Grieg Seafood hit by high costs in Canada in Q1

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Produced salmon at almost EUR 5.9 per-kilo.

On Wednesday, the investment bank Carnegie published an analysis report in which its seafood analyst Lars Konrad Johnsen predicted that Grieg Seafood will “run out of money and options” during the second half of 2021. Johnsen believes the company needs an equity deposit of EUR 100-200 million. He expects an operating deficit of EUR 6.3 million in the first quarter of the year.

The report sent Grieg shares 11.3 per-cent down because of share issue fears.

On Thursday morning Grieg Seafood will present its first-quarter trading update. The company is not disclosing the actual operating profit but presented harvest volume and production costs.

Grieg harvested a total of 13,600 tonnes of salmon during the first three months of the year. This excludes the problem business in Shetland, which has long been up for sale.

In the three production areas that Grieg continues to focus on, the harvest volume was as follows:

Rogaland: 5,300 tonnes
Finnmark: 7,400 tonnes
British Columbia: 900 tonnes

The average production cost for the three regions was as follows:

Rogaland: EUR 4.2
Finnmark: EUR 4.6
British Columbia: EUR 5.9

Grieg Seafood did not disclose sales prices achieved, nor any financial results for the first quarter.