SalMar ASA

Earnings Release • May 10, 2017

SalMar - Results for the first quarter 2017

SalMar - Results for the first quarter 2017

RECORD OPERATIONAL EBIT PER KG DUE TO BETTER PERFORMANCE WITHIN FARMING AND

SALES

SalMar achieved an Operational EBIT of NOK 25.50 per kg in the first quarter

2017, the highest Operational EBIT per kg in the Group's history.

"In the first quarter 2017, SalMar has posted its strongest ever Operational

EBIT per kg. This record result is attributable to continued high salmon prices,

lower production costs for the harvested biomass and a higher average price on

the overall contract portfolio," says SalMar's CEO Trond Williksen.

"The segments have delivered satisfactory results, and SalMar continues its

systematic efforts to strengthen its preparedness for and capacity to deal with

the salmon lice situation," Mr Williksen continues. "SalMar's combined non-

medicinal delousing capacity has been enhanced, and the company is working

continuously to improve its routines and level of competence. The aquaculture

sector is undergoing considerable changes, and the potential for further growth

is substantial. SalMar acknowledges that such growth must be sustainable from an

environmental, social and financial point of view, and we are now better

equipped to contribute to this end."

SalMar generated gross operating revenues of just over NOK 2.4 billion in the

first quarter 2017, up from around NOK 2.0 billion in the corresponding period

last year. The Group harvested 26,300 tonnes of salmon, 1,000 tonnes less than

in the same period in 2016. Operational EBIT came to NOK 670.7 million, up from

NOK 566.5 million in the first quarter last year.

In the first quarter 2017, Fish Farming Central Norway harvested fish from sites

with a better biological performance than was the case in the previous quarter.

This contributed to a slightly higher average weight and lower production costs.

Despite lower lice numbers at the close of the period than in the first quarter

last year, the situation in Central Norway is still regarded as challenging. In

the first quarter 2017, some stocks were harvested prematurely out of

consideration for fish welfare. New delousing equipment, better routines and

increased competence have strengthened the company's preparedness and response

capability. SalMar is now well equipped to deal with the situation going

forward.

The biological situation for Fish Farming Northern Norway remains good. Despite

seasonally lower sea temperatures, the growth rate has been satisfactory, and

the harvested volume had a good average weight. Like Fish Farming Central

Norway, the segment has invested in delousing equipment to strengthen its

ability to respond to any future rise in lice numbers.

Sales and Processing performed much better in the first quarter 2017 than in the

previous quarter. The sales business achieved record-high prices in the quarter.

However, the segment's Operational EBIT was still negative, since 60 per cent of

the volume was sold under contract at prices below the average spot price in the

period. Nevertheless, contract losses were substantially lower than in the

previous quarter. The improvement is due to a combination of lower market prices

and higher contract prices. Although harvesting and processing activities

continue to be negatively affected by the biological situation in Central

Norway, high harvested volumes have contributed to good capacity utilisation and

efficient operations during the period.

Based on estimates of the standing biomass at the close of the quarter, the

global supply of Atlantic salmon is expected to grow by 3 per cent in 2017 as a

whole. SalMar continues to experience strong demand in the groups core markets.

For 2017 as a whole, SalMar expects to harvest 131,000 tonnes in Norway, up from

115,600 tonnes in 2016. Norskott Havbruk (Scottish Seafarms) forecast to harvest

30,000 tonnes, while Arnarlax is expected to harvest 10,000 tonnes.

The complete report for the first quarter 2017 is attached.

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 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.