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UPDATE 1-Leroy Seafood core Q3 in line, makes NOK 515 mln writedown
November 9, 2017 / 6:26 AM / a month ago

UPDATE 1-Leroy Seafood core Q3 in line, makes NOK 515 mln writedown

(Adds writedown of value of fish stocks)

Nov 9 (Reuters) - Leroy Seafood Group Asa

* q3 ebit before fair value adjustment nok ‍861​ million (Reuters poll nok 863 million)

* q3 revenue nok ‍4,373​ million (Reuters poll nok 4,994 million)

* Fair value of biological assets cut by NOK 514.6 million ($63.09 million), taking year-to-date writedown of fish stocks to nok 764.3 million (vs nok 45.7 million writedown in first 9 months of 2016)

* Says had a “difficult quarter in Western Norway” when it comes to costs, with “complex” situation at Leroy Sjoetroll unit

* Sjoetroll encountered difficulties with salmon during the last part of the quarter, due to poor gill health in certain localities for the Autumn 16 generation

* This required action, including early harvest. This resulted in a significantly lower profit in the quarter at Leroy Sjoetroll. By the start of Q4 2017, the situation was back to normal but the incident will, all other factors being equal, result in a somewhat lower volume at the end of the year and the start of 2018. Current estimates are for significantly lower release from stock costs in Q4 2017 when compared with Q3 2017.

* sees 2017 harvest volume ‍176,000​ tonnes including associates versus previous guidance of 175,000 tonnes

* ‍currently estimates a total harvest volume for salmon and trout of approximately 180,500 gwt for 2018, including share of lsg’s volume from associates​

* ‍estimates that earnings in q4 2017 will be on par with earnings in q3 2017, ensuring that group will achieve a record-high profit in 2017​

* sees global salmon industry supply growth at ‍​5.3 percent in 2017, 7 percent in 2018

* Expected contract share for salmon and trout in q4 is about 30 percent Source text for Eikon: Further company coverage: ($1 = 8.1560 Norwegian crowns) (Reporting By Terje Solsvik)

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