SalMar ASA

Earnings Release • May 19, 2020

SalMar - Results for the first quarter 2020

SalMar - Results for the first quarter 2020

SalMar ASA reported an Operational EBIT of NOK 1,065 million for the first

quarter of 2020. This is the highest ever achieved in the company's history. In

the same period of 2019, Operational EBIT came to NOK 806 million.

"For the SalMar Group, the first quarter was very good. We posted the highest

ever Operational EBIT in the company's history, achieved through strong

underlying operations, high volumes and good prices. Central Norway in

particular distinguished itself through solid performance in the quarter," says

SalMar's CEO Gustav Witzøe.

Gross operating revenues came to just over NOK 3.6 billion for the quarter, up

22 per cent on the same quarter of 2019. SalMar harvested 40,000 tonnes in the

first quarter, up from 35,500 tonnes in the corresponding period last year.

Operational EBIT per kg came to NOK 26.61 for the first quarter, up from NOK

22.71 per kg for the first quarter of 2019. The increase is attributable to

higher prices and a larger harvested volume.

Fish Farming Central Norway posted good results for the period on the back of

sound operations. A more even spread of the harvested volume and higher spot

prices resulted in considerably better price achievement than for the previous

quarter. The bulk of the fish harvested in the first quarter were from the

autumn 2018 generation. In the second quarter, more fish deriving from the

spring-2019 generation will be harvested. These have demonstrated good

biological performance. SalMar therefore expects the segment to report lower

costs and a slightly higher harvested volume in the second quarter of 2020 than

in the first.

Fish Farming Northern Norway's results for the quarter were affected by higher

harvesting costs at sites suffering from ISA. However, the segment achieved a

considerably better operating margin than in previous quarters due to cost

improvements and increased spot prices. The sites affected by ISA have now been

emptied out, and SalMar expects the segment to report a slightly lower harvested

volume and lower costs for the second quarter this year.

The first quarter of 2020 was challenging for Arnarlax. The segment experienced

a high rate of mortality as a result of winter wounds, which resulted in a large

volume of fish being harvested in a period of poor weather conditions and low

sea temperatures. This led to high costs. In the second quarter this year,

harvesting from same generation will continue and SalMar therefore expects

significantly lower volume and weak margins for the second quarter.

Through the first quarter the Sales and Processing segment achieved good

capacity utilisation and effective operations, which have provided good margins

for SalMar's harvesting and secondary processing operations. The segment also

secured favourable placement of volumes at spot prices in a quarter

characterised by high prices. Nevertheless, the segment reported an Operational

EBIT of NOK -17 million, after a negative contribution from fixed-price

contracts. Some 24 per cent of the volume was sold under fixed-price contracts

in the first quarter of 2020. The contract rate for the second quarter is 25 per

cent, while it stands at 20 per cent for the year as a whole. Contract prices

are slightly higher than the level in 2019.

The corona pandemic (covid-19) has created significant uncertainty for world

trade, and changes in consumer behaviour and transport patterns are affecting

several markets. SalMar is closely monitoring developments in the various

markets and is constantly assessing measures to adjust its production. SalMar

has a solid financial position and good flexibility in its supply chain, which

ensures that the company is well equipped to handle changes in the market.

As a result of the covid-19 situation and the prevailing uncertainty with regard

to its consequences going forward, SalMar's board of directors decided in March

to cancel the proposed dividend distribution to shareholders.

Despite the uncertainty, SalMar strongly believe in further growth of the

aquaculture industry. The company is therefore continuing its investment

projects as planned, including the construction of the InnovaNor harvesting and

processing plant in Northern Norway and the smolt production facility on Senja.

SalMar maintains its expectations to harvest 152,000 tonnes in Norway: 103,000

tonnes in Central Norway and 49,000 tonnes in Northern Norway and 12,000 tonnes

in Iceland in 2020.

The full report and presentation for the first quarter of 2020 are attached.

SalMar's CEO Gustav Witzøe and CFO & COO Trine S. Romuld will present the

company's results today from 8am CEST via a webcast on www.salmar.no.

For further information, please contact:

CEO Gustav Witzøe,

Tel: +47 911 47 834

Email: gustav.witzoe@salmar.no

CFO & COO Trine Sæther Romuld,

Tel: + 47 991 63 632

Email: trine.romuld@salmar.no

About SalMar

SalMar is one of the world's largest and most efficient producers of farmed

salmon. The Group has farming operations in Central Norway, Northern Norway and

Iceland, as well as substantial harvesting and secondary processing operations

in Norway, at InnovaMar in Frøya and Vikenco in Aukra. SalMar also owns 50 per

cent of the shares in Scottish Sea Farms Ltd.

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.