Biological challenges dent Grieg Seafood’s third-quarter earnings

Grieg Seafood Group (GSF) harvested 16,940 metric tons (MT) of salmonids in the third-quarter of this year, which was a slight increase on the corresponding period of 2017, according to the company’s latest operational update.

However, an increase in gill related diseases in Shetland and recurring incidents of harmful algal bloom in British Colombia (BC) during the last quarter resulted in reduced survival rate and higher costs. Consequently, GSF’s Q3 earnings from the two regions weakened with a combined write-down of NOK 50 million (USD 6 million, EUR 5.3 million). 

Its Norwegian operations performed better than expected during the quarter, the company said, with good biological performances and reduced costs in both Finnmark and Rogaland. 

GSF Finnmark also got two new locations in the quarter, improving capacity utilization in the area. 

The group achieved operational earnings before interest and taxes (EBIT) per kg of NOK 9.43 (USD 1.13, EUR 0.99), down from NOK 13.59 (USD 1.63, EUR 1.43) in Q3 2017.


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