Grieg Seafood — Earnings Release 2024

Feb 20, 2025

Grieg Seafood reports Q4 and preliminary results for 2024 restructures and refinances to refocus on profitable growth in Norway

Grieg Seafood reports Q4 and preliminary results for 2024 restructures and refinances to refocus on profitable growth in Norway

Figures for Q4 2023 in brackets

* Transformation program

* Reallocating resources to focus on profitable growth in Norway

* Lowering growth ambitions and investment levels in Canada significantly

* Continuing and sharpening operational and financial improvement programs

* Contemplating NOK 1.5 - 2.0 bn hybrid bond to strengthen equity and

financial flexibility

* Progressive dialogue regarding the sale-leaseback of Adamselv smolt /

post-smolt facilities in Finnmark

* Financial results

* Harvest volume of 23,551 tonnes (21,767 tonnes) in Q4 and 77,704 tonnes

(72,015 tonnes) for the full year

* Operational EBIT loss of NOK 74 million (NOK -67 million) in Q4,

corresponding to a loss of NOK 3.1 per kg (-3.1)

* Operational EBIT of NOK 8 million for the full year 2024 (NOK 780

million), corresponding to NOK 0.1 per kg (10.8)

* Recognized impairments of NOK 1.7 billion related to the Canadian

operations

* Outlook

* Demand and supply dynamics support sustained good market

* Entered 2025 close to MAB capacity in both Rogaland and Finnmark -

expecting 14% growth in harvest volumes in Norway in 2025

* Continued cautious approach in British Columbia and reduced growth outlook

in Newfoundland - expecting 5% decline in harvest volumes in Canada in

* Expect harvest volumes of 18,800 tonnes in Q1 2025 and target 84,000

tonnes in 2025

(Bergen, 20 February 2025) Grieg Seafood launches a transformation program to

lay the financial and organizational foundation for profitable growth and

continued development of its Norwegian assets in Rogaland and Finnmark. The

company entered 2025 with close to maximum allowed biomass (MAB) in both

regions, and expects 14% growth in harvesting volumes to 62,000 tonnes.

In Canada, the company is lowering its growth ambitions and related capital

expenditure plans significantly in Newfoundland and has also put strategic

investments on hold in British Columbia while awaiting conclusions on the

outlined transition for salmon farming in the region. As a result, the company

expects harvesting volumes in Canada to decline by around 5% to 22,000 tonnes

in 2025.

Changes in operational, industry, economic and regulatory conditions have led

to changes in future plans, assumptions and estimates for the Canadian

operations, and the company has recognized impairment losses in excess of NOK

1.7 billion to reflect these changes. Approximately NOK 1 billion of the

impairment relates to intangible assets and approximately NOK 0.7 billion to

property, plant, and equipment.

Moving forward, Grieg Seafood is executing a set of financial initiatives to

strengthen the balance sheet. This enables the required financial flexibility

and liquidity to pursue continued growth. The transition captures the true

value of our Norwegian asset base and preserves the value of our Canadian

assets. This includes the contemplated issuance of a hybrid bond,

sale-leaseback of the smolt/post-smolt facilities in Adamselv in Finnmark, and

a further sharpening of the company's ongoing improvement programs to enhance

operational stability and improve cost efficiency.

- We are currently not capturing the value potential that lies in our assets

and our operations, and we need to manage a financial and operational

transformation to realize these values going forward. We are now reallocating

resources to continue developing our Norwegian assets, while scaling down our

growth ambitions and related CAPEX investments for our Canadian operations.

Hereby, we are taking upfront action to strengthen our balance sheet and

financial flexibility, and doubling down on our operational and financial

improvement programs, says CEO Andreas Kvame.

The executed and planned transactions are expected to have a combined positive

liquidity effect of approximately NOK 2.5 billion (before financing costs and

green bond repayment in June 2025) as well as reducing NIBD by approximately

NOK 1.5 - 2.2 billion and will greatly enhance the financial flexibility going

forward.

- We have a fundamentally strong asset base, and with operational improvements

and financial discipline we are going to drive sustainable and profitable

growth and shareholder value creation going forward, says Andreas Kvame.

Financial results

While the operational performance in Rogaland remained strong, operations in

Finnmark were negatively impacted by string jellyfish, triggering a cost

increase of NOK 75 million in the quarter. With additional negative EBIT from

the Canadian operations, Grieg Seafood reports an operational loss of NOK 74

million, compared to an operational EBIT loss of NOK 67 million in the fourth

quarter 2023. Operational EBIT/kg was NOK -3.1 (-3.1).

For the full year 2024, the operational EBIT amounted to NOK 8 million,

compared to NOK 780 million in 2023, corresponding to an operational EBIT/kg

of NOK 0.1 in 2024 and NOK 10.8 in 2023. The total harvest volume was 77,704

tonnes, up from 72,015 tonnes in 2023.

Recognizing impairments of NOK 1,737 million related to the Canadian

operations, the company reports an EBIT-loss of NOK 1,561 million fourth

quarter and an EBIT-loss of NOK 2,310 million for the full year 2024.

Outlook

Demand for Atlantic salmon is expected to remain strong, with a persisting

focus on healthy foods and sustainable produced proteins. Even though the

global supply of Atlantic salmon is expected to increase somewhat from 2024 to

2025, this should support a sustained robust market.

The company entered the year with a biomass close to the MAB capacity and

expects to see increasing harvesting volumes in Norway in 2025. Given the

uncertain political climate, the company is not planning for increased

harvesting in Canada.

The potential imposition of tariffs on goods exports into the US adds

uncertainty, particularly with regards to exports from the company's

operations in Canada.

The company expects harvest volumes of 18,800 tonnes in Q1 2025, distributed

as follows:

* Rogaland: 6,500 tonnes

* Finnmark: 7,600 tonnes

* British Columbia: 0 tonnes

* Newfoundland: 4,700 tonnes

Estimated contract share for the Norwegian operations is 23% for Q1 2025.

For the full year 2025, the company expects harvest volumes of 84,000 tonnes,

distributed as follows:

* Rogaland: 30,000 tonnes

* Finnmark: 32,000 tonnes

* British Columbia: 12,000 tonnes

* Newfoundland: 10,000 tonnes

Results presentation

CEO Andreas Kvame and CFO Magnus Johannesen will present the results live at

Hotel Continental, Stortingsgaten 24/26, Oslo today at 08:00 a.m. CET.

A live webcast from the presentation can be accessed at

www.investor.griegseafood.com (http://www.investor.griegseafood.com/) or with

the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20250220_2/

An English transcript of the presentation will be made available at

www.investor.griegseafood.com (http://www.investor.griegseafood.com/).

For further enquiries, please contact:

Andreas Kvame, CEO

Cell phone: +47 907 71 441

Magnus Johannesen, CFO

Cell phone: +47 959 13 243

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

(http://www.griegseafood.com/).

The information included in this announcement may partly be defined as inside

information pursuant to article 7 of the Market Abuse Regulation. The

information is publicly disclosed in accordance with article 17 of the Market

Abuse Regulation as well as section 5-12 of the Norwegian Securities Trading

Act. The stock exchange announcement was published by May Hansen,

Administrative Secretary, Grieg Seafood Group ASA, on 20 February 2025 at 6:00

a.m. CET.