Grieg Seafood ASA : Grieg Seafood ASA : Q4 2012 update. Will take write downs
of NOK 88m in Q4 2012
The write down in Grieg Seafood Hjaltland (UK) amounts to NOK 45m. Grieg
Seafood Hjaltland has experienced extraordinary mortalities in connection with
required lice treatments in one production area, where the fish stock suffered
from Amoebic Gill Disease (AGD). As a consequence of this, the harvest volume
in 2012 is also reduced with appr. 2400 tonnes compared to the previous
guiding. At progressive levels of AGD, the fish is compromised and less robust
to tolerate the stress of a lice treatment. Extensive measures are
implemented to handle the AGD situation in Scotland in general, as well as in
Grieg Seafood Hjaltland. Grieg Seafood Hjaltland has suffered from sea lice
challenges in 2012. Measures are implemented to establish and implement a new
strategy to combat the sea lice challenge in Grieg Seafood Hjaltland, which
also involves resources from other parts of the Grieg Seafood Group.
The write down in Grieg Seafood BC amounts to NOK 43m. The write down is
caused by a furunculosis outbreak at the hatchery which has led to a cull of
most of the standing biomass at the hatchery in a measure to combat the
disease outbreak. As a consequence of the furunculosis outbreak, the harvest
volume in 2014 will very likely be somewhat lower than in 2013. Cost
adaptations will be implemented in BC to reflect the lower production volumes.
Prices in the US market were low in Q4 2012, but strengthened at the start of
The total Q4 2012 harvest volume in Grieg Seafood ASA was just above 20,000
tonnes. This is somewhat below previous guiding due to the mortality in
Shetland. The development in Norway has been as expected, both financially and
biologically. The result in Grieg Seafood Rogaland will be just below 2 NOK
per kg in Q4 2012, while the result in Grieg Seafood Finnmark is negative with
just above 2 NOK per kg in the quarter. Grieg Seafood Finnmark's result in Q4
2012 is negatively influenced by harvest of trout which has a somewhat higher
Grieg Seafood will report the Q4 2012 result on 14 February 2013 at 6.00 a.m.
CET. A presentation will be held at Shippingklubben, Oslo at 8.00 a.m. CET.
oMorten Vike, CEO, Tel +47 994911 65
oAtle Harald Sandtorv, CFO, Tel +47 908 45252
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Grieg Seafood ASA via Thomson Reuters ONE
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