SalMar ASA

Earnings Release • Feb 19, 2016

SalMar - Results for the fourth quarter 2015

SalMar - Results for the fourth quarter 2015

Satisfactory results but still biological challenges

The biological situation for SalMar's Central Norway fish farming segment

remains challenging, and contributed to higher costs in the fourth quarter

2015. The biological situation in the Northern Norway segment is satisfactory.

Along with good underlying operations, this contributed to a strong result in

the quarter.

The positive price trend continued in the fourth quarter, driven by a tight

market and a weak Norwegian currency (NOK). The average spot price for salmon

came to NOK 45.28 per kg in the period, up NOK 4.19 per kg from the previous

quarter and NOK 6.19 per kg from the fourth quarter 2014. Higher prices were,

however, partly offset by the fact that 50 per cent of the volume harvested in

the period was sold under contract at prices lower than spot.

"Our operational challenges persisted in the fourth quarter, and costs

associated with biological situation had a negative impact on earnings and

operational efficiency," says SalMar CEO Leif Inge Nordhammer. "Favourable price

developments measured in NOK contributed to a satisfactory result for the year

as a whole, and the board is proposing a dividend of NOK 10 per share for 2015."

SalMar generated gross operating revenues of NOK 2.04 billion in the fourth

quarter 2015, marginally up from the same period the year before. The Group

harvested a total of 38,100 tonnes, 3,600 tonnes less than in the same period in

2014. Operational EBIT totalled NOK 374.3 million, down from NOK 508.7 million

in the fourth quarter 2014.

The performance of SalMar's Central Norway and Rauma segments continues to be

affected by biological challenges. This is reflected in the high cost of keeping

the level of salmon lice below regulatory thresholds. To control the level of

lice, SalMar has on its own initiative elected to harvest fish earlier than

planned. This resulted in a lower average weight, higher production costs per

kilo and lower prices achieved.

The Northern Norway segment's underlying operations performed well during the

quarter, with good growth and a high weight at harvest. The biological situation

is satisfactory, it is therefore expected that the cost of the harvested biomass

will stay at more or less the same level in the coming quarter.

The Sales and Processing segment made an operating loss in the fourth quarter.

This is largely due to the fact that 50 per cent of the volume harvested was

sold under contract at prices lower than the average spot price in the period.

The biological situation experienced in the fish farming segments also has a

negative impact on this segment's operational efficiency.

Based on estimates for the standing biomass, the company expects the global

supply of Atlantic salmon to fall by 3 per cent in 2016 to 2.23 million tonnes.

This is 80,000 tonnes less than in 2015.

For 2016 as a whole, SalMar expects to harvest a total of 133,000 tonnes in

Norway, down from 136,400 tonnes in 2015. Norskott Havbruk (Scottish Seafarms)

expects to harvest a total of 26,000 tonnes, compared with 27,000 tonnes last

year.

The board is proposing a dividend payment of NOK 10.00 per share for 2015.

The complete report for the fourth quarter 2015 is attached.

For more information, please contact:

CEO Leif Inge Nordhammer

Tel: + 47 916 85 250

CFO Trond Tuvstein

Tel: + 47 918 53 139

Email: trond.tuvstein@salmar.no

Web: www.salmar.no

This information is subject to the disclosure requirements stipulated in section

5-12 of the Norwegian Securities Trading Act.

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