Grieg Shetland income up amid ongoing challenges
THE Grieg Seafood Group ended 2018 on a high, with record harvest volumes and increased revenues, its results for the final quarter and whole year show.
Driven by high prices and cost reductions, the group reported a fourth quarter EBIT of NOK 351 million compared with NOK 151 million 12 months earlier.The EBIT per kg amounted to NOK 14.81 for the period, up from NOK 8.07 in Q4 2017.
The harvest volume was 27 per cent higher at almost 24,000 tonnes, thanks to a strong performance in Norway. But the company said it was still tackling biological challenges in Shetland.
Grieg said: ‘The farming cost (total cost related to fish harvested this quarter) increased by NOK 0.43 per kg compared to the same quarter last year. This is mainly related to the high cost of harvested fish in British Columbia (BC) and on Shetland, which was affected by harmful algal bloom (HAB) and gill related diseases.’
Yet despite these problems, fourth quarter revenues in Shetland were up from NOK 185.7 million to NOK 245.2 million and the year up from NOK 745.9 million to almost NOK 800 million. Grieg also said that the quality of the fish in the final quarter had been high, contributing to good prices.
However, the region experienced reduced survival during Q4, caused by gill related diseases and winter ulcers.
The total harvest volume for the year in Shetland was 11, 924 tonnes, close to the expectation of 12,000 tonnes. Planned harvest volume for Q1 2019 is 1,600 tonnes.
Grieg said : ‘Grieg Seafood Shetland continues to co-operate closely with the other sea farmers in the region. Whole farming areas now operate with a three-month fallowing period, and lice counting and treatment activity is coordinated between farmers.
‘Over the last four years, production at Grieg Seafood Shetland has been cut from 27 to 17 sites, focusing production on the best sites with the strongest biological control. By focusing on initiatives to improve biosecurity and fish welfare, Grieg Seafood Shetland maintains the target of a harvest volume of 17,000 tonnes with a production cost of NOK 43 per kg in 2020.’