And toxic al­gae hit Lerøy Q2 re­sults too

Fish Farmer - - European | News -

THE Lerøy Seafood Group, co-own­ers of Scot­tish Sea Farms, an­nounced higher earn­ings, but lower prof­its for the 2019 sec­ond quar­ter pe­riod.

Rev­enues were up six per cent and to­talled NOK 5,340 mil­lion, com­pared to NOK 5,042 mil­lion for the same pe­riod in 2018.

Op­er­at­ing profit (EBIT) be­fore fair value ad­just­ment re­lated to bi­o­log­i­cal as­sets came out at NOK 774 mil­lion, down from NOK 1,000 mil­lion in Q2 2018, due to lower farmed fish prices and earn­ings.

But the com­pany also said that the un­ex­pected al­gae out­break in the north of Nor­way had af­fected re­sults.

CEO Hen­ning Bel­tes­tad said: ‘In terms of earn­ings, the sec­ond quar­ter fig­ures are in line with the ex­pec­ta­tions we had go­ing into the quar­ter.

‘How­ever, we know that we have the po­ten­tial to do bet­ter and that our skilled em­ploy­ees are do­ing their ut­most to ex­ploit this po­ten­tial to the full. We have made sev­eral ma­jor in­vest­ments in farm­ing in re­cent years. The re­sults of these, how­ever, are not im­me­di­ately ob­vi­ous as the projects have long lead times.’

‘Re­lease from stock costs were too high in the sec­ond quar­ter, but we ex­pect to see an im­prove­ment in the sec­ond half of the year and into 2020.

‘Our trawler fleet for white fish has been suc­cess­ful in the quar­ter, while our on­shore fa­cil­i­ties in this seg­ment have had a chal­leng­ing quar­ter. We have made a num­ber of in­vest­ments in this area also, and ex­pect these to pro­vide last­ing im­prove­ments by 2020.’

He said down­stream, the com­pany was watch­ing the re­sults of in­vest­ments made in re­cent years and ‘can re­port a strong quar­ter’.

Turn­ing to other prob­lems, Bel­stead said: ‘A fire in a smolt plant in the win­ter and an un­fore­seen out­break of toxic al­gae have im­pacted the re­sults both for the sec­ond quar­ter and the first half of the year.

‘But now that this dif­fi­cult pe­riod is be­hind us, we are con­fi­dent that we have a strong po­si­tion mov­ing for­ward into the sec­ond half of the year and into 2020.

‘For our farm­ing seg­ment, the re­sults of the in­vest­ments we made in smolt will grad­u­ally ma­te­ri­alise, and we ex­pect to gain po­ten­tial in terms of both in­creased vol­ume and lower costs per kilo­gram of fish pro­duced.’

Above: Hen­ning Bel­tes­tad

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