Grieg shines as Q1 vol­umes and sales jump

Fish Farmer - - News -

GRIEG Seafood beat all earn­ings fore­casts for the first quar­ter of 2018 on the back of con­sid­er­ably higher out­put, re­cent fig­ures show.

The com­pany har­vested 11,433 tonnes in Q1 2018, up 34 per cent on the 2017 Q1 fig­ure of 8,522 tonnes.

While the av­er­age in­dus­try spot price was down NOK 5.36 per kg on 2017, for Grieg Seafood the price achieved was only down by NOK 2.70 per kg.

This, said the com­pany, was mainly due to high harvest vol­umes to­wards the end of the quar­ter, when the spot price was at its high­est.

The re­sult­ing op­er­at­ing rev­enues for the first quar­ter of 2018 were NOK 1,493 mil­lion, a five per cent in­crease on last year.

Op­er­at­ing costs/kg were down by NOK 1.00 in the quar­ter, mainly as a re­sult of higher harvest vol­umes, in ad­di­tion to a more sta­ble bi­o­log­i­cal sit­u­a­tion.

The lower costs, com­bined with strong price achieve­ment in the quar­ter, re­sulted in an EBIT/kg of NOK 14.20, down com­pared to NOK 15.40/ kg in Q1 2017.

The com­pany’s EBIT (op­er­at­ing in­come) be­fore fair value ad­just­ments was NOK 162.1 mil­lion in Q1 2018, up from NOK 131.5 mil­lion in Q1 2017.

In Shet­land, which has faced bi­o­log­i­cal chal­lenges for some time, EBIT was -7.1 mil­lion NOK, a sig­nif­i­cant im­prove­ment on the same quar­ter last year (-14.4 mil­lion NOK).

The in­dus­try is col­lab­o­rat­ing to mit­i­gate the chal­lenges and Grieg Seafood is co­op­er­at­ing closely with the other farm­ers in the re­gion. Ex­tended fal­low­ing time, the use of cleaner fish and the mon­i­tor­ing of al­gae are mea­sures to be pri­ori­tised go­ing for­ward, said the com­pany.

Over­all, Grieg said its goal was to main­tain an an­nual pro­duc­tion growth of a min­i­mum of 10 per cent un­til 2020. Fur­ther­more, the com­pany aims to keep pro­duc­tion costs at or be­low the in­dus­try av­er­age.

Grieg ex­pects to harvest ap­prox­i­mately 21,400 tonnes in Q2 2018. For 2018 as a whole, the com­pany ex­pects to harvest ap­prox­i­mately 80,000 tonnes, which cor­re­sponds to a 28 per cent in­crease over 2017.

Right: Higher out­put

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