Low salmon price shaves off Grieg’s earnings in third quarter

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Salmon farmer settles for an EBIT / kg of EUR 0.72, down 22 per cent from the same quarter last year.

Grieg Seafood posted its quarterly results on Thursday morning. This shows that the company harvested 21,028 tonnes during the quarter. Revenue passed EUR 197 million in the quarter, driven by increased harvest volume, while operating profit, before biomass adjustment, ended at EUR 15.1 million.

The average realized price was down in Q3 2019 compared to Q3 2018, mainly driven by lower average spot market prices. The company reported strong biological operations in Norway and biological improvements in British Columbia. The improved biological situation in Shetland resulted in lower costs.

Expected harvest volume in 2019 is 82,000 tonnes, 10 per-cent increase from 2018. 2020’s harvest guiding of 100,000 tonnes remains.

“The third quarter was yet again characterized by solid performance for our Norwegian operations, with strong biological performance and continued high survival rates. Our post-smolt strategy in Rogaland is developing well and in Finnmark, another two sites were ASC certified during the quarter – a testament to our strict focus on sustainability,” wrote CEO Andreas Kvame.

“We also began to see biological improvements in BC, for which 2019 has been characterized by challenging environmental conditions. These improvements are the result of diligent, persistent work by our dedicated employees as well as extensive operational and technical solutions implemented to combat issues such as algae and low oxygen levels,” added Kvame.

The Board has decided to pay a dividend of NOK 2.00 per share.