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Low harvested volume, but record profit

Press Release   •   Nov 10, 2016 07:15 GMT

Winter and the sea - Lerøy Seafood Group

In Q3 2016, Lerøy Seafood Group (LSG) posted an operating profit before fair value adjustment of biomass of NOK 481 million in Q3 2016, compared with NOK 253 million in Q3 2015. This is equivalent to operating profit before biomass adjustment of NOK 15.2 per kg compared with NOK 6.2 per kg in the same period last year.

* CEO Henning Beltestad confirms: "Lerøy Seafood Group can report their highest revenue and highest operating profit as of the third quarter throughout the Group's history." "We are delighted with such a great result. It has not been an easy quarter. We have experienced a number of biological challenges and recorded lower average weights than expected and higher costs than normal," continues Henning Beltestad.

* "With a positive market, the Group chose to harvest a substantial volume of fish throughout Q2 2016, entering the third quarter with 10% less biomass than in the same period in 2015," explains CEO Henning Beltestad. He continues: "As a result, the Group has had much more flexibility in terms of the timing of release from stock throughout the quarter. Based on the Group's market analyses, a somewhat limited volume has been harvested in the quarter, and the Group has focused on accumulating biomass. This strategy to harvest a lower volume in the quarter, combined with the higher contract share in the quarter, has resulted in lower prices realised. The Group expects higher harvested volumes, prices realised to improve significantly, and lower release from stock costs in the present quarter."

Lerøy Seafood Group reported revenue of NOK 4,268 million, compared with NOK 3,295 million in the same period in 2015. The volume harvested in Q3 2016 is 22 % lower when compared with the same quarter last year. The Group's profit before tax and before fair value adjustment of biomass was NOK 534 million in Q3 2016, compared with NOK 231 million in Q3 2015.

The acquisition of the shares in Havfisk ASA and Norway Seafoods Group AS was completed on 31 August 2016. LSG is now the majority shareholder in both companies, with shareholdings of 67 % and 74 % respectively. Subsequent to the transactions, Havfisk ASA and Norway Seafoods Group AS are consolidated in LSG's figures with effect from September. Consolidation of the two companies had a positive effect of NOK 13 million on the operating profit before fair value adjustment of biomass in the third quarter.

Lerøy Seafood Group’s strategy is to meet the demand for seafood and culinary highlights, both at home and abroad, by supplying high quality products.

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