Grieg Seafood CEO Andreas Kvame is celebrating the close of a record-breaking year. "In our 30 year long history, we have never achieved a higher operational EBIT, seen a stronger market or harvested higher volumes in our existing farming regions," he said, presenting the Norwegian salmon giant's Q4 results this morning.
The full-year 2022 ended with a record harvest volume of 84,697 tonnes (75,601 tonnes) and an operational EBIT of NOK 1,739 million (NOK 442 million), with both Rogaland and Finnmark reaching their highest ever harvest volume and operational EBIT.
The record results come despite a challenging fourth quarter, when salmon production in Norway was affected by an early harvest of fish at two of Grieg's farms in the Finnmark region, following detection of the parasite Spironucleus salmonicida (Spiro).
Commenting on the issue, Kvame said, "Mitigating measures have been taken and the underlying biology is improving." The company will invest NOK 70 million in UV treatment at the facility to guard against future Spiro infections.
Inflation also negatively impacted cost levels, particularly affecting feed prices. "We are launching an improvement program to review all aspects of our operations and identify areas where we can increase profitability across our business," Kvame added.
Grieg's operations in British Columbia (BC) and Newfoundland both showed good results, said Kvame. "In BC, production was good during the quarter with stable survival. The Newfoundland region is developing according to plan."
Despite a strong overall performance, the BC region reported Q4 operational deficit of –22.9 NOK EBIT/kg. This result was due to very low harvest volumes, as the region prioritized growing biomass during the quarter. In Newfoundland, the company plans to transfer smolt to sea during late spring or summer of 2023, and expects its first harvest in Q4 2023.
Looking ahead to this year, the company predicts an overall Q1 harvest of 11,000 tonnes, with a total of 82,000 tonnes expected by the close of 2023. The global harvest of Atlantic salmon in 2023 is expected to increase by 2% to a total of 2.9 million tonnes, sustained strong market prices predicted for the year ahead.
However, Norway's proposed salmon tax casts uncertainty over the company's strategy and plans. As a result of the new legislation, Grieg Seafood has currently put on hold all growth investments in Norway (worth approximately NOK 2.3 billion) pending the final version of the tax proposal, expected to be adopted by the Norwegian parliament before the summer.
Grieg Seafood ASA is one of the world's leading salmon farmers. Headquartered in Bergen, Norway, its farms are located in Rogaland and Finnmark in Norway, and in British Columbia and Newfoundland in Canada. It has a 750-strong workforce, spread across its different regions of operation.
