Improved results for Lerøy after focusing on lice screening
The company has achieved an 85% reduction in the number of lice treatments with submerged farming compared to traditional pens.
Published
Salmon farming heavyweight Lerøy Seafood Group made an operating profit (EBIT) of NOK 799 million (£56.2m at today’s exchange rate) for the fourth quarter of 2024, a 4% increase on the NOK 765m made in the same period in 2023. Lerøy, which co-owns Scottish Sea Farms, said the result was due several operational improvements implemented during the year.
Lerøy’s farming segment, which comprises its three salmonid aquaculture divisions in north, central, and southern Norway, made an operating profit of NOK 594m in the quarter, up from NOK 532m in Q4 2023.
Chief executive Henning Beltestad said in a press release that the company launched a comprehensive plan for operational improvements in 2022.
Licence utilisation
“It is gratifying to see that the improvements are now gradually reflected in our results,” said Beltestad. “In 2024, we had the highest biomass production at sea in the company’s history, significant growth in harvest volumes, and near maximum licence utilisation at the end of the year. The development in earnings and operations at Scottish Sea Farms is also positive.”
It was further announced that the board will propose to the general meeting on May 27, 2025 a dividend of NOK 2.5 per share, corresponding to approximately NOK 1.5 billion, a level similar to last year’s payout.
Highest biomass production
The company’s biomass production at sea in 2024 was the highest for any year in the group’s history, and the volume of salmon and trout harvested in Q4 was a record high of 56,776 gutted weight tonnes, of which 14% was trout.
Lerøy has also invested substantially in lice screening technology, which has been shown to have positive effects on both fish welfare and operations.
“We are seeing an 85% reduction in lice treatment frequency in submerged cages compared to traditional farming. This is groundbreaking and important for fish welfare. Good biology and fish health translates to good economics,” said Beltestad.
“In 2025, we plan to invest a further NOK 500m in shielding technology, and approximately 40% of the salmon we harvest in 2025 will be from shielding technology.”
Reduced emissions
Lerøy has set ambitious goals to cut greenhouse gas emissions by 46% by 2030. An important measure is to reduce the carbon footprint from fish feed.
Beltestad highlighted a partnership with feed supplier EWOS Cargill, where by-products from European chicken production will be used in the feed. This initiative is expected to reduce the carbon footprint of the feed by up to 16%.
Looking ahead, Beltestad points out that the long-term work on improving genetics, egg and smolt quality, and the use of shielding technology is already yielding results.
200,000-tonne target
“The target of 200,000 gutted weight tonnes harvested volume in Norway in 2025 is ambitious, but achievable. The best forecast is a harvesting volume of approximately 195,000 gwt in Norway and 16,000 gwt from Scottish Sea Farms,” he said.
Within VAP S&D (value added products, sales and distribution), the goal is to achieve an operational EBIT of NOK 1.25 billion in 2025.
Beltestad points out that the company’s fully integrated value chain continues to perform strongly.
“We are convinced that our value chain represents a winning model for the seafood market of the future, and I look forward to the continuation with great enthusiasm,” said the executive.
