Grieg Seafood ASA

Q4 2023 results

Highlights

• Harvest volume of 21,767 tonnes (21,186 tonnes)
• Operational EBIT in the quarter of NOK -67 million (NOK 156 million), with operational EBIT/kg of NOK -3.1 (7.4). Full year Operational EBIT of NOK 780 million, with an operational EBIT of NOK 10.8 per kg
• Quarterly results impacted by historical biological events
• Good biological results of first harvest in Newfoundland, with high survival and high share of superior quality
• Executing on post-smolt strategy, construction of 3,000 tonnes capacity post-smolt facility in Finnmark initiated
• Initiatives to reduce costs by NOK 150 million over two years as part of our improvement program
• Process to identify long-term partners to take part in the development of Canadian operations is ongoing
• 76% of the harvested volume in the quarter ASC certified
• Expect to harvest 17,800 tonnes in Q1 2024
• Target harvest volume of 81,000 tonnes for the full year 2024

Financial results

Operational EBIT for Grieg Seafood was NOK -67 million in the fourth quarter, compared to NOK 156 million in the corresponding period 2022. Harvest volume was 21,767 tonnes during the period (21,186), which gives an operational EBIT per kg of NOK -3.1 (7.4).

Operational EBIT/kg in Rogaland ended at NOK 10.4 (13.8) and was impacted by a superior share of 86% compared to 91% in the corresponding period last year, and somewhat unfavourable timing of harvest. Underlying production was good, with a strong 12-months survival rate at 94%. The farming cost ended at NOK 67.2 per kg during the quarter, up from NOK 54.6 per kg in Q4 2022 and NOK 65.8 per kg in Q3 2023. The increase in cost mainly relates to historical ISA events and lower harvest volume.

In Finnmark, harvest volume for the quarter ended at 10,387 tonnes, 1,800 tonnes below guidance. The lower volume is mainly related to impact from the Spiro-parasite, winters ulcers and string jellyfish.  Operational EBIT/kg ended at NOK 6.2, impacted by weak biological performance and lower price achievement due to a superior share of 64%.

Operational EBIT/kg in British Colombia was negative NOK 7.9, compared to negative NOK 22.9 in Q4 2022. Farming cost was impacted by historical biological issues and write downs. However, seawater performance was good during the quarter, with a 12-month survival rate of 91%.

In Newfoundland, an important milestone was reached this quarter when the company started harvesting of the first generation of fish. Total harvest volume during the quarter was 3,184 tonnes. This is some 1,800 tonnes below guidance, postponed to 2024 due to weather conditions and positive market expectations. Realized price was NOK 74.0 per kg and the superior share was 97%.