Cermaq takes $9 million hit on disease outbreaks in Q3

Oslo-listed salmon farming company reports losses on disease outbreaks at farms in Canada and Finnmark.

Cermaq's third quarter results will reflect hits from disease outbreaks at its farms in Canada and Finnmark in the third quarter.

It will take a loss of $5.4 million (NOK 31 million / €4.2 million) for the IHN outbreak at site in Millar, Canada, run by its subsidiary Mainstream Canada. The outbreak affected one million fish at an average weight of .4 kilograms. Although Cermaq has filed a request for financial compensation, it is uncertain whether it will receive it.

In Finnmark, pancreas disease affected 740,000 fish at an average weight of .75 kilos, costing the company $3.5 million (NOK20 million / €2.7 million), which will be charged to group accounts in the third quarter of 2012 as well.

Mainstream Canada also had a high level of algae blooms in the third quarter, causing a mortality increase that will result in about $878,100 (€674,200 / NOK5 million) in losses in the third quarter as well.