Brief: Grieg Seafood Q3 Negative EBIT Before Fair Value Adjustment Of NOK 192 Million

Grieg Seafood ASA

17/11/2020 05:59

Nov 17 (Reuters) - Grieg Seafood ASA  GRIA.OL :
    * Q3 HARVEST VOLUME OF 21 201 TONNES (21 028 TONNES IN Q3
2019)
    * Q3 NEGATIVE EBIT BEFORE FAIR VALUE ADJUSTMENT OF NOK 192
MILLION
(+143 MILLION)
    * DISRUPTED MARKETS WITH LOW SPOT PRICES HAD A NEGATIVE
IMPACT BY
NOK 92 MILLION ON EARNINGS IN QUARTER COMPARED TO CORRESPONDING
QUARTER IN 2019
    * SHETLAND PROFITABILITY NEGATIVELY IMPACTED BY NOK 150
MILLION
FROM SKYE AND GRIEG SEAFOOD DECIDED TO CEASE ITS OPERATIONS ON
ISLE OF SKYE
    * EXPECTED HARVEST OF 26 500 TONNES IN Q4 2020, GUIDANCE OF
90 000
TONNES (95 000) IN 2020 TO OPTIMIZE HARVEST WEIGHT AND TIME TO
MARKET
    * TO LOWER RISK IN INITIAL PHASE OF PROJECT, WE HAVE DECIDED
TO
DEFER CONSTRUCTION OF FIRST POST-SMOLT UNIT TO 2023, WITHOUT
CAUSING DELAY TO OUR TARGET OF HARVESTING 15 000 TONNES IN 2025
    * FINANCIAL TARGETS: ROCE: 12%
    * FINANCIAL TARGETS: NIBD/EBITDA < 4.5 (BANK COVENANT)
    * FINANCIAL TARGETS: 90,000 TONNES IN 2020
    * FINANCIAL TARGETS: DIVIDEND OF 30-40% OF NET PROFIT
    * TARGETING PRODUCTION OF 100 000 TONNES IN 2022 AND 130 000
TONNES IN 2025
    * TOTAL INVESTMENTS NEXT FIVE YEARS TO REACH 130 000 TONNES
IN
2025 IS ESTIMATED TO BE NOK 2,6 BILLION (EXCLUDING BIOMASS AND
MAINTENANCE)
    * PRODUCTION TARGET OF 90 000 TONNES IN 2020 IS MAINTAINED
    * TARGETING AVERAGE FARMING COST BELOW NOK 40/KG IN NORWAY
AND
BELOW CAD 7/KG IN BRITISH COLUMBIA, WHICH IS 10-15% BELOW
CURRENT LEVELS

Source text for Eikon:  ID:nGNE2zxy4l 
Further company coverage:  GRIA.OL 

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