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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)

----------------------------------------------------------------------

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

----------------------------------------------------------------------

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

[email protected]

+47 907 71 441

Atle Harald Sandtorv, CFO

[email protected]

+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.