Grieg Seafood ASA Announces Q2 2024 Results
Key Highlights
- The harvest volume reached 15,272 tonnes, down from 22,645 tonnes.
- The operational EBIT for the quarter was NOK -35 million, a significant drop from NOK 547 million, resulting in an operational EBIT per kg of NOK -2.3 compared to 24.2.
- The results were notably affected by a biological event, which is also expected to negatively impact Q3, with an anticipated operational EBIT loss between NOK 230 and 250 million.
- The generation impacted by Spiro has been completely harvested, and production levels in Norway have been favorable towards the end of the quarter.
- Ongoing construction of post-smolt facilities is on track, and investments in biomass are proceeding as planned.
- There remains uncertainty as the company awaits a government decision regarding the transition plan for Atlantic salmon aquaculture.
- An impressive 97% of the harvested volume in this quarter was ASC certified.
- The company expects to harvest 16,700 tonnes in Q3 2024 and aims for a total harvest of 78,500 tonnes for the entire year.
Financial Overview
In the second quarter of 2024, Grieg Seafood reported an operational EBIT of NOK -35 million, a stark contrast to NOK 547 million in the same quarter of 2023. The total harvest volume was 15,272 tonnes, down from 22,645 tonnes, leading to an operational EBIT per kg of NOK -2.3 compared to 24.2.
In Rogaland, the harvest volume was 2,771 tonnes, significantly lower than the 11,536 tonnes harvested in the same quarter last year. This aligns with the company's strategy to prioritize biomass building. Despite the lower volume, the underlying operational performance remained strong, supporting fish welfare.
In Finnmark, the harvest volume for the quarter stood at 3,886 tonnes, affected by lower average harvest weights and costs from prior challenges. However, improvements in seawater production have been noted, and costs are expected to decline.
The operations in British Columbia faced serious challenges due to low dissolved oxygen levels during the quarter, leading to increased mortality and reduced growth rates, resulting in an operational EBIT per kg of NOK -4.9.
Operational and Financial Update for Q3 2024
Grieg Seafood BC is currently dealing with difficult environmental conditions in Q3, with ongoing low oxygen levels impacting operations. As a result, the expectations for Q3 operational EBIT are negative due to projected harvest volumes and adverse environmental conditions.
Future Outlook
The global supply of Atlantic salmon is expected to see a slight increase in 2024 compared to 2023, amid strong ongoing demand. The estimated contract share for Norwegian operations is projected to be 9% for Q3 2024.
For Q3 2024, the anticipated harvest volume is 16,700 tonnes, with a total harvest target of 78,500 tonnes for the year, spread across various regions.
Contact Information
If you have any questions or need further information, please reach out to:
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 recognized as one of the leading salmon farming companies globally, committed to sustainable farming practices and ensuring fish welfare. The company is focused on reducing its environmental footprint while enhancing economic sustainability.
Frequently Asked Questions
What were the main highlights of Grieg Seafood's Q2 2024 results?
The main highlights included a harvest volume of 15,272 tonnes, an operational EBIT of NOK -35 million, and significant effects from biological events.
How did the harvest volume in Q2 2024 compare to Q2 2023?
In Q2 2024, the harvest volume decreased from 22,645 tonnes in Q2 2023 to 15,272 tonnes.
What challenges did Grieg Seafood face in British Columbia?
The operations in British Columbia were severely impacted by low dissolved oxygen levels, leading to higher mortality rates and slower growth.
What is the outlook for Grieg Seafood in 2024?
The global supply of Atlantic salmon is expected to see a slight increase, with the company targeting a total harvest volume of 78,500 tonnes for the full year 2024.
Who should be contacted for further information regarding Grieg Seafood?
For inquiries, you can contact Andreas Kvame, CEO, or Atle Harald Sandtorv, CFO.
