SalMar ASA

Earnings Release • May 15, 2018

SalMar - First quarter 2018 results

SalMar - First quarter 2018 results

A SATISFACTORY QUARTER FOR THE SALMAR GROUP

All SalMar ASA's business areas posted satisfactory results in the first quarter

2018. Overall price achievement in the quarter was good and contributed to

revenue growth and further strong earnings for the SalMar Group. Operational

EBIT totalled NOK 708.1 million in the quarter, up from NOK 670.7 million in the

same period last year.

"The first quarter was somewhat mixed for the SalMar Group. Price achievement in

the quarter was good and, operationally, all the Group's business areas posted

satisfactory results. However, higher underlying costs for fish harvested in

Northern Norway and lower activity in the Sales and Processing segment had a

negative effect on their performance. Our goal is to be the world's best

aquaculture company, and having the lowest costs has always been SalMar's clear

objective. We are therefore continuously working to control and reduce costs

without compromising the welfare of our salmon," says SalMar's CEO Olav-Andreas

Ervik.

SalMar generated gross operating revenues of NOK 2.5 billion in the quarter, up

from NOK 2.4 billion in the corresponding period in 2017. The Group harvested

31,900 tonnes of salmon in the first quarter this year, compared with 26,300

tonnes in the first quarter last year. EBIT per kg came to NOK 22.21 in the

quarter, down NOK 3.29 per kg from the same period in 2017. The market price of

salmon was NOK 5.52 per kg lower in the first quarter 2018 than in the first

quarter 2017.

Biological developments in the Fish Farming Central Norway segment were

satisfactory in the quarter, despite low sea temperatures. The bulk of the

volume harvested in the period were fish transferred to the sea in the autumn of

2016. Out of consideration for fish welfare, some stocks were harvested earlier

than planned in the quarter. This negatively affected the production cost of the

fish harvested. Overall, the segment kept developments in the cost of its

harvested fish in line with previous quarters. The Central Norway segment's

costs are expected to improve in coming quarters.

Fish Farming Northern Norway posted satisfactory results in the first quarter

2018. The fish harvested in the quarter had a higher production cost due to

frequent delousing treatments in the autumn of 2017. The harvesting out of these

fish will also affect the segment's overall costs in coming quarters. Over time,

SalMar has built up a robust lice treatment capability and is well equipped to

handle any challenges that may arise going forward.

The Sales and Processing segment posted strong price achievement in the quarter,

but its earnings were affected by seasonally low levels of activity in the

secondary processing area. Furthermore, fixed-price contracts, which accounted

for 39 per cent of the volume harvested in the period, made a negative

contribution in the quarter. The segment made an operating loss of NOK 15.3

million in the quarter, compared with loss of NOK 61.3 million in the same

period last year. As at mid-May, the contract rate for the second quarter 2018

stands at around 50 per cent. For the remaining volume to be harvested in 2018,

the contract rate is 36 per cent.

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

2018, the global supply of Atlantic salmon in 2018 as a whole is expected to

increase by 4 per cent. Combined with expectations that demand will remain

consistently high, this indicates a balanced salmon market, with the prospect of

continued strong earnings.

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

with Fish Farming Central Norway accounting for 96,000 tonnes and Fish Farming

Northern Norway for 47,000 tonnes. Norskott Havbruk (Scottish Seafarms) and

Arnarlax expect to harvest 26,000 and 8,000 tonnes respectively in 2018.

The full report for the first quarter 2018 is enclosed.

For further information, please contact:

CEO Olav-Andreas Ervik

Tel: + 47 918 68 100

Email: olav.andreas.ervik@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