Objections does not preempt the outcome of the investigation.
SalMar strongly disagrees with the Commission's preliminary assessment and will present its arguments in a thorough reply to the Commission.
In 2024 it is expected limited global growth in supply for Atlantic salmon. According to figures from Kontali Analyse the global supply is expected to increase with 2.2 per cent from levels in 2023,
In the first quarter 2024, the global volume of salmon harvested is expected to be 1.3 per cent lower than the level in than the first quarter 2023, according to Kontali.
Compared with the same period last year, the harvested volume in the first quarter 2024 is expected to increase with 0.1 per cent in Norway, 44 per cent in North America, 32 per cent in Faroe Island, and other producing countries are expected to maintain a stable level. Harvest volume is expected to decrease with 12 per cent in Chile and 2 per cent in UK.
The Fish Pool forward price as of 12 February 2023 indicates an average salmon price of NOK 109.0 per kg and NOK 112.75 per kg in February and March 2024, respectively. The forward price for the second quarter 2024 is NOK 116.38. In 2024 the forward price is currently NOK 100.0 per kg.
SalMar has reduced its harvest guidance for Norway is by 20,000 tonnes, to 237,000 tonnes in Norway. The volume guidance remains unchanged at 7,000 tonnes from SalMar Aker Ocean, 15,000 tonnes in Iceland and 37,000 tonnes in Scotland (100% basis).
In Norway, the cost level in the first quarter 2024 is expected to be at the same level as in the fourth quarter 2023. Compared to the first quarter 2023, SalMar expects the volume in Norway to be at the same level, higher in SalMar Aker Ocean and lower in Iceland.
For the first quarter 2024, the contract rate is expected to be around 40 per cent in Norway. For the full year of 2024, it is expected to be around 25 per cent.
SalMar has identified substantial untapped organic growth potential within existing value chain, without any large investment projects. Despite challenges at the end of 2023, the volume potential is unchanged. The volume potential in Norway is estimated at 300,000 tonnes, SalMar Aker 13,000 tonnes, Iceland 26,000 tonnes and Scottish Sea Farms 45,000 tonnes (100% basis). Overall, this implies a total volume projection for the SalMar group of 362,000 tonnes, including relative share from Scottish Sea Farms.
In 2024 SalMar expects to invest NOK 1.6 billion in its Norwegian operations. Maintenance investments accounts for NOK 0.7 billion or around 2.8 NOK/kg in line with company guidance of around 3 NOK/kg. Capacity investments account for NOK 0.7 billion where expansion of Vikenco accounts for the largest single investment. In addition, construction of Tjuin will be finalized, Dåfjord smolt facility will be upgraded and there are farming investments in the value chain to reduce cost.
To unlock potential on Iceland one expect to invest NOK 0.2 billion in 2024 where increased seawater farming capacity accounts for the largest investment. In SalMar Aker Ocean one expect NOK 0.1 billion.
Due to strong results in 2023 and the strong financial position the board of directors has resolved to propose a cash dividend of NOK 35.00 per share for the financial year 2023. Proposed cash dividend to be approved at annual general meeting 6 th of June 2024.
SalMar has a positive view on the future of the aquaculture industry. The company expects the global supply growth of Atlantic salmon in 2024 to be limited.
SalMar is committed to grow sustainably and create value for society and its shareholders. Where, how soon and how much depends on regulatory framework conditions.
SalMar has strong strategic and operational focus with dedicated employees and a corporate culture set for growth. The company has untapped potential for further sustainable growth within existing licenses in all regions. Not for growth's sake, but because salmon is a sustainable marine protein that Norway and the rest of the world needs.
The Board of Directors and CEO of SalMar ASA Frøya, 14 February 2023
Gustav Witzøe Chair
Arnhild Holstad Director
Hans Stølan Director (employee-elected)
Margrethe Hauge Director
Morten Loktu Director
Frode Arntsen CEO
Leif Inge Nordhammer Director
Ingvild Kindlihagen Director (employee-elected)
| NOK million | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Total operating revenues | 8,019 | 6,406 | 28,219 | 20,158 |
| Cost of goods sold | 3,862 | 3,626 | 12,880 | 9,599 |
| Fair value adjustment included in cost of goods | ||||
| sold due to business combination | -111 | -283 | -723 | -283 |
| Salary and personnel expenses | 672 | 616 | 2,454 | 1,894 |
| Other operating expenses | 1,026 | 1,098 | 4,067 | 3,446 |
| EBITDA | 2,571 | 1,349 | 9,540 | 5,502 |
| Depreciation and write-downs | 414 | 343 | 1,452 | 1,038 |
| Operational EBIT | 2,158 | 1,006 | 8,088 | 4,465 |
| Production tax | -78 | -28 | -208 | -85 |
| Onerous contracts | -227 | 8 | -237 | 126 |
| Fair value adjustment | -467 | -669 | 1,590 | 516 |
| Fair value adjustment included in cost of goods | -111 | -283 | -723 | -283 |
| sold due to business combination | ||||
| Operating profit | 1,275 | 3 5 |
8,509 | 4,738 |
| Income from investments in associates and joint ventures | 3 5 |
-101 | -27 | 6 6 |
| Net interest expenses | -285 | -171 | -1,172 | -336 |
| Other financial items | -51 | 1 6 |
-30 | 9 3 |
| Profit before tax | 974 | -222 | 7,279 | 4,562 |
| Income tax expense | -285 | -45 | 4,534 | 954 |
| Profit for the period from continuing operations | 1,259 | -177 | 2,746 | 3,608 |
| Profit after tax for the period from discontinued operations | 2 | 107 | 657 | 107 |
| Profit for the period | 1,261 | -69 | 3,402 | 3,715 |
| Other comprehensive income: | ||||
| Items that may be reclassified to profit or loss in subsequent periods: Translation differences in associates and joint ventures |
-7 | 5 | 9 3 |
2 1 |
| Translation differences in group companies | -8 | 1 0 |
164 | 124 |
| Change in fair value of financial instruments, net after tax | 206 | 301 | 209 | 169 |
| Items that will not be reclassified to profit or loss in subsequent periods: | ||||
| Remeasurement gain on defined benefit plans, net after tax | - | - | - | 3 |
| Total other comprehensive income | 191 | 316 | 466 | 317 |
| Total comprehensive income | 1,452 | 247 | 3,868 | 4,033 |
| Profit for the period attributable to: | ||||
| Non-controlling interests | -57 | 95 | 199 | 404 |
| Shareholders in SalMar ASA | 1,318 | -164 | 3,203 | 3,312 |
| Comprehensive income for the period attributable to: | ||||
| Non-controlling interests | -2 | 169 | 321 | 478 |
| Shareholders in SalMar ASA | 1,454 | 78 | 3,547 | 3,555 |
| Earnings per share | 10.0 | -1.3 | 24.4 | 27.6 |
| Earnings per share - diluted | 10.0 | -1.3 | 24.3 | 27.6 |
| NOK million | 31.12.23 | 30.09.23 | 31.12.22 |
