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This is our priorities

Grieg Seafood has defined key priority areas for sustainability. Our priorities will ensure that our efforts respond to our main stakeholders´ expectations of us, as well as enable us to achieve our goals and create long-term value. The priorities also take into account our long-term commitments through GSI.

Our materiality matrix

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The prioritisation of sustainability issues was carried out according to the guidelines developed by Global Reporting Initiative (GRI) G4. A multidisciplinary group including representatives of the management team was involved in the preparation and completion of this work. All aspects of the matrix are considered to be important, while the aspects in the upper right corner are considered the most important.

The assessment, which was conducted in 2013 and further aligned with the GSI in 2014, was based on a survey of our stakeholders´ expectations of us. Identified aspects of sustainability were ranked in terms of importance to each stakeholder group, as well as an assessment of potential risks and opportunities related to Grieg Seafood´s achievement. The matrix shows the sustainability aspects that emerged through the materiality analysis, and it clarifies our priorities. All aspects of the matrix are considered to be important, while the aspects in the upper right corner are considered the most important.

This report provides information on our approach to managing the issues of highest priority, and describes our main principles, and our performance, results and future goals and ambitions. Our high priority sustainability issues are:

  • Food safety and quality
  • Fish health
  • Sea lice control
  • Escape control
  • Employee safety and working environment
  • Anti-corruption and integrity
  • The ripple effect in communities
  • Transparency and stakeholder dialogue (this section)

Read more in our sustainability report.

New Production Manager at sea in Finnmark

Grieg Seafood Finnmark has appointed a new head of production at sea which starts 4 May 2015.

Our new production manager at the seaside is Vidar Aamo Nikolaisen. He is 40 years old and a very experienced farmer with good education.

Nikolaisen has a Master degree in fish health and a Master in strategic management and finance from the University of Tromsø. Vidar has experience as being an Aqua Technician, Operations Manager, Fish Health Manager (Senja Sjøfarm AS, Dåfjord laks, Aurora Salmon AS and Lerøy Aurora AS), and has been CEO of Vikar in Norway.

We wish Vidar welcome.

Grieg Seafood selects Pacific Seafood as exclusive Northwest distribution partner

SkunaBay

Pacific Seafood Group is set to become the exclusive Northwest distribution partner of Grieg Seafood ASA’s Skuna Bay Salmon brand on Monday.

As of Monday, Pacific will be the only distributor to sell Grieg’s “craft-raised” salmon in Washington State, Idaho, Montana and Utah.

The selection comes due to “their reputation for quality, sustainable sourcing, service and outstanding cold chain”, Skuna Bay said in a release on Wednesday.

“Our passion is to consistently provide the great chefs of America with great salmon so their customers always have a fantastic salmon dining experience ,” Dave Mergle, director for Skuna Bay, said. “We are excited to improve our service in the region where salmon is a part of the cultural fabric – and where we think chefs will appreciate the attention to detail we put into getting them great 10 pound salmon year round.”

Skuna Bay Salmon — launched in November of 2011 in the US Southwest — is reared in glacier-fed waters off the coast of Vancouver Island, British Columbia, by a team of farmers.

It has now been served at more than 2,500 high-end restaurants and boutique retailers across more than 35 states and major urban markets including Los Angeles and New York, among many others.

Well-known chefs from across America advocate for the brand, including Michael Kornick of MK in Chicago, Jennifer Jasinski of Rioja in Denver, Ed Brown of Ed’s Chowderhouse in New York and Anne Kearney of Rue Dumaine in Dayton, Ohio.

Ref: Undercurrent News

New Group managing director in Grieg Seafood ASA

bilde liteAndreas Kvame (52) is hired as the new Group managing director (CEO) for Grieg Seafood ASA. Kvame comes from the position as managing director for Scanbio AS, and knows the salmon farming industry very well after 17 years in different management positions in Marine Harvest and the predecessor Hydro Seafood. Kvame was employed by Gilde Agro during 1983 -1995, the last 3 years as operating manager for the processing plants at Forus and Egersund. Kvame is educated within agriculture, as well as having additional education within business administration management.

Kvame started in Marine Harvest as manager of the processing plant Ryfisk at Hjelmeland, and from 2001, he was a director in Marine Harvest Norway, with full responsibility for sales and processing, logistics and planning. From 2003, Kvame has had several positions in Marine Harvest Europe as director and has been responsible within the same areas up until 2013. He was member of the Marine Harvest Europe management team.

“We are particularly happy to welcome Andreas Kvame as our new CEO”, Per Grieg jr says, the chairman of the board in Grieg Seafood ASA. “He will in an excellent way complement the already strong leader team now in place in the company and will participate in developing our many potentials.”

“I look forward to join and head up one of the leading salmon producers globally”, Andreas Kvame says. “The company has clear ambitions about participating actively in the strong growth that the salmon farming industry is facing during the next years, and for me it is exiting to contribute to this value creation.”

