The Grieg Group continues to develop positively in all business areas. Last year was influenced by large investments and new business ventures in several parts of the Group. G2 Ocean, Grieg Strategic Services, new brokerage offices at home and abroad, increased smolt capacity for Grieg Seafood and the completion of Grieg Gaarden, are some of the investments that make us well positioned for the future. In 2017, Grieg Seafood also celebrated its 25th anniversary.
Grieg Group had an overall pre-tax profit of NOK 671 million on a turnover of NOK 9.06 billion. The Group has equity of NOK 7 billion (44%).
“Based on the high-level of activity within the Group, combined with a strong commitment to adaptation and innovation, we consider 2017 being a good year for the Grieg Group. The overall performance was not historical high, but this could hardly be expected at a time when substantial parts of the Group are operating in a historically difficult market. It is gratifying to report that the steps taken, and the progress made in 2017, have helped to further strengthen the Group as a whole. We firmly believe that we are well positioned to achieve further growth in the coming years”, says Wenche Kjølås, Managing Director of Grieg Maturitas AS.
Grieg Seafood’s jubilee year provided good results for the company. Continued high salmon prices and improvements in production in Canada made a strong contribution to the good performance. However, cold water in Norway and biological challenges in Shetland prevented the company from realizing its full production potential, but at the same time the expansion of the smolt capacity in Rogaland was completed and expansion work started in Finnmark. We expect to see a significant increase in the production and sale of seafood in 2018.
For Grieg Star a new chapter was started with the establishment of G2 Ocean together with Gearbulk. All of Grieg Star’s vessels are now part of the G2 Ocean Pool, which is the world’s largest in the Open Hatch segment. This amalgamation has brought immediate cost benefits, while ship operations have been further streamlined. Both entities have shown a better performance compared with what could have been feared in a difficult market. With a large part of the revenues related to long-term contracts, the recovery in freight rates in 2017 is not immediately reflected in the results for G2 Ocean and Grieg Star. This will first become apparent as the contracts are renewed in the coming years.
Through its strategic cooperation agreement with the Armed Forces, Grieg Logistics has taken a major and important step, and Grieg Strategic Services is established to focus on delivering logistics services to the Norwegian Armed Forces. Grieg Logistics is focused on new technology which provides streamlined interaction between ports, terminals, vessels and companies, currently being the leader in this field.
Grieg Shipbrokers invested heavily in 2017, setting up its own offices in Shanghai and Singapore, as well as a new division in Norway focusing on the sale of offshore and service vessels to the aquaculture industry. The company’s results are strong in the vast majority of segments.
Rensefiskgruppen doubled its turnover to NOK 101 million in 2017, reinforcing its leading position in the sustainable removal of salmon lice.
Grieg Investor reported yet another year characterised by growth and positive results and is well placed for further expansion.
The investment companies Grieg International and Grieg Holdings recorded good results based on a high return on the investment portfolio.
The Group’s headquarter, Grieg Gaarden, has undergone expansion and upgrading in recent years. This has been completed, and the building is now the location of modern and functional office premises in the heart of Bergen.
The Grieg Group is in the process of establishing the UN’s sustainability goals as an active part of the companies’ strategy, innovation and entrepreneurship.
Grieg Foundation owns 25% of the Grieg Group. The Foundation supports global projects for the education of children and youth, art and cultural, medical research and environmental projects. In 2017 Grieg Foundation’s contributions amounted to NOK 32 million. Since its establishment in 2002 the Foundation’s total distributions amount to more than NOK 500 million.
The annual report 2017 is available here.
For further information, please refer to the websites and annual reports of the respective companies, or see: http://grieg.no/media/
Wenche Kjølås, CEO Grieg Maturitas : +47 916 24 434, + 47 55 57 66 00
Elisabeth Grieg, Chair Grieg Maturitas; +47 55 57 66 00