Lerøy chief happy to brag about results

A clearly delighted Henning Beltestad, presenting the figures in Bergen this morning, said: "No seafood company in the world can compare. We need to brag a bit."

Lerøy Seafood Group (LSG) reported an operating profit before fair value adjustments related to biological assets of NOK 801 million (£80m) in the second quarter of 2017, compared with NOK 760 million in the same period in 2016.

LSG made EBIT (earnings before interest and tax) of NOK 27.3 per kg in the second quarter of 2017 against NOK 18.5 per kg in the same period last year.

Smaller harvest

The group had a turnover of NOK 4,224 million in the second quarter of 2017 compared with MNOK 4,262 in the same period in 2016. Harvested volume of salmon and trout in the second quarter of 2017 is 36 per cent lower than for the second quarter of 2016, but must be seen in conjunction with a high harvest volume in the first quarter of 2017.

Beltestad said the aquaculture industry had seen good results over time.

"But in recent quarters especially we have seen extremely good results. In Q2, we got the best result we've had ever per kilo and we are satisfied," he stated.

Trout price

The Lerøy chief stressed the good prices throughout the quarter, and specifically stated that he had previously been quoted on the trout price. Now he was happy trout were higher than salmon in Q2.

"Hopefully I'll never regret the trout price again," he said.

Beltestad said Lerøy are working in a lot of markets, and pointed out the opening of prepared-food factory in Barcelona in April.

"It makes us a little proud to be allowed as a Norwegian company to drive category development in Spain."

He was nevertheless aware that aquaculture needed growth.

"I've said it before and I'll say it again. We have had no growth in five years (in Norway) and there is not expected to be any growth next year either. How can we not have it? The aquaculture industry needs growth and we are backing out of some markets."

15,000 tonnes in Scotland

This year it is expected that LSG will harvest 160,000 tonnes in Norway and 15,000 tonnes in Scotland, 175,000 tons in total.

Executive vice president for finance Sjur Malm, pointed out that during the quarter LSG had built biomass in the sea. He noted that the company has taken out 36 per cent less volume this year compared with last year.

"We now have 18 per cent more biomass in the sea than last year," he added, and said that they are expecting lower costs in all regions.

Scottish Sea Farms Ltd, which is based in Stirling and South Shian, Argyll and has farms in Shetland, Orkney, and in and around Oban and the Highlands, is owned by Norskott Havbruk AS, jointly owned by LSG and fellow Norwegian producer SalMar.