SalMar ASA

Earnings Release • Nov 15, 2017

SalMar - Results for the third quarter 2017

SalMar - Results for the third quarter 2017

STRONG OPERATIONS AND IMPROVING BIOLOGY

An improved biological situation and strong operations in all the Group's

segments contributed to lower costs and a strong result for the SalMar Group in

the third quarter 2017. The Group's Operational EBIT for the period came to NOK

801.3 million, up from NOK 576.3 million in the third quarter last year.

"Strong operations in all segments and an improving biological situation have

enabled SalMar to once again deliver strong financial results, despite a fall in

salmon prices through the quarter," says SalMar's CEO Trond Williksen. "It is

particularly pleasing that the steady reduction in costs we have achieved in

recent periods continued in the third quarter, and that the extensive efforts

and substantial investments we have made over time to deal with salmon lice are

now starting to pay off."

SalMar generated gross operating revenues of NOK 2.7 billion in the third

quarter, up from NOK 2.3 billion in the corresponding period last year. The

Group harvested 34,000 tonnes, compared with 29,600 tonnes in the third quarter

2016. This gave an EBIT per kg of NOK 23.60 in the third quarter, while EBIT per

kg in the second quarter came to NOK 28.12.

Fish Farming Central Norway's cost per kg biomass harvested fell for the third

successive quarter. The strong performance is the result of good underlying

operations and the company's systematic efforts to strengthen its preparedness,

capacity and expertise with regard to managing biological challenges. The

segment's biological situation has improved through the quarter, and costs are

expected to hold steady in the fourth quarter.

The biological situation for Fish Farming Northern Norway is good. Combined with

strong operations, this has resulted in a high level of output from the

generations that have been harvested during the quarter. Furthermore, it has led

to a fall in costs from the previous quarter. As in previous years, SalMar

experienced a slight increase in lice numbers in the third quarter. However,

SalMar is well equipped to meet any biological challenges, and costs are

expected to hold steady in the coming quarter.

The Sales and Processing segment posted an operating profit of NOK 46.2 million

in the quarter. High capacity utilisation in the secondary processing business,

positive contributions from contracts and good dispositions in the spot market

all resulted in a substantial improvement in the segment's financial results.

Contract sales accounted for 45 per cent of the volume in the quarter. The

contract rate in the fourth quarter 2017 will be around 40 per cent, with price

levels similar to the first half of 2017.

SalMar expects to harvest around 134,000 tonnes in Norway in 2017 as a whole

(Fish Farming Central Norway, 86,000 tonnes; Fish Farming Northern Norway,

48,000 tonnes). Norskott Havbruk (Scottish Seafarms) and Arnarlax are expected

to harvest 32,000 tonnes and 9 500 tonnes respectively.

SalMar expects to harvest around 143,000 tonnes in Norway in 2018 as a whole.

Norskott Havbruk (Scottish Seafarms) and Arnarlax expect to harvest 27,000

tonnes and 11,000 tonnes respectively in 2018.

For further information, please contact:

CEO Trond Williksen

Tel: + 47 916 30 173

Email: trond.williksen@salmar.no

CFO Trond Tuvstein

Tel: + 47 918 53 139

Email: trond.tuvstein@salmar.no

See 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.