Highlights
- Harvest volume of 25 300, above guiding, and up 7% from Q4 2018
- EBIT before fair value adjustment of
NOK 357 million (NOK 351 million ) - EBIT/kg
NOK 14.10 (NOK 14.81 ) - Solid earnings driven by strong performance in
Norway - Biological improvements in
British Columbia andShetland , but still high costs - Recognized by the
Carbon Disclosure Project as a leader (A) on climate disclosure and actions - Expect harvest of 16 800 tonnes in Q1 2020
- 2020 volume target of 100 000 tonnes well within reach, regional differences in cost performance
Financial results
Average realized price was down in Q4 2019 compared to Q4 2018, mainly due to lower price achievement in the
Farming cost during the period (total cost related to fish harvested this quarter) was somewhat down compared to the same quarter last year.
The Group’s EBIT before fair value adjustment of biological assets was
Commenting on the Group’s performance, CEO
“2019 was an eventful year for
For 2020, we have a long-standing ambition of reaching 100 000 tonnes harvest with cost at or below industry average, and as we enter 2020 our volume target is within reach. However, operational development has varied between regions. While Finnmark and Rogaland have exceeded expectations, cost in BC and
Strategic priorities
Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost. Short term, our goal is to increase production to 100 000 tonnes with a production cost at or below weighted industry average.
We aim to provide our shareholders with a competitive return on capital invested and have set a ROCE target of 12%. Our investments reflect our growth strategy: digitalization, post-smolt, biosecurity and fish welfare, including continuous evaluation of expansion opportunities.
Post-smolt improves biosecurity and survival rates and allows for a more efficient farming cycle. Increased growth on-shore also frees up sea water capacity. Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, with the aim of generating better farming decisions.
With a strict focus on biosecurity and fish welfare,
GSF 2025
The strategy for 2020-2025 is founded in an ambition for sustainable salmon farming and comprises three key strategic objectives for continued growth and business development: Global growth, cost leadership and value chain repositioning.
Commenting on Grieg Seafood’s strategy for 2025, CEO
“As we look beyond 2020, we aim to build on our existing platform to ensure continued growth and cost improvements to reach more than 150 000 tonnes harvest by 2025. To scale our global operations, we will continue to grow organically, as well as through M&A activity. We will also reposition
Outlook
The Group’s total share of fixed price contracts in Q4 2019 was 16% in
During Q4 2019, 8.3 million smolt with an average weight around 190 grams were transferred to sea. For the full year 2019, a total of 25.2 million smolt, with an average weight of 190 grams, was stocked. We are on track to reach our harvest target of 100 000 tonnes in 2020, an increase of 20% from 2019. Expected harvest volume for Q1 2020 is 16 800 tonnes, comprised of:
- Rogaland: 5 700 tonnes
- Finnmark: 5 700 tonnes
Shetland : 1 800 tonnes- BC: 1 600 tonnes
Results presentation
CEO
The presentation and subsequent Q&A will be held in Norwegian and can be followed live via webcast at www.griegseafood.com or at https://channel.royalcast.com/webcast/hegnarmedia/20200213_6/
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 of the presentation.
For further enquiries, please contact:
Cell phone: +47 907 71 441
Cell phone +47 908 45 252
About
Our farming facilities are in Finnmark and Rogaland in
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.
Attachments
- GSF Q4 2019 Presentation
- GSF Q4 2019 Report
© OMX, source