|---|---|---|---|
| ASSETS | |||
| Non-current intangible assets | 18,685 | 18,409 | 18,291 |
| Non-current tangible assets | 12,371 | 12,078 | 11,131 |
| Right-of-use assets | 1,798 | 1,442 | 1,387 |
| Non-current financial assets | 2,679 | 2,784 | 2,746 |
| Total non-current assets | 35,533 | 34,714 | 33,555 |
| Inventory | 14,494 | 15,501 | 12,685 |
| Trade receivables | 1,457 | 1,567 | 1,414 |
| Other current receivables | 1,061 | 723 | 663 |
| Cash and cash equivalents | 785 | 751 | 2,713 |
| Total current assets | 17,798 | 18,542 | 17,474 |
| Assets held for sale | - | - | 11,472 |
| TOTAL ASSETS | 53,331 | 53,256 | 62,501 |
| EQUITY AND LIABILITIES | |||
| Paid-in equity | 12,605 | 12,596 | 12,559 |
| Retained earnings | 7,296 | 5,957 | 6,797 |
| Non-controlling interests | 3,178 | 2,922 | 4,799 |
| Total equity | 23,079 | 21,475 | 24,155 |
| Deferred tax liability | 6,725 | 7,369 | 1,928 |
| Non-current interest-bearing liabilities | 12,211 | 13,707 | 18,350 |
| Non-current lease liabilities | 1,502 | 1,207 | 1,152 |
| Other non-current liabilities | 2 1 |
1 0 |
1 8 |
| Total non-current liabilities | 20,458 | 22,293 | 21,448 |
| Current interest-bearing liabilities | 1,681 | 1,287 | 3,442 |
| Short-term lease liabilities | 344 | 272 | 273 |
| Trade creditors | 3,966 | 4,246 | 3,338 |
| Other current liabilities | 3,803 | 3,682 | 4,233 |
| Total current liabilities | 9,794 | 9,488 | 11,286 |
| Liabilities directly associated with the assets held for sale | - | - | 5,612 |
| TOTAL EQUITY AND LIABILITIES | 53,331 | 53,256 | 62,501 |
| Net interest-bearing debt (NIBD) | 13,107 | 14,243 | 19,079 |
| NIBD incl. lease liabilities | 14,952 | 15,722 | 20,505 |
| Equity share | 43.3 % | 40.3 % | 38.6 % |
| NOK million | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Profit before tax | 974 | -222 | 7,279 | 4,562 |
| Profit before taxes from discontinuing operations | 2 | 9 1 |
685 | 9 1 |
| Profit before taxes | 976 | -130 | 7,964 | 4,654 |
| Tax paid in the period | -395 | -507 - | 608 | -552 |
| Depreciation, amortisation and write-downs | 414 | 343 | 1,452 | 1,038 |
| Income from associated companies and joint ventures | -35 | 101 | 2 7 |
-66 |
| Gain related to remeasured shares in associated companies | - | -1 | - | -91 |
| Onerous contracts | 227 | -8 | 237 | -126 |
| Fair value adjustments | 578 | 952 - | 867 | -232 |
| Change in working capital | 246 | -748 - | 170 | -806 |
| Other changes | 276 | 181 | 1,150 | 390 |
| Gain on disposal discontinuing operations | -2 | - 365 |
- | |
| Cash-flow from operating activities related to discontinuing operations | 0 | 1 6 |
155 | 1 6 |
| Net cash flow from operating activities | 2,284 | 198 | 8,976 | 4,223 |
| Cash-flow from purchase and sale of PPE, licenses | ||||
| and other intangible assets | -637 | -446 - | 2,348 | -2,453 |
| Payments on business combinations, net of cash | - | -1,983 | - | -1,983 |
| Proceeds from disposal of group companies, net of cash | - | - | 4,454 | - |
| Proceeds from disposal of other financial investments | - | 1,860 | 4 5 |
1,860 |
| Cash-flow form other investing activities | -10 | 103 | 1 6 |
1 9 |
| Cash-flow from investing activates related to | ||||
| discontinuing operations | - | -80 - | 412 | -80 |
| Net cash flow from investing activities | -647 | -547 | 1,755 | -2,637 |
| Change in interest-bearing liabilities | -1,111 | 6,321 - | 7,947 | 7,019 |
| Payment of instalments on lease liabilities | -85 | -68 - | 321 | -229 |
| Payment of interest on lease liabilities | -32 | -20 - | 102 | -65 |
| Net interest paid financing activities | -249 | -103 - | 1,125 | -211 |
| Dividend | -39 | -20 - | 2,748 | -2,405 |
| Net proceeds from capital contribution | - | - | - | 1 1 |
| Change in non-controlling interests | -84 | -3,819 | - 755 |
-3,873 |
| Cash-flow from financing activities related to discontinuing operations | 0 | -78 | 2 9 |
-78 |
| Net cash flow from financing activities | -1,601 | 2,214 - 12,969 | 168 | |
| Net change in cash and cash equivalents | 3 7 |
1,865 - | 2,239 | 1,754 |
| Currency translation of cash and cash equivalents | -2 | 10 - | 7 | 7 |
| Cash and cash equivalents as at the start of the period | 751 | 787 | 2,713 | 902 |
| Cash and cash equivalents discontinuing operations at start of the period | - | 369 | 319 | 369 |
| Cash and cash equivalents as at period end | 785 | 3,031 | 785 | 3,031 |
| Of which cash and cash equivalents in discontinuing operations at period end | - | 319 | - | 319 |
| Cash and cash equivalents excluding discontinuing operations at period end | 785 | 2,713 | 785 | 2,713 |
| 2023 | Share capital | Treasury shares |
Share premium Other paid-in | equity | Other equity | Foreign currency translation differences |
Cash flow hedges |
Hedge of net investments |
Cost of hedging reserve |
Attributable to shareholders of the parent |
Non-controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of 1 January 2023 | 3 6 |
-3 12,182 |
344 | 6,400 | 177 | 211 | -35 | 4 4 |
19,356 | 4,799 | 24,155 | |
| Profit for the year Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent periods: |
3,203 | 3,203 | 199 | 3,402 | ||||||||
| Translation differences in associates and joint ventures | 9 3 |
9 3 |
0 | 9 3 |
||||||||
| Translation differences in group companies | 7 9 |
7 9 |
8 5 |
164 | ||||||||
| Change in fair value of financial instruments, net after tax | 256 | -53 | -31 | 172 | 3 7 |
209 | ||||||
| Other comprehensive income | 0 | 0 0 |
0 | 0 | 172 | 256 | -53 | -31 | 345 | 122 | 466 | |
| Total comprehensive income | 0 | 0 0 |
0 | 3,203 | 172 | 256 | -53 | -31 | 3,547 | 321 | 3,868 | |
| Transactions with shareholders | ||||||||||||
| Share-based payment, expensed | 4 4 |
3 | 4 7 |
1 | 4 8 |
|||||||
| Share-based payment, tax effect | 1 | 3 | 3 | 0 | 3 | |||||||
| Share-based payment, release | 0 | 0 | 0 | 0 | 0 | |||||||
| Return of borrowed treasury shares | 0 -5 |
1 6 |
1 2 |
0 | 1 2 |
|||||||
| Change in non-controlling interests | -239 | -239 | -516 | -755 | ||||||||
| Divestment of non-controlling interests | 0 | -1,737 | -1,737 | |||||||||
| Acquisition of interests with settlement in treasury shares | 0 | 4 | 113 | 117 | 130 | 247 | ||||||
| Treasury shares in subsidiaries | 0 | -319 | -319 | 319 | 0 | |||||||
| Share capital reduction | -3 | 3 | 0 | 0 | 0 | |||||||
| Dividend | -2,629 | -2,629 | -137 | -2,766 | ||||||||
| Reclassifications and other changes | 0 2 |
0 | 4 | 6 | -2 | 4 | ||||||
| Total transactions with shareholders | -3 | 3 -2 |
4 9 |
-3,048 | 0 | 0 | 0 | 0 | -3,002 | -1,942 | -4,944 | |
| At 31 December 2023 | 3 3 |
0 12,180 |
392 | 6,554 | 349 | 467 | -88 | 1 4 |
19,901 | 3,178 | 23,079 |
| 2022 | Share capital | Treasury shares |
Share premium Other paid-in | equity | Other equity | Foreign currency translation differences |
Cash flow hedges |
Hedge of net investments |
Cost of hedging reserve |
