Strong Q2 for Grieg but problems remain
HIGHER salmon prices helped propel the Norwegian fish farmer Grieg Seafood to higher profits and earnings during the second quarter of 2017.
But the company said that sea lice and algae were presenting challenges at its Shetland operations.
The company reported an operating income of NOK 2,030 million, an increase of 21 per cent on the same period last year. The EBIT (earnings before interest and tax) per kilo rose from NOK 19.20 to NOK 21.20. The harvest volume was 18,503 tonnes, up from 16,263 tonnes in the corresponding period last year, an increase of 14 per cent.
Grieg said it has been taking steps to reduce the production time in the sea in Shetland from 24 to 18 months.
‘Quarter two, 2017, saw the start of harvesting of the first fish under the new production plan, and because of this the costs have fallen slightly...nevertheless, costs remain high in Shetland.This relates especially to biological challenges, where sea lice and algae are the main concerns.There is close collaboration with other fish farming parties in the region with a view to finding solutions to these challenges.’