Grieg Seafood’s Q1 result gives stock market party.
Grieg Seafood stock rises five percent after earnings in Q1 exceeded expectations.
“In total, Grieg Seafood (GSF) delivers a solid first quarter with NOK 162m in operational EBIT, well above SB1M and consensus in the NOK 115-129m range. The better results are primarily related to 30% higher harvest volume in the quarter, but underlying EBIT/kg is approx. 10% higher than our forecast. Main deviation from our estimates is an impressive quarter from BC, which reports NOK 22.7/kg in operational EBIT – almost twice as high as our forecast,” said Sparebank 1 Markets’ salmon analyst, Tore A. Tonseth.
Grieg Seafood CEO Andreas Kvame was opmistic as he welcomed brokerage firms, the press and investors to the presentation of the Q1 result.
Kvame believed the estimates from Kontali Analyse that states four percent global, and six percent national supply growth in Norway for 2018, is too optimistic.
“This is due to the low temperatures in winter, fallow periods and releasing new fish and so on. One can not just hold on to the fish and let it grow. You set a mark, and after that it should be a fallow period. Then perhaps the fish is around 4.2 kilos, when it should actually be 4,6 kilos,” he told TDN Direct.
“‘I’ve been in the salmon industry since 1996, and I’ve never experienced that kind of demand as we had the past year. And it has been strengthened in the first and second quarter,” said Kvame.