The board of directors of Grieg Seafood points to Kvame’s strong ability for execution that will contribute to a better utilization of our production capacity, increase our cost efficiency and increase the production from today’s level of 70,000 tons of salmon annually.

Grieg Seafood ASA (www.griegseafood.com) has about 650 employees in Norway, Scotland and Canada with total sales of 2.6 billion NOK in 2014. The company farms in 4 regions in Rogaland, Finnmark, Scotland and British Columbia. They own or rent over 100 licenses and sites for salmon production. The company was started in 1992 and listed on Oslo Stock exchange in 2007 (GSF). All sales are handled by Ocean Quality, one of Europe’s leading salmon distributors. Ocean Quality has about 35 employees and is owned with 60% by the company. Grieg Seafood is part of the Grieg Group (www.grieg.no).

Andreas Kvame will start in his new position latest 1 June 2015.

Any enquiries to the chairman of the board, Per Grieg jr, mobile +47 908 31 648 or mail per.grieg@grieg.no.

Finnmark awarded four green licences

Christmas came early to Finnmark. Grieg Seafood Finnmark have just been awarded four green licences!

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– We are very pleased that the award is now final and that we now can begin the job of getting started with the green licences. We are not only looking at these four green licences as increased MTB, but this is mainly licences to stimulate technology development to solve lice and escape problems, says Regional Manager at Grieg Seafood Finnmark, Roy Tore Rikardsen.

– This is very positive for us, says CFO at Grieg Seafood ASA, Atle Harald Sandtorv.
The licenses were submitted for three different batches:
Group A: 20 licenses reserved for the counties of Troms and Finnmark, in northern Norway. Each of the two counties will get 10 licenses, out of which five in each county will be reserved for smaller players.
Group B (open group with closed bidding round): 15 licenses.
Group C (open group) : 10 licenses.

We’ve got a new site in the UK!

Highland Council’s North Planning Applications Committee has today approved Hjaltland’s application for the Ru Chorachan (Loch Snizort East) site.

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It’s a day of celebration for Grieg Seafood. Yesterday our UK department were allocated a new site at the Isle of Skye.

– This was a Christmas gift to Grieg Seafood, says Regional Manager Sigurd Pettersen.

– Highland Council’s North Planning Applications Committee has today approved Hjaltland’s application for the Ru Chorachan (Loch Snizort East) site. This is with 4 standard conditions and one special condition which requires construction of the fish farm to take place outwith the times of year which are sensitive for the white-tailed eagles which frequent this area. I have attached a copy of the committee report in case you haven’t already seen it.  The formal decision notice should reach you in a few days, says Colin Wishart at the Highland Council.

The proposed maximum standing biomass of fish on the site would be 2166 tonnes. The site is adjacent to a section of coast which runs between Ru Chorachan, the headland which forms the south side of the entrance to Uig Bay, and Poll na h-Eelaidh, the small inlet which lies 2 kms to the south.

Congratulations sent to our UK department! Keep up the good work!

GSF Third Quarter 2014

Highlights – Third Quarter 2014

  • EBIT before fair value adjustment of biomass was MNOK -63.2 in the third quarter (MNOK 76.5 in 2013).
  • After correcting for the three events mentioned below, the underlying Q3 EBIT was positive in the sum of MNOK 30.
    • In Finnmark the matter of fish maturation has presented challenges with overall economic consequences estimated at MNOK 29. Action has been taken to avoid this in the future.
    • Environmental and disease conditions have been demanding in Rogaland as a result of PD (Pancreas disease) and unusually high sea temperatures. Because of this, the regional accounts include write-downs of MNOK 39.
    • The results from Canada reflect negative profitability, including a weak market, on Pacific salmon. As a result, the Q3 accounts include losses and write-downs totalling MNOK 25. GSF is terminating its production of Pacific salmon and will focus solely on Atlantic salmon in the period ahead.
  • The company’s CEO, Morten Vike, has resigned from his position and the process of finding his successor has started.
  • The Board is not satisfied with the third quarter results. There will be a keener focus on the core business and the quality of internal operating procedures.

Third Quarter results

EBIT for the Group in the third quarter before fair value adjustment of biomass was MNOK -63.2, against MNOK 76.5 in 2013. The
harvested volume in this year’s third quarter was 16 750 tons, against 13 953 in the corresponding period last year, reflecting an increase of 20%.

The weak performance in the third quarter must be considered in the light of several unforeseen operational deviations. Specifically, this relates to PD in Rogaland (MNOK 39), salmon maturation in Finnmark (MNOK 29) and a high proportion of Pacific salmon in BC (MNOK 25).

