Shetland helps boost profits for Grieg – Fishfarmer Magazine

Shetland helps boost profits for Grieg14 February, 2014 –

GRIEG Seafood ASA has announced EBIT before value adjustment of biomass was NOK 87m in Q4 2013 against NOK -48.9m in Q4 2012 (NOK -140.4m after write downs in Q4 2014).

The results in BC continue to reflect low production following the furunculosis outbreak in the smolt facility. A high share of harvesting early in the quarter effects results in Norway negatively with more than NOK 2 per kg.

However, historically high process and the Shetland turnaround has greatly improved profitability. The harvested volume for 2013 was 15,995 tons, with 1,800 tons delayed until 2014.

The Group’s EBIT in the fourth quarter before value adjustment of biomass was NOK 87m, against NOK -48.9m in 2012. EBIT before fair value adjustment of biomass for the year as a whole was NOK 350.6m against NOK -99.6 m in 2012.

Excluding one-off costs in the quarter, EBIT before value adjustment of biomass reached NOK 115.3m. Comparable EBIT per kg increased from NOK -2.43 in 2012 to NOK 6.95 in 2013. EBIT per kg in Norway was NOK 8.2 per kg.

The improved results compared with 2012 are due to the sharp rise in prices in 2013, while the underlying production cost level is somewhat higher. 

The positive market trend continued into the fourth quarter, with strong demand and a low increase in global supply. Prices increased sharply, reaching historically high levels in the last part of the quarter.

The turnaround in Shetland has improved the biological situation, reduced production costs and improved the results. In BC the results are still exceptionally weak, reflecting low production following the outbreak of furunculosis in 2012.

Production was also lower and costs higher in the south of Norway due to low seawater temperatures at the start of the year, which the situation in the north of Norway has been as expected.

High share of total harvest in the first part of the quarter in Norway (81%) affected results in Norway negatively with more than 2 NOK per kg.

The results include one-off costs totalling NOK 28.3m in the quarter, related to write-downs of smolt in BC and on Shetland, as well as an increase in provisions under options schemes due to an increase in the share price.