Norwegian salmon farmer SalMar fell victim to low spot prices in the first quarter and a fall in harvest volumes.

The company's earnings before interest, tax, depreciation and amortization (EBITDA) fell 34 percent in the first quarter to NOK 820 million (€82 million/$99.2 million) with operating income down 12 percent to NOK 3,184 million (€318.4 million/$385.3 million).

Harvest volumes for the group were down 8 percent to 36,900 metric tons, while EBIT per kilogram fell 36 percent to NOK 17.02 (€1.7/$2.1).

This was reflected in a NOK 18.54 (€1.9/$2.2) per kilogram EBIT in central Norway; NOK 14.45 (€1.5/$1.8) in northern Norway; NOK 1.48 (€0.15/$0.18) for Icelandic Salmon, and NOK 12.39 (€1.2/$1.5) per kilogram at Scottish Sea Farms, of which SalMar owns 50 percent through Norskott Havbruk.

Despite the results, CEO Gustav Witzoe remained upeat, highlighting rising salmon prices, "strong operational performance" and better margins.

"After a year of pandemic and a market characterized by global uncertainty, the rollout of mass vaccination programs in large parts of the world has helped to make the outlook brighter for the salmon industry," he said, adding that prices have now returned to pre-pandemic levels.

"We have always had unwavering confidence in the salmon farming industry and continue to invest in new smolt facilities and processing plants, as well as costal and offshore farming. SalMar has been producing farmed salmon for 30 years, and intends to carry on doing so indefinitely. Food will never go out of fashion,"Witzoe said.

SalMar's land-based smolt facility in Tjuin, Norway, is set to produce around 4,000 metric tons, or around 20 million smolt per year.

Finance

Slipping volumes, prices set salmon farmer SalMar off to a rocky start in 2021