August 19, 2010

Norwegian Grieg Seafood's operating profit shows substantial increase

The operating profit before value adjustments of biomass for Norwegian company Grieg Seafood ASA jumped to NOK172 million (US$27.9 million) in the second quarter of 2010, from NOK72 million (US$11.7 million) a year earlier.

The pre-tax profit declined to NOK189 million (US$30.7 million) in April to June 2010 from NOK272 million (US$44.2 million) in the same period of 2009.

Second-quarter revenue increased to NOK581 million (US$94.4 million) from NOK 474 million (US$77 million).

"The strong market for salmon continued through the second quarter. The decline in supplies from Chile contributed to continued high prices. So far in the third quarter, prices have been at a historically high level," Grieg Seafood said.

The company added the supply side is expected to remain tight for the remainder of the current year and in 2011. It expects a gradual increase in supplies from Chile from the second half of 2011. The overall demand for salmon has been staedy, despite the higher price level.

Grieg Seafood and local salmon producer Bremnes Seashore have decided to set up a new jointly-owned sales company for the operations in Norway. The move is part of Grieg Seafood's sales and marketing strategy.