Highlights
-
EBIT NOK 351 million (NOK 151 million), EBIT per
kg NOK 14.81; up 84% from to Q4 2017
-
Earnings driven by high prices and cost
reduction per kg
-
Harvest volume of 24 000 tonnes (+27%) driven by
strong biological performance in Norway
-
Good production with high average harvest weight
in BC, continued high cost due to challenges in previous
quarters
-
High cost in Shetland due to continued
biological challenges
-
Awarded A- by the Carbon Disclosure Project on
actions related to Climate Change
-
Expected harvest volume of 82 000 tonnes (+10%)
in 2019
Financial results
The Grieg 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.
The average 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 .
The farming 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.
The Group's 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 NOK
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 2017.
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.
Commenting 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
operational performance.
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"
Strategic priorities
Grieg 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 by 2020.
To ensure 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;
1) digitalization
2) post-smolt strategy
3) biosecurity and fish welfare
4) expansion opportunities
Through its 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%.
Outlook
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.
Results presentation
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
Grieg 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.
Our farming 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.
To learn more, visit www.griegseafood.com
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
GSF Q4 2018 Report
GSF Q4 2018 Presentation
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Grieg Seafood ASA via Globenewswire
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