Second-quarter profits rise, salmon harvest falls for Leroy Seafood

Published on
September 1, 2017
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Leroy Seafood Group (LSG) reported operating profit before fair value adjustments of NOK 801 million (USD 103.7 million, EUR 86.3 million) for the second-quarter of this year, up five percent from NOK 760 million (USD 98.4 million, EUR 81.8 million) in the corresponding period of 2016. 

The Norwegian fish farming and fishing company’s revenue for the last quarter fell slightly to NOK 4.2 billion (USD 543.6 million, EUR 452.2 million). Compared with Q2 2016, LSG’s salmon and trout harvest fell by 36 percent to 26,156 gross weight tonnage (GWT), but it highlighted that its Q1 2017 harvest was high and that for 2017 as a whole, the harvest is expected to be larger than last year.

For the first half of 2017, the group’s revenue totaled NOK 9.7 billion (USD 1.3 billion, EUR 1 billion), up 20 percent year-on-year, while its operating profit reached almost NOK 2.1 billion (USD 271.7 million, EUR 226.1 million), compared with NOK 1.3 billion in H1 2016, which represented the highest totals in any half-year period in LSG’s history.

Following the acquisitions of Havfisk and Norway Seafoods in 2016, LSG is also Norway’s largest whitefish corporation. These two businesses make up LSG’s Wild Catch segment, with Norway Seafoods being renamed Leroy Norway Seafoods AS (LNWS). 

Havfisk's total catch volume in Q2 2017 was 16,769 metric tons (MT), compared with 17,020 MT in Q2 2016. Landings comprised 4,067 MT of cod, 2,050 MT of haddock and 6,585 MT of saithe. Compared with Q2 2016, prices for cod were up 9 percent, prices for haddock were up 30 percent while prices for saithe were down 28 percent. 

The remaining quotas as of Q2 2017 are approximately 25,000 MT, on par with the remaining quotas at the same time last year. 

LNWS’s primary business is processing wild-caught whitefish. The company has eight processing plants, five of which are leased from Havfisk, and it is the largest purchaser of cod from the coastal fishing fleet in Norway. 

The total contribution to operating profit made by these two companies in Q2 2017 was NOK 86 million (USD 11.1 million, EUR 9.3 million). 

LSG currently estimates a total harvest volume of 175,000 GWT salmon and trout for 2017, including LSG’s volume from associates and a wild catch volume in excess of 60,000 MT.

Contributing Editor reporting from London, UK

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