A Scottish Sea Farms site in Shetland. SalMar owns 50 per cent of Norskott Havbruk, which in turn owns 100 per cent of Scottish Sea Farms. Image: Rob Fletcher.

Solid quarter for Sea Farms

Scottish Sea Farms (SSF) has achieved an impressive final quarter of 2016, which was characterised by “a good biological situation in all regions”, despite “some sea lice issues in Shetland”.

Published Last updated

5,800 tonnes were harvested in the quarter, down from 6,300 in Q4 2015, but the average EBIT/kg was an impressive NOK 24.39 (up from NOK 0.82). For 2016 as a whole the EBIT/kg was NOK 16.9, up from NOK 4.5 the previous year. Harvest volumes for SSF are expected to increase from 28,000 tonnes in 2016 to 30,000 this year.

The company is jointly owned by SalMar and Lerøy and the results were published today, in the former’s Q4 report. The report also revealed that, despite spot prices reaching record levels in the quarter, SalMar’s earnings in the quarter were negatively affected by “a high contract rate and the challenging biological situation in Central Norway”. Despite this, Operational EBIT in the quarter came to NOK 21 per kg, up by NOK 11 per kg compared to Q4 2015.

"For the SalMar Group, results in the fourth quarter were mixed," says SalMar's acting CEO Gustav Witzøe, who is standing in for the ailing Trond Williksen. "Fish Farming Northern Norway performed very well, while the results posted by Fish Farming Central Norway were affected by the biological situation. SalMar has implemented a number of measures to deal with the situation, and fish welfare has been well protected throughout the quarter. Investments in non-medicinal delousing equipment and the improved availability of lumpfish have also strengthened the segment's preparedness and response capacity. However, measures to deal with the lice situation are costly, and a challenging biological situation over time has significantly affected the segment's production costs. Nevertheless, the situation is better than it was in the same period in 2015."