Grieg Seafood — Earnings Release 2018

Nov 7, 2018

Grieg Seafood ASA: Third quarter 2018 results

Grieg Seafood ASA: Third quarter 2018 results

Highlights

* Continued high prices on strong demand

* EBIT/kg NOK 9.43

* Strong biological performance in Finnmark

* Good production in Rogaland, planned low harvest volume in the quarter

affecting EBIT/kg

* Higher cost in BC and Shetland due to biological challenges

* Two new locations granted in Finnmark in October

* Estimated harvest for 2018 maintained at 75 000 tonnes

* Expect harvest volume of 82 000 tonnes in 2019

* Dividend of NOK 2 per share

Results Q3 2018

The Grieg Seafood Group harvested 16 941 tonnes of salmon in Q3 2018, compared

with 16 875 tonnes in Q3 2017.

The average spot price (Nasdaq Salmon Index) for the period was NOK 54.07 per

kg, down NOK 1.74 per kg from the same period in 2017. The average realized

price for Grieg Seafood was down by   NOK 1.38 per kg comparing these quarters.

Grieg Seafood's total operating income in Q3 2018 amounted to NOK 1 589 million,

a reduction of 14% compared to the same period last year.

The farming cost increased by NOK 1.11 per kg compared to the same quarter last

year. This is mainly related to reduced survival towards the end of the quarter

due to algae incidents in BC and gill-related diseases on Shetland.

The Group's EBIT before fair value adjustment of biological assets was NOK 160

million during the quarter, compared to NOK 229 million in the same quarter of

2017. EBIT per kg amounted to NOK 9.43 for the period, down from NOK 13.59 in Q3

Strategic priorities

Grieg Seafood's objective is to ensure long term sustainable growth by combining

great people, nature and technology.

By 2020, Grieg Seafood aim to increase production to reach an annual harvest

volume of 100 000 tonnes and a production cost at or below weighted industry

average, targeting NOK 37.90/kg.

Continued access to high-quality smolt is critical to ensure future growth and

reduce costs. Increased production of larger smolt will also shorten production

time in sea, thus reducing exposure to biological risks and contributing to

increased survival.

Another essential aspect of Grieg Seafood's growth strategy is increased

utilization of the Group's licenses. High site flexibility is essential to

improve utilization, and Grieg Seafood cooperates with local authorities on an

ongoing basis to optimize flexibility. During the quarter, the Group was granted

two new locations in Finnmark.

The Group also continually undertakes cost-reducing initiatives, and to ensure

progress towards its goals, has initiated the GSF 2020 improvement program, with

specific targets and initiatives for each region.

Market developments

Salmon prices were volatile in the third quarter of 2018. The average price

level was down by       NOK 14.0 compared to Q2 2018 and down by NOK 1.74

compared by Q3 2017. The salmon supply in the quarter has been higher compared

to Q3 2017, which in relation to the high average prices confirms the strong

underlying demand for farmed salmon.

Outlook

The current situation, with limited supply growth and strong underlying demand,

is expected to continue. In addition, a rise in demand due to the Christmas

season will most likely contribute to strong market prices for the last quarter

of 2018.

Grieg Seafood expects to harvest approximately 24 100 tonnes in Q4 2018,

totaling 75 000 tonnes for the full year 2018, corresponding to an increase of

20% from 2017. Expected harvest volume for 2019 is 82 000 tonnes.

Please find enclosed the Group's Q3 2018 report and presentation.

For further information, please contact:

* CEO Andreas Kvame (cell phone: +47 907 71 441)

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

About Grieg Seafood

Grieg Seafood ASA is one of the world's leading salmon farmers, specializing in

Atlantic salmon. The Group has an annual production target of 100 000 tonnes

gutted weight in 2020.

Our farming facilities are in Finnmark and Rogaland in Norway, British Columbia

in Canada and Shetland in the UK. Approximately 780 people are employed by the

Group. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. Our

headquarters are situated in Bergen, Norway. The business development of Grieg

Seafood ASA focuses on profitable growth, sustainable use of resources and being

the preferred supplier to selected customers.

To learn more, visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act