SalMar ASA

Earnings Release • May 20, 2015

SalMar - Results for the first quarter 2015

SalMar - Results for the first quarter 2015

SATISFACTORY RESULTS DRIVEN BY GOOD PRICES

Despite falling prices through the period, the average price for the first

quarter 2015 was higher than in the previous three months. Operational EBIT per

kg rose to NOK 12.85 during the period. Although the average price per kg was

NOK 6.46 lower than in the first quarter last year, improved underlying

operations and reduced costs helped diminish the fall in profit.

"The result in the first quarter is characterized by uneven results from our

fish farming segments, but with satisfactory results from the Sales and

Processing activities. We are experiencing biological issues which increase

costs, particularly in the Central Norway and Rauma segments. Challenges

relating to MAB at one particular site in Northern Norway had a negative impact

on the average weight harvested and price realised in this segment. Efficient

operation of the harvesting and processing departments, however, resulted in a

continuation of the positive trend achieved by the Sales and Processing

segment," says SalMar's CEO Leif Inge Nordhammer.

Gross operating revenues came to NOK 1.6 billion in the first quarter 2015,

unchanged from the corresponding period last year. A total of 28,100 tonnes was

harvested, compared with 27,800 tonnes in the corresponding quarter the year

before. Operational EBIT came to NOK 360.8 million, down from NOK 485.2 million

in the first quarter 2014. In the fourth quarter last year, Operational EBIT

came to NOK 508.7 million, driven by a harvested volume of 41,700 tonnes.

The Central Norway and Rauma segments remain affected by issues relating to lice

and PD. Delousing treatments are costly and affect fish growth.

The Northern Norway segment's operations in the first quarter were negatively

affected by the additional harvesting necessary to comply with the regulations

regarding maximum allowable biomass (MAB). However, the overall biological

situation for the segment is good.

In the Sales and Processing segment, around 55 per cent of the volume was sold

under contract at prices on a par with the average spot price. Furthermore, the

productivity of the harvesting and processing departments was good during the

period. A total of 28,800 tonnes was harvested during the quarter, around 5,400

tonnes more than in the corresponding period last year. The processing

department handled high volumes, and also demonstrated efficient operations

during the quarter.

On the 20 March 2015, the government published a White Paper that intend to pave

the way for further predictable growth in the aquaculture industry. SalMars

response to this White Paper is a new structural concept for an open-ocean fish

farm, which will make it possible to exploit areas that are less sheltered and

more exposed to harsh weather conditions. The structural concept has been made

in cooperation with leading international maritime research environments. The

open-ocean fish farming facilities design will allow a usage in more exposed

offshore locations - making it suitable for reducing biological challenges such

as disease and salmon lice. Realisation of the open-ocean fish farming project

will be cost-intensive, and will depend on the authorities licensing production

volumes at terms that make it possible to realize the project.

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

global supply of Atlantic salmon is expected to increase by around 4 per cent in

In 2015 SalMar expects to harvest around 139,000 tonnes in Norway, while

Norskott Havbruk (Scottish Seafarms) is expected to harvest 31,000 tonnes in

The full report for the first quarter 2015 is enclosed.

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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