Highlights
-
Harvest volume of 14 800 tonnes, 30%
increase compared to Q1 2018
-
EBIT before fair value adjustments of
NOK 267 million (NOK 162 million)
-
EBIT/kg NOK 18.07, up 27% from Q1
2018
-
Strong biological performance in Norway
and BC
-
Earnings driven by overall high prices
and cost reductions in Norway
-
Continued high cost in Shetland, driven
by enduring biological challenges
-
Expect harvest volume of 82 000 tonnes
in 2019, 10% growth from 2018
Financial results
The Grieg Seafood Group harvested 14 801 tonnes
GWT in Q1 2019, compared to 11 443 tonnes in Q1 2018.
The average realized price was up in Q1 2019
compared to Q1 2018, mainly driven by higher average market price.
Total revenues during the quarter amounted to NOK 1 650 million, an
increase of 9% compared to the same period last year.
Farming cost (total cost related to fish harvested
this quarter) improved compared to the same quarter last year,
mainly related to economies of scale from higher harvest volume and
improved production in Norway.
The Group's EBIT before fair value adjustment of
biological assets was NOK 267 million during the quarter (162). The
corresponding EBIT per kg amounted to NOK 18.07 for the period
(14.18). EBIT from the four regions includes value creation from
the respective sales activities of the Group's jointly-owned sales
company, Ocean Quality.
Commenting on the Group's performance, CEO Andreas
Kvame, said:
"During the first quarter Grieg
Seafood experienced strong growth and continued biological
improvements, particularly in Finnmark and Rogaland. Our strong
performance is a result of our skilled employees' dedication to our
strategic focus areas - large smolt, digitalization, biosecurity
and fish welfare and operational expansion.
We are still in the early stages
in executing on our priorities and we expect continued growth and
operational improvements going forward. We remain confident in our
2020 target of 100 000 tonnes harvest with cost at or below
industry average, and with our five pillars for sustainability, we
remain committed to our ambition for sustainable salmon farming and
long-term value creation for all our stakeholders.
We are proud to have climbed from
12th place to 8th place on the SHE Index, which scores companies on
their efforts to improve gender balance in management. Our
objective is to achieve sustainable growth by combining talented
people, knowledge about nature and new technology."
Strategic priorities
Improving sustainability is key to increasing our
profits, and by combining skilled and motivated people with new
technology and by increasingly farming salmon on nature's terms, we
will ensure sustainable, cost-efficient growth. Short term, our
goal is to reach an annual harvest volume of
100 000 tonnes in 2020, targeting group production cost at NOK
37.90 per kg. Combined with continues strong focus on our strategic
priorities, this will form the basis for sustainable growth also
going forward, generating value for all our stakeholders.
Through the 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%.
Outlook
The global supply of Atlantic Salmon for 2019 is
expected to increase by approximately 4-7% compared to 2018, mainly
due to increased harvest volume in Norway, UK and Chile. With a
growing demand and limited possibilities for increase in harvest
volumes, prices are expected to remain high.
The Group's total share of fixed price contracts
in Norway in Q1 2019 was 17%. The share of fixed price contracts
for Norway and the UK is estimated to be 20% for the year.
During Q1 2019, 3.7 million smolt were transferred
to sea, with an average weight of 188 grams. Approximately 26-28
million smolt is planned stocked in 2019, with an average weight
around 190 grams.
Grieg Seafood expects to harvest approximately 82
000 tonnes in 2019. The expected harvest volume for Q2 2019 is 21
000 tonnes, comprised of:
-
Rogaland: 7 700 tonnes
-
Finnmark: 5 500 tonnes
-
Shetland: 3 100 tonnes
-
BC: 4 700 tonnes
Results presentation
CEO Andreas Kvame and CFO Atle Harald Sandtorv
will present the results later today at 08:00 CEST 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;
https://webtv.hegnar.no/presentation.php?webcastId=97815832
It will be possible to ask questions online.
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. 804 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 Q1 2019 Presentation
GSF Q1 2019 Report
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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