September 6, 2012

 

 

Scottish Salmon Company's (SSC) is planning targeted volume growth and consistent supply for 2012-2016 through the year and on-year after considering the imbalance production across its operations which affects the tonnage of harvested salmon for first half of 2012.

 

SSC reported net operating revenue for the second quarter of 2012 of GBP17.5 million (US$28 million) with sales of 5,290 tonnes versus figures of GBP31.7 million (US$50.4 million) and 7,582 tonnes a year ago. These downward trends were influenced by further downward pressure on traded fish prices during June.

 

This pressure was caused by increased volume on the traded fish market due to a rise in short-term harvesting from competing production areas, a pressure which is forecast to continue through the first half of Q3. Pressure also continued on feed and fish meal prices with a disadvantageous effect on overall cost.   

 

For the half year, net operating revenue was GBP30.1 million (US$48 million) on sales volume of 9,002 tonnes.

 

EBITDA before fair value adjustment on biomass for Q2 was GBP2.1 million (US$3.3 million) and EBIT before fair value adjustment on biomass for Q2 was GBP300,000 (US$447,000).

 

Scottish Salmon Company's main strategic objective is to boost harvest volumes in the low periods to maximise cost utilisation and for long-term sustainable growth.

 

"Our expectation is that 2012 will continue to be a challenging year for the salmon market, however, we remain focused on the long term. We continue to build positively for the future and remain confident in our growth plans to produce around 40,000 tonnes of salmon per year by 2016," said the firms's CEO, Stewart McLelland.

 

The company obtained planning permission and full licence for a new farming facility in Loch Torridon on the Northwest coast of Scotland during Q2.

 

In Q4, there will be a smolt input which will deliver 2,500 - 3,000 tonnes of additional production in 2014. The development is part of SSC's five-year growth strategy which seeks to increase production levels to 40,000 tonnes annually.

 

For SSC, the past quarter and first half of 2012 reflected the underlying challenges due to the unbalanced harvest profile further exacerbated by the current downturn in traded fish prices.

 

"Nevertheless, the Company remains resilient and encouraged by the granting of consents for one new production site at Loch Torridon," the firm added.