SalMar ASA

Earnings Release • Nov 12, 2015

SalMar - Results for the third quarter 2015

SalMar - Results for the third quarter 2015

AN OPERATIONALLY CHALLENGING QUARTER FOR SALMAR

The biological situation for SalMar's fish farming operations in Central Norway

remains challenging and contributed to higher costs in the quarter. In

particular, measures to keep the number of salmon lice below the authorities'

stipulated threshold has driven up costs. Market developments, on the other

hand, have been positive, largely thanks to a weak NOK. The average spot price

for salmon in the third quarter came to NOK 41.09 per kg, up NOK 3.09 per kg

from the previous quarter and NOK 5.80 from the third quarter 2014.

"The third quarter was an operationally challenging period for the SalMar Group.

Biological issues, particularly those associated with the handling of salmon

lice at our marine-phase fish farms, increase costs and reduce our operational

efficiency. Lice numbers are expected to fall towards the end of the fourth

quarter and into 2016 as a result of harvesting of the 2014-generation of fish

and lower sea temperatures. Favourable price developments, measured in NOK, have

however contributed to satisfactory financial results in the quarter," says

SalMar CEO Leif Inge Nordhammer.

SalMar generated gross operating revenues of NOK 1.88 billion in the third

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

a total of 35,400 tonnes, down 1,000 tonnes from the same period in 2014.

Operational EBIT came to NOK 333.7 million, down from NOK 437.7 million in the

third quarter 2014. In the second quarter this year, SalMar posted an

Operational EBIT of NOK 335.1 million.

SalMar's Central Norway and Rauma segments continue to face biological

challenges, particularly with regard to the salmon lice situation. The high

frequency of treatment resulted in lower final feeding rates and lower growth.

Persistently high levels of lice also led to premature harvesting at certain

sites, which resulted in a lower average weight for the fish harvested.

The results for SalMar's Northern Norway segment were affected by operational

problems at an individual site during the quarter. The site in question

harvested fish transferred to the sea in the autumn of 2013 and accounted for

almost half the overall volume harvested in the period. The biological

development of fish transferred to the sea in the spring of 2014 has been

significantly better. Costs are therefore expected to be lower in the fourth

quarter 2015.

Activity in the Sales and Processing segment was high during the quarter, and

underlying operations were good. However, the biological difficulties

experienced by Central Norway led to increased variation in quality and weight,

which had a negative impact on operational efficiency. Around 45 per cent of the

harvested volume was sold under contract in the third quarter 2015. The prices

achieved were lower than the average spot price in the period, which has reduced

the segment's overall results.

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

global supply of Atlantic salmon is expected to remain relatively constant in

the time ahead. No growth is expected in 2016 as a whole compared with 2015.

Output from Norway in the fourth quarter is expected to be 3 per cent lower than

in the corresponding period last year, such that the output from Norwegian

salmon farmers is expected to total just over 1,215 million tonnes, up 1 per

cent from 2014. No growth in the supply of salmon from Norway is expected in

SalMar has reduced its harvesting forecast for 2015 as a whole by 4,000 tonnes

to 135,000 tonnes, while Norskott Havbruk (Scottish Seafarms) expects to harvest

around 28,000 tonnes. For 2016 as a whole, SalMar expects to harvest 133,000

tonnes in Norway.

The complete report for the third 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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