Grieg Seafood ramps up Q1 harvest, profits rise
Norway-headquartered salmonid producer Grieg Seafood ASA posted operational earnings before interest and taxes (EBIT) of NOK 162.1 million (USD 20 million, EUR 16.9 million) before fair value adjustment of biomass in the first-quarter of this year, up from from NOK 131.5 million (USD 16.2 million, EUR 13.7 million) in the corresponding period of 2017.
At the same time, its operating revenues for the three-month period increased 5 percent year-on-year to almost NOK 1.5 billion (USD 184.6 million, EUR 156.6 million), while operating costs per kg were down by NOK 1 in the quarter, mainly as a result of higher harvest volumes in addition to a more stable biological situation.
The total volume of salmon that Grieg harvested in the last quarter increased almost 34 percent year-on-year to 11,433 metric tons (MT).
In its results statement, Grieg said that the average spot price for the period fell by NOK 5.36 (USD 0.66, EUR 0.56) per kg to NOK 60.54 (USD 7.45, EUR 6.32), while its average realized price dropped NOK 2.70 (USD 0.33, EUR 0.28) per kg, partly due to most harvesting taking place toward the end of the last quarter when prices were highest.
“Grieg Seafood has an overall goal of increasing production by at least 10 percent each year until 2020. Furthermore, the group has an ambition to achieve production costs equal to or lower than the industry average,” said CEO Andreas Kvame.
One of the most important measures to raise production is to increase the smolt capacity and to stock larger smolts, he said. In 2017, Grieg stocked 26 million smolts and it intends to repeat that stocking this year.
“This provides a good basis for harvesting 100,000 MT by 2020.”
Grieg’s harvest volume for the second-quarter is expected to be 21,400 MT. For 2018 as a whole, the harvest is expected to be 80,000 MT, up 28 percent on 2017’s total.