Scottish Sea Farms’ operating profit fell by a third in 2022
Higher revenues offset by increased costs and biological problems
Salmon producer Scottish Sea Farms increased turnover to £263.4 million in 2022 – up by £68.1m (34.9%) compared to 2021. But “unprecedented” cost increases and fish mortality caused by micro jellyfish and gill health issues in the second half of the year led to a reduced operating profit of £14.8m, a decrease of £7.6m from the year before.
Harvest volume fell by 23.7% from 47,053 gutted weight tonnes in 2021 to 35,900 gwt.
“We continue to invest heavily to further improve fish health, lower waste, and increase efficiencies,” wrote SSF’s directors in the company’s 2022 annual report published today.
“In 2022 we spent £19m to maintain the health and wellbeing of our salmon and to maximise our fish performance.”
£200,000 for community
SSF also contributed £200,000 to its Heart of the Community fund which supports the communities where the company operates, taking the total amount given to communities since 2011 to £1.7m.
SSF’s profit after tax was £4.7m (2021: £14.6m) and no dividends were paid to the company’s Norwegian owners, SalMar and Lerøy, in either year.
The salmon farmer expanded by acquiring Grieg Seafood Shetland in December 2021, and its energy use showed a consequent increase in 2022, rising from 99.3 kWh in 2021 to 128.3 kWh in 2022.
Early harvesting of small fish because of the biological problems in the second half of the year also impacted energy efficiency calculations. Tonnes of carbon dioxide equivalent (tCO2e) per tonne harvested rose from 0.5 in 2021 to 0.9 last year.
Energy efficiency
SSF said it was committed to reducing its environmental impact and contribution to climate change.
“We are actively appraising innovative solutions to increase energy efficiency through enhanced monitoring and targeting. Additionally, we are trialling the use of sludge generated at our Barcaldine (hatchery) facility as a fuel source for our on-site biomass system,” wrote directors.
SSF employed 636 people in 2022, up from 488 in 2021, which was before it acquired Grieg Shetland. It paid more than £31m in wages and social security and pension costs (2021: £21.8m).
The highest paid director received emoluments of £810,000 (2021: £566,000). Only one director received emoluments.
The company paid £323,000 on profits for 2022 (2021: £2.25m) and total current and deferred taxes added up to £2.769m (£6.118m).