Attributable to shareholders of the parent |
Non-controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of 1 January 2022 | 2 9 |
0 3,102 |
295 | 9,658 | 9 3 |
5 8 |
6 | -10 | 13,230 | 2,253 | 15,483 | |
| Profit for the year | 3,312 | 3,312 | 403 | 3,715 | ||||||||
| Other comprehensive income | ||||||||||||
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods: | ||||||||||||
| Translation differences in associates and joint ventures | 2 1 |
2 1 |
2 1 |
|||||||||
| Translation differences in group companies | 6 3 |
6 3 |
6 1 |
124 | ||||||||
| Change in fair value of financial instruments, net after tax | 143 | -41 | 5 4 |
156 | 1 3 |
169 | ||||||
| Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||
| Remeasurement gain on defined benefit plans, net after tax | 3 | 3 | 3 | |||||||||
| Other comprehensive income | 0 | 0 0 |
0 | 3 | 8 4 |
143 | -41 | 5 4 |
243 | 7 4 |
317 | |
| Total comprehensive income | 0 | 0 0 |
0 | 3,315 | 8 4 |
143 | -41 | 5 4 |
3,555 | 477 | 4,033 | |
| Transactions with shareholders | ||||||||||||
| Share-based payment, expensed | 5 2 |
2 | 5 3 |
1 | 5 4 |
|||||||
| Share-based payment, tax effect | -3 | -3 | -3 | |||||||||
| Share-based payment, release | 0 | 0 | 0 | 0 | ||||||||
| Borrowed treasury shares | 0 -12 |
-12 | 0 | -12 | ||||||||
| Issue of share capital | 7 | 9,092 | 9,099 | 0 | 9,099 | |||||||
| Contribution of equity | 7 | 7 | 4 | 1 1 |
||||||||
| Transaction costs related to equity in group companies | 0 | 0 | 0 | 0 | ||||||||
| Dividend | -2,354 | -2,354 | -51 | -2,405 | ||||||||
| Acquisition of non-controlling interests | 0 | 6,268 | 6,268 | |||||||||
| Treasury shares in subsidiaries | -3 | -4,191 | -4,194 | -319 | -4,513 | |||||||
| Change in non-controlling interests | -40 | -40 | -3,833 | -3,873 | ||||||||
| Reclassifications and other changes | 0 | 0 | 4 | 1 0 |
1 4 |
-1 | 1 3 |
|||||
| Total transactions with shareholders | 7 | -3 9,080 |
4 9 |
-6,572 | 0 | 1 0 |
0 | 0 | 2,570 | 2,069 | 4,639 | |
| At 31 December 2022 | 3 6 |
-3 12,182 |
344 | 6,400 | 177 | 211 | -35 | 4 4 |
19,356 | 4,799 | 24,155 |
| NOK million | Farming Central Norway |
Farming Northern |
Sales and Industry |
Icelandic Salmon |
SalMar Aker Ocean |
Eliminations | Group |
|---|---|---|---|---|---|---|---|
| Q4 2023 | |||||||
| Total operating revenues (NOK mill.) | 3,424 | 2,436 | 7,617 | 605 | 173 | -6,235 | 8,019 |
| Operational EBIT (NOK mill.) | 1,178 | 840 | 166 | 2 6 |
1 1 |
-63 | 2,158 |
| Operational EBIT % | 34 % | 34 % | 2 % | 4 % | 6 % | 27 % | |
| Volume harvested (tonnes) | 42.3 | 31.4 | 7.2 | 2.3 | 83.1 | ||
| EBIT/ kg gw (NOK) | 27.9 | 26.8 | 3.6 | 4.8 | 26.0 | ||
| Q4 2022 | |||||||
| Total operating revenues (NOK mill.) | 2,298 | 1,757 | 6,015 | 539 | 3 2 |
-4,236 | 6,406 |
| Operational EBIT (NOK mill.) | 484 | 777 | -100 | 9 8 |
-48 | -205 | 1,006 |
| Operational EBIT % | 21 % | 44 % | -2 % | 18 % | 16 % | ||
| Volume harvested (tonnes) | 32.6 | 24.1 | 6.0 | 62.7 | |||
| EBIT/ kg gw (NOK) | 14.8 | 32.3 | 16.4 | 16.1 | |||
| FY 2023 | |||||||
| Total operating revenues (NOK mill.) | 12,419 | 7,894 | 27,094 | 1,871 | 173 | -21,233 | 28,219 |
| Operational EBIT (NOK mill.) | 4,612 | 3,402 | 254 | 230 | -53 | -358 | 8,088 |
| Operational EBIT % | 37 % | 43 % | 1 % | 12 % | -30 % | 29 % | |
| Volume harvested (tonnes) | 141.1 | 92.8 | 17.9 | 2.3 | 254.1 | ||
| EBIT/ kg gw (NOK) | 32.7 | 36.7 | 12.8 | -23.2 | 31.8 | ||
| FY 2022 | |||||||
| Operating revenue (NOK mill.) | 8,872 | 4,883 | 19,141 | 1,595 | 3 2 |
-14,366 | 20,158 |
| Operational EBIT (NOK mill.) | 3,599 | 2,526 | -1,286 | 366 | -155 | -585 | 4,465 |
| Operational EBIT % | 41 % | 52 % | -7 % | 23 % | 22 % | ||
| Harvested volume (1,000 tgw) | 114.1 | 63.4 | 16.1 | 193.7 | |||
| EBIT/ kg gw (NOK) | 31.5 | 39.8 | 22.7 | 23.1 |
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| No. of shares (diluted) - end of period (mill.) | 131.66 | 126.14 | 131.63 | 119.98 |
| Earnings per share (NOK) | 10.0 | - 1.3 |
24.4 | 27.6 |
| Earnings per share - diluted (NOK) | 10.0 | - 1.3 |
24.3 | 27.6 |
| Adjusted earnings per share (NOK) | 13.8 | 4.5 | 33.5 | 25.3 |
| EBITDA % | 32 % | 21 % | 34 % | 27 % |
| Operational EBIT % | 27 % | 16 % | 29 % | 22 % |
| EBIT % | 16 % | 1 % | 30 % | 24 % |
| Profit before tax % | 12 % | -3 % | 26 % | 23 % |
| Cash flow per share - diluted (NOK) | 17.4 | 1.6 | 68.2 | 35.2 |
| Net interest bearing debt (NOK mill.) | 13,107 | 19,079 | 13,107 | 19,079 |
| NIBD incl. leasing liabilities (NOK mill.) | 14,952 | 20,505 | 14,952 | 20,505 |
| Equity ratio % | 43.3 % | 38.6 % | 43.3 % | 38.6 % |
Earnings per share = Earnings after tax / average number of shares
Earnings per share - diluted = Earnings after tax / average number of shares - diluted
Adjusted earnings per share - see note for definition
Earnings before tax % = Earnings before tax / operating revenue
Cash flow per share - diluted = Cash flow from operating activities / average no. of shares - diluted Equity ratio = Equity / total assets
This report has been prepared in accordance with International Financial Reporting Standards (IFRS), including the standard for interim reporting (IAS 34). The report does not include all information required in a complete annual report and should therefore be read in conjunction with the Group's recent annual report. Please refer to the Group's latest IFRS year-end financial statements, which are published on the Group's website, www.salmar.no, for a complete description of the accounting policies.
| Group's website, www.salmar.no, for a complete description of the accounting policies. | ||
|---|---|---|
| This interim report has not been subject to external audit. | ||
| Note 2 - The company's 20 largest shareholders | ||
| Shareholder | Shares | % |
| KVERVA INDUSTRIER AS | 59,934,476 | 45.39 % |
| FOLKETRYGDFONDET | 5,787,976 | 4.38 % |
| State Street Bank and Trust Comp | 2,076,996 | 1.57 % |
| TERBOLI INVEST AS | 1,425,394 | 1.08 % |
| LIN AS | 1,337,685 | 1.01 % |
| JPMorgan Chase Bank, N.A., London | 1,335,830 | 1.01 % |
| HASPRO AS | 1,330,830 | 1.01 % |
| FRØY KAPITAL AS | 1,093,815 | 0.83 % |
| CACEIS Bank | 1,087,941 | 0.82 % |
| State Street Bank and Trust Comp | 1,087,715 | 0.82 % |
| VERDIPAPIRFONDET ALFRED BERG GAMBA | 1,055,226 | 0.80 % |
| NILS WILLIKSEN AS | 1,018,473 | 0.77 % |
| CACEIS Bank | 923,297 | 0.70 % |
| PARETO AKSJE NORGE VERDIPAPIRFOND | 916,400 | 0.69 % |
| JPMorgan Chase Bank, N.A., London | 910,109 | 0.69 % |
| CLEARSTREAM BANKING S.A. | 861,574 | 0.65 % |
| JPMorgan Chase Bank, N.A., London | 844,806 | 0.64 % |
| Bank Pictet & Cie (Europe) AG | 815,145 | 0.62 % |
| ANDVARI AS | 810,468 | 0.61 % |
| State Street Bank and Trust Comp | 798,063 | 0.60 % |
| Top 20 | 85,452,219 | 64.72 % |
| Others | 46,586,701 | 35.28 % |
| Total | 132,038,920 | 100.00 % |
As at 31 December 2023 SalMar ASA owned 278,854 treasury shares.
