Mowi warns of lower Q3 harvest from Scottish operations

Mowi Scotland expects to report a lower harvest for Q3 of 2020

Salmon farming giant Mowi is set to report lower third quarter harvests and profits from its Scottish operations.

In a trading update, the company said its Farming Scotland division had produced harvest volumes of 16,000 tonnes between July and September, compared with 19,500 tonnes over the same period last year.

However, the Q3 output 12 months ago was quite exceptional and more than double that of 2018. The Scottish EBIT or operating profit is well down, emerging at €0.35 per kg compared with €1.35 in Q3 2019.

Mowi is by far the world’s largest salmon farmer and the global picture for the company looks a somewhat brighter with a total harvest volume of 126,000 tonnes, compared to 117,000 tonnes in 2019.

The Farming Ireland division harvest volume rose by 1,000 tonnes to 3,000 tonnes and so too is the EBIT which is up from €1.4 to €1.85 per kg.

Norway is Mowi’s largest salmon producer and Farming Norway delivered 76,500 tonnes during the quarter, compared to 63,500 tonnes in 2019. The EBIT per kg is €0.85, down from €1.64 a year ago.

Farming Canada produced 12,000 tonnes (15,786 tonnes in 2019), and made a loss of €0.55 per kg, while the harvest volume from Chile totalled 16,500 tonnes (14,137 tonnes).

Mowi’s global operational EBIT is forecast to be around €80 million, compared to almost €148 million last year. Farmin Faroes produced 2,000 tonnes with the EBIT slightly down at €1.3 per kg.

Mowi will produce its full Q3 report early next month when it is expected to give more detail on how Covid-19 has affected performance.