Stolt Sea Farms 2Q profit falls


SeafoodSource staff

Published on
July 3, 2014

Stolt-Nielsen Limited reported unaudited results for the second quarter ended 31 May 31 2014, including results for Stolt Sea Farms.

The company’s net profit for the quarter was USD 30.8 million (EUR 22.6 million), with revenue of USD 543.4 million (EUR 399 million), compared with USD 18.6 million (EUR 13.7 million), with revenue of USD 516.7 million (EUR 380 million), in the first quarter of 2014. 

Net profit for the first six months was USD 49.4 million (EUR 36.3 million), with revenue of USD 1.1 billion (EUR 808 million), compared with USD 25.7 million (EUR 19 million), with revenue of USD 1.05 billion (EUR 771.7 million), in the first half of 2013.

Stolt Sea Farm reported an operating loss of USD 5.2 million (EUR 3.8 million), compared with an operating profit of USD 1.4 million (EUR 1.03 million), reflecting a negative impact of USD 4.7 million (EUR 3.5 million) from the accounting for inventories at fair value, versus a negative impact of USD 1 million (EUR 734,817) in the first quarter.

“Stolt Sea Farm's results reflected the seasonal decline in caviar sales. Turbot prices continued to weaken during the quarter, contributing to a negative fair value adjustment to inventory of USD 4.7 million. Post quarter-end, turbot prices increased, and we expect this trend to continue in the second half of the year," said Niels Stolt-Nielsen, CEO.

"We will start selling sole from our new land-based farm in Iceland in the third quarter, as the fish are growing faster than expected due to the optimal water conditions. We expect to produce 600 metric tons (MT) annually in the first phase, but infrastructure and land are available to expand capacity up to 2,000 MT.”

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