Grieg Seafood scales back Canadian operations amid strategic restructuring.
Grieg Seafood has unveiled a comprehensive transformation programme aimed at bolstering its financial and operational foundations, with a strategic emphasis on its Norwegian assets in Rogaland and Finnmark.
The company anticipates a 14% increase in harvest volumes within Norway, targeting 62,000 tonnes for 2025.
In contrast, Grieg Seafood is significantly scaling back its growth ambitions and associated capital expenditures in Newfoundland, Canada.
Strategic investments in British Columbia have also been suspended pending clarity on regional salmon farming policies. Consequently, the company projects a 5% reduction in Canadian harvest volumes, estimating 22,000 tonnes for 2025.
Reflecting changes in operational, economic, and regulatory conditions, Grieg Seafood has recorded impairment losses exceeding NOK 1.7 billion ($153 million) related to its Canadian operations. This includes approximately NOK 1 billion in intangible assets and NOK 0.7 billion in property, plant, and equipment.
To enhance its financial position, the company is considering issuing a hybrid bond and exploring the sale-leaseback of its smolt and post-smolt facilities in Adamselv, Finnmark. These measures are expected to collectively improve liquidity by approximately NOK 2.5 billion and reduce net interest-bearing debt by NOK 1.5 to 2.2 billion.
CEO Andreas Kvame stated, “We are currently not capturing the value potential that lies in our assets and our operations, and we need to manage a financial and operational transformation to realize these values going forward.”
Financially, Grieg Seafood reported an operational loss of NOK 74 million for the fourth quarter of 2024, equating to a loss of NOK 3.1 per kilogram. This compares to a loss of NOK 67 million in the same quarter of 2023. For the full year 2024, operational EBIT was NOK 8 million, down from NOK 780 million in 2023, with total harvest volumes increasing to 77,704 tonnes from 72,015 tonnes the previous year.
Looking ahead, the company expects robust demand for Atlantic salmon, supported by health and sustainability trends. Despite a projected modest increase in global supply, market conditions are anticipated to remain favourable. Grieg Seafood forecasts first-quarter 2025 harvest volumes of 18,800 tonnes, with a full-year target of 84,000 tonnes.
