Norwegian salmon producer Grieg Seafood reported a strong first quarter on a strong market and strong salmon prices.
Grieg reported an operating profit of NOK 51 million (USD 8.7 million, EUR 6.8 million), compared to NOK 4.8 million (USD 820,000; EUR 637,000) during the same time period last year. The company harvested 4,494 metric tons (MT) of salmon in the first quarter, down from 13,715 MT in the first quarter of last year.
Operating income was down to NOK 517 million (USD 88.4 million, EUR 68.6 million) compared to NOK 548 million (USD 93.6 million, EUR 72.7 million). The drop is largely due to high production costs, which Grieg said were higher in all regions.
Based on current forecasts for global salmon production and harvested volumes, the outlook for salmon in 2013 and 2014 is very good, according to Grieg. Supply-side growth this year is expected to be marginally positive, and the production forecasts for 2014 also indicate a modest increase in salmon supply.
The company expects to harvest a total volume of 66,000 tons this year, down 3,000 tons from 2012. The decline is due to low temperatures and growth rate in the south of Norway and the U.K., as well as minor changes in British Columbia and Finnmark due to production optimization. In the second quarter of 2013, Grieg expects to harvest 14,000 tons.
