Norwegian salmon producer Grieg Seafood has experienced a sharp decline in its share price following the release of its second-quarter 2024 results on Wednesday 21 August, which revealed significant operational challenges and financial losses.
The company’s stock, which opened at NOK 64.25 ($5.88) on Friday August 16, fell to NOK 50.00 ($4.58) by the morning of Thursday August 22, marking a decline of nearly 22% in less than a week.
The dramatic drop in share price was caused by the company’s announcement of a negative operational EBIT of NOK -35 million (-$3.20 million) for Q2 2024, a stark contrast to the NOK 547 million ($50 million) profit recorded in the same period last year. The poor performance was largely due to biological challenges in British Columbia, Canada, and ongoing issues in Norway, particularly in Finnmark.
On August 21, the stock opened at NOK 52.80 ($4.83) and fell throughout the day as investors digested the meaning of the results, closing at NOK 50.05 ($4.58). The trading volume was notably high, reflecting investor concerns and a significant sell-off as the price continued to plummet.
The share price decline was further exacerbated by the company’s warning of an expected negative operational EBIT for Q3 2024 in British Columbia, projected to be in the range of NOK 230-250 million ($21-23 million), due to ongoing environmental challenges.
Arctic Securities analyst Christian Olsen Nordby calls the Canada news “the last thing the company needed”.
Referring to the results as a “disaster report”, the analyst said that “it will be difficult for the company to make a profit,” in the second of the year, according to E24.
