Grieg Seafood ASA: Extending post-smolt in Finnmark and assessing partners to expedite growth prospects in Canada

Grieg Seafood has decided to invest NOK 1.1 billion in a new post-smolt unit at its smolt facility in Finnmark. It thereby moves forward with the investment as originally planned and increases annual production of post-smolt from 1,800 to 4,800 tonnes in the region.

Following the announcement of a resource tax on the salmon industry in Norway in 2022, Grieg Seafood has until recently put all investments on hold. While many technical details of the tax are still unclear, the final tax was improved from the original version. Grieg Seafood has now chosen to prioritize the post-smolt expansion in Finnmark as the first investment as it is expected to drive biological control, earnings and sustainability.

Commenting on the decision, Andreas Kvame, CEO of Grieg Seafood ASA (“the Company”), says:

“The 25 percent resource tax has reduced funds available for investments. It is now more critical to prioritize the location, the investment amount, and the order of investment than before. The post-smolt expansion in Finnmark is a relatively low risk investment with a good profitability outlook. Based on our experience in Rogaland, we strongly believe that post-smolt will improve biology, fish health and welfare in our Finnmark region.”

In parallel with the short-term return opportunities in Finnmark, Grieg Seafood is well positioned for robust and sustainable growth in British Columbia and Newfoundland, Canada:

• In British Columbia, Grieg Seafood has a well-established farming operation with an annual harvest volume of 20,000 tonnes HOG.
• In Newfoundland, Grieg Seafood has successfully harvested its first salmon and has a firm plan to increase harvest volumes from the estimated 5,000 tonnes HOG in 2023 to 15,000 tonnes HOG in 2026, with a further long-term potential of up to 65,000 tonnes HOG, Placentia Bay and Bays West combined.

Canada, and in particular Eastern Canada, is one of the few salmon farming regions globally with a significant untapped growth potential and proximity to one of the largest and fast-growing markets.

Grieg Seafood aims to realize the potential of sustainable growth in Canada. However, developing the Canadian operations require substantial investments at a time when the resource tax and overall inflation requires greater capital discipline.

Grieg Seafood is committed to take the next step of the growth journey in Canada and the Company will focus on maximizing this value while also mitigating risks. All plans for expansion in Canada need to be considered in this context, and for that reason Grieg Seafood is seeking long-term partners.

To assist in the process to identify potential partners who can take part in the development of Grieg Seafood’s Canadian salmon farming operations, the Company has engaged DNB Markets as a financial advisor.

Subject to market conditions and final approval by the Board of Directors, the conclusion of the process is expected in 2024.

For further enquiries, please contact:

Andreas Kvame, CEO
Cell phone: +47 907 71 441
Atle Harald Sandtorv, CFO
Cell phone: +47 908 45 252

For media enquiries, please contact:

Kristina Furnes, Chief Communications Officer
Cell phone: +47 48185505 / kristina.furnes@griegseafood.com

About Grieg Seafood ASA

Grieg Seafood ASA is one of the world’s leading salmon farmers. Our farms are in Rogaland and Finnmark in Norway, as well as in British Columbia and Newfoundland in Canada. Our headquarter is in Bergen, Norway. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007.

Sustainable farming practices are the foundation of Grieg Seafood’s operations. The lowest possible environmental impact and the best possible fish welfare is both an ethical responsibility and drive economic profitability. To learn more, please visit www.griegseafood.com.

The information included in this announcement may partly be defined as inside information pursuant to article 7 of the Market Abuse Regulation and is publicly disclosed in accordance with article 17 of the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act.