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EBIT for the Group in Q3 before fair value adjustment was MNOK 186, against MNOK -44 in 2015. The harvest volume in Q3 2016 was 13 911 tons, against 19 480 tons in the same period last year, reflecting a volume change of -28.5%.

Highlights – Third Quarter 2016

Good quarterly results with EBIT of MNOK 186 (EBIT per kg: NOK 13.3).

  • Dividend of NOK 1 per share.
  • The market remains strong.
  • EBIT per kg NOK 15.2 in Norway.
    • Fixed price contracts accounted for 47%.
    • Good and stable biological situation.
  • EBIT per kg: NOK 4.0 in BC.
    • Algae resulted in production challenges (write-downs of NOK 5 per kg in Q3).
    • More robust plans for fresh water and sea production are in hand
  • EBIT per kg: NOK 15.9 in Shetland.
    • Satisfactory results.
    • Sea lice, AGD and algae led to varying production in Q3.
  • Expected harvest volume 2017 of 73 000 tons (+11%), of which 48 000 tons from Norway (66% of total harvest volume).
  • Applications planned for 10 development licences.

Third Quarter Results 2016

EBIT for the Group in Q3 before fair value adjustment was MNOK 186, against MNOK -44 in 2015. The harvest volume in Q3 2016 was 13 911 tons, against 19 480 tons in the same period last year, reflecting a volume change of -28.5%.

EBIT from the four regions includes value creation from sales/Ocean Quality (OQ), while OQ’s value creation relating to fish from Bremnes (which owns 40% of OQ) appears in the item designated IKE in the above table.

Before taxes and fair value adjustment of biomass, the accounts for Q3 show a profit of MNOK 143, compared with a loss of MNOK 74 in the corresponding period last year.

Group sales revenues in Q3 totalled MNOK 1 553, an increase of 25% on last year’s corresponding figure.

Group expenses were above normal due to increased allocations to high costs related to the management options scheme. This amounted to MNOK 8 in Q3 and must be considered in the light of an increase in the share price.

Q3 is often a period characterised by increases in supply and a decline in salmon prices. But during this year’s Q3 salmon delivered to Oslo (NASDAQ) was as no time priced below NOK 50 per kg, confirming the strength of the market. The US market was stable throughout the period.

Due to the low harvest volume in Q3 the proportion of salmon sold on fixed price contracts was high (47% in Norway), which was a factor in the reduction in realised prices. This proportion is expected to be around 30% in Q4.

Measures to boost production and reduce costs

A stated goal is to reduce GSF’s cost level to the industry average, or lower. The company will also be aiming to increase production by 10% annually in the period 2017-2019.

GSF has an ongoing focus on improving operational efficiency, and this involves both increasing production per plant and per licence, as well as reducing costs per kilo.

One of the key steps being taken is to set out bigger smolt which will make it possible to shorten the production time in the sea. An increase in the number of smolt is also decisive to achieve growth and lower costs.

There is also a focus on improving the survival rate and wellbeing of the fish.


In a global perspective, there are expectations of limited supply-side growth in the salmon market. There is strong underlying demand for salmon and good prices are therefore expected during the remaining months of 2016 and into 2017.

The harvest volume for Q4 2016 is expected to be 22 200 tons. This puts the overall volume for 2016 at 66 000 tons for 2016 which is 2 000 tons less than the quantity indicated in the last quarterly report. This change is due to lower production than expected in both BC and Shetland.

The harvest volume for 2017 is estimated at 73 000 tons, reflecting an increase of 11%, with Norway  accounting for most of the growth. In Finnmark, the increase in harvest volume is estimated at 20% in both 2016 and 2017. The expected growth in Rogaland is 25% in 2016 and 5% in 2017.

In order to secure further production capacity GSF will be applying for 10 development licences in Rogaland. The company is planning to use offshore technology in close collaboration with both farmed and oil-related technology suppliers.
Please find enclosed the company’s Q3 2016 report and presentation.

For further information, please contact:

  • CEO Andreas Kvame (cell phone: +47 907 71 441)
  • CFO Atle Harald Sandtorv (cell phone: +47 908 45 252)

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

GSF Q3 2016 report
GSF Q3 2016 presentation