Grieg Seafood ASA Reports Q2 2024 Results
Grieg Seafood ASA Reports Q2 2024 Results
Highlights
- Harvest volume of 15,272 tonnes (22,645 tonnes).
- Operational EBIT in the quarter of NOK -35 million (NOK 547 million), with operational EBIT/kg of NOK -2.3 (24.2).
- Results significantly impacted by a biological event, also adversely affecting Q3 with an expected negative Operational EBIT in the range of NOK 230 and 250 million.
- Spiro impacted generation has been fully harvested, and underlying production in Norway has been good towards the end of the quarter.
- Construction of post-smolt facilities is ongoing, and biomass investments are on plan.
- Uncertainty remains awaiting government decision on transition plan for Atlantic salmon aquaculture.
- 97% of the harvested volume in the quarter was ASC certified.
- Expect to harvest 16,700 tonnes in Q3 2024 and target a total harvest of 78,500 tonnes for the full year 2024.
Financial Results
Operational EBIT for Grieg Seafood was negative NOK 35 million in the second quarter of 2024, compared to NOK 547 million in the same period in 2023. Harvest volume was 15,272 tonnes (22,645 tonnes), resulting in an operational EBIT per kg of NOK -2.3 (24.2).
In Rogaland, harvest volume was 2,771 tonnes, significantly below the 11,536 tonnes harvested in the same quarter of 2023, but consistent with plans as biomass building was prioritized. Underlying operational performance remained good, contributing to fish welfare.
In Finnmark, harvest volume for the quarter was 3,886 tonnes, impacted by low average harvest weight and associated costs from previous challenges. However, seawater production improved, and costs are expected to decrease.
British Columbia operations were heavily impacted by low dissolved oxygen levels during the quarter, resulting in increased mortality and reduced growth, with an operational EBIT/kg of NOK -4.9.
Operational and Financial Update for Q3 2024
Grieg Seafood BC has encountered challenging environmental conditions thus far in Q3, with continued low oxygen levels affecting operations. The expectations for Q3 operational EBIT are negative due to anticipated harvest volumes and adverse conditions.
Outlook
The global supply of Atlantic salmon in 2024 is anticipated to slightly increase compared to 2023, with continuing strong demand. Estimated contract share for Norwegian operations is 9% for Q3 2024.
For Q3 2024, the expected harvest volume is 16,700 tonnes, with guidance for a total of 78,500 tonnes for the year distributed across various regions.
Contact Information
For further inquiries, 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 among the world's leading salmon farmers, with a commitment to sustainable farming practices and fish welfare. The company remains dedicated to minimizing environmental impact while enhancing economic viability.
Frequently Asked Questions
What were the main highlights of Grieg Seafood's Q2 2024 results?
The highlights include a harvest volume of 15,272 tonnes, negative operational EBIT of NOK 35 million, and a significant impact from biological events.
How did the harvest volume in Q2 2024 compare to Q2 2023?
The harvest volume decreased from 22,645 tonnes in Q2 2023 to 15,272 tonnes in Q2 2024.
What challenges did Grieg Seafood face in British Columbia?
The operations were significantly affected by low dissolved oxygen levels, resulting in increased mortality and reduced growth rates.
What is the outlook for Grieg Seafood in 2024?
The global supply of Atlantic salmon is expected to slightly increase, and the company is targeting a harvest volume of 78,500 tonnes for the full year 2024.
Who should be contacted for further information regarding Grieg Seafood?
Andreas Kvame, CEO, and Atle Harald Sandtorv, CFO, are the primary contacts available for inquiries.
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