| Carrying amount of inventory | 31.12.2023 | 30.09.2023 | 31.12.2022 | 30.09.2022 |
|---|---|---|---|---|
| Raw materials | 434 | 462 | 427 | 292 |
| Biological assets | 13,265 | 14,383 | 11,755 | 9,132 |
| Finished goods | 796 | 656 | 503 | 325 |
| Total value of biological assets and other inventory | 14,494 | 15,501 | 12,685 | 9,749 |
| Carrying amount of biological assets | 31.12.2023 | 30.09.2023 | 31.12.2022 | 30.09.2022 |
| Roe, fry, smolt and cleaner fish at cost | 616 | 576 | 551 | 373 |
| Biological assets held at sea farms at cost | 7,888 | 8,454 | 7,295 | 4,979 |
| Total carrying amount of biological assets before fair value adjustments | 8,504 | 9,030 | 7,847 | 5,352 |
| Fair value adjustment of biological assets | 4,761 | 5,354 | 3,908 | 3,781 |
Raw materials is mainly comprised of feed for smolt and fish at sea farms. In addition, raw materials are used in connection with processing and packaging. Stocks of biological assets relate to SalMars fish farming operations on land and at sea, and comprise roe, fry, smolt, cleaner fish and fish at sea farms. Finished goods comprise whole fish (fresh and frozen), as well as processed salmon products.
| Change in the carrying amount of the biological assets: | Q4 2023 | Q4 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Biological assets - opening balance | 14,383 | 9,132 | 11,755 | 7,281 |
| Increase from business combination | 0 | 3,254 | 0 | 3,254 |
| Increase due to production | 3,682 | 3,173 | 13,863 | 8,648 |
| Decrease due to sale/ harvesting | -4,034 | -2,798 | -13,007 | -7,576 |
| Decrease due to incident-based mortality | -174 | -42 | -251 | -62 |
| Decrease due to sale of group companies | 0 | 0 | -9 | 0 |
| Fair value adjustment on opening balance (reversed) | -5,354 | -3,781 | -3,908 | -2,646 |
| Fair value adjustment from business combination due to fish not sold on opening balance | 202 | 0 | 813 | 0 |
| Fair value adjustment from business combination due to fish not sold on closing balance | -90 | -813 | -90 | -813 |
| Fair value adjustment from business combination included in cost of goods sold in the period | -111 | -283 | -723 | -283 |
| Fair value adjustment on closing balance (new) | 4,761 | 3,908 | 4,761 | 3,908 |
| Currency translation differences | 2 | 4 | 60 | 44 |
| Biological assets - closing balance | 13,265 | 11,755 | 13,265 | 11,755 |
The accounting for live fish is regulated by IAS 41 Agriculture and biological assets are recognised at fair value in accordance with IFRS 13.
The company's stocks of live fish held at sea farms are, in accordance with IAS 41, recognised at fair value. Present value is calculated on the basis of estimated revenues less production costs remaining until the fish is harvestable at the individual site. A fish is harvestable when it has reached the estimated weight required for harvesting specified in the company's budgets and plans. The estimated value is discounted to present value on the reporting date.
Estimated future revenues are calculated on the basis of Fish Pool forward prices on the balance sheet date. A quarterly price average is calculated, since the fish are harvested over several periods. Forward prices are adjusted for export supplements, shipping, sales and harvesting costs. An adjustment is also made for expected variations in fish quality. In the absence of price quotations on Fishpool, forward prices for 2025 have been calculated on the basis of price expectations obtained from industry analysts.
The monthly discount factor reflects the time value of money, the risk in biological production and a hypothetical licence fees and site rental cost. The discount factor is based on expectations on profitability in the industry which impact the hypothetical license fee and can vary in different areas.
Roe, fry, smolt and cleaner fish are recognised at historic cost. Historic cost is deemed to be the best estimate of fair value for these assets, due to little biological conversion.
| Expected harvesting |
Expected harvesting |
Expected harvesting |
||||||
|---|---|---|---|---|---|---|---|---|
| Expected harvesting period: | 31.12.2023 | period: | 30.09.2023 | period: | 31.12.2022 | period: | 30.09.2022 | |
| Q1-2024 | 107.95 | Q4-2023 | 79.60 | Q1-2023 | 91.75 | Q4-2022 | 76.60 | |
| Q2-2024 | 113.45 | Q1-2024 | 104.80 | Q2-2023 | 95.55 | Q1-2023 | 87.90 | |
| Q3-2024 | 83.70 | Q2-2024 | 108.10 | Q3-2023 | 76.48 | Q2-2023 | 94.02 | |
| Q4-2024 | 86.12 | Q3-2024 | 80.83 | Q4-2023 | 78.22 | Q3-2023 | 78.30 | |
| 1st half 2025 | 101.11 | Q4-2024 | 82.27 | 1st half 2024 | 85.91 | Q4-2023 | 79.80 | |
| 2nd half 2025 | 74.60 | Q1-2025 | 98.00 | 2nd half 2024 | 75.00 | Q1-2024 | 80.25 | |
| Discount factor Norway | 6.5 % | 7.0 % | 6.0 % | 6.0 % | ||||
| Discount factor Iceland | 5.0 % | 5.0 % | 5.0 % | 5.0 % |
Fair value adjustments are part of the Group's operating profit. Changes in fair value are presented on a separate line to provide a better understanding of the Group's profit and loss with respect to goods sold. The line Fair Value Adjustments comprises:
| Q4 2023 | Q4 2022 | FY2023 | FY 2022 | |
|---|---|---|---|---|
| Change in the fair value of the biological assets | -481 | -684 | 1,571 | 446 |
| Change in fair value adjustment due to business combination - included in cost of goods sold | -111 | -283 | -723 | -283 |
| Change in unrealised value of Fish Pool contracts | 15 | 15 | 19 | 70 |
| Total fair value adjustments | -578 | -952 | 867 | 232 |
With the exception of a business combination in Frøy ASA, there have not been any acquisition in the group in 2023. Please see note 7, Discontinued operations for more information about Frøy.
On 17 March 2022, SalMar made a voluntary tender offer to acquire all outstanding shares in NTS. The acceptance period for the offer was from 18 March to 29 April 2022. The voluntary offer was conditional on amongst other things approval by the competition authorities in both Norway and the EU. At the end of the acceptance period, 52.69 per cent of NTSs shareholders, corresponding to 66,235,009 shares and votes in NTS, had accepted the offer.
The rationale behind the acquisition was to increase value creation in the regions where the companies operate and enable the realization of synergies between the companies. The companies had several overlapping industrial activities in all the areas where they operate, and the transactions contribute to a more efficient utilization of their resources. This will enable improved utilization of Maximum Allowable Biomass (MAB) and site portfolios, improved utilization of smolt, harvesting, and processing facilities.
In parallel with the voluntary offer, a merger plan between SalMar and Norway Royal Salmon (NRS) with SalMar as the acquiring entity was entered into. The merger plan was approved by both companies' general meetings on 30 June 2022. The merger was, among other things, conditional on that all conditions for the completion of the offer for had been met or waived.
The transactions were approved by the Norwegian Competition Authority on 15 July 2022. The European Commission granted its final approval on 31 October 2022.
