Grieg Seafood ASA: Third quarter 2018 results
06 Noviembre 2018 - 11:00PM
Highlights
-
Continued high prices on strong demand
-
EBIT/kg NOK 9.43
-
Strong biological performance in Finnmark
-
Good production in Rogaland, planned low harvest
volume in the quarter affecting EBIT/kg
-
Higher cost in BC and Shetland due to biological
challenges
-
Two new locations granted in Finnmark in
October
-
Estimated harvest for 2018 maintained at 75 000
tonnes
-
Expect harvest volume of 82 000 tonnes in
2019
-
Dividend of NOK 2 per share
Results Q3 2018
The Grieg Seafood Group harvested 16 941
tonnes of salmon in Q3 2018, compared with 16 875 tonnes in Q3
2017.
The average spot price (Nasdaq Salmon Index) for
the period was NOK 54.07 per kg, down NOK 1.74 per kg from the same
period in 2017. The average realized price for Grieg Seafood was
down by NOK 1.38 per kg comparing these quarters.
Grieg Seafood's total operating income in Q3 2018
amounted to NOK 1 589 million, a reduction of 14% compared to
the same period last year.
The farming cost increased by NOK 1.11 per kg
compared to the same quarter last year. This is mainly related to
reduced survival towards the end of the quarter due to algae
incidents in BC and gill-related diseases on Shetland.
The Group's EBIT before fair value adjustment of
biological assets was NOK 160 million during the quarter, compared
to NOK 229 million in the same quarter of 2017. EBIT per kg
amounted to NOK 9.43 for the period, down from NOK 13.59 in Q3
2017.
Strategic priorities
Grieg Seafood's objective is to ensure long term
sustainable growth by combining great people, nature and
technology.
By 2020, Grieg Seafood aim to increase production
to reach an annual harvest volume of 100 000 tonnes and a
production cost at or below weighted industry average, targeting
NOK 37.90/kg.
Continued access to high-quality smolt is critical
to ensure future growth and reduce costs. Increased production of
larger smolt will also shorten production time in sea, thus
reducing exposure to biological risks and contributing to increased
survival.
Another essential aspect of Grieg Seafood's growth
strategy is increased utilization of the Group's licenses. High
site flexibility is essential to improve utilization, and Grieg
Seafood cooperates with local authorities on an ongoing basis to
optimize flexibility. During the quarter, the Group was granted two
new locations in Finnmark.
The Group also continually undertakes
cost-reducing initiatives, and to ensure progress towards its
goals, has initiated the GSF 2020 improvement program, with
specific targets and initiatives for each region.
Market developments
Salmon prices were volatile in the third quarter
of 2018. The average price level was down by
NOK 14.0 compared to Q2 2018
and down by NOK 1.74 compared by Q3 2017. The salmon supply in the
quarter has been higher compared to Q3 2017, which in relation to
the high average prices confirms the strong underlying demand for
farmed salmon.
Outlook
The current situation, with limited supply growth
and strong underlying demand, is expected to continue. In addition,
a rise in demand due to the Christmas season will most likely
contribute to strong market prices for the last quarter of
2018.
Grieg Seafood expects to harvest approximately 24
100 tonnes in Q4 2018, totaling 75 000 tonnes for the full
year 2018, corresponding to an increase of 20% from 2017. Expected
harvest volume for 2019 is 82 000 tonnes.
Please find enclosed the Group's
Q3 2018 report and presentation.
For further information, please
contact:
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 Q3 2018 Report
GSF Q3 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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