The salmon giant increases the dividend to its shareholders, but adjusts this year’s harvest volume down due to the pearl standard.
BILLION PAYOUT: Salmar’s founder and chairman Gustav Witzøe and his family can look forward to over two billion in dividends. The picture is from a previous occasion. Photo: David Engmo / E24 Published:
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Salmar increases operating profit before value adjustments to NOK 2.16 billion in the fourth quarter, from NOK 1.01 billion at the same time last year. The company thus earns NOK 26 per kilo of salmon (before tax and adjustments).
– We see significant potential for continued improvement and growth in all parts of our business going forward, says Salmar CEO Frode Arntsen.
– Despite unresolved regulatory matters, we are confident that we will be able to increase production and grow further with our current operational structure, he adds.
At the same time, it is proposed to pay out NOK 35 per share in dividends to shareholders, a total of NOK 4.6 billion, “based on good results in 2023 and the strong financial position”.
This is a marked increase from the last two years, when the dividend was NOK 20 per share.
Based on the fact that Gustav Witzøe’s family owns around 45 per cent of the shares via Kverva, this means that they will be paid around NOK 2 billion. Folketrygdfondet is also among the major owners.
Cuts slaughter targets
Salmar slaughtered 83,100 tonnes of salmon in the quarter, up from 62,700 tonnes in the fourth quarter of the previous year. In total, Salmar slaughtered a record 254,100 tonnes in 2023.
For 2024, Salmar is now cutting the slaughter volume for Norway to 237,000 tonnes due to pearl Normans. That is 20,000 tonnes less than the company envisioned the previous quarter.
Towards the end of the fourth quarter, pearl sea bream attacked several Salmar facilities in central and northern Norway, with serious consequences for fish welfare. The company therefore decided to slaughter significant volumes earlier than planned.
The volume guidance for the year is otherwise unchanged with 7,000 tonnes from Salmar Aker Ocean, 15,000 tonnes in Iceland and 37,000 tonnes in Scotland.
In the longer term, the total slaughter target of 362,000 tonnes will be maintained.
– Salmar experiences strong demand for all our products and expects limited global supply growth in 2024, the company writes in the stock exchange announcement.
Signs of improvement in Scotland
The cost level in Norway is expected to remain at the same level in the first quarter as the previous quarter.
During 2024, Salmar estimates that it will invest 1.6 billion in the Norwegian business, 0.2 billion in Iceland and 0.1 billion in Salmar Aker Ocean.
Salmar has farming activities in central Norway, northern Norway and Iceland, with a significant butchery and further processing operations. In addition, the company farms salmon at sea through the company Salmar Aker Ocean and owns 50 per cent of Scottish Seafarms.
Both in Iceland and in Scotland, Salmar has had significant biological problems with the fish. Costs in Iceland are expected to be high in the first quarter because of this. In Scotland, Salmar now sees signs of improvement.
Salmar is valued at around NOK 78 billion on Oslo Børs after a rise of 37 per cent in the past year.
The Witzøe family receives 2.1 billion in dividends, adjusted from 1.2 billion in an earlier version. The error was corrected immediately the same day at 07.
2024-02-15 05:30:31
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