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Operating profit jumps 42% for Scottish Sea Farms in Q1

Salmon farmers on an SSF farm at Managaster, Shetland. SSF's operating profit and harvest increased year on year on Q1. Photo: SSF.
Salmon farmers on an SSF farm at Managaster, Shetland. SSF's operating profit and harvest increased year on year on Q1. Photo: SSF.

Salmon producer Scottish Sea Farms (SSF) increased its year-on-year operating profit by almost 42% to NOK 105 million (£8.8m) in the first quarter of this year compared to the same period last year, co-owner SalMar said in its Q1 2022 report today.

SSF, which increased production capacity by buying Grieg Seafood’s Shetland operation (Grieg Seafood Hjaltland UK Ltd) in December last year, harvested 7,800 gutted weight tonnes in Q1, up by 32% from 5,900 gwt in Q1 2021.

Revenues were NOK 638m (Q1 2021: NOK 396m). SalMar attributed the increase to higher volume and higher salmon prices.

SSF's results for the first quarters of 2022 and 2021 and for last year as a whole. Click on image to enlarge. Table: SalMar Q1 report.
SSF's results for the first quarters of 2022 and 2021 and for last year as a whole. Click on image to enlarge. Table: SalMar Q1 report.

High cost base

Profit before tax more than doubled to NOK 274m (NOK 116m), and EBIT per kg gutted weight came to NOK 13.35 (NOK 12.39 per kg).

“Harvest of fish from sites with biological challenges [in the] second half of 2021 has led to a high cost base, in addition results are negatively impacted by the contract level of 52% in a period with strong increase in spot prices,” wrote SalMar, which shares 50/50 ownership of SSF’s holding company Norskott Havbruk with another Norwegian salmon farmer, Lerøy.

SSF's harvest volume and EBIT/kg both improved compared to Q1 2021. Click on image to enlarge. Graphic: SalMar Q1 presentation.
SSF's harvest volume and EBIT/kg both improved compared to Q1 2021. Click on image to enlarge. Graphic: SalMar Q1 presentation.

46,000 gwt this year

“Integration of Grieg Seafood Hjaltland UK Ltd (GSHU) into Norskott Havbruk continues according to plan and synergies are already starting to materialise”.

SalMar said a significant increase in the volume harvested by SSF is expected in 2022 as a result of the Grieg Shetland acquisition. The volume guiding to harvest 46,000 tonnes in 2022, up from 32,400 gwt last year, is unchanged after Q1.