Disease and algea bloom eat their way into Grieg Seafood’s earnings

News
1222

Nature strikes as the company releases its Q3 2018 operational update.

In an update released today, the company said it experienced gill related diseases in Shetland, Scotland and algal bloom in British Colombia (BC), Canada, which resulted in reduced survival rates and higher costs.

Subsequently Grieg Seafood has a total write-down of EUR 5,2 million in two regions in BC and Shetland.

However, the company said the Norwegian side of the business, developed better than expected this quarter.

Improvements in both Finnmark and Rogaland (Norway) has been good and costs continue to fall. In addition, GSF Finnmark has received two new sites in the quarter, and has improved capacity utilisation in the area. The quarterly results in Rogaland are lower due to planned low harvest volumes, the company added.

Preliminary figures for the third quarter of 2018 indicate a total harvest volume for Grieg Seafood of 16 940 tonnes and a Group EBIT per kilo of NOK 9.43 (EUR 0.9).

Shares in Grieg, which has had a strong development lately, fell heavily after the news was released. As of the stock market opening, the share price is down nine percent.