Grieg Seafood — Earnings Release 2024

May 16, 2024

Grieg Seafood ASA: Q1 2024 results

Grieg Seafood ASA: Q1 2024 results

Highlights

* Harvest volume of 21,075 tonnes (15,357 tonnes)

* Operational EBIT in the quarter of NOK 292 million (NOK 385 million), with

operational EBIT/kg of NOK 13.8 (25.1)

* Rogaland delivered second best quarterly results ever

* Results in Finnmark significantly impacted by historical biological

challenges and downgrades

* Successful completion of harvest of the first generation in Newfoundland,

with high share of superior quality

* Construction of post-smolt facilities in Rogaland, Finnmark and Newfoundland

on track

* Process to identify long-term partners to take part in the development of

Canadian operations is ongoing

* 65% of the harvested volume in the quarter ASC certified

* Expect to harvest 17,100 tonnes in Q2 2024

* Target harvest volume for the full year 2024 remains at 81,000 tonnes

Financial results

Operational EBIT for Grieg Seafood was NOK 292 million in the first quarter of

2024, compared to NOK 385 million in the corresponding period in 2023. Harvest

volume was 21,075 tonnes during the period (15,357), which gives an operational

EBIT per kg of NOK 13.8 (25.1).

In Rogaland, harvest volume for the quarter was 9,426 tonnes (7,502), 2,500

tonnes above guiding for Q1 2024 due to advanced harvesting to mitigate

biological risk. Supported by high average weight driven by post-smolt, Rogaland

delivered second best quarterly results ever caused by lower costs and strong

price achievement. For the quarter, Operating EBIT/kg ended at NOK 39.4 (38.4),

confirming a continued positive operational development in the region.

In Finnmark, harvest volume for the quarter ended at 5,663 tonnes (7,856).

Results were significantly impacted by low average harvest weights and reduced

quality, with Operational EBIT/kg ending at NOK 3.1 (20.1). Biological

performance in sea during the quarter has been impacted by a mix of Spiro

(Spironucleus salmonicida), string jellyfish and low seawater temperatures.

Measures have been taken to improve fish welfare, expecting effect in 2024 and

significant improvements for the next winter.

British Columbia had a limited harvest volume of 666 tonnes in the quarter, as

the region has prioritized biomass growth. Operational EBIT/kg ended at NOK 0.3.

The underlying seawater performance was good during the quarter, with a 12-month

survival rate of 93%.

In Newfoundland, the company has successfully completed the harvesting of the

first generation in the quarter. Total harvest volume during the quarter was

5,320 tonnes, while the total harvest volume for the entire generation was

approximately 8,500 tonnes. Realized price was NOK 85.0 per kg and the superior

share was 98%.

Increased financial flexibility to move forward with post-smolt in Newfoundland

Grieg Seafood ASA and its lenders under its existing Facilities Agreement have

signed an amendment letter by which two accordion facilities will be added to

the existing facilities. The accordion facilities are consisting of a term loan

facility over NOK 500 million and a revolving facility over NOK 500 million. The

accordion facilities will increase Grieg Seafood's financial flexibility to

support growth initiatives.

One of the growth initiatives is that Grieg Seafood envisages to move forward

with the construction of the post-smolt facility in Newfoundland. Grieg Seafood

has reached a material agreement with its main suppliers for the remaining

construction work and is focusing on getting the last details in place.

Completion of the post smolt facility is expected in the first half of 2026 and

will require a CAPEX of approximately CAD 115 million, distributed by 40%, 40%

and 20% over the 2024-26 period.

Commenting on the quarter, Andreas Kvame, CEO of Grieg Seafood ASA said:

"During the first quarter of 2024, we experienced progress after a challenging

2023. The main driver of the improvement was a strong biological performance in

Rogaland, which reduced costs and increased price achievement. The underlying

biology is improving in all of our farming regions. I want to thank my

colleagues in all parts of the company for their efforts and hard work during

this quarter.

Our Finnmark operations were affected by historical biological challenges,

including the Spiro parasite and string jelly fish. Coupled with low seawater

temperatures, the challenges impacted survival, fish health, welfare and

quality. I am not satisfied with the fish welfare situation during the quarter.

We have and continue to implement a variety of improvement measures, including a

new vaccine against winter ulcers, a UV filter against Spiro and sea lice

treatment capacity with improved welfare. We are also making changes to our

production planning and reducing biological risk as our post-smolt strategy is

gradually rolled out in our regions. Because of the long production cycles, it

takes time to see the results of our measures. During 2024 and especially next

winter, however, we expect significant improvements.

In Canada, we accomplished a significant milestone with the completion of our

first harvest in Newfoundland. We have proven that it is possible to farm salmon

with good welfare, low impact and high quality in Placentia Bay. This is

strengthening our faith in Newfoundland as a future, robust farming region,

which will generate jobs and shared value to the surrounding rural communities.

During the quarter, we also announced that we are establishing a 10,000 tonnes

value-added processing plant, which will facilitate both of our Norwegian

regions. This is a key step towards delivering on our downstream strategy, where

we aim to work closer with our customers and increase value creation from our

fish."

Outlook

The global harvest of Atlantic salmon in 2024 is expected to increase by 1%.

With expectations of limited supply growth in 2024, combined with an outlook for

continuing strong demand fueled by an increased focus on healthy food and

sustainably produced proteins, we expect a sustained strong market.

Estimated contract share for the Norwegian operations is 11% for Q2 2024 and 7%

for the full year 2024.

In the second quarter of 2024, expected harvest volume is 17,100 tonnes,

distributed as follows:

* Rogaland: 3,600 tonnes

* Finnmark: 3,500 tonnes

* BC: 10,000 tonnes

* NL: 0 tonnes

The company guides for a harvest volume of 81,000 tonnes in 2024, distributed as

follows:

* Rogaland: 28,000 tonnes

* Finnmark: 27,000 tonnes

* BC: 15,000 tonnes

* NL: 11,000 tonnes

Results presentation

Chief Executive Officer (CEO), Andreas Kvame and Chief Financial Officer (CFO)

Atle Harald Sandtorv will present the results live at Hotel Continental,

Stortingsgata 24/26, Oslo today at 8:00 a.m. CEST

Following the presentation, it will be opened for questions from the audience.

The presentation and the subsequent Q&A will be held in Norwegian language.

A live webcast from the presentation can be accessed

at https://investor.griegseafood.com/reports-&-presentations#quarterly or with

the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20240516_2/

Webcast participants need to register to post questions.

An English transcript of the presentations will be made available at

www.griegseafood.com.

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. Our farms are in

Finnmark and Rogaland in Norway, and British Columbia as well as Newfoundland in

Canada. Our headquarter is located in Bergen, Norway. Grieg Seafood ASA was

listed at the Oslo Stock Exchange in June 2007.

Sustainable farming practices are the foundation of Grieg Seafood's operations.

The lowest possible environmental impact and the best possible fish welfare is

both an ethical responsibility and drive economic profitability.

To learn more, please visit www.griegseafood.com

The information included in this announcement is defined as inside information

pursuant to article 7 of the Market Abuse Regulation and is publicly disclosed

in accordance with article 17 of the Market Abuse Regulation and section 5-12 of

the Norwegian Securities Trading Act.

The stock exchange announcement was published by May Hansen, Executive

administrative secretary, Grieg Seafood ASA, on 16 May 2024 at 6:00 a.m. CEST.