In connection with the clearance by the European Commission, SalMar undertook a commitment to divest the shares in Arctic Fish Holding AS, assumed by SalMar at the time of completion of the merger. SalMar undertook, with some exceptions, not to exercise any influence or control over Arctic Fish in the period from completion of the merger until a disposal was completed. The shares represented approximately 51.28 per cent of the shares and votes in Arctic Fish. The sales transaction of the shares was completed on 29 December 2022, with at total contribution net of cost amounted to NOK 1 860 million.
The merger with NRS was completed on 7 November 2022. The shareholders of NRS received a merger consideration consisting of a cash consideration of NOK 3 104 million, and a total share consideration of NOK 5 884 million. The share consideration consisting of 17,851,550 shares valued at a share price of NOK 329,60 which represents the share price at the time of completion of the merger.
In accordance with the merger plan, NRS completed immediately prior to the merger the agreed acquisition of SalmoNor from NTS, with settlement in cash and NRS shares. Total cash consideration in the transaction was NOK 1 713 million.
Of the total consideration under the merger NOK 2 380 million of the merger cash consideration was paid to NTS, in addition NTS received 13,691,960 of the total 17,851,550 consideration shares. Further, the cash consideration of NOK 1 713 million was paid from NRS to NTS in connection with the acquisition of 100 per cent of the shares in SalmoNor. The total cash consideration to NTS is as such NOK 4 093 million. In addition, NTS will own 13,697,303 SalMar shares. The SalMar shares owned by NTS were valuated to NOK 4 513 million at the time of the merger. The shares are treated as treasury shares in the SalMar group, where NOK 2 378 million reduces the equity attributable to shareholders in SalMar, and NOK 2 135 reduces the non-controlling interest at the date of acquisition.
The voluntary offer was completed 10 November 2022. The total cash consideration payable in the transaction was NOK 1 807 million, and total share consideration amounts to NOK 3 215 million. The share consideration consisted of total of 9,487,371 new SalMar shares valuated at a share price of NOK 338,87 which represent volume-weighted average price the last 3 trading days before 31 October 2022.
After completion of the voluntary offer transaction, SalMar owned 66,235,009 shares in NTS, corresponding to a shareholding of 52.69 per cent. SalMar owned no shares in the company prior to the transaction. After completion of the merger and the offer, NTS owns 13,691,960 shares in SalMar, equivalent to a shareholding of approximately 9.4 per cent. Following completion of the merger and settlement of the offer, SalMar had registered share capital of NOK 36,284,730 divided into 145,138,920 shares each with a par value NOK 0.25.
From the time of completion of the offer, SalMar achieved control over NTS. Upon completion of the offer, NRS was merged into SalMar and SalMar assumed all assets, rights and obligations in NRS. For accounting purposes, the transactions has been treated as a business combination and the companies are consolidated into the SalMar group with effect from 1 November 2022. Shares in SalMar owned by NTS are, as mentioned above, treated as treasury shares in the SalMar Group. The Group elected to measure the non-controlling interests in the acquiree at fair value. Acquisition-related costs of NOK 82,2 million are recognised as other operating expenses in the income statement in 2022.
The starting point for the transactions was the voluntary offer made for all outstanding shares in NTS on 17 March 2022, as well as the subsequent decision to merge SalMar and NRS. The merger was conditional on the offer being completed and this was the starting point for valuation assessments of assets and liabilities resolutions associated with the offer and the merger. For technical reasons, the transactions was completed sequentially with some days in between. For accounting purposes, the total consideration for the offer and the merger was the basis for the purchase price allocation. The fair values of the identifiable assets and liabilities of NTS Group and NRS Group as at the date of acquisition and merger was as follows. No changes has been made in the purchase price allocation in
| Acquisition's effect on the balance sheet: | Fair value recognised on acquisition | ||
|---|---|---|---|
| Assets | |||
| Licenses | 7,266 | ||
| Property, plant & equipment | 12,485 | ||
| Right-of-use assets | 1,059 | ||
| Biological assets and other inventory | 3,489 | ||
| Investment in associates | 1,146 | ||
| Investment in SalMar shares (treasury shares) | 4,513 | ||
| Other financial investments | 2,026 | ||
| Trade receivables and other current receivables | 824 | ||
| Cash and cash equivalents | 3,297 | ||
| Total identifiable assets at fair value | 36,104 | ||
| Liabilities | |||
| Deferred tax liabilities | 2,210 | ||
| Interest-bearing liabilities | 14,199 | ||
| Trade payables | 1,086 | ||
| Other current liabilities | 417 | ||
| Total identifiable liabilities at fair value | 17,912 | ||
| Total identifiable net assets at fair value | 18,193 | ||
| Non-controlling interest measured at fair value | -6,268 | ||
| Goodwill | 2,085 | ||
| Total consideration | 14,010 | ||
| Purchase consideration | Acquisition NTS | Merger NRS | Total |
| Shares issued | 3,215 | 5,884 | 9,099 |
The goodwill of NOK 2 085 million comprises both of the value of expected synergies arising from the acquisition which is not separately recognised with NOK 1 296 million, and technical goodwill of NOK 789 million recognised due to deferred tax on the excess value identified for licenses computed with statutory tax rate in Norway of 22%. Goodwill is allocated to the segments Farming Central Norway and Farming Northern Norway. Goodwill is not deductible for income tax purposes.
Cash consideration 1,807 3,104 4,911 Total consideration 5,022 8,987 14,010
Eldisstødin Isthor Ehf (Isthor)
With effect from 17 August 2022, the Group acquired 50% of the shares in the smolt facility Isthor on Iceland. The transaction was approved by the Icelandic Competition Authorities. Prior to the transaction SalMar Group owned 50% of the shares in Isthor through SalMars 51,02% ownership in Icelandic Salmon AS. Icelandic Salmon AS owns 100% of the shares in Arnarlax Ehf, which owns the shares in Isthor.
The Groups holdings prior to the acquisition date, was remeasured at fair value at time control was obtained. The fair value of the equity interest was NOK 107,2 million, and a gain of NOK 90,8 million was recognised as other financial items in the profit or loss in 2022.
After the transaction the Group owns 100% of the shares in Isthor. The purpose of the transaction was to increase the flexibility in size of smolt and increased number of smolt supporting the company's growth plans. For accounting purposes, the transaction are treated as a business combination with effect from the acquisition date. No material external transaction costs were incurred in the connection with the acquisition.
As part of the acquisition agreement, the Group repaid to the former owners a liability amounting to NOK 43,4 million.
The fair values of the identifiable assets and liabilities of Isthor as at the date of acquisition was as follows:
Acquisition's effect on the balance sheet : Property, plant & equipment 197 Current assets 1 Deferred tax -12 Non-current liabilities -49 Other current liabilities -14 Net identifiable assets and liabilities 122 Goodwill 156 Fair value of intercompany long-term liability -64 Fair value of the investment at the time of acquisition -107 Cash consideration 107 Fair value recognised on acquisition
With effect from 28 December 2023, the Group acquired 49 per cent of the shares in Øylaks MTB AS. Through shareholder agreements, SalMar has established control and the company is consolidated into the SalMar Group from the time of acquisition. Øylaks MTB AS owns one license for the production of Atlantic salmon. The license is operated by SalMar and the activity carried out in the company is not considered to constitute a business. The total consideration for the 49 per cent interest was NOK 125.3 million, consisting of 209 402 consideration shares valued at NOK 116.9 million and NOK 8.4 million to be paid in cash. The fair value of the salmon license allocated at the date for purchase are NOK 255.7 million. The non-controlling interest are assessed at fair value with a total amount of NOK 130.4 million and for accounting purposes recognised directly to equity.
With effect from 29 November 2023, the 100 per cent owned company Arctic Offshore Farming AS was sold from SalMar ASA to the 85 per cent owned subsidiary SalMar Aker Ocean AS. The transaction was part of the group's internal reorganization to consolidate the group's offshore investment under SalMar Aker Ocean. Apart from reallocation in equity where non-controlling ownership interests increases by NOK 206.2 million, the transaction has no accounting consequences for SalMar Group. The increase is recognised in the equity as a change in non-controlling interests, and where the equity attributable to shareholders of the parent are reduced accordingly.
