The listed value of Bergen-based producer Grieg Seafood’s shares rose by 900 million kroner (USD 110 million) during a half hour of early-morning trading in Oslo on Wednesday, after the company announced rising production, record results and an extra November dividend.
“Based on better than expected results and news of a dividend, we expect a positive development for the stock today,” wrote Nordea Markets analyst, Kolbjorn Giskeodegard, in a note to clients just an hour before the market opened.
Neither the strong result — USD1.66 in EBIT per processed kilogram of salmon — nor the “extraordinary” dividend of one kroner per share (USD0.12) were expected. Higher volumes were seen, but a planned harvest stop in southern Norway and “challenging” Shetland production were serious enough to report. Processed production rose by about 3,000 tonnes to 16,875 t of salmon.
“Grieg Seafood aims to increase production by a miniumum 10 percent per year through to 2020,” managing director Andreas Kvame said. He added that he wanted costs to fall to “average or below average” for the industry.
Meanwhile, the company plans to move 28 percent more smolt to grow-out in 2017, a sign the company’s strategy to secure juveniles from other growers will yield greater volumes in short succession.