SOLID PERFORMANCE BY GRIEG SEAFOOD

Solid performance by Grieg Seafood in third quarter. The Grieg Seafood Group harvested 21,028 tonnes gross weight in the third quarter of 2019, an increase of 24% compared to 16,941 tonnes in Q3 2018.

The average realized price was down in Q3 2019 compared to Q3 2018, mainly driven by lower average spot market prices for salmon. Revenues amounted to NOK 2 011 million, an increase of 27% compared to the same period last year, driven mainly by higher harvest volume.

Farming costs during the period (total cost related to fish harvested this quarter) remained stable compared to the same quarter last year.

The Group’s EBIT before fair value adjustment of biological assets was NOK 154 million (160) during the quarter, corresponding to an EBIT per kg of NOK 7.32 (9.43). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly-owned sales company, Ocean Quality.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“The third quarter was yet again characterised by solid performance for our Norwegian operations, with strong biological performance and continued high survival rates. Our post-smolt strategy in Rogaland is developing well and in Finnmark another two sites were ASC certified during the quarter – a testament to our strict focus on sustainability.

“We also began to see biological improvements in British Columbia, for which 2019 has been characterised by challenging environmental conditions. These improvements are the result of diligent, persistent work by our dedicated employees as well as extensive operational and technical solutions implemented to combat issues such as algae and low oxygen levels.”

Grieg Seafood says its strategy for 2020-2025 is based on an ambition for sustainable salmon farming and comprises three key strategic objectives for continued growth and business development: Global growth, cost leadership and value chain repositioning.

Commenting on Grieg Seafood’s strategy, CEO Andreas Kvame, said: “For several years, we have been working towards our 2020 targets of harvesting 100,000 tonnes at a cost at or below industry average, with the underlying ambition of building a platform for sustainable growth beyond 2020. Although we have faced some biological challenges in Shetland and British Columbia, our 2020 harvest target is well within reach and costs at our Norwegian operations are developing in line with our ambitions.

“We are now looking beyond 2020 and setting the direction for the next five years as we launch our GSF 2025 strategy. We will aim to build on our existing platform to ensure continued growth and cost improvements and harvest more than 150 000 tonnes by 2025. To scale our global operations, we will grow organically as well as through M&A activity. Furthermore, we will work to reposition Grieg Seafood from a pure commodity supplier to an innovation partner, increasing our presence downstream through partnerships, category development and brand cultivation. Thus, we aim to drive increased value creation as a global, integrated supplier of sustainably farmed salmon.”