Monday , October 3 2022

Lerøy believes that the uncertainty of the aquaculture industry has increased


Lerøy Seafood posted the results on Wednesday morning on Thursday. Company profits before the value of fish was adjusted, totaling NOK 660 million. It was NOK 77 million lower than expected.

In a quarterly report, Lerøy is once again a politician's throat, as the company did so when the results were presented in the first quarter. Lerøy believes that the uncertainty surrounding the regulation of the aquaculture industry has increased.

"We note and regret that the risks associated with the development of Norwegian industrial development rules have increased," writes the company.

Do not like extra tax

"It's important that we need predictability, both in aquaculture and in fisheries and landscaping. In the future, significant investment is required, and if you have a lot of investment, the future framework must be predictable," says Lerøy CEO Hennings Beltestads DN.

– Do you want to work out?

– There are discussions about taxes. Beltestad says that there is a debate about future growth and traffic light systems, which is due to quota, licenses, and the cases there.

Among other things, he draws attention to the government's plan to explore the possibility of introducing an additional tax on aquaculture and agriculture. It is a profit-based property tax levy, which means that Norwegian residents will receive a portion of the basic interest rate on existing licenses. The government will introduce a tax until 2020, and will include lice, trout and rainbow trout.

Lerøy is engaged in both salmon and trout farming, and will therefore be significantly affected by this tax.

"We are investing significant amounts in aquaculture and fisheries. We need more predictable framework conditions," says Beltestad, who says politicians are responsible for good basic conditions.

DN have asked for comments from the Ministry of Finance, which have not replied on Thursday.

Want their quotas

Currently Leroy has nine trawlers, which make up a large part of the company's operations at sea. The trawl acquires wild fish such as cod, seas and haddock, which are transported to the ground and processed there. Lerøys Havfisk is licensed to fish more than 10 percent of the total cod quota north of the city.

Leroy quotas relate to something called duty of action, which allows them to create activities on the ground. Last year, the government proposed to abolish the cod-end-tax system, with a proportional allocation of resources. The proposal proposed by the former Minister of Fisheries Per Sandberg, among other things, meant that 20 percent of the duty free quota was transferred to the coastal fleet. It was this suggestion that Beltestad was bad.

Sandberg finally made a proposal after a great deal of resistance. Although the proposal was rejected, Beltestad was not provided.

– This is an unpredictable example. What next, he asks.

In a quarterly report, Lerøy writes:

"There is a political risk to government, including basic aquaculture conditions and licensing conditions related to fisheries legislation."

– feel crazy

In October, the SC presented a proposal for a new allocation of resources in which gradually coders would be redeemed by trawlers. SV Parliamentary Representative Torgeir Knag Fylkesne says that today's regime allows large numbers of large trawlers to send fish for processing abroad. He says that a large proportion of the fish caught in Norway does not constitute a land-based industry, but stresses that Lerøy creates land.

"But what has been the biggest problem with the scheme is the connection with the supply, which is now shifting to supply, where it only supplies 10% of the fish. He says that many coastal communities feel false.

"Short-term Thinking"

SV wants the proposal to be transferred to the coastal fleet, which places jobs at the Norwegian coast, and Fylkesne believes that their proposal will promote it.

"For anyone who wants to create industrial classes on the ground, it's a gift package," he says.

SV has put forward two parts in its proposal. The second part means that the operational commitments are not canceled, which means that Lerøy will continue to comply with all its quotas under Fylkesne.

Leroy's quarterly report states that the lack of predictability in the long run will weaken the industry's competitiveness and ability to develop and create value. The company suggests that politicians do not think long enough:

Austevoll Seafood ASA, 3rd Quarter Result (MNOK) 2018 2017 change
turnover 17072 15997 6.7%
Operating result (EBIT) 4863 2412 101.6%
Profit before taxes 4945 2561 93.1%

"Short-term thinking, including performance-specific taxes, does not match what is needed to achieve industrial development, employment and value creation in Norway," writes it.

More than five billion

Austevoll Seafood lists more than half of Lerøy Seafood shares.

Austevoll also posted results in the third quarter of Thursday. Revenues in the third quarter of last year rose from 5.3 billion kronor to 4.9 billion kronor this year. Profit before depreciation and value adjustments ended up to NOK 1 billion, slightly lower than in the same period last year.

On Thursday, both Lerøy and Austevoll rose on the Oslo Stock Exchange.(Regulations)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our affairs through a link that directly links our pages. Copying or any other use of all or part of the contents may take place only with the express written permission or in accordance with law. For more information, please see here.

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