Improved first-quarter harvest, profits for Grieg
Citing strong business growth and an improved biological performance, salmonid producer Grieg Seafood ASA posted operational earnings before interest and taxes (EBIT) of NOK 267.5 million (USD 30.6 million, EUR 27.3 million) before fair value adjustment of biomass for the first quarter of this year, up from NOK 162.1 million (USD 18.5 million, EUR 16.6 million) in the corresponding period of 2018.
At the same time, the Bergen, Norway-headquartered group’s revenues for the three-month period increased 9 percent year-on-year to almost NOK 1.7 billion (USD 194.3 million, EUR 173.7 million), while the total volume of salmon harvested in quarter increased by 30 percent year-on-year to 14,801 metric tons (MT).
Grieg CEO Andreas Kvame said the “strong performance” was the result of dedication to four strategic focus areas – large smolt, digitalization, biosecurity and fish welfare, and operational expansion.
“We are still in the early stages in executing on our priorities and we expect continued growth and operational improvements going forward,” he said. “We remain confident in our 2020 target of 100,000 MT harvest with cost at or below industry average, and with our five pillars for sustainability, we remain committed to our ambition for sustainable salmon farming and long-term value creation for all our stakeholders.”
Grieg’s harvest volume for the second-quarter is expected to be 21,000 MT. For 2019 as a whole, the harvest is expected to be 82,000 MT, up from 74,623 MT in 2018.
In its results statement, Grieg said the global supply of Atlantic salmon is expected to increase by approximately 4 to 7 percent this year, mainly due to increased harvest volume in Norway, the United Kingdom, and Chile.
But with a growing demand and limited possibilities for increase in harvest volumes, prices are expected to remain high, the company added.