Grieg Seafood has reported significant financial losses for the second quarter of 2024,
The Norwegian salmon farmer recorded an operational EBIT of negative NOK 35 million (€3.0 million/$3.3 million) – a sharp decline from NOK 547 million (€47.1 million/$51.4 million) in the same period last year.
The company faced substantial challenges across its operations, leading to a decrease in harvest volume to 15,272 tonnes from 22,645 tonnes in Q2 2023.
Canadian problems
One of the major setbacks occurred in British Columbia (BC), where a severe biological event, characterized by low dissolved oxygen (DO) levels, resulted in increased mortality and reduced growth.
“The second quarter of 2024 was a challenging period for Grieg Seafood, and our results and results reflect continued biological challenges,” said CEO Andreas Kvame.
“In Canada, our operations in British Columbia were affected by events with extraordinarily low levels of dissolved oxygen, which resulted in significantly reduced survival. In addition, there is still uncertainty in BC, pending the government’s decision on the transition plan for Atlantic salmon farming. In the meantime, Grieg Seafood has suspended all strategic investments in the region.”
This issue is expected to continue impacting BC’s results in the third quarter, with anticipated losses between NOK 230 and 250 million (€19.8-21.5 million/$21.6-23.4 million).
Jellyfish
In Norway, operations in Finnmark were also negatively affected by low harvest weights and high costs due to the lingering effects of the Spiro parasite and string jellyfish infestations. The region reported an operational EBIT/kg of NOK -3.3 (€0.28/$0.31) compared to NOK 25.4 (€2.19/$2.39) in the same quarter last year.
Rogaland’s operations, while reporting lower harvest volumes as planned, showed signs of improvement with a positive operational EBIT/kg of NOK 19.9 (€1.71/$1.87). The company has been focusing on building biomass in this region, supported by its post-smolt strategy, which has contributed to better biological performance and fish welfare.
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Preparing for a difficult third quarter
Looking ahead, Grieg Seafood anticipates continued challenges in BC and is preparing for a difficult third quarter. The company has suspended all strategic investments in the region due to ongoing uncertainty regarding government decisions on the future of Atlantic salmon aquaculture in BC. However, Grieg Seafood remains cautiously optimistic about its operations in Norway, with expectations of improved biological performance and lower costs in Finnmark.
The company is guiding a total harvest volume of 78,500 tonnes in 2024.
