Good salmon prices boost Scottish Sea Farms performance – Fishupdate.com
Good salmon prices boost Scottish Sea Farms performance Published: 26 February, 2009
Scotlands second largest salmon farming company, Scottish Sea Farms Ltd, has reported a strong final quarter for 2008 however the overall financial performance for 2008 was well down on 2007 figures.
The company harvested 6,600 tonnes gutted weight of salmon in the fourth quarter 2008, compared with 5,800 tonnes for the same quarter in 2007. This generated gross operating revenue of NOK 236.2 million (£23.8 million) in the fourth quarter 2008, compared with NOK 187.9 million in the same quarter the year before.
Operating profit before fair value biomass adjustments totalled NOK 10.1 million, (£1 million) compared with NOK 4.8 million in the same quarter in 2007. Total revenue for 2008 came to NOK 772 million (£78 million) compared to NOK 841 million in 2007. Operating profit (before biomass adjustments) for 2008 came to NOK 58 million (£5.8 million) compared to NOK 140 million in 2007.
Operating profit per kg of gutted weight totalled NOK 1.52 in the fourth quarter 2008, compared with NOK 0.83 in the same quarter in 2007. The increase was ascribed primarily to higher salmon prices in the fourth quarter 2008 compared with the same quarter the year before. As in the fourth quarter 2007 costs during the quarter were affected by fish health issues, primarily salmon lice and PD. This resulted in the harvesting of fish with a low average weight and high production costs per kg.
During the period ISA was identified at one of the companys sites in Shetland. When the disease was identified, however, the site contained a limited amount of biomass, all of which was immediately harvested at the start of 2009. During large parts of 2008 this area of Shetland struggled with salmon lice and PD, due to a heavy overall production burden. Following the harvesting of its entire local biomass in January 2009, Scottish Sea Farms no longer has any fish in this area.
Scottish Sea Farms Ltd has a production capacity of 30,000 tonnes and is wholly owned by the Norwegian company Norskott Havbruk AS which is jointly owned by SalMar AS and Lerøy Seafood Group ASA.