Grieg Seafood nets higher Q2 revenues despite setbacks
Grieg Seafood announced that total operating income jumped double digits in the second quarter, while also lowering its harvest outlook for the whole year.
The Norwegian salmon farmer’s total operating income in Q2 2018 amounted to NOK 2.3 billion ($278 million), up 14 percent compared to the same period last year. This despite production at its Rogaland and British Columbia sites being impacted by pancreas disease and algal bloom, respectively.
It expects harvest of 75,000 tonnes in 2018, up 20 percent from 2017 figure but lower by 5,000 tonnes of the initial guidance for the year because of the Rogaland and BC issues in June.
Grieg remains committed to increasing production by at least 10 percent annually until 2020; it aims to harvest 100,000 tonnes that year.
Furthermore, the company aims to achieve production cost “at or below the industry average.” “Increased volumes, improved capacity utilization and shorter production time in sea will contribute to higher efficiency and reduced production costs. The Group also continually undertakes cost-reducing initiatives and has established an internal improvement program, scheduled to run until 2020,” it said.
It believes “continued access to high-quality smolt is critical to ensure future growth.” “Larger smolt will result in shorter production time in sea, thus contributing to reduced biological risk and increased survival.”