Grieg Seafood — Earnings Release 2018

Aug 22, 2018

Grieg Seafood ASA: Q2 2018 - High harvest volume in Q2

Grieg Seafood ASA: Q2 2018 - High harvest volume in Q2

Highlights - Q2 2018

* Highest harvest volume for a quarter (22 568 tonnes)

* High prices on strong demand

* EBIT/kg NOK 18.89, total EBIT NOK 426 million

* Good production in Finnmark, BC and on Shetland

* Production in Rogaland negatively impacted by PD

* Algal bloom causing loss of 1 000 tonnes in BC

* Estimated harvest for the year is 75 000 tonnes, up 20% from 2017

* Dividend of NOK 2.00 per share paid out

Results Q2 2018

The Grieg Seafood Group harvested 22 568 tonnes of salmon in Q2 2018, compared

to 18 503 tonnes in Q2 2017, an increase of approximately 22%.

The average spot price (Nasdaq Salmon Index) for the period was NOK 68.81 per

kg, up by NOK 0.98 per kg compared to the same period in 2017. The average

realized price for Grieg Seafood was down by NOK 3.21 per kg comparing these

quarters. This was partly due to a combination of a high proportion of

harvesting towards the end of the quarter when prices were lower, and partly due

to lower price achievement for PD-affected fish from Rogaland

Grieg Seafood's total operating income in Q2 2018 amounted to NOK 2 318.7

million, an increase of 14% compared to the same period last year.

The farming cost (total cost related to fish harvested this quarter) decreased

by NOK 1.54 per kg compared to the same quarter last year. Higher harvested

volume in Finnmark and BC contributed positively.

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

426.3 million during the quarter, compared to NOK 392.3 million in the same

quarter of 2017. EBIT per kg amounted to NOK 18.89 for the period, down from NOK

21.20 in Q2 2017.

Strategic priorities

Grieg Seafood has an overall goal of increasing production by at least 10%

annually until 2020, with the main growth in 2019. Furthermore, the Group has an

ambition to achieve production cost at or below the industry average.

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

addition, larger smolt will result in shorter production time in sea, thus

contributing to reduced biological risk and increased survival. Another

essential aspect of Grieg Seafood's growth strategy is the 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.

Increased volumes, improved capacity utilization and shorter production time in

sea will contribute to higher efficiency and reduced production costs. The Group

also continually undertakes cost-reducing initiatives and has established an

internal improvement program, scheduled to run until 2020.

Market developments

Salmon prices were very volatile in the second quarter of 2018. Despite of this

the average price level was high compared to Q1 2018. The salmon supply has been

higher month by month compared to Q2 2017, which in relation to the high average

prices confirms the strong underlying demand for farmed salmon.

The Group's total share of fixed price contracts in Norway in Q2 2018 was 27%.

For Q3 the share of fixed price contracts is estimated to be 31%, with an

estimate of 30% for the full year.

Outlook

Supply growth is limited and expected to stabilize going forward. The strong

underlying demand for salmon is likely to continue, and prices are expected to

remain strong for the rest of 2018.

Grieg Seafood expects to harvest approximately 17 100 tonnes in Q3 2018 and

75 000 tonnes for the full year 2018, corresponding to an increase of 20% from

2017. The full year estimate has been reduced by 5 000 tonnes due to PD in

Rogaland and algal bloom in BC.

Please find enclosed the company's Q2 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)

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.