Bergen, Norway-based salmon-farming group Grieg Seafood has posted its best-ever first-quarter results, citing a strong market and continued biological improvement for its performance.
Grieg posted operational earnings before interest and taxes (EBIT) of NOK 453 (USD 46 million, EUR 44.3 million) before fair-value adjustment of biomass in the quarter, reversing a loss of NOK 16 million (USD 1.6 million, EUR 1.5 million) for the corresponding period of 2021.
In Q1 2022, Grieg reported an increase in sales revenues of NOK 805 million (USD 81.7 million, EUR 78.7 million) to almost NOK 1.5 billion (USD 152.2 million, EUR 146.7 million), while the total volume of salmon harvested by Grieg in the quarter rose to 16,900 metric tons (MT). Grieg said it had achieved an EBIT per kilo of NOK 26.80 (USD 2.72, EUR 2.62) versus a per-kilo loss of NOK 1.20 (USD 0.12, EUR 0.11) a year previously.
Within Grieg’s Norwegian farming operations, Grieg said its Finnmark region suffered an impact from winter ulcers, though it was significantly lower than in Q1 2021. Grieg’s Rogaland operations benefited from “a favorable harvesting profile” throughout the quarter, combined with strong underlying cost performance. Rogaland harvested 9,645 MT of salmon in Q1 2022, while Finnmark contributed 5,175 MT.
Its British Columbia, Canada operation's “solid results” were driven by good price achievement from a favorable harvesting profile and value-added premium, in addition to improved farming cost from better biological conditions and increased survival. It harvested 2,096 MT in the quarter. In Newfoundland, Canada, Grieg’s freshwater production has advanced according to plan, with the fish growing well, Grieg said. The first stocking of 2022 is planned for this month.
"The first quarter of 2022 has been unlike anything I have seen before in my 26 years in the salmon farming industry,” Grieg Seafood CEO Andreas Kvame said. “The market has been incredibly strong, with historic prices across the board. Grieg Seafood achieved the best result we have ever done in a first-quarter. All of our production regions performed well during the quarter, due to improved biological control and increased survival.”
The harvest volume for the second quarter is expected to total 22,300 MT, with its operations in Rogaland providing 4,800 MT, Finnmark 8,500 MT, and BC 9,000 MT. For the full-year 2022, Grieg has forecast a total harvest of 90,000 MT.
According to Grieg’s Q1 2022 report, the global harvest of Atlantic salmon this year is expected to decrease by 1 percent, or 36,000 MT to a total 2,858,800 MT. Norwegian salmon farmers are expected to harvest 6,000 MT less in 2022 than in 2021, Chile is expected to decrease its harvest by approximately 2,000 MT, and Canada is expected to decrease harvest by approximately 13,000 MT for 2022. The remaining salmon farming countries will decrease their volume by approximately 14,000 MT, Grieg predicted.
Photo courtesy of Grieg Seafood