On 11 November 2023 SalMar ASA has acquired a total for 450 000 shares in Icelandic Salmon AS priced at NOK 187 per share. Through the transaction SalMar increased its shareholding in the company from 51.02 per cent to 52.48 per cent. For accounting purposes, the transaction has been recognised as a change in non-controlling interests, with the NOK 84.15 million effect recognised directly to equity.
Following the completion of the mandatory offer for to acquire all shares in NTS in December 2022, SalMar owned 92,93 per cent of the shares in the company. On 3 January 2023 SalMar publicly announced that they resolved to carry out a compulsory acquisition of all remaining shares in the company not owned by SalMar and with effect from 3 January 2023, SalMar became 100 per cent owner of all shares in NTS. The total consideration for the remaining shares was NOK 674.3 millions. For accounting purposes, the effect of the transaction is recognised directly to equity in the period as change in non-controlling interest. As a consequence of the transaction the non-controlling interest related to treasury shares owned by NTS amounting to NOK 319.2 millions has reduced the equity attributable to shareholders in SalMar accordingly.
Certain former minority shareholders that were subject to the compulsory acquisition have made a formal complaint and initiated legal proceedings about the redemption sum.
On 14 August 2023 the sale of SalMars entire ownership stake in Frøy, representing approximately 72,11 per cent of the shares in Frøy AS, was completed. As a consequence of the transaction, the noncontrolling interest in Frøy AS, amounting to NOK 1 737, 2 million, was derecognised at the time of the transaction. For accounting purposes, the effect of the transaction is recognised directly to the equity in the period. For further information, see note 7.
On 22 November 2022 SalMar announced that the settlement of the voluntary offer, where SalMar became a 52,69 per cent owner of NTS, triggered an obligation to make a mandatory offer for all the remaining shares in NTS. With effect from 29 December 2022, the mandatory offer was completed. SalMar acquired additional 40,24 per cent of the shares, and after completion of the offer SalMar owned 92,93 per cent of the shares in NTS. The total consideration for the remaining shares was NOK 3 836 millions. For accounting purposes, the effect of the transaction was recognised directly to equity. As a consequence of the transactions, the non-controlling interest related to treasury shares owned by NTS was reduced by NOK 1 816 millions and the equity attributable to shareholders in SalMar was reduced accordingly.
With effect from 19 April 2022, SalMar Group acquired 49% of the shares in Mariculture AS. Mariculture AS is a subsidiary of SalMar Aker Ocean AS, which is owned 85.0 per cent of SalMar Group. After the transaction SalMar Aker Ocean AS owns 100.0 per cent of the shares in Mariculture AS. For accounting purposes, the effect of the transaction is recognised directly to equity in the period.
Through the acquisition of NTS in 2022, Frøy AS became a subsidiary of the SalMar group. SalMar owned 100 per cent of the shares in NTS, which owned 72,11 per cent of the shares in Frøy AS. On 13 January 2023, SalMar announced that, based on incoming interest regarding Frøy AS, the group decided to explore strategic alternatives with the aim of maximizing value for its shareholders.
On 14 August 2023, it was announced that a transaction between NTS AS, Falcon Bidco AS, a company indirectly wholly owned by infrastructure funds managed by Goldman Sachs Asset Management, and Frøy AS was completed. Falcon Bidco AS acquired NTS' entire ownership stake in Frøy, and a cash consideration of NOK 76,50 per share was paid in the transaction, with proceeds from the sale amounting to NOK 4,764 million.
Following the decision made by the SalMar board in December 2022 to explore the strategic alternatives, Frøy AS was classified as a disposal group held for sale and as a discontinued operation from the completion of the voluntary offer of all outstanding shares in NTS AS with effect from 1 November 2022, until the completion of the transaction 14 August 2023.
Closing of the transaction where Frøy AS acquired 100% of the shares of Marinus Aquaservice AS took place beginning of April and Marinus is included in Frøy AS's consolidated accounts from 01.04.2023.
| 01.07.2023- | YTD per | 01.11.2022- | |
|---|---|---|---|
| 14.08.2023 | 14.08.2023 | 31.12.2022 | |
| Total operating revenues | 190 | 1,228 | 379 |
| Cost of goods sold | 44 | 252 | 86 |
| Salary and personnel expenses | 60 | 402 | 111 |
| Other operating expenses | 40 | 234 | 71 |
| EBITDA | 46 | 339 | 111 |
| Operating profit | 46 | 339 | 111 |
| Income from investments in associates and joint ventures | 0 | 7 | 1 |
| Net interest expenses | -36 | -86 | -15 |
| Other financial items | 14 | 59 | -6 |
| Profit from discontinued operation before tax | 24 | 319 | 91 |
| Income tax expense from the ordinary activities for the period and corrections in income tax for previous year | 2 | 28 | -16 |
| Profit for the period from discontinued operations | 22 | 291 | 107 |
| Profit for the period from discontinued operations, gain from sale*) | 365 | 365 | 0 |
| Total profit from discontinued operations | 387 | 657 | 107 |
| Other comprehensive income: | |||
| Items that may be reclassified to profit or loss in subsequent periods: | |||
| Change in fair value of financial instruments, net after tax | -7 | 0 | -5 |
| Total comprehensive income from discontinued operations | 380 | 657 | 102 |
| Profit for the period from discontinued operations attributable to equity holders of Salmar ASA | 381 | 575 | 77 |
| Earnings per share | |||
| Diluted profit for the period from discontinued operations | 2.89 | 4.37 | 0.61 |
| Profit for the period from discontinued operations | 2.90 | 4.38 | 0.61 |
| *) Gain from sale of discontinued operations was increased by NOK 2 millions in the fourth quarter 2023 due to reduced transaction cost. | |||
| The major classes of assets and liabilities of Frøy AS as held for sale are as follows: | |||
| ASSETS | 30.06.2023 | 31.12.2022 | |
| Non-current tangible assets | 10,698 | 10,201 | |
| Right-of-use assets | 514 | 489 | |
| Non-current financial assets | 140 | 120 | |
| Total non-current assets | 11,352 | 10,811 | |
| Inventory | 13 | 15 | |
| Trade receivables | 240 | 257 | |
| Other current receivables | 64 | 71 | |
| Cash and cash equivalents | 380 | 319 | |
| Total current assets | 697 | 661 | |
| TOTAL ASSETS | 12,049 | 11,472 | |
| LIABILITIES | |||
| Deferred tax liability | 948 | 919 | |
| Non-current interest-bearing liabilities | 3,809 | 3,608 | |
| Non-current lease liabilities | 326 | 314 | |
| Total non-current liabilities | 5,083 | 4,842 | |
| Current interest-bearing liabilities | 532 | 515 | |
| Current lease liabilities | 105 | 91 | |
| Other current liabilities | 251 | 165 | |
| Total current liabilities | 888 | 771 | |
| TOTAL LIABILITIES | 5,971 | 5,612 |
The cash consideration from the sale of Frøy AS amounted to NOK 4,764 million. Cash in Frøy at the time of the transaction amounted to NOK 364 million. Total proceeds from the sale of Frøy AS net of cash amounted to NOK 4,400 million.
