Challenging quarter for Grieg in BC
Algal blooms have been partly blamed by the producer for a lower harvested volume in Q3 compared to the same quarter of 2015.
Reduced growth rates and mortality due to harmful algae has resulted in higher-than-usual production costs for Grieg's BC operations, according to the company's latest quarterly report - with the harvested volume has dropping from 4,470 tonnes in the same time last year, to 2,536 tonnes.
However, despite this, sales revenue and EBIT/kg is reported as higher this year to date compared to 2015.
The EBIT before fair value adjustment of biomass was NOK 4.0/kg in Q3, compared to NOK -6.2/kg in the same period last year.
The company says that costs are expected to be high in Q4 as well, but will likely fall again in 2017.
In the report, Grieg states that improvements can be made to the business plan as they find neither "development nor the volatility in the region satisfactory".
However, based on the close proximity of BC to the US market, the company states they will be strongly focused on ensuring BC achieves increased and more stable production in the future.
