Grieg Seafood ASA

Q4 2020 results – Disrupted markets with low spot prices impacted earnings - Seite 3

Outlook

In the short term, operational efficiency and biosecurity are the top priorities in Grieg Seafood.

With the uncertainties of the ongoing pandemic and the reinforcement of restrictions, the short-term market outlook remains uncertain with forward prices on Fishpool around NOK 49 per kg for Q1 2021 and NOK 52 per kg for the full year 2021. The longer-term view on the market is looking better, where Fishpool salmon prices have been traded around NOK 57 per kg for the full year of 2022.

The Group targets a contract share of 20-50%. Estimated contract share for Q1 2021 is 45% for Norway, with current full year 2021 estimate of 28%.

In 2019, a total of 25.2 million smolt with an average weight of 190 grams was stocked to sea, with the aim of harvesting 100 000 tonnes in 2020. However, in a pandemic with low market prices, combined with reduced growth and harvest adjustments in Finnmark, we postponed some harvesting to 2021, reducing our target harvest volume to 90 000 tonnes in 2020 or 75 000 tonnes ex. Shetland. We ended the year with a harvest of 71 142 tonnes ex. Shetland, or 86 850 tonnes incl. Shetland.

In 2020, we have stocked 22 million smolt to sea, with an average weight of 230 grams, with a harvest target of 80 000 tonnes in 2021 (ex. Shetland).

In the first quarter of 2021, expected harvest volume is 10 700 tonnes, with the following area distribution:

• Rogaland:  4 300 tonnes
• Finnmark:  6 300 tonnes
• BC:              600 tonnes

Grieg Seafood maintains the long-term harvest volume target of 130 000 by 2025.

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results by webcast today, Thursday 11 February at 08:00 CET.

The presentation can be accessed at www.griegseafood.com, or with the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20210211_2/

The presentations and the subsequent Q&A will be held in Norwegian. An English transcript of the presentations will be made available at https://investor.griegseafood.com/reports-&-presentations.

For further enquiries, please contact:
Andreas Kvame, CEO
Cell phone: [phone]

Atle Harald Sandtorv, CFO
Cell phone [phone]

About Grieg Seafood

Grieg Seafood ASA is one of the world's leading salmon farmers, targeting 130 000 tonnes of harvest (GWT) in 2025. Our farms are in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada, and Shetland in the UK. Our headquarter is located in Bergen, Norway. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. More than 900 people work in the Company throughout our regions.