Grieg Seafood (GSF) Q3 2024 earnings summary

Executive summary

• Operational EBIT for Q3 2024 was NOK -175 million (NOK -86 million in Q3 2023), mainly due to biological challenges in British Columbia and seasonally lower prices in Norway.

• All-time high production in Norway with maximum allowable biomass fully utilized at quarter end; harvest volume increased 45% year-over-year to 17,806 tonnes.

• Process to identify long-term partners for Canadian operations is ongoing, with dialogue for both strategic partnership and business sale.

• NOK 750 million bridge loan facility established in Q4 2024 to maintain financial flexibility.

• Norwegian operations (Rogaland and Finnmark) showed strong production and cost improvements, while BC was severely impacted by biological events.

Financial highlights

• Sales revenues for Q3 2024 were NOK 1,461 million, up from NOK 1,164 million in Q3 2023.

• Net profit for Q3 2024 was NOK -31 million, compared to NOK 148 million in Q3 2023.

• EBIT for Q3 2024 was NOK 169 million, impacted by a fair value adjustment of biological assets.

• Operational EBITDA was NOK -8 million (NOK 57 million), and operational EBIT per kg was NOK -9.8 (NOK -7.0).

• Free liquidity as of 30 September 2024 was NOK 1,055 million.

Outlook and guidance

• Expect to harvest 24,400 tonnes in Q4 2024, with full year 2024 target at 78,500 tonnes and 2025 target at 84,000 tonnes.

• Rogaland and Finnmark anticipate stable or improved production, but Finnmark faces higher costs in Q4 due to string jellyfish mortality.

• BC expects no harvest in Q4; Newfoundland commenced second-generation harvest in October.

• Ambition to reach 25% value-added processing (VAP) share by 2026.

• Improvement program targets NOK 150 million fixed cost reduction by end-2025.