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Strong Year for Grieg Seafood

Strong year for Grieg Seafood – The fourth quarter of 2018 ended a strong year for Grieg Seafood in which the group reached a harvest volume of 75 000 tonnes – an increase of 20% compared to 2017 – and revenues of more than NOK 7.5 billion.

Key highlights were:

  • EBIT NOK 351 million (NOK 151 million), EBIT per kg NOK 14.81; up 84% from to Q4 2017
  • Earnings driven by high prices and cost reduction per kg
  • Harvest volume of 24 000 tonnes (+27%) driven by strong biological performance in Norway
  • Good production with high average harvest weight in BC, continued high cost due to challenges in previous quarters
  • High cost in Shetland due to continued biological challenges
  • Awarded A- by the Carbon Disclosure Project on actions related to Climate Change
  • Expected harvest volume of 82 000 tonnes (+10%) in 2019

Commenting on the Group’s performance, CEO Andreas Kvame, said: “Q4 2018 ended a strong year for Grieg Seafood in which we reached our last guiding harvest volume of 75 000 tonnes – an increase of 20% compared to 2017 – and revenues of more than NOK 7.5 billion. This was achieved by maintaining a strict focus on sustainability and driving forward improvements to our farming operations.

“Throughout the year we introduced several initiatives, including advanced sensor- and monitoring systems across our four regions. In September we opened a new operations center in Rogaland, supporting our digitalization strategy utilizing big data analytics to improve overall operational performance.

“We are proud of receiving the second highest grade by the Carbon Disclosure Project, which scores companies based on their work to cut carbon emissions. With improved operations and by maintaining a strict focus on sustainable farming and on securing fish welfare, we are well prepared to continue executing on our growth strategy, targeting 100 000 tonnes in 2020 with cost at or below industry average”

The Grieg Seafood Group harvested 23 682 tonnes GWT in Q4 2018, compared to 18 667 tonnes in Q4 2017, compared to 18 667 tonnes in Q4 2017.

The average realized price for Grieg Seafood was up by NOK 5.55 per kg compared to Q4 2017.

Grieg Seafood’s total operating income in Q4 2018 amounted to NOK 2 128 million, an increase of 23% compared to the same period last year .

The farming cost (total cost related to fish harvested this quarter) increased by NOK 0.43 per kg compared to the same quarter last year. This is mainly related to high cost of harvested fish in BC and on Shetland that was affected by harmful algal bloom (HAB) and gill-related diseases.

The Group’s EBIT before fair value adjustment of biological assets was NOK 351 million during the quarter, compared to NOK 151 million in the same quarter of 2017. EBIT per kg amounted to NOK 14.81 for the period, up from NOK 8.07 in Q4 2017.

In 2018 the Grieg Seafood Group’s operating income totalled NOK 7 552 million, compared to NOK
7 038 million in 2017. Higher prices and volumes contributed positively. Total harvest volume for the year was 74 623 tonnes GWT, up from 62 598 tonnes GWT in 2017.

EBIT per kg was NOK 14.72, compared to NOK 14.45 in 2017. EBIT per kg was positively affected by the large harvest volume and high spot prices, however the cost related to pancreas disease (PD), HAB and gill diseases during the year had a negative impact, both in terms of high cost and price achievement. Total farming cost per kg for the Group was NOK 43.1, NOK 0.7 above our targeted cost of NOK 42.4 for the year.