Grieg also hit by challenging salmon market
Lower salmon prices bit into Grieg Seafood’s fourth-quarter results.
The Norwegian company on Wednesday reported a operating loss of NOK 38.7 million in the fourth quarter of 2011, compared to an operating profit of NOK 246.9 million in the same period in 2010.
However, production costs in all regions was lower in the fourth quarter than in the preceding quarter. Also, new funding is being established, under which Grieg will receive a minimum NOK 400 million, replacing the short-term loan of NOK 200 million from November 2011 at maturity. Approval of the new funding is pending in one of its syndicate banks.
Grieg harvested 18,258 metric tons of salmon in the fourth quarter of 2011, up 1.5 percent from the same period in 2010. The company expects to produce 71,000 metric tons this year, with first-quarter production coming in at 15,100 metric tons.
In its outlook for 2012, Grieg said the market balance will gradually improve as supply growth diminishes due to a lack of production capacity and lower prices. Also, increased demand brought on by lower prices for consumers has also opened up new markets for salmon, added the company.