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Highlights – Fourth Quarter 2016
•GSF’s best quarter ever with EBIT of MNOK 456 (EBIT per kg: NOK 21.80).
•High harvest volume (20 917 tons) in a strong market.
•The Board proposes a dividend of NOK 3 per share.
•EBIT per kg: NOK 27.9 in Norway.◦Fixed price contracts account for 32% of turnover.
◦ISA outbreak in Finnmark, otherwise stable production.
◦Production in Rogaland at good level.

•EBIT per kg: NOK 7.0 in BC.◦EBIT reflects challenges presented by algae in previous quarters.
◦Improved production throughout Q4.

•EBIT per kg: NOK 8.8 in Shetland.◦Final harvesting from weak locations.
◦The transition to an 18-month production plan is progressing as planned.

•Expected harvest volume in 2017: 70 000 tons.

Fourth Quarter Results 2016

EBIT for the Group in before fair value adjustment of biomass was MNOK 456 in Q4 2016, against MNOK 43 in 2015. The harvest volume in Q4 2016 was 20 917 tons, against 15 279 tons in the same period in 2015, reflecting an increase of 37%.

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 non-controlling interests in the table on page 4 in the report.

Before taxes and fair value adjustment of biomass, the accounts for Q4 show a profit of MNOK 456, compared with MNOK 5.5 in Q4 2015.

Group sales revenues in Q4 totalled MNOK 2 069, an increase of 74% on the corresponding figure in 2015.

The Board is satisfied with the 2016 profit. The profit is driven by high salmon prices, considerably improved production and lower rates of mortality. The employees’ contribution to the value creation has been significant, and in that regard all employees will receive an extra bonus on top of existing bonus agreements. This cost is included in Q4 figures and the segment costs listed below.

The market price for salmon rose steadily throughout Q4 2016 in both Europe and the USA. This was reflected in a historically strong market at year-end.

In Norway, the proportion of salmon sold on fixed price contracts stood at 32% in Q4 2016, and this was a factor which reduced the level of realised prices. This proportion is expected to be around 60% in Q1 2017. The increase in the proportion of fixed price contracts must be considered in the light of a low harvest volume in Q1.

Business units performance Q4 2016 – EBIT before FV adjustment/KG gwt
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 2018-2020.

GSF has an ongoing focus on improving operating 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.

Outlook 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 in 2017.

The harvest volume in Q1 2017 is likely to be 8 400 tons. For 2017 as a whole the figure is expected to be 70 000 tons, 8% up on 2016. The harvest volume is 3 000 tons less than planned due to an outbreak of ISA in Finnmark, as mentioned in the report.

Please find enclosed the company’s Q4 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 Q4 2016 report
GSF Q4 2016 presentation