Grieg Seafood Finnmark AS farms salmon in Finnmark, the northernmost county in Norway. Of the company´s 27 sea water licenses, four are “green licenses” subject to stricter environmental measures. Our salmon harvested is in general processed and packed at our local facility in Alta.
Our operations are located across five municipalities in Finnmark, contributing significantly to local value creation. For more information on our initiatives in the local communities, please refer to Local value creation.
As in all our regions, we focus on improving fish welfare and safeguarding survival rates. Camera surveillance and sensor technology are utilized to continuously monitor the environment. As a result of our efforts towards sustainable production, we have achieved ASC certification of four sites in Finnmark.
Flexibility is a requirement to achieve better utilization of our capacity, and we are continuously looking for opportunities to ensure access to new, good locations. During 2018, we applied for four new locations in Finnmark and received approval of two of these locations.
The biological conditions have been favorable in Finnmark in 2018, with stable and low sea lice levels. We utilized our option to increase our MAB limits with 470 tonnes, in accordance with the Norwegian traffic light system.
At the end of the year, the construction work to increase the smolt capacity at Adamselv from 800 to 1 600 tonnes was completed. The new capacity will be fully utilized in 2020. This is an important step in our strategy of continued growth, safeguarding survival rates, and lowering of costs through stocking of larger smolt.
The volume harvested in 2018 was 29 774 tonnes, an increase of 30 % compared to 2017. Favorable farming conditions, with low seawater temperatures, and a continuous focus on fish welfare, contributed to a survival rate of 96 % (calculated according to the GSI definition). Revenues amounted to NOK 1 671 million, an average of NOK 56.1 per kg.
The cost per kg salmon harvested decreased compared to 2017. The strong biological performance, combined with high production volume, enabled us to utilize our equipment and personnel efficiently, bringing down the average cost per kg.
The EBIT per kg before fair value adjustments amounted to NOK 20.0, compared to NOK 15.4 in 2017.