Marine Harvest nets record Q2 profits
Substantial investment has started to pay off for Marine Harvest Scotland with significant improvements in survival rates for salmon, as well as improvements in their growth, the company has said.
The news came as Marine Harvest Group posted record profits in its second-quarter results for 2017 and follows a challenging period for the salmon farming industry as a result of sea lice and amoebic gill disease (AGD).
Marine Harvest achieved an operational EBIT (earnings before interest and tax) of €198 million in the second quarter of 2017, compared to €149 million in the corresponding quarter of 2016. This performance, the highest ever for half-year results, is largely due to bigger fish and high salmon prices as a result of strong demand.
'Massive investment'
MH Scotland managing director Ben Hadfield praised staff for reducing the impact of sea lice and AGD. He said: “We were determined to tackle these issues and have undertaken a massive investment programme with includes the introduction of new technology along with improvements in the design of existing equipment. But most of all, we have a dedicated workforce who were determined to succeed.
“This is a great result for MHS, our shareholders, our staff and local communities. These results have been achieved due to a lot of hard work focused on specific targets such as reduced sea lice numbers, more efficient growth and lower mortality levels.”
Cleaner fish
The introduction of cleaner fish has helped reduce lice levels. Marine Harvest now plans a £3.5 million investment in farming wrasse and lumpfish.
Other measures include the use of a thermolicer, hydrolicer and skirts around net pens.
Total investment in sea lice control has amounted to £12 million in the last year alone.
Another factor in MH Scotland's increased earnings has been the quality of the salmon grown by the company. More than 97 per cent of the salmon has been rated as superior quality, attracting higher prices.
Feed plant
MH Scotland recently submitted applications for a salmon farm off the coast of Rum and at Sconser quarry, Skye.
A new fish £93 million feed plant is currently under construction at Kyleakin quarry on Skye and a £26 million salmon hatchery is nearly complete at Inchmore in Glenmoriston. New salmon farms have been opened off the Isles of Colonsay and Muck in recent years.
"Driven by high salmon prices on strong demand, we achieved record high operational results in the second quarter. I am pleased to see strong operational performance and reduced cost in Marine Harvest Scotland and Marine Harvest Ireland. It is also encouraging to see that production costs decreased for Marine Harvest Chile," said MH Group chief executive Alf-Helge Aarskog.
