Grieg Seafood — Earnings Release 2013

Feb 13, 2014

Grieg Seafood ASA Q4 2013: Historically high prices and positive turnaround in Shetland

Grieg Seafood ASA Q4 2013: Historically high prices and positive turnaround in Shetland

Highlights - fourth quarter 2013

* A strong market and historically high prices, especially at the end of the

quarter.

* EBIT before fair value adjustment of biomass was NOK 87m in Q4 2013 against

NOK -48.9m in Q4 2012 (NOK -140.4m after write downs in Q4 2014).

* The turnaround in Shetland has resulted in a greatly improved profitability.

* The results in BC continue to reflect low production following the

furunculosis outbreak in the smolt facility in 2012.

* A high share of harvesting early in the quarter effects results in Norway

negatively with more than NOK 2 per kg.

* EBIT charged with one-off items of NOK 28.3m in Q4 (NOK 1.8 per kg).

* Harvested volume of 15,995 tons, with 1,800 tons delayed until 2014.

Results fourth quarter 2013

The Group's EBIT in the fourth quarter before value adjustment of biomass was

NOK 87m, against NOK -48.9m in 2012. EBIT before fair value adjustment of

biomass for the year as a whole, was NOK 350.6m against NOK -99.6 m in 2012.

Excluding one-off costs in the quarter, EBIT before value adjustment of biomass

reached NOK 115.3m. Comparable EBIT per kg increased from NOK -2.43 in 2012 to

NOK 6.95 in 2013. EBIT per kg in Norway was NOK 8.2 per kg. The improved results

compared with 2012 are due to the sharp rise in prices in 2013, while the

underlying production cost level is somewhat higher.

The positive market trend continued into the fourth quarter, with strong demand

and a low increase in global supply. Prices increased sharply, reaching

historically high levels in the last part of the quarter.

The turnaround in Shetland has improved the biological situation, reduced

production costs and improved the results. In BC the results are still

exceptionally weak, reflecting low production following the outbreak of

furunculosis in 2012. Production was also lower and costs higher in the south of

Norway due to low seawater temperatures at the start of the year, which the

situation in the north of Norway has been as expected.

High share of total harvest in the first part of the quarter in Norway (81%)

affected results in Norway negatively with more than 2 NOK per kg. The results

include one-off costs totalling NOK 28.3m in the quarter, related to write-downs

of smolt in BC and on Shetland, as well as an increase in provisions under

options schemes due to an increase in the share price.

Knut Utheim has been employed as COO Farming and will take up the new position

as of 1 April 2014. Knut Utheim has an extensive experience within salmon

farming from Stolt Seafarm and Marine Harvest, and has for the last 9 years held

the position as regional director for Marine Harvest Central Norway.

The Grieg Seafood Group had a net cash flow of NOK -75.6m from operations in the

fourth quarter of 2013. Increase in working capital amounts to NOK 188.1m, most

of which relates to increase in biomass at sea. Investments in fixed assets in

the fourth quarter alone amounted to NOK 58m. Net interest-bearing debt totalled

NOK 1 445m at year-end 2013, a reduction of NOK 85m compared with the year-

earlier figure. At the same time the equity ratio was 43%, compared with 37% at

the end of 2012.

The board of Grieg Seafood will decide on a possible dividend proposal when

approving the final accounts for 2013.

The Group's EBIT before fair value adjustments of biomass and one-off items was

6.95 NOK/kg (-2.43 NOK/kg). Rogaland achieved an EBIT of 6.98 NOK/kg (2.59

NOK/kg), while Finnmark had an EBIT of 7.98 NOK/kg (-2.01 NOK/kg). The EBIT

before one-off costs in Shetland reached 7.98 NOK/kg (-3.58 NOK/kg), while in

Canada the EBIT before one-off costs 1.02 NOK/kg in 2013 compared to -6.18

NOK/kg in 2012. The Norwegian sales company, Ocean Quality AS, reached an EBIT

of NOK 2.8m (0.4%) compared to NOK 4.8 (0.8%) in the same period in 2012.

Outlook

The strong market that characterised the fourth quarter has continued into

2014, with record-high salmon prices, and the market is expected to remain

strong in the period ahead. Supply side growth is likely to be especially low in

the first half of 2014. Even though volumes are expected to be higher during

part of the autumn, the expected total growth in supply in 2014 is still lower

than the historical growth in demand. Given the current good forecasts for

2015, the prospects for market balance in the current year are also good.

Grieg Seafood expects a harvested volume of 69,000 tons in 2014, in accordance

with current production plans. This is an increase of 10,931 tons (18.8%) from

2013. As part of this, volumes have been transferred from 2013 to 2014. However,

the harvested volume has been negatively affected by the early harvesting of one

site in Rogaland at the start of 2014.

The harvested volume in BC will still be unusually low in 2014 and the

underlying production is not expected to pick up until the second half of the

year. This means that fixed costs per kilo will remain at an abnormally high

level. The harvested volume in BC is likely to reach a level of around 15 000

tons in 2015.

The Board is pleased that the turnaround in Shetland is showing results, and

further improvements are expected in the period ahead.

Grieg Seafood has decided to terminate all production of trout and Pacific

salmon, and focus our business around production of Atlantic salmon in all

regions.

Shetland's sales activities have been transferred to Ocean Quality, as part of

the process to gather all sales activities globally in one unit. The appointment

of a new COO Farming will contribute to greater capacity, focus on realising

synergies and improvements across all of the Group's farming regions.

Grieg Seafood has unexploited production potential under its existing licences,

in addition to the potential growth represented by new licenses which includes

the potential allocation of green licences in Norway. Grieg Seafood's strategic

priority in the period ahead will be to increase the production under existing

licences in Norway and to complete the ongoing turnarounds in both Shetland and

BC.

For further information, please contact:

- CEO Morten Vike (cell phone: +47 994 911 65)

- CFO Atle Harald Sandtorv (cell phone: +47 908 45 252)

For more information, please see www.griegseafood.com

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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