If the events mentioned above are disregarded, the costs of fish harvested in the third quarter were largely stable in all regions compared with the same period last year. But the Board is of the view that the cost level is too high. The company has had to deal with several unfortunate and unforeseen events over the last year, but steps have been taken to improve processes and procedures with the aim of ensuring greater operating stability in the period ahead. Sea production in the third quarter was good in all regions apart from Rogaland which has had major biological challenges. The global supply of salmon increased by 12% in the third quarter, with some decline in prices. This should also be seen in connection with the closure of the Russian market. The decline in prices was part of the reason for the weaker performance in the third quarter.

Before tax and fair value adjustment of biomass the third quarter result was MNOK -83.1, against MNOK 64.4 in the third quarter of 2013.

Group operating income in the third quarter totalled MNOK 599.1, an increase of 2.5% on the same period last year.

Volumes were 20% higher, while prices were 17% lower compared with the third quarter of 2013.  Pacific salmon in Canada and mature fish in Finnmark contributed to a reduction in the realised average price.

Outlook

Following a third quarter characterised by high supply-side growth, the fourth quarter is expected to bring a decline in this growth. There is therefore reason to believe that prices will rise towards the end of the year. In addition, forecasts for 2015 indicate a supply-side growth rate that is lower than the increase in demand, which will further strengthen the market.

GSF expects to harvest 65 000 tons in 2014. This is 2 500 tons less than previously indicated, but 1 000 tons have been moved to 2015. The decline in the harvested volume is mainly due to the biological situation in Rogaland. PD and an unusually warm summer have resulted in lower fish growth than expected.

In 2015 expects to harvest 72 000 tons. This is based on a harvested volume of 13 000 tons in BC. A normalised harvested volume in this region would be in the order of 15 000 tons. In Finnmark and Scotland the harvested volumes will be slightly lower in 2015. This must be seen in the light of the zone and location structures in these regions. These volumes are expected to increase again in 2016.

The process of appointing a new CEO is ongoing. The company’s CFO, Atle Harald Sandtorv, is acting CEO. In the period ahead GSF will be targeting on the production and sale of Atlantic salmon. At the same time, there will be an increased focus on the core business and the quality of internal operating procedures.

For further information, please contact:

CFO/Acting CEO Atle Harald Sandtorv, cell phone: +47 908 45 252.

 

A challenging quarter for Grieg Seafood ASA

The expected Q3 2014 result (EBIT before fair value adjustments) for Grieg Seafood ASA is NOK -63m. This is due to non-recurring events during Q3 amounting to NOK 95m. Total harvest in Q3 is 16,750 tons vs. previous guiding of 15,600 tons.

In the Q2 report Grieg Seafood has informed about challenging environment- and disease issues caused by PD in Rogaland. In that regard a NOK 24m write-down due to mortality in July was announced. Unfortunately, the negative consequences of PD have
increased during Q3. Write-down for Rogaland in Q3 has increased to NOK 39m.

The result from operations in Canada is affected by extremely negative profit for Pacific salmon. Market conditions have been challenging due to a strong wild salmon season. As a consequence the total amount for loss and write down is NOK 25m. Grieg Seafood has decided to discontinue production of Pacific salmon, and the last harvest is scheduled for Q3 2015.
The Q3 result in Finnmark is lower than expected. This is due to mature fish. This has caused large deviances against quality expectations, and consequently lower sales prices during Q3. In addition to these issues the production cost was unusually high. The total estimated negative P&L effect is NOK 29m.
Finnmark encountered escape from one site during Q3, where the total number of escaped fish was 11,100. The total P&L effect of this incident was NOK 1.5m.
If adjusted for the above mentioned one-time effects, the Grieg Seafood Q3 result would have been NOK 32m.

The final Q3 result will be presented, as planned, on October 30th.

For additional information, please contact:

CFO Atle Harald Sandtorv, tel.  +47 90 84 52 52

Notice on change of leadership in Grieg Seafood ASA

CEO Morten Vike in Grieg Seafood ASA has notified the board that he will resign as managing director in the company with immediate effect. He has been in the position of CEO for the last 6 years, and has contributed to a development of the company’s 4 regions in Finnmark, Rogaland, Scotland and Canada, and has been central in the establishment of Ocean Quality AS, one of Europe’s leading salmon distributors, and has guided the company to increasing its turnover by more than NOK 1 billion to NOK 2.4 billion.

The board would like to thank Morten Vike for his efforts during these years, and wish him luck in his future career. He will be available for the company during his termination period.

The chairman of the board, Mr. Per Grieg jr, will join the company as working Chair, at the same time as CFO Atle Harald Sandtorv will be constituted for an interim period as managing director. Per Grieg jr. has held the CEO position earlier for 10 years, and represents the Grieg Group as owners with about 55% of the company’s shareholding. Search for Morten Vike’s successor will start immediately.

For further information about the company, please contact:

per.grieg@grieg.no – mobile +47 908 31 648.