Grieg Seafood — Earnings Release 2019

May 15, 2019

Grieg Seafood ASA: Q1 2019 results - Continued operational improvements and strong growth

Grieg Seafood ASA: Q1 2019 results - Continued operational improvements and strong growth

Highlights

* Harvest volume of 14 800 tonnes, 30% increase compared to Q1 2018

* EBIT before fair value adjustments of NOK 267 million (NOK 162 million)

* EBIT/kg NOK 18.07, up 27% from Q1 2018

* Strong biological performance in Norway and BC

* Earnings driven by overall high prices and cost reductions in Norway

* Continued high cost in Shetland, driven by enduring biological challenges

* Expect harvest volume of 82 000 tonnes in 2019, 10% growth from 2018

Financial results

The Grieg Seafood Group harvested 14 801 tonnes GWT in Q1 2019, compared to

11 443 tonnes in Q1 2018.

The average realized price was up in Q1 2019 compared to Q1 2018, mainly driven

by higher average market price. Total revenues during the quarter amounted to

NOK 1 650 million, an increase of 9% compared to the same period last year.

Farming cost (total cost related to fish harvested this quarter) improved

compared to the same quarter last year, mainly related to economies of scale

from higher harvest volume and improved production in Norway.

The Group's EBIT before fair value adjustment of biological assets was NOK 267

million during the quarter (162). The corresponding EBIT per kg amounted to NOK

18.07 for the period (14.18). 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:

"During the first quarter Grieg Seafood experienced strong growth and continued

biological improvements, particularly in Finnmark and Rogaland. Our strong

performance is a result of our skilled employees' dedication to our strategic

focus areas - large smolt, digitalization, biosecurity and fish welfare and

operational expansion.

We are still in the early stages in executing on our priorities and we expect

continued growth and operational improvements going forward. We remain confident

in our 2020 target of 100 000 tonnes harvest with cost at or below industry

average, and with our five pillars for sustainability, we remain committed to

our ambition for sustainable salmon farming and long-term value creation for all

our stakeholders.

We are proud to have climbed from 12th place to 8th place on the SHE Index,

which scores companies on their efforts to improve gender balance in management.

Our objective is to achieve sustainable growth by combining talented people,

knowledge about nature and new technology."

Strategic priorities

Improving sustainability is key to increasing our profits, and by combining

skilled and motivated people with new technology and by increasingly farming

salmon on nature's terms, we will ensure sustainable, cost-efficient growth.

Short term, our goal is to reach an annual harvest volume of

100 000 tonnes in 2020, targeting group production cost at NOK 37.90 per kg.

Combined with continues strong focus on our strategic priorities, this will form

the basis for sustainable growth also going forward, generating value for all

our stakeholders.

Through the digitalization strategy "GSF Precision Farming," Grieg Seafood

intends to take a leading role in utilizing new technology, big data and

artificial intelligence to improve operational efficiency through reduced

environmental impact, increased fish welfare and improved growth.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to

achieve strong biological performance through the implementation of a broad

range of technological and operational initiatives, including large smolt, GSF

Precision Farming and other preventive operational measures aimed at combating

sea lice and algae. The group targets an average survival rate in seawater above

93%.

Outlook

The global supply of Atlantic Salmon for 2019 is expected to increase by

approximately 4-7% compared to 2018, mainly due to increased harvest volume in

Norway, UK and Chile. With a growing demand and limited possibilities for

increase in harvest volumes, prices are expected to remain high.

The Group's total share of fixed price contracts in Norway in Q1 2019 was 17%.

The share of fixed price contracts for Norway and the UK is estimated to be 20%

for the year.

During Q1 2019, 3.7 million smolt were transferred to sea, with an average

weight of 188 grams. Approximately 26-28 million smolt is planned stocked in

2019, with an average weight around 190 grams.

Grieg Seafood expects to harvest approximately 82 000 tonnes in 2019. The

expected harvest volume for Q2 2019 is 21 000 tonnes, comprised of:

* Rogaland: 7 700 tonnes

* Finnmark: 5 500 tonnes

* Shetland: 3 100 tonnes

* BC: 4 700 tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results later

today at 08:00 CEST at Hotel Continental, Stortingsgaten 24/26, Oslo.

The presentation and subsequent Q&A will be held in Norwegian and can be

followed live via webcast at www.griegseafood.com or at the following link;

https://webtv.hegnar.no/presentation.php?webcastId=97815832

It will be possible to ask questions online.

An English transcript of the presentation will be made available at

www.griegseafood.com within a few days after the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO

Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO

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. 804 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.