Best quarter ever for Grieg

Norway and Canada salmon farmer Grieg Seafood today reported a record quarterly operating profit of NOK 986 million (£85.6 m / Can $131 m), driven by exceptionally high prices and good biological performance.

The result for the second quarter of 2022 is an increase of more than 2,100% over the NOK 44 m operating profit made in the same period last year and is based on an increased harvest volume of 23,700 gutted weight tonnes (Q2, 2021: 17,800 gwt).

The extra volume was partly the result of a decision by Grieg to accelerate harvesting to take advantage of the high spot prices that characterised Q2.

Historic quarter

Grieg was also able to keep group farming costs down to NOK 48.6 per kg (NOK 50.7 in Q2 2021) despite inflationary pressure.

“As a continuation of the positive trend in Q1, the second quarter of 2022 also turned historic,” said chief executive Andreas Kvame in a press release.

“Due to the strongest market the industry has seen, coupled with solid production, I am proud to present Grieg Seafood’s best result in a single quarter ever.

“I want to sincerely thank all of my dedicated and hardworking colleagues in both farming and sales for their efforts and achievements throughout the quarter. In line with the strategy of our integrated sales organisation, we successfully expedited some harvest to capitalise on strong prices in the market.”

Record in Norway, solid in BC

Grieg’s Norwegian farming divisions in Rogaland and Finnmark both delivered record results on the back of high prices and good biology.

Results in British Columbia were solid, driven by good price achievement from premium on value added products, in addition to stable costs from harvesting of sites with good biological performance.

During the quarter Grieg also transferred two million smolts to the first of its new sites in Placentia Bay, Newfoundland, and reported high survival and no sea lice issues.

Finnmark was the best performer, making an operating profit of NOK 53.0 per kilo (Q2 2021: NOK -2.2) on a harvest of 9,843 gwt (4,780 gwt), with Rogaland making NOK 48.9 (NOK 10.2) on a harvest of 5,014 gwt (7,783 gwt).

Grieg’s operation in British Columbia made NOK 30.9 per kilo (NOK 8.4) on a harvest of 8,815 gwt (5,249 gwt).

Reduced full-year harvest

The company is guiding for a harvest of 21,400 gwt in the current quarter and 87,000 gwt for the full year, a reduction of 3,000 gwt on previous guidance. Grieg had reduced its estimate for Finnmark by 2,000 gwt due to expedited harvest to capitalise on strong market and reduced growth in sea during Q2 as a result of lower temperatures.

Estimated harvest volume in BC has been reduced by 1,000 gwt to 21,000 gwt due to accelerated harvest of fish due to risk of early maturation.