Both Marine Harvest and Lerøy On Thursday voted extremely strong second quarter results. Marine Harvest had an operational EBIT of 149 million euros (1.38 billion. NOK) against 89 million euros in the same quarter last year.
Lerøy operates with operating profit before fair value adjustment of biomass (fish in cages) 760 million in the second quarter. There are more than doubling from the second quarter last year when the corresponding figure was 370 million.
Could be better
Neither Lerøy or Marine Harvest can show better quarterly results.
– we are pleased to present a record result, but we still have considerable room for improvement. It is our focus, and we work hard, says CEO Henning Beltestad of Leroy.
– Fantastic Results
Both companies and salmon analyst Allison Giskeødegaard in Nordea Markets pointing at the sky-high price of salmon as the main cause of record results.
– This is amazing results exclusively due to high price. The costs of companies have shown an adverse development. They increase with more sea lice treatment, lost growth and increased mortality. The weak Norwegian krone has also increased costs for feed, says Giskeødegaard said.
Allison Giskeødegård is today’s guest in economics news on HegnarTV!
CEO Aarskog in Marine Harvest wants to reduce costs.
– despite record high salmon prices have production costs become unacceptably high, and cost trend is not satisfactory. Compared with the second quarter of 2015, costs in all regions, says Aarskog.
Up 51 percent
Export statistics from the Norwegian Seafood Council show that the export price for salmon increased from 60.18 NOK per kilo in May to 66.40 in June this year. That’s an increase of 51 percent, or 22.41 million, from last June. Salmon prices have never been higher.
– Our assessment is that the price level we see in the second quarter of this year, representing the top. Both in the coming quarters, and bit into next year, we believe prices will be lower. We will still look fantastic prices, but the exceptional price peak we saw in the second quarter, we consider as one-time, says Allison Giskeødegaard.
Small salmon
The exceptional price of salmon is due according to the analyst very low supply of salmon on the world market. Primarily because of that Chilean salmon producers suffered a severe blow because of algal blooms.
– But there are also problems with the lack of growth in Norway, combined with the Norwegian producers last year had to take out a lot small fish because of lice. This fish should have been slaughtered as bigger fish in the first half of this year, he said. (© NTB)
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