Morpol expects increased disease costs from UK farms

Morpol expects costs in its UK farms to increase, largely due to amoebic gill disease (AGD).

“In the UK the underlying performance is ok. However, we expect production costs to increase due to additional costs related to AGD, with treatments and mortalities, as well as increased cost of feed,” the company said, in its Q4 results.

The biological performance in Norway is very good, resulting in low production costs on the salmon being harvested, the company said, of its Jokelfjord Laks farms.

In 2013, the company is planning to harvest about 7,000 metric tons in Norway and about 23,000t in the UK.

Its operating revenue in salmon farming in Q4 2012 was €41.20m, up 11.95% y-o-y.

The salmon farming operating result in Q4 2012 was €5.10m, compared to a loss of €2.90m in the same period last year, resulting in an operating EBIT margin of 12.4%. the margin in Q4 was negative 7.8%.

The farming operation in the UK -- Meridian Salmon Group -- generated an operating EBIT of €3.10m. Sales volumes in the quarter were 5,201 metric tons gutted fish equivalent returning earnings per kilogram of €0.6/kg.

Jokelfjord Laks generated an operating EBIT of €2m, returning an EBIT/kg of €0.7.

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