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Grieg Seafood — Earnings Release 2020
Sep 18, 2020
3612_rns_2020-09-18_1db56bf2-776e-4698-b0d9-81daa14e850c.html
Earnings Release
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Grieg Seafood ASA: Discontinues operations in Skye, taking loss of NOK 100 million in Q3 2020
Grieg Seafood ASA: Discontinues operations in Skye, taking loss of NOK 100 million in Q3 2020
Grieg Seafood has decided to discontinue its operations on the Isle of Skye in
Scotland, evaluating alternative set-ups outside the company. Following an
incident of high mortalities, parts of the operations will be liquidated
immediately.
Combined with weak market prices impacted by the covid-19 pandemic, and low
harvest weight, the event will impact Grieg Seafood's result for the third
quarter negatively with approximately NOK 100 million. Remaining fish in the
area will be harvested in Q4 2020 - Q1 2021, with expected high cost as a result
of the incident.
As part of its long-term strategy of sustainable growth, where the focus is on
operational areas with growth potential, Grieg Seafood in August 2019 initiated
an evaluation of its Skye operations. There are few operational synergies
between Grieg Seafood's main operations in Shetland and the five farms on Skye
due to the long distance between the areas. With limited potential for increased
volumes and challenging conditions for operational integration reducing ability
to mitigate and control biological challenges, Grieg Seafood does not see
potential to maintain operations with the fish welfare and production cost
standard that it has for the rest of the company under the current structural
set-up.
CEO of Grieg Seafood ASA, Andreas Kvame, said:
"In this area, it has proven difficult to maintain the fish welfare and
production standard we have in the rest of the company, due to the long distance
and weak operational synergies between our main operations in Shetland and the
five farms in Skye. Therefore, we see no other choice but to liquidate our
operations in Skye, as we look for alternatives for the sites outside the
company. Our staff in Skye has done a tremendous job despite less than optimal
conditions, and I want to thank them for their hard work and dedication to Grieg
Seafood."
The biological challenges experienced during the July-September period caused an
unfortunate mortality event, due to abnormal levels of jellyfish, where 627 000
individual fish or 1 500 tonnes were lost. Operations at the impacted sites will
be discontinued immediately, while operations at the two remaining sites will be
shut down after harvest in Q4 2020 - Q1 2021.
Grieg Seafood's main operations in Scotland, on the Shetland isles, has had a
good and stable biology so far during the quarter and Grieg Seafood's guiding of
95 000 tonnes harvest in 2020 remains.
Grieg Seafood aims to build a platform for continued sustainable growth and cost
improvements. With an ambition for global growth, Grieg Seafood aims to
strengthen its market position, while driving increased value creation as a
global supplier of sustainably farmed salmon. The strategy for 2020-2025 is
founded in an ambition for sustainable salmon farming and comprises three key
strategic objectives for continued growth and business development: Global
growth, cost leadership and value chain repositioning. Sustainability in remains
a foundation of the strategy.
For further enquiries, please contact:
Andreas Kvame, CEO
+47 907 71 441 / [email protected]
(mailto:[email protected])
Atle Harald Sandtorv, CFO
+47 908 45 252 / [email protected]
For media enquiries, please contact:
Kristina Furnes, Global Communications Manager
+47 48185505 / [email protected]
About Grieg Seafood
Grieg Seafood ASA is one of the world's leading salmon farmers, targeting
95 000 tonnes of harvest (GWT) in 2020. Our farms are in Finnmark and Rogaland
in Norway, British Columbia and Newfoundland in Canada, and Shetland in the UK.
Our headquarter is located in Bergen, Norway. Grieg Seafood ASA was listed at
the Oslo Stock Exchange in June 2007. More than 900 people are employed by the
Company globally.
Sustainable farming practices are the foundation of Grieg Seafood's operations.
The lowest possible environmental impact and the best possible fish welfare
drive economic profitability. Towards 2025, we aim for global growth, cost
leadership in each region and to evolve from a pure salmon supplier to an
innovation partner for selected customers.
To learn more, please visit www.griegseafood.com.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.