Scotland's Grieg Seafood posts strong profit growth in 2009

 

 

Shetland's largest salmon farming company, Grieg Seafood Hjaltland, achieved an operating profit before fair value adjustment of biological assets of NOK154 million in 2009, compared to NOK -173 million in 2008.

 

The profit before tax increased correspondingly from NOK -442 million to NOK318 million in 2009.

 

In fourth quarter, Grieg Seafood reached an operating profit before fair value adjustment of biological assets of NOK63 million, compared to NOK -251 million in fourth quarter 2008. This represents an operating profit of NOK3.94 per kg in fourth quarter 2009, compared to an adjusted operating profit of NOK -4.19 per kg in fourth quarter 2008. The turnover increased with 32% in the quarter, and the volume increase was 23%, according to the company.

 

A significant improvement in the results in Norway and Shetland is the reason for the improved result. Better operational performance and a continued strong salmon market is the reason, said CEO Morten Vike.

 

However, fourth quarter result in Canada is weak, mainly due to one incident with high mortalities caused by toxic algae.

 

Meanwhile, the salmon market remains strong with solid demand despite increasing prices and the global recession. 2009 saw a reduction in the global supply of atlantic salmon due to a strong reduction from Chile.

 

According to Vike, the salmon prices were not very high in the beginning of fourth quarter, but increased during the quarter along with the seasonal increase in demand.

 

He remains positive on the market outlook at the beginning of 2010, noting a further reduction in the global supply of atlantic salmon expected. This has also caused 2010 to start off with historically high prices.

 

Through last year, Grieg Seafood has increased focus on operational efficiency and measures to reduce cost of production, improve fish health and the biological situation, as well as organisational and competency development.

 

Going forward, the focus on operational efficiency and operational improvements will continue to be our main priority. This shall contribute to further improvements in profitability.

 

Grieg Seafood expects a harvest volume in 2010 of 68,000 tonnes, a growth of almost 40%.