Strong cash flow, dividend hike lift SalMar to nearly 1.5 year high

SalMar ASA

15/02/2024 10:04

** Shares in SalMar  SALM.OL  rise nearly 5% to touch their
highest level since September 2022 after the Norwegian fish
farmer proposed raised dividend, citing strong financial
position
    ** The company proposes a dividend of NOK 35 per share for
2023, up from NOK 20 distributed last year
    ** Christian Olsen Nordby from Arctic Securities says the
company guides on a strong cash flow profile ahead with lower
resource tax than the broker estimated, which allows for a
strong dividend 
    ** "It has been speculated for a while that SalMar would
struggle with jellyfish and thus the guidance cut today seems
largely incorporated," he adds
    ** SalMar said a string of jellyfish attacks on its
facilities in Norway towards the end of Q4 resulted in a 20,000
tonnes reduction in guided harvest volumes for 2024 
    ** On Wednesday, shares of SalMar's peer Mowi rose 4% driven
by better-than-expected dividend and promising volume growth
prospects 


 (Reporting by Jagoda Darlak)
 ((Jagoda.Darlak@thomsonreuters.com))