The unaudited Q1 2023 results from Stolt-Nielsen, the primary company of Stolt Sea Farm (SSF) located in Santiago de Compostela (Galicia, Spain), show positive numbers, which remain on track with the previous four-month period, despite the negative forecast.
The Q4 of 2022 closed after a period in which inflation and the energy crisis set a challenging backdrop. Concretely, the report revealed a mixed twelve months in which SSF achieved record levels of production and sales, but in which profits were generally lower.
However, this has not been the case, as Niels G. Stolt-Nielsen, the Chief Executive Officer of Stolt-Nielsen Limited. He explained that "the first quarter continued where 2022 ended, with a solid performance from all businesses during what is typically the seasonally weakest quarter of the year."
Thus, in this first contact with 2023 Stolt Sea Farm reported an operating profit before the fair value adjustment of biomass of $5.6 million, up from $3.3 million the previous quarter. According to SSF, this is the reflection of the seasonally higher sales volumes during the Christmas season and higher prices for sole.
Nevertheless, this does not mean that all the work has been done. As SSF pointed out, the impact of the rising cost of living continues across the market involves a decreased demand. "Consequently, we continue to expand our sales channels and geographic reach to support sales growth and price improvements, while focusing on maintaining the good growth of our biomass," SSF stated.
Stolt Sea Farm (SSF) is a pioneer in land-based aquaculture. The business focuses on sustainable growth and building partnerships with customers and communities, while adhering to environmental protection standards. SSF is part of the Stolt-Nielsen Group and is headquartered in Santiago de Compostela, Spain.