Grieg Seafood ASA

Operational and financial update - Seite 2

  

Key figures:

	Finnmark	Rogaland	Shetland	BC	Other	Group
EBIT pre FV (NOKm)	26.65	49.85	-186.20	-51.61	-25.61	-186.91
Harvest volume (tonnes)	2,730	5,039	6,785	6,648	-	21,201
EBIT pre FV/kg (NOK/kg)	9.77	9.89	-27.44	-7.76	-	-8.82
2020 harvest volume estimates (tonnes)	30,000	23,000	15,000	22,000		90,000

Financial position
The Covid-19 pandemic disrupted the salmon market, with a significant shift in demand and lower prices in core markets. A priority for Grieg Seafood is, in addition to protecting people, local communities, partners and business operations, to secure liquidity and financial solidity.

Following the outbreak of Covid-19, market uncertainty increased, and prices has come down in all core markets, impacting Grieg Seafood’s earnings negatively. With outlook for lower earnings short- to mid-term, results of performed stress tests on key financial indicators indicates that the company may breach with covenants outlined in the loan agreements. Following negotiations with the banks, Grieg Seafood is granted amendment to the covenants through the third quarter 2021.

Update on greenfield project in Newfoundland
In February, Grieg Seafood acquired a greenfield project in Newfoundland that includes exclusivity for salmon farming in the Placentia Bay area. The GSF Newfoundland project currently comprises licenses for 11 sea sites. Eight licenses are approved, while the rest are in different stages of application. The project also includes a high-end RAS facility under construction.

Grieg Seafood continuously evaluates its projects. In the current environment with increased market uncertainty because of the ongoing Covid-19 pandemic, low salmon prices and reduced market visibility, the basis for the development of GSF Newfoundland has changed. Further, due to more need for on-site construction rather than the planned module deliveries, the complexity has increased.