« Back | |
GRIEG SEAFOOD ASA: Q1 2017 - planned low harvest volume in Q1 in order to build biomass |
|
Highlights - First Quarter 2017
First Quarter Results 2017 EBIT from the four regions includes value creation from sales/Ocean Quality (OQ), while OQ's value creation relating to fish from Bremnes (which owns 40% of OQ) appears in the item designated IKE in the above table. The pre-tax accounts for Q1 show a loss of MNOK 69 against a profit of MNOK 252 in last year's first quarter. The negative result must be seen in the light of the fair value adjustment of biomass to take account of the decline in salmon prices from Q4 2016 to Q1 2017. Group operating income in Q1 2017 totalled MNOK 1 422, reflecting a 12% change compared with the same period in 2016. The increase was due to higher prices and some increase in volume from Bremnes (external fish) compared with Q1 2016. The results for Q1 2017 reflect a reduction in the harvest volume in all regions apart from Rogaland. This has meant that fixed costs are divided over a smaller volume, thereby increasing costs per kilo. Following a decline in salmon prices in the first weeks of 2017 the market has been relatively stable. GSF can report that demand for its salmon is good at the present price level. In Norway, the proportion of salmon sold on fixed price contracts stood at 55% in Q1 2017 and this proportion is expected to be around 17% in Q2 2017. The decline in the proportion of fixed price contracts is partly explained by an increase in the harvest volume in Q2. The fixed price proportion for 2017 as a whole stands at 21%, and some increase in this figure is planned.
Measures to boost production and reduce costs GSF has an ongoing focus on improving operating efficiency, and this involves both increasing production per plant and per licence, as well as reducing costs per kilo. One of the key steps being taken is to set out bigger smolt which will make it possible to shorten the production time in the sea. An increase in the number of smolt is also decisive to achieve growth and lower costs. The company this therefore planning to increase the amount of smolt set out in 2017 compared with 2016. So far this year the steps taken are in accordance with the plan. There is also a focus on improving the survival rate and wellbeing of the fish.
Outlook The harvest volume in Q2 2017 is expected to be 18 000 tons. For 2017 as a whole the figure is expected to be 70 000 tons, 8% up on 2016. Please find enclosed the company's Q1 2017 report and presentation.
For further information, please contact:
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
|
|
GSF Q1 2017 presentation GSF Q1 2017 report |