Healthy Q3 profits for Leroy

press release

Lerøy Seafood Group (LSG) reported operating profit before fair value adjustment related to biological assets of NOK 861 million in Q3 2017. After harvesting 46,000 tonnes, this corresponds to NOK 17.4 per kg.

‘We have achieved the highest revenue and the highest operating profit ever to be reported by the Group in a third quarter’, said CEO Henning Beltestad. ‘We are pleased with such a good result, but there still remains plenty of room for improvement and this is where our focus lies’.

The Group’s profit before tax and fair value adjustment related to biological assets was NOK 899 million in Q3 2017.

LSG’s trawler fleet caught 17,000 tonnes of white fish in Q3.

In Q3 2017, Lerøy Aurora achieved operational EBIT per kg of NOK 23.7. Lerøy Midt and Lerøy Sjøtroll are reporting EBIT per kg of NOK 14.7 and NOK 8.5 respectively for the same period.

‘The lack of growth in production together with a positive development in demand and the weaker Norwegian krone have resulted in historically high prices for salmon’, said Beltestad. ‘Throughout Q3 2017, a seasonal increase in harvest volume in Norway has placed some pressure on the spot prices for salmon and trout. Prices in the quarter have therefore been on the decline’.

‘The release from stock costs in Q3 2017 are in total on par with those from Q2 2017. We have a positive development in Central- and Northern Norway, but have been affected by an acute situation for salmon in the county of Hordaland. During the last part of the third quarter, some of our localities in Hordaland had difficulties that required action, including early harvest. This had a negative impact on profit in the quarter. By the start of Q4 2017, the situation was back to normal but the incident will, all other factors being equal, result in a somewhat lower volume at the end of the year and the start of 2018’.

In 2017, the Group expects to harvest 176,000 GWT of salmon and trout, including its share of LSG’s volume from associates and a catch volume of whitefish up towards 70,000 tonnes.

LSG currently estimates a total harvest volume for salmon and trout of approximately 180,500 GWT for 2018, including the share of LSG’s volume from associates.

The Board currently estimates that earnings in Q4 2017 will be on par with earnings in Q3 2017, ensuring that the group will achieve a record-high profit in 2017.