Weak performance, but better biological status

Siri Elise Dybdal

According to the Q3 2013 report for Grieg Seafood Hjaltland, the performance in Shetland was again weak in the third quarter, although it was an improvement on the previous quarters.

The operating profit before fair value adjustment of biomass was NOK 0.05 per kilo in the third quarter, compared with a loss of NOK 8.77 per kilo in 2012. Realised prices in Shetland in the third quarter were low compared to the market, due to a high share of harvest of small-sized fish and the majority of harvest in the month of September.

Implemented measures in Shetland have improved the underlying biological situation and this is reflected in seawater production which continued to improve in the third quarter. The AGD situation this year shows an improvement on the corresponding period last year. The cost level was slightly lower than in last year’s third quarter, and substantially lower than in the first half of 2013. As expected, the lice situation in the third quarter was more demanding than in the first half of the year, but it was a considerable improvement on last year’s third quarter.

“Grieg Seafood Hjaltland has established a much improved strategy and preparedness for the treatment of both lice and AGD, and this is now being reflected in positive results in the form of a better biological status and increased seawater production,” the company stated.

The new smolt facility became operative in the third quarter and production will be stepped-up over the next 12-18 months. Improvements in the quality and size of the smolt are important elements in the process of improving both biological production, improve seawater production and at the same time lowering the biological risk.

Lice treatment costs in Shetland are above historic al levels, but this is part of the process aimed at improving both the biological and the lice situation in the region. But, in spite of this, a reduction in the cost level is expected in the period ahead.