Annual Report 2016 released // A historically strong seafood market, provided the Grieg Group with good results in 2016. The overall operating profit (EBIT) was NOK 1.3 billion on a turnover of NOK 11 billion. The pre-tax profit was NOK 870 million. The shipping business had another weak year, while many of the Grieg Group’s other companies delivered good results.
A historically strong seafood market, provided the Grieg Group with good results in 2016. The overall operating profit (EBIT) was NOK 1.3 billion on a turnover of NOK 11 billion. The pre-tax profit was NOK 870 million. The shipping business had another weak year, while many of the Grieg Group’s other companies delivered good results. – The figures are very satisfying for the Grieg Group as a whole. The measures now being implemented for Grieg Star and the development projects we have elsewhere in the Group, give us every reason to be optimistic about the outlook for the coming years, says Wenche Kjølås, CEO of Grieg Maturitas AS.
Grieg Star recorded a loss of NOK 64 million against a loss of NOK 476 million in 2015. Low freight rates continue to characterize both the conventional bulk and Open Hatch segment. In autumn 2016 Grieg Star and Gearbulk announced their intention to establish a new company, G2 Ocean, which will operate both companies’ fleets. G2 Ocean is expected to commence operations in the first half of 2017.
Record high salmon prices and the best biological situation than for many years, is reflected in strong results for Grieg Seafood in 2016. A total of 64 726 tons of Atlantic salmon were harvested, 1% down on 2015. Profit before tax was still in excess of NOK 1 billion. The Grieg Group owns 50.2% of Grieg Seafood.
Last year Grieg Investor launched its digital management tool, Grieg Enigma. The system provides customers with a quick and easy overview of their asset investments, covering everything from the return on investment to carbon footprints or sustainability. The service has been well received in the market.
Because of the weak offshore market the Grieg Group has written off the value of its investments in this segment. After a controversial decision by the authorities to intervene in the affairs of Silver, a Norwegian free policies company, the company was placed under public administration, and the Group has written off its investments in this company.
Grieg Logistics has become a co-owner of Shiplog. This is a company that has developed a system that provides time information on ship traffic for the use of ports, public authorities and shipping companies. This ownership will strengthen Grieg Logistic’s already active digital involvement.
Grieg Shipbrokers negotiated a significant number of new contracts in 2016, but the annual turnover was down on the previous year due to market conditions. The company is in a positive development and several new employees were taken on during the year.
The Grieg Group is owned 25% of Grieg Foundation. The Foundation supports global projects for the education of children and youth, medical research and environmental projects, as well as art and cultural projects. In 2016 Grieg Foundation’s contribution amounts to NOK 30 mill.
Wenche Kjølås, CEO Grieg Maturitas: +47 916 24 434, + 47 55 57 66 00
The Annual Report 2016 is available here.
For further information please refer to the respective websites and annual reports of the companies, or click http://grieg.no/media/