Grieg Seafood salmon farm in Skye is part of Grieg Seafood Shetland (GSFSH) (Photo: Grieg Seafood ASA)

Grieg Seafood mulls selling its Skye fish farms

UNITED KINGDOM
Thursday, August 22, 2019, 01:10 (GMT + 9)

Norwegian fish farmer Grieg Seafood  is considering the possibility of selling  its operations on the Britain’s Isle of Skye in order to better concentrate the company’s resources and operations.

The Isle of Skye, connected to Scotland's northwest coast by bridge, is known for its rugged landscapes, picturesque fishing villages and medieval castles.

Grieg has two operating units in Norway and one in British Columbia (BC), Canada, as well as a joint unit handling operations in Shetland and Skye.

"We have initiated a strategic assessment for our operations on Skye, as we see that the synergy between our farming areas on Shetland and Skye are low," Grieg CEO Andreas Kvame said in a statement.

He also said the jobs in Skye should not be affected.

The Grieg Seafood Group harvested 21,800 tonnes GWT in Q2 2019, compared to 22 570 tonnes in Q2 2018.

Total revenues during the quarter amounted to NOK 2.2 billion, unchanged from Q2 2018.

Farming cost during the quarter (total cost related to fish harvested this quarter) increased from the same quarter last year, mainly driven by higher cost in Shetland and BC due to biological challenges related to sea lice and algae blooms.

Harvest volume 2018 and target volume 2020 ( 1.000 tonnes GWT) Source: Grieg Årsrapport Børs 2018

The Group’s EBIT before fair value adjustment of biological assets was NOK 309 million (NOK 426 million in 2018) during the quarter, corresponding to an EBIT per kg of NOK 14.17 (18.89). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly-owned sales company, Ocean Quality.

Grieg Seafood expects to harvest approximately 82,000 tonnes in 2019. Expected harvest volume for Q3 2019 is 20,200 tonnes, comprised of:

•     Rogaland: 2,800 tonnes
•     Finnmark: 10,600  tonnes
•     Shetland: 3,500  tonnes
•     BC: 3,200  tonnes

The company did not provide a breakdown for revenue or output from Skye.

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