SalMar ASA

Earnings Release • May 22, 2019

SalMar - Results for the first quarter 2019

SalMar - Results for the first quarter 2019

SalMar ASA posted an Operational EBIT of NOK 806.2 million in the first quarter

2019, compared with NOK 708.1 million in the same period last year.

SalMar increased its shareholding in the Icelandic aquaculture company Arnarlax

from 42 per cent to 54 per cent during the quarter. In April, the Group

increased its shareholding further, to 62 per cent, by means of a compulsory

share purchase offer. Arnarlax has been consolidated into SalMar's financial

statements for February and March. Combined with a higher volume harvested in

Northern Norway, this contributed to the Group's highest ever first-quarter

Operational EBIT and harvest volume.

"We continue to deliver good financial results. During the period, we also

increased our shareholding in the Icelandic aquaculture company Arnarlax. As an

industrial owner, SalMar will contribute to the sustainable development of fish

farming on Iceland," says SalMar's CEO Olav-Andreas Ervik.

SalMar's gross operating revenues ended at NOK 3.0 billion in the quarter, up

from NOK 2.5 billion in the first quarter 2018. The Group harvested 35,500

tonnes, compared with 31,900 tonnes in the corresponding period last year.

SalMar made an Operational EBIT of NOK 22.71 per kg in the first quarter, a

year-on-year increase of NOK 0.50 per kg.

After several quarters of strong biological performance and a significant drop

in production costs, Fish Farming Central Norway's first-quarter results had a

rise in production costs. Outbreaks of disease at certain sites led to premature

harvesting and, consequently, higher production costs. In the second quarter

2019, SalMar expects the segment to have a higher volume and somewhat lower

costs compared with the first quarter.

Fish Farming Northern Norway harvested a large volume of fish in the quarter.

The segment's results were affected by biological challenges, including the

harvesting of fish from the ISA zone where additional infection-prevention

measures increased costs. SalMar expects the segment to have a lower volume and

somewhat lower costs in the second quarter than in the first quarter.

The Sales and Processing segment posted a profit of NOK 14.3 million in the

quarter. In the same period last year, the segment made a loss of NOK 15.3

million. Improvement in result is driven by fixed price contracts having a

higher price point than for the corresponding quarter last year. Seasonally

lower volumes have influenced the profit contribution from the harvesting and

secondary processing activities.

With effect from 1 February 2019, Arnarlax's results have been consolidated into

the Group's financial statements, and the company is reported as a separate

segment. Operational improvements on Iceland contributed to a positive financial

result in the period, despite costs associated with high mortality caused by

winter wounds. SalMar has great faith in the future of Arnarlax and salmon

farming in Iceland, but it will take time before the segment is able to perform

at the same level as the Group's operations in Norway.

As at 22 May, the contract rate stands at 25 per cent for the second quarter

2019 and 20 per cent for the year. Contract prices are slightly up from last

year.

The global supply of Atlantic salmon is expected to grow by around 7 per cent in

2019. Combined with expectations of good demand, this indicates a balanced

salmon market with the outlook for continued strong earnings.

SalMar maintains its expectations to harvest 155,000 tonnes in 2019, with

145,000 tonnes coming from the Norwegian segments and 10,000 tonnes from Iceland

(Arnarlax). Norskott Havbruk (Scottish Seafarms) is expected to harvest 30,000

tonnes.

The complete report and presentation for the first quarter 2019 is attached.

For further information, please contact:

CEO Olav-Andreas Ervik,

Tel: + 47 918 68 100

Email: olav.andreas.ervik@salmar.no

CFO Trond Tuvstein,

Tel: + 47 918 53 139

Email: trond.tuvstein@salmar.no

See also www.salmar.no for more information about the company.

This information is subject to the disclosure requirements stipulated in section

5-12 of the Norwegian Securities Trading Act.