Note 8 - Financial assets – investments where the equity method is applied
| Hellesund | Wilsgård | ||||||
|---|---|---|---|---|---|---|---|
| Norskott Havbruk | Fiskeoppdrett | Fiskeoppdrett | Others | Total | |||
| Carrying amount at 1 January 2023 | 1,153 | 433 | 572 | 213 | 2,372 | ||
| Income from associates and joint ventures | -168 | 40 | 80 | 20 | -27 | ||
| Items recognised in other comprehensive income | 91 | 0 | 0 | 2 | 93 | ||
| Dividend | 0 | -10 | 0 | -8 | -18 | ||
| Other changes in associates | 0 | 0 | -1 | -0 | -1 | ||
| Carrying amount at 31 December 2023 | 1,076 | 464 | 651 | 227 | 2,418 | ||
| Note 9 - Interest-bearing liabilities | |||||||
| Non-current interest-bearing liabilities: | 31.12.2023 | 30.09.2023 | 31.12.2022 | 30.09.2022 | |||
| Non-current interest bearing liabilities | 12,669 | 14,693 | 21,297 | 5,885 | |||
| Next year's instalment on non-current interest bearing liabilities | -458 | -985 | -2,947 | -163 | |||
| Total | 12,211 | 13,707 | 18,350 | 5,721 | |||
| Lease liabilities | 1,845 | 1,479 | 1,425 | 957 | |||
| Next year's instalment on lease liabilities | -344 | -272 | -273 | -242 | |||
| Total | 1,502 | 1,207 | 1,152 | 715 | |||
| Total carrying amount | 13,713 | 14,914 | 19,502 | 6,436 | |||
| Current interest bearing liabilities: | |||||||
| Debts to credit institutions | 1,223 | 302 | 495 | 368 | |||
| Next year's instalment on debts to credit institutions | 458 | 985 | 2,947 | 163 | |||
| Current interest bearing liabilities ex. lease liabilities | 1,681 | 1,287 | 3,442 | 532 | |||
| Next year's instalment on lease liabilities | 344 | 272 | 273 | 242 | |||
| Total carrying amount | 2,024 | 1,559 | 3,715 | 774 | |||
| Total interest-bearing liabilities | 15,737 | 16,473 | 23,217 | 7,210 | |||
| Cash and cash equivalents | 785 | 751 | 2,713 | 787 | |||
| Lease liabilities | 1,845 | 1,479 | 1,425 | 957 | |||
| Net interest-bearing debts (NIBD) | 13,107 | 14,243 | 19,079 | 5,466 | |||
| Breakdown of net interest-bearing liabilities by currency (all figures are in NOK): | NOK | EUR | JPY | USD | GBP | Other | Total |
| Non-current debts | 12,054 | 615 | 0 | 0 | 0 | 0 | 12,669 |
| Lease liabilities | 1,804 | 0 | 0 | 0 | 0 | 41 | 1,845 |
| Current debts to credit institutions | 1,045 | 47 | 37 | 60 | 13 | 21 | 1,223 |
| Total interest-bearing liabilities | 14,903 | 663 | 37 | 60 | 13 | 62 | 15,737 |
| Cash and cash equivalents | 589 | 59 | 76 | 39 | 18 | 5 | 785 |
| Lease liabilities | 1,804 | 0 | 0 | 0 | 0 | 41 | 1,845 |
| Net interest-bearing debts (NIBD) | 12,510 | 604 | -39 | 21 | -5 | 16 | 13,107 |
| Financing activities - change in liabilities: | Not cash-generating effects | ||||||
| Change in next | |||||||
| year's | |||||||
| Cash flow from | instalments on |
| Cash flow from financing |
year's instalments on long-term |
|||||
|---|---|---|---|---|---|---|
| 31.12.2022 | activities Currency effects | liabilities | Other effects | 31.12.2023 | ||
| Non-current debts | 18,350 | -8,660 | 40 | 2,489 | -8 | 12,211 |
| Current debts to credit institutions | 3,442 | 714 | 3 | -2,489 | 11 | 1,681 |
| Total debts to credit institutions | 21,792 | -7,947 | 43 | 0 | 4 | 13,892 |
| Non-current and current lease liabilities | 1,425 | -321 | 3 | 0 | 739 | 1,845 |
| Total interest-bearing liabilities | 23,218 | -8,268 | 45 | 0 | 742 | 15,737 |
In August, SalMar entered into a new senior unsecured credit facility agreement, totalling NOK 16 billion, with the intention of making it sustainability linked. The agreement comprises a 3+1+1 year term loan with a total of NOK 6 billion, a 5+1+1 year rolling credit facility of NOK 10 billion, and a NOK 3 billion in accordion option. The agreement features improved terms compared to previous facilities and includes covenants of an equity ratio above 30 per cent and interest cover exceeding 3.0.
During November, Arnarlax Ehf, the groups subsidiary in Iceland completed a refinancing process totalling facilities of 95 MEUR. The facilities consist of a term loan of 30 MEUR, a revolving facility of 65 MEUR and an additional overdraft facility of 5 MEUR. The current facility agreement is valid until November 2026 with a possibility of two years extension. Per 31.12.2023 there were no drawdown on the overdraft facility. The covenants require an equity ratio above 35 per cent and profit requirement that requires that the Company's 12-month rolling interest coverage ratio must not be lower than 4.0:1. In addition, the Company's NIBD / 12-month rolling EBITDA should not exceed 6.0:1 each relevant period expiring on or prior to 31 December 2024 and not exceed 4.0:1 each relevant period expiring thereafter.
In November, the subgroup SalMar Aker Ocean entered into a new credit facility agreement, comprising of a term loan of NOK 200 million and an annually renewable overdraft facility of NOK 250 million. The term loan is a bullet loan with termination date 27 November 2026. Per 31.12.2023 there were no drawdown on the overdraft facility. The covenants are based on standard ratios and has financial requirements of an equity ratio above 40 per cent.
The financing schemes of Arnarlax Ehf and SalMar Aker Ocean are independent from SalMar ASA. Both SalMar ASA, Arnarlax Ehf and SalMar Aker Ocean were in compliance with all the above-mentioned covenants as of 31 December 2023.
| Note 10 - Interest and other financial items | ||||
|---|---|---|---|---|
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
| Gain related to remeasured shares in associated companies | 0 | 0 | 0 | 91 |
| Gain on disposal of other shares | 0 | 0 | 20 | 0 |
| Interest income | 16 | 15 | 51 | 28 |
| Interest expenses, ex. interest on lease liabilities | -269 | -167 | -1,121 | -300 |
| Interest expenses relating to lease liabilities | -32 | -20 | -102 | -65 |
| Net exchange differences | -24 | 9 | -17 | 0 |
| Net other financial items | -27 | 6 | -33 | 2 |
| Net interest and other financial items | -336 | -156 | -1,203 | -243 |
On 31 May 2023, the Norwegian Parliament approved an additional resource rent tax on aquaculture in Norway with a tax rate of 25%. The resource rent tax is in addition to the regular corporate tax on 22%, gives a total tax rate on aquaculture of 47%. The new tax applied retroactively from 1 January 2023.
An implementation effect related to deferred resource rent tax on biomass has been recognised in the comprehensive income. Changes in calculation from previous periods are based on new information and are accounted for as change in accounting estimate.
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 |
|---|---|---|---|
| 222 | -45 | 1,618 | 954 |
| -289 | 0 | 837 | 0 |
| -217 | 0 | 2,080 | 0 |
| -284 | -45 | 4,534 | 954 |
The production tax implemented on the Norwegian aquaculture activity with effect from 01 January 2021 is directly deductible in the payable resource rent tax with effect from 1 January 2023. The total resource rent tax related to the profit in the period is therefore the total of production tax related to the Norwegian aquaculture activity and resource rent tax calculated in the period. The production tax on the Norwegian activity increased from NOK 0,56 per kg to NOK 0,90 per kg with effect form 1 July 2023. For 2022 the production tax was NOK 0,405 pr kg. The total effect of the resource rent tax including production tax is shown below:
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Production tax recognised in the period | 78 | 28 | 208 | 85 |
| Resource tax related to activity on Iceland | 10 | 5 | 25 | 13 |
| Production tax related to activity in Norway | 68 | 23 | 183 | 72 |
| Resource rent tax (payable and deferred tax) | -289 | 0 | 837 | 0 |
| Total resource rent tax in comprehensive income | -220 | 23 | 1,020 | 72 |
| Resource rent tax - implementation effect (deferred tax) | -217 | 0 | 2,080 | 0 |
| Total resource rent tax including production tax | -438 | 23 | 3,100 | 72 |
The SalMar Group prepares its financial statements in accordance with international accounting standards (IFRS). In addition, management has established alternative performance parameters to provide useful The APMs are deduced from the performance measures defined in IFRS. The figures are defined below and calculated in a consistent manner. They are presented in addition to other performance measures, in
Operational EBIT is an APM used by the Group. The relationship between Operational EBIT and operating profit/loss is presented in the table below. The difference between Operational EBIT and operating profit/loss relates to provisions for production tax and onerous contracts, and items which are classified in the financial statements on the line for fair value adjustments. These items are market value and fair value assessments linked to assumptions about the future. Operational EBIT shows the underlying operation and the results of transactions undertaken in the period.
