The expected Q3 2014 result (EBIT before fair value adjustments) for Grieg Seafood ASA is NOK -63m. This is due to non-recurring events during Q3 amounting to NOK 95m. Total harvest in Q3 is 16,750 tons vs. previous guiding of 15,600 tons.
In the Q2 report Grieg Seafood has informed about challenging environment- and disease issues caused by PD in Rogaland. In that regard a NOK 24m write-down due to mortality in July was announced. Unfortunately, the negative consequences of PD have increased during Q3. Write-down for Rogaland in Q3 has increased to NOK 39m.
The result from operations in Canada is affected by extremely negative profit for Pacific salmon. Market conditions have been challenging due to a strong wild salmon season. As a consequence the total amount for loss and write down is NOK 25m. Grieg Seafood has decided to discontinue production of Pacific salmon, and the last harvest is scheduled for Q3 2015.
The Q3 result in Finnmark is lower than expected. This is due to mature fish. This has caused large deviances against quality expectations, and consequently lower sales prices during Q3. In addition to these issues the production cost was unusually high. The total estimated negative P&L effect is NOK 29m.
Finnmark encountered escape from one site during Q3, where the total number of escaped fish was 11,100. The total P&L effect of this incident was NOK 1.5m.
If adjusted for the above mentioned one-time effects, the Grieg Seafood Q3 result would have been NOK 32m.
The final Q3 result will be presented, as planned, on October 30th.
For additional information please contact:
CFO Atle Harald Sandtorv, tel. +47 908 45 252