Norway-headquartered salmonid producer Grieg Seafood ASA achieved operational earnings before interest and taxes (EBIT) of NOK 131.5 million (USD 15.3 million, EUR 14.1 million) before fair value adjustment of biomass in the first quarter of this year, down from from NOK 214 million (USD 24.9 million, EUR 22.9 million) in the corresponding period of 2016.
The total volume of fish that Grieg harvested in the last quarter totaled 8,552 metric tons (MT), a decrease of 37 percent year-on-year. The company highlighted that the low harvest volume was planned in order to maximize the level of biomass in the sea in order to achieve higher growth.
In its results statement, Grieg said that in Norway, the proportion of salmon sold on fixed price contracts stood at 55 percent in Q1 2017 and that this proportion is expected to be around 17 percent in Q2 – partly due to an increase in the harvest volume in the quarter.
The fixed price proportion for 2017 as a whole stands at 21 percent, with Grieg saying some increase in this figure is planned.
The company highlighted that a stated goal is to reduce its cost level to the industry average or lower. It will also be aiming to increase production by 10 percent annually in the period 2018-2020. In addition, it is focused on improving operating efficiency, involving both increasing production per plant and per license, as well as reducing costs per kg.
One of the key steps it is taking is to set out bigger smolt, which will make it possible to shorten the production time in sea cages. It is therefore increasing the amount of smolt set out in 2017.
Grieg’s harvest volume in Q2 2017 is expected to be 18,000 MT. For 2017 as a whole, the harvest is expected to be 70,000 MT, up 8 percent on 2016’s total.
