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Grieg Seafood — Earnings Release 2020
Apr 17, 2020
3612_rns_2020-04-17_6fdb72ca-5937-472e-b5ab-64113a9969c4.html
Earnings Release
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Grieg Seafood ASA: Trading Update Q1 2020
Grieg Seafood ASA: Trading Update Q1 2020
The Grieg Seafood Group harvested a total of 18 362 tonnes gutted weight
equivalent (GWT) in Q1 2020, some 1 500 tonnes above the Company's Q1 harvest
guidance of 16 800 GWT communicated in connection with the release of the Q4
2019 results on 13 February 2020.
We have had more biological challenges than usual in the Finnmark region during
the quarter. As communicated in the Q4 2019 report, Finnmark experienced unusual
prevalence of winter-ulcers on fish in one of our production areas, reducing
fish welfare and harvest quality. This situation persisted throughout the first
quarter, resulting in significant downgrades which impacted achieved prices
negatively. While the situation is temporary, we are working systematically to
identify why this incident has occurred and will put in place measures to avoid
future occurrences.
In addition, a large portion of the harvest came from one site infected by
infectious salmon anemia (ISA). Direct costs related to ISA handling and lower
average weight from accelerated harvesting, increased cost per kilo and further
reduced achieved prices.
Combined, these issues resulted in significant earnings decrease for Grieg
Seafood Finnmark, reporting an EBIT/kg of NOK 4.56 in Q1 2020, compared to
EBIT/kg of NOK 25.01/kg in Q1 2019.
Operations in the other regions were in line with expectations during the
quarter and according to plan.
Harvest volume, volume guiding and preliminary EBIT/kg:
Region Harvest volume (GWT) Guiding (GWT) EBIT/kg (NOK)
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GSF Rogaland 6,944 6,000 24.50
GSF Finnmark 6,827 7,000 4.56
GSF BC 2,543 2,100 16.00
GSF Shetland 2,047 1,700 4.97
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These numbers are preliminary, and we will report final figures in our Q1 2020
report. It will be released on 7 May at 06:00 CEST, where we will provide a full
update on status and outlook.
For further enquiries, please contact:
Andreas Kvame, CEO
+47 907 71 441
Atle Harald Sandtorv, CFO
+47 908 45 252
For media enquiries, please contact:
Kristina Furnes, Global Communications Manager
[email protected] (mailto:[email protected])
+47 48185505
About Grieg Seafood:
Grieg Seafood ASA is one of the world's leading salmon farmers, specializing in
Atlantic salmon. The Group has a 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. 861 people are employed by
the Group at year end 2019.
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 the ocean and being
the preferred supplier to 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.