“Relief rally” as Norwegian government signals change in resource rent tax

SalMar’s stock market cap is pumped up by EUR 200m after the Norwegian Minister of Finance, Trygve Slagsvold Vedum, opens for for adjustments in the proposed resource rent tax.

According to Klassekampen, Finance Minister Trygve Slagsvold Vedum is open to adjusting the salmon tax, and that he hopes that more than budget partner SV will join the final decision.

“Even though there has been a lot of noise now, I hope that several parties will agree that we need a certain resource rent tax. The wider it becomes in the Storting, the better,” says Vedum to the newspaper.

Read also: Norwegian minister of finance is open to adjusting the resource rent tax

The salmon shares, which have been hard hit on the stock exchange after the presentation of the proposal for a 40 per cent resourcce rent tax in aquaculture at the end of September, are rising after today’s news.

SalMar in particular gains in value on Wednesday morning. The share is up 5.1 percent in lively trading. Mowi (3.4 per cent), Lerøy (5.5 per cent), Austevoll Seafood (4.1 per cent), Grieg Seafood (5.9 per cent), Måsøval (11.1 per cent) also have something of a “relief rally” .

Pareto analyst Carl-Emil Kjølås Johannessen believes that it is SalMar that will suffer the most from the new resource rent tax, not least because of the acquisition of competitor NTS.

“They have much of their operations in Norway and little other value chain than salmon. There, we have calculated that EPS (earnings per share – ed. note) will fall by approximately 30 per cent,” he tells Finansavisen.


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