Highlights:
- EBIT before fair value adjustment for the third quarter 2020 of
NOK -187 million (154) due to lower spot prices, higher costs inBritish Columbia (BC) andNOK 150 million directly related to the discontinued operations on the Isle of Skye. - Postponing parts of
Newfoundland project due to market uncertainty and lower visibility following Covid 19 - Expect total harvest volume of 90,000 tonnes in 2020. Transferring harvest of 5,000 tonnes to 2021 to optimize harvest weight and time to market
- The new reporting date for third quarter 2020 is 17 November, changed from 4 November as originally planned
Third quarter 2020
Following market turbulence and demand shift from hotels, restaurants and catering (horeca) to retail due to Covid-19, market prices in the quarter were down compared with Q3 2019. In addition, prices achieved in
Farming cost in the quarter is negatively impacted by the low harvest weights in Skye, in addition to increased costs from handling of biological challenges in both
As announced on 18 September,
EBIT before fair value adjustment of biological assets is estimated to
Total harvest volume for the first nine months of 2020 was 63,472 tonnes. For the fourth quarter, the company expects to harvest 26,500 tonnes, bringing total volume for 2020 to around 90,000 tonnes. This is a reduction of 5,000 tonnes from previous estimate and is manly related to transfer of harvest volume to 2021. By utilizing acquired MTB capacity,
Key figures:
Finnmark | Rogaland | BC | Other | Group | ||
EBIT pre FV (NOKm) | 26.65 | 49.85 | -186.20 | -51.61 | -25.61 | -186.91 |
Harvest volume (tonnes) | 2,730 | 5,039 | 6,785 | 6,648 | - | 21,201 |
EBIT pre FV/kg (NOK/kg) | 9.77 | 9.89 | -27.44 | -7.76 | - | -8.82 |
2020 harvest volume estimates (tonnes) | 30,000 | 23,000 | 15,000 | 22,000 | 90,000 |
Financial position
The Covid-19 pandemic disrupted the salmon market, with a significant shift in demand and lower prices in core markets. A priority for
Following the outbreak of Covid-19, market uncertainty increased, and prices has come down in all core markets, impacting Grieg Seafood’s earnings negatively. With outlook for lower earnings short- to mid-term, results of performed stress tests on key financial indicators indicates that the company may breach with covenants outlined in the loan agreements. Following negotiations with the banks,
Update on greenfield project in
In February,
Therefore, to lower risk in the initial phase of this large project, the company has decided to slow down the pace of investments. The construction of the planned post-smolt A unit in the first phase is deferred out in time. The RAS facility currently under construction is dimensioned to serve all future post-smolt modules. Consequently, the facility has adequate capacity to ensure necessary on-growth, also in a situation with post-smolt A facility moved out in time.
The company estimates that the total investment for the RAS smolt facility, excluding completion of the post-smolt A unit, will be around
Grieg Seafoods ambition for the
The first fish is already growing in the freshwater facility and the annual harvest volume target to be reached by 2025 for the first phase is still 15,000 tonnes, with the first harvest planned for 2022/2023.
For further enquiries, please contact:
+47 907 71 441 / andreas.kvame@griegseafood.com
+47 908 45 252 / atle.harald.sandtorv@griegseafood.com
For media enquiries, please contact:
+47 48185505 / kristina.furnes@griegseafood.com
About
Sustainable farming practices are the foundation of
To learn more, please visit www.griegseafood.com.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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