OSLO, May 7 (Reuters) - Faroese fish farmer Bakkafrost expects a tight salmon market ahead as supply growth abates, it said on Monday after reporting below-forecast first-quarter earnings.
The company now forecasts four percent global salmon output growth in 2018 compared to six percent seen in February.
“Outlook for industry and Bakkafrost is good and the market seems to be tight on supply side,” Chief Executive Regin Jacobsen told analysts and reporters during the company’s earnings presentation.
Jacobsen pointed to higher-than-expected global harvests in November and December, lower ocean temperatures in Norway and problems with algae in Chile as the main reasons why global output growth is now seen more constrained.
“Global supply increase of 10 percent is behind us, we expect 2 percent growth in each quarter over the next three quarters,” Jacobsen said.
During the first quarter, the salmon spot prices rose from a low point of 51.90 Norwegian crowns per kilo in early January to 77.85 crowns at the end of March. Prices are currently in a range of 77-78 crowns per kilo.
Bakkafrost’s shares fell around five percent in early trade, but later recovered to trade one percent lower for the day at GMT 0934. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)