The CEO says the group remains confident of closing the Cermaq transaction in Q4 despite delays in Canada.
Photo: Grieg Seafood.
Grieg Seafood has presented its results for the third quarter, reporting a harvest of 6,820 tonnes, down from 8,543 tonnes a year earlier, due to the impact of unusually high seawater temperatures in Rogaland.
CEO Nina Willumsen Grieg said that “Rogaland continues to be the cornerstone of our business, delivering solid biological results and maintaining strong cost control,” despite the summer heat having led to lower growth rates and gill health challenges. She explained that the company harvested some pens earlier than planned “at lower average weights,” a step that temporarily increased production costs but helped Grieg Seafood enter the fourth quarter “with maximum MAB at sea and fish with high average weights.”
The CEO pointed to the company's post-smolt strategy as a key factor in managing the situation. “Thanks to our post-smolt model, we were able to harvest the fish rather than culling them,” she said, arguing that this demonstrated the resilience of the production system.
In Rogaland, EBIT reached NOK 3.2 per kilogram for the quarter, equivalent to about EUR 0.27 and USD 0.29 per kilogram.
The quarter also saw continued progress on the planned sale to Cermaq of Grieg Seafood’s Finnmark and Canadian operations, with Norwegian and US authorities having already approved the transaction.
The company reports that the Canadian process has been slower than expected after regulators requested more information, but the CEO stated that “we see no increased risk of completing the transaction, and we remain confident in successful closing during Q4.”
Internally, Grieg Seafood is undertaking a significant restructuring as it prepares to operate as a more regionally concentrated business centred on southwestern Norway.
Willumsen Grieg confirmed that the company has reduced full time employyes at Grieg's headquarters by approximately 55% reduction. “This difficult but necessary step will enable us to achieve our target of reducing overhead costs to below NOK 3.0 per kg by the end of 2026," she stated.
The company also reiterated that a strong financial footing is central to its strategy. Willumsen Grieg said Grieg Seafood has a preliminary estimate of NOK 4 billion for a future dividend, subject to completion of the divestment and balance-sheet considerations. She also noted that the company is finalising a new banking syndicate with Nordea and SEB to support its capital structure.
“We are building a more focused, efficient, and profitable Grieg Seafood," Willumsen Grieg stated, adding, "The decisive actions we are taking today will position us as a strong and enduring Norwegian aquaculture company.”
In October, Grieg Seafood announced it had appointed Piotr Wingaard as its new Chief Commercial Officer, following the resignation of Erik Holvik, who will join SalMar in a newly-created senior commercial role.