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Operating profit | 1,275 | 35 | 8,509 | 4,738 |
| Production tax | 78 | 28 | 208 | 85 |
| Onerous contracts | 227 | -8 | 237 | -126 |
| Fair value adjustment: | ||||
| Change in the fair value of the biological assets | 481 | 684 | -1,571 | -446 |
| Change in the fair value adjustment included in cost of goods sold due to business combination | 111 | 283 | 723 | 283 |
| Change in unrealised value of Fish Pool contracts | -15 | -15 | -19 | -70 |
| Operational EBIT | 2,158 | 1,006 | 8,088 | 4,465 |
EBITDA is another alternative performance measure used by the Group. EBITDA is operational EBIT plus depreciation, write-downs and amortization.
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Operational EBIT | 2,158 | 1,006 | 8,088 | 4,465 |
| Depreciation and write-downs | 414 | 343 | 1,452 | 1,038 |
| EBITDA | 2,571 | 1,349 | 9,540 | 5,502 |
EBIT per kg gutted weight is defined as a key performance parameter for SalMar. The performance parameter is used to assess the profitability of the goods sold and the Group's operations. The performance parameter is expressed per kg of harvested volume.
| Farming | Farming | Icelandic | SalMar Aker | SalMar | |
|---|---|---|---|---|---|
| Q4 2023 | Central Norway | Northern Norway | Salmon | Ocean | Group |
| Operational EBIT (NOK mill.) | 1,178 | 840 | 26 | 11 | 2,158 |
| Volume harvested (tonnes) | 42.3 | 31.4 | 7.2 | 2.3 | 83.1 |
| EBIT/kg gw (NOK) | 27.86 | 26.78 | 3.58 | 4.79 | 25.96 |
| Farming | Farming | Icelandic | SalMar Aker | SalMar | |
| Q4 2022 | Central Norway | Northern Norway | Salmon | Ocean | Group |
| Operational EBIT (NOK mill.) | 484 | 777 | 98 | -48 | 1,006 |
| Volume harvested (tonnes) | 32.6 | 24.1 | 6.0 | 0.0 | 62.7 |
| EBIT/kg gw (NOK) | 14.84 | 32.29 | 16.37 | 16.05 | |
| Farming | Farming | Icelandic | SalMar Aker | SalMar | |
| FY 2023 | Central Norway | Northern Norway | Salmon | Ocean | Group |
| Operational EBIT (NOK mill.) | 4,612 | 3,402 | 230 | -53 | 8,088 |
| Volume harvested (tonnes) | 141.1 | 92.8 | 17.9 | 2.3 | 254.1 |
| EBIT/kg gw (NOK) | 32.68 | 36.67 | 12.85 | -23.19 | 31.83 |
| Farming | Farming | Icelandic | SalMar Aker | SalMar | |
| FY 2022 | Central Norway | Northern Norway | Salmon | Ocean | Group |
| Operational EBIT (NOK mill.) | 3,599 | 2,526 | 366 | -155 | 4,465 |
| Volume harvested (tonnes) | 114.1 | 63.4 | 16.1 | 0.0 | 193.7 |
| EBIT/kg gw (NOK) | 31.53 | 39.84 | 22.67 | 23.05 |
Net interest-bearing debt is an alternative performance measure used by the Group. The performance measure is used to express the Group's working capital, and is an important performance measure for investors and other users, because it the shows net borrowed capital used to finance the Group. Net interest-bearing debt is defined as long-term and short-term debt to credit institutions, less cash & cash equivalents. Leasing liabilities under IFRS 16 are not included in the calculation of net interest-bearing debt. To highlight total interest bearing debt including leasing liabilities, this is presented as a separate measure.
| 31.12.2023 | 30.09.2023 | 31.12.2022 | 30.09.2022 | |
|---|---|---|---|---|
| Non-current interest-bearing liabilities | 12,211 | 13,707 | 18,350 | 5,722 |
| Current interest-bearing liabilities | 1,681 | 1,287 | 3,442 | 532 |
| Cash and cash equivalents | -785 | -751 | -2,713 | -787 |
| Net interest-bearing debt (NIBD) | 13,107 | 14,243 | 19,079 | 5,466 |
| Lease liabilities | 1,845 | 1,479 | 1,425 | 957 |
| NIBD incl. lease liabilities | 14,952 | 15,722 | 20,505 | 6,423 |
The Group uses diluted cash flow per share to highlight the cash flow from period's operating activities per share outstanding (diluted). The key figure is arrived at by dividing the cash flow from operating activities by the average number of shares outstanding (diluted) in the period.
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Cash flow from operating activities | 2,284 | 198 | 8,976 | 4,223 |
| Average no. of shares outstanding (diluted) in the period (1,000 shares) | 131,659 | 126,141 | 131,633 | 119,979 |
| Diluted cash flow per share (NOK) | 17.35 | 1.57 | 68.19 | 35.20 |
NIBD incl. lease liabilities / EBITDA is an APM used by the Group to measure leverage. The figure is arrived at by dividing NIBD incl. lease liabilities at the end of the period with EBITDA for the last 12 months.
The Group uses adjusted earnings per share to reflect earnings excluding implementation effect resource rent tax and net fair value adjustments. The key figure is arrived at by dividing the profit for the period adjusted for onerous contracts, fair value adjustements and changes in deferred taxes by the average number of shares outstanding (diluted) in the period.
| Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Profit for the period attributable to shareholders in SalMar ASA | 1,318 | -164 | 3,203 | 3,312 |
| Onerous contracts **) | 227 | -8 | 237 | -126 |
| Fair value adjustment **) | 467 | 669 | -1,590 | -516 |
| Fair value adjustment included in cost of goods sold due to business combination **) | 111 | 283 | 723 | 283 |
| Calculated tax effect of adjustments ***) | -83 | -208 | -243 | 79 |
| Resource rent tax - implementation effect (deferred tax) **) | -217 | 0 | 2,080 | 0 |
| Adjusted profit for the period attributable to shareholders in SalMar ASA **) | 1,822 | 572 | 4,410 | 3,032 |
| Average no. of shares outstanding (diluted) in the period (1,000 shares) | 131.66 | 126.14 | 131.63 | 119.98 |
| Adjusted earnings per share | 13.84 | 4.53 | 33.50 | 25.27 |
**) The adjustments made to the profit for the period attributable to shareholders in SalMar ASA in the table above, are inclusive of non-controlling interest.
***) Calculated tax rate 22% for Onerous contracts, Fair value adjustment and Fair value adjustment included in cost of gooods sold due to business combination. For 2023 the calculated change in deferred resource rent tax on fair value adjustment has been added.
On 25 January 2024, the European Commission issued a Statement of Objections to SalMar and other producers of farmed Norwegian salmon concerning breach of EU competition rules.
As previously informed, the case commenced upon the Commission's inspection at Scottish Sea Farms in February 2019. SalMar has cooperated with the Commission throughout its entire investigation. The Commission's preliminary assessment is that there may have occurred a breach of EU competition law in the period 2011-2019, related to spot sales into the EU of fresh, whole salmon farmed in Norway. The Commission has not concluded in the case. A Statement of Objections does not preempt the outcome of the investigation.
SalMar strongly disagrees with the Commission's preliminary assessment and will present its arguments in a thorough reply to the Commission.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.