Grieg Seafood ASA

Q1 2024 results

Highlights

• Harvest volume of 21,075 tonnes (15,357 tonnes)
• Operational EBIT in the quarter of NOK 292 million (NOK 385 million), with operational EBIT/kg of NOK 13.8 (25.1)
• Rogaland delivered second best quarterly results ever
• Results in Finnmark significantly impacted by historical biological challenges and downgrades
• Successful completion of harvest of the first generation in Newfoundland, with high share of superior quality
• Construction of post-smolt facilities in Rogaland, Finnmark and Newfoundland on track
• Process to identify long-term partners to take part in the development of Canadian operations is ongoing
• 65% of the harvested volume in the quarter ASC certified
• Expect to harvest 17,100 tonnes in Q2 2024
• Target harvest volume for the full year 2024 remains at 81,000 tonnes

Financial results

Operational EBIT for Grieg Seafood was NOK 292 million in the first quarter of 2024, compared to NOK 385 million in the corresponding period in 2023. Harvest volume was 21,075 tonnes during the period (15,357), which gives an operational EBIT per kg of NOK 13.8 (25.1).

In Rogaland, harvest volume for the quarter was 9,426 tonnes (7,502), 2,500 tonnes above guiding for Q1 2024 due to advanced harvesting to mitigate biological risk. Supported by high average weight driven by post-smolt, Rogaland delivered second best quarterly results ever caused by lower costs and strong price achievement. For the quarter, Operating EBIT/kg ended at NOK 39.4 (38.4), confirming a continued positive operational development in the region.

In Finnmark, harvest volume for the quarter ended at 5,663 tonnes (7,856). Results were significantly impacted by low average harvest weights and reduced quality, with Operational EBIT/kg ending at NOK 3.1 (20.1). Biological performance in sea during the quarter has been impacted by a mix of Spiro (Spironucleus salmonicida), string jellyfish and low seawater temperatures. Measures have been taken to improve fish welfare, expecting effect in 2024 and significant improvements for the next winter.

British Columbia had a limited harvest volume of 666 tonnes in the quarter, as the region has prioritized biomass growth. Operational EBIT/kg ended at NOK 0.3. The underlying seawater performance was good during the quarter, with a 12-month survival rate of 93%.

In Newfoundland, the company has successfully completed the harvesting of the first generation in the quarter. Total harvest volume during the quarter was 5,320 tonnes, while the total harvest volume for the entire generation was approximately 8,500 tonnes. Realized price was NOK 85.0 per kg and the superior share was 98%.