NOK 351 million (NOK 151 million), EBIT per kg NOK 14.81; up 84% from to Q4
driven by high prices and cost reduction per kg
volume of 24 000 tonnes (+27%) driven by strong biological performance in
production with high average harvest weight in BC, continued high cost due to
challenges in previous quarters
cost in Shetland due to continued biological challenges
A- by the Carbon Disclosure Project on actions related to Climate Change
harvest volume of 82 000 tonnes (+10%) in 2019
Seafood Group harvested 23 682 tonnes GWT in Q4 2018, compared to 18 667 tonnes
in Q4 2017, compared to 18 667 tonnes in Q4 2017.
realized price for Grieg Seafood was up by NOK 5.55 per kg compared to Q4 2017.
Grieg Seafood’s total operating income in Q4 2018
amounted to NOK 2 128 million, an increase of 23% compared to the same period
last year .
cost (total cost related to fish harvested this quarter) increased by NOK 0.43
per kg compared to the same quarter last year. This is mainly related to high
cost of harvested fish in BC and on Shetland that was affected by harmful algal
bloom (HAB) and gill-related diseases.
EBIT before fair value adjustment of biological assets was NOK 351 million
during the quarter, compared to NOK 151 million in the same quarter of 2017.
EBIT per kg amounted to NOK 14.81 for the period, up from NOK 8.07 in Q4 2017.
In 2018 the
Grieg Seafood Group’s operating income totaled NOK 7 552 million, compared to
7 038 million in 2017. Higher prices and volumes contributed positively. Total
harvest volume for the year was 74 623 tonnes GWT, up from 62 598 tonnes GWT in
EBIT per kg
was NOK 14.72, compared to NOK 14.45 in 2017. EBIT per kg was positively
affected by the large harvest volume and high spot prices, however the cost
related to pancreas disease (PD), HAB and gill diseases during the year had a
negative impact, both in terms of high cost and price achievement. Total
farming cost per kg for the Group was NOK 43.1, NOK 0.7 above our targeted cost
of NOK 42.4 for the year.
on the Group’s performance, CEO Andreas Kvame, said:
“Q4 2018 ended a strong year for Grieg Seafood in
which we reached our last guiding harvest volume of 75 000 tonnes – an increase
of 20% compared to 2017 – and revenues of more than NOK 7.5 billion. This was
achieved by maintaining a strict focus on sustainability and driving forward
improvements to our farming operations.
Throughout the year we introduced several
initiatives, including advanced sensor- and monitoring systems across our four
regions. In September we opened a new operations center in Rogaland, supporting
our digitalization strategy utilizing big data analytics to improve overall
We are proud of receiving the second highest grade by the Carbon
Disclosure Project, which scores companies based on their work to cut carbon
emissions. With improved operations and by maintaining a strict focus on
sustainable farming and on securing fish welfare, we are well prepared to
continue executing on our growth strategy, targeting 100 000 tonnes in
2020 with cost at or below industry average”
Seafood’s objective is to ensure sustainable growth in the years ahead by combining skilled and motivated people, new
technology and to increasingly farm salmon on nature’s terms. The goal is to increase sustainable
production to reach an annual harvest volume of 100 000 tonnes in 2020. We are
also aiming for production cost at or below weighted industry average,
targeting NOK 37.90 per kg by 2020. In Norway, the target is NOK 36.00 per kg
progress towards our goal for sustainable growth, we have initiated the GSF
2020 improvement program, with specific targets and initiatives for each
region. The program contains four strategic priorities;
2) post-smolt strategy
3) biosecurity and fish welfare
4) expansion opportunities
digitalization strategy “GSF Precision Farming,” Grieg Seafood intends to take
a leading role in utilizing new technology, big data and artificial
intelligence to improve operational efficiency through reduced environmental
impact, increased fish welfare and improved growth.
With a strict focus on
biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological
performance through the implementation of a broad range of technological and
operational initiatives, including large smolt, GSF Precision Farming and other
preventive operational measures aimed at combating sea lice and algae. The group targets an average
survival rate in seawater above 93%. In 2018, average survival rate was 91%.
The global supply of Atlantic Salmon for 2019 is
expected to increase while demand growth is expected to remain stronger than
supply growth, contributing to continued good prices going forward.
Grieg Seafood expects to harvest approximately
82 000 tonnes in 2019, an increase of 10% from 2018. The expected harvest
volume for Q1 2019 is 13 200 tonnes.
CEO Andreas Kvame and CFO Atle Harald Sandtorv will
present the results later today at 09:00 CET at Hotel Continental,
Stortingsgaten 24/26, Oslo.
The presentation and subsequent Q&A will be held
in Norwegian and can be followed live via webcast at www.griegseafood.com or at
the following link: http://webtv.hegnar.no/presentation.php?webcastId=97603010
An English transcript of the presentation will be made
available at www.griegseafood.com within a few days after the presentation.
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
Seafood ASA is one of the world’s leading salmon farmers, specializing in
Atlantic salmon. The Group has an annual production target of 100 000 tonnes
gutted weight in 2020.
facilities are in Finnmark and Rogaland in Norway, British Columbia in Canada
and Shetland in the UK. Approximately 780 people are employed by the Group.
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 resources and
being the preferred supplier to selected customers.
information is subject to the disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act.