SSF profits drop but Orkney performs well

SALMON farming giant SalMar has reported reduced revenues and profits from its Scottish Sea Farms operations in the first quarter of 2019, the group’s latest figures show.

Q1 revenues fell from NOK 519 million (£46.6 million) in 2018 to NOK 405 million (£36.3 million) this year, while pre-tax profits dropped from NOK 178 million (£16 million) to NOK 58 million (£5.2 million).

SalMar blamed the decrease in revenues to lower harvest volumes, which fell by 1,700 tonnes to 4,800 tonnes.

It said the bulk of the volume harvested came from Orkney, which enjoyed good operational performance and average weights.The remaining volume harvested came from mainland Scotland.

The UK business, which SalMar shares with Lerøy Seafood, has been hit by various biological problems, particularly in Shetland, and the results were not unexpected.

However, SalMar said in its annual report a few weeks ago that Scottish Sea Farms, also known as Norskott Havbruk, was starting to turn the corner thanks to high harvest weights, good prices and improvements in cost reductions.

The business is scheduled to harvest 30,000 tonnes this year.

‘The financial result has been negatively affected by costs relating to high mortality at certain sites,’ said SalMar.

‘Fifty per cent of the quarter’s volume was sold under contract. Operational EBIT per kg gutted weight came to NOK 22.78 in the first quarter 2019, compared with NOK 26.67 per kg in the same period in 2018.’