SalMar posts satisfactory results in the fourth quarter 2020 and recommends a dividend of NOK 20 per share - Seite 3

Positive outlook

The coronavirus and the associated public health measures that have been implemented worldwide to limit its transmission have prompted greater uncertainty in the market. However, SalMar is well equipped to handle such crises, since it has a high degree of financial flexibility and the capacity to process products locally before shipping them worldwide. A small number of employees tested positive for the virus towards the end of 2020, but good contingency plans and a robust response helped ensure that the infection did not spread.

SalMar’s board of directors considers that the company has a solid foundation for continued positive development, both within its offshore and coastal operations. The company is continuing to pursue its ongoing investment programmes to secure development of an already robust platform for further growth.

SalMar still expects to harvest a total of 163,000 tonnes in Norway and 14,000 tonnes in Iceland in 2021.

Strengthened focus on offshore fish farming

SalMar’s focus on offshore fish farming is well known and continues the company’s tradition of developing and utilising new technologies and new solutions. In January 2021, an application for permission to operate the world’s first fish farm in the open ocean, Smart Fish Farm, was submitted to the Norwegian Directorate of Fisheries. The establishment of salmon farming in the open ocean is an important element in SalMar’s strategy for sustainable growth. This endeavour is described in more detail in a separate stock market notice/press release published today.

Secured new sustainability linked financing

To strengthen financial flexibility and  further strengthen the company’s focus on sustainability, SalMar has in the beginning of 2021 refinanced its existing credit facilities. The company has increased its overdraft facility and at the same time entered into an agreement on a new sustainability linked credit facility, an agreement that has four ESG KPI’s linked to it.

- Through the new facilities, we strengthen our financial flexibility and at the same time strengthen our focus on sustainability. The agreement focuses on four of our most important KPIs where all of them pulls us in an even more sustainable direction, says CFO & COO Trine Sæther Romuld.

Dividend

In the past few quarters, SalMar has demonstrated its ability to adapt to changing market conditions by posting strong results and maintaining a solid financial position. On this basis, the board of directors is recommending that a dividend of NOK 20 per share be paid for the 2020 financial year.