Higher salmon prices helped Leroy Seafood profits

Higher salmon prices helped Leroy Seafood profits

Norway-based Leroy Seafood has reported increased profits on the back of higher salmon and trout prices.

The company booked EBIT before a fair value adjustment for biomass of NOK369.7m (US$59.9m) for the three months to the end of September.

"The increase in operating profit compared with Q3 2012 is mainly attributed to higher prices for salmon and trout," the group said.

Net profit stood at NOK37.8m, versus NOK482,000 a year ago.

Leroy Seafood posted a company sales record for the third quarter; operating revenues were up 21% at NOK2.69bn.

"The strong growth in the global supply of Atlantic salmon experienced over the last couple of years has declined in 2013. This has paved the way for a significant increase in prices for Atlantic salmon and trout, and allows for an optimistic outlook," the company said.

"At the same time, the board of directors believes that the prices for the Group's main products will remain volatile and that the recent price increase serves to highlight the need for framework conditions which facilitate continued growth within the seafood industry in Norway.

"The management and the board of directors are positive towards change in framework conditions which would allow full exploitation of the industry’s substantial growth potential and facilitate a more stable harvest volume throughout the year."

Group harvest volumes when compared with the third quarter of 2012 were 2% lower, Leroy Seafood said.

The company added: "Such changes would make the development of value added industry less demanding, create more stability in prices and make it easier to build demand in markets. Such framework conditions are essential for long-term growth in value creation for the industry."