Grieg Seafood achieved an EBIT of €27 million in the fourth quarter

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Strong operational performance and good cost development.

Grieg emphasized in its quarterly report that the result is a function of high prices, a high survival rate and good cost development. The company estimates a total annual production in 2022 of 90,000 tonnes of salmon.

The price increase was driven by limited volume growth coupled with strong demand from supermarkets and increasingly also the HoReCa segment (hotels, restaurants and catering). The increased prices, together with a harvest increase of 17 per cent, to 23,727 tonnes, gave a turnover of NOK 1,513 million (€150 million) in the quarter.

Farming operations delivered strong performance, with increased survival in all regions. Finnmark delivered on the expected cost improvements, primarily due to good biological conditions on the harvesting sites during the quarter. In
addition, 100 per cent of the net production in the region achieved status as ASC certified. In Rogaland biological conditions were satisfactory during the
period, with good sea lice control, though price achievement was somewhat
impacted by quality costs caused by PD on two sites.

In British Columbia, price achievement was good, but this was partly offset by high costs due to harvest from sites with high mortality in earlier periods. 71 per cent of the net production in BC is ASC certified, however all fish harvested in BC in 2022 will come from ASC certified sites.

In Newfoundland, the smolt is healthy and growing well, and focus during the
quarter was preparing for seawater operations. This is going according to plan, and the first smolt release remains on schedule for spring / summer 2022.

CEO Andreas Kvame commented, “In the fourth quarter, operations continued the positive improvement momentum seen coming out of the third quarter, with improving survival rates and a declining cost level. Development throughout the year has been largely as expected, with costs in Norway gradually declining towards NOK 40 (€4) per kg. In BC, costs have been too high, but successful mitigating efforts have reduced impact from harmful algae blooms compared to earlier years, and we expect positive results from these initiatives going forward.”

“After year-end, we signed an agreement for refinancing of our debt, which
combined with the completion of the Shetland transaction, secures the long-term financing of ongoing operations and the flexibility to execute on our strategic priorities, while maintaining a robust capital structure. We are excited for 2022 and the years to come.”