Annual Report 2015 released // Grieg Group is well prepared for the future, but a tough shipping market and challenges in the seafood segment made 2015 a difficult year for the Group’s largest companies. At the same time several of the smaller companies are performing well.
Result before tax and write-downs was a loss of NOK 48 mill., and a loss of NOK 456 mill. for the Group after write-downs and loss provisions.
– We are seeing more positive signs in the figures and future, says CEO of the parent company Grieg Maturitas AS, Wenche Kjølås, showing an operating profit before write-downs of NOK 228 mill., with an underlying positive operation and cash flow from the companies.
Grieg Star’s main activity area, Open Hatch, has performed far better than the market. In Grieg Seafood a strong salmon market and extensive organizational and production-related measures towards the end of the year, give confidence in future positive development. The challenges for the two largest companies in the Group are somewhat outweighed by the fact that Grieg Logistics (NOK 13 mill.), Grieg Investor (NOK 16 mill.), Grieg Property (NOK 16 mill.),
Grieg Shipbrokers (NOK 8 mill.), Grieg Green (NOK 5,5 mill) and Ryfylke Rensefisk (NOK 23 mill.) reports a profit before tax in 2015.
Challenges and strengthened organization
For Grieg Seafood parts of 2015 was marked by challenges associated with lice and algae at Shetland. High mortality and low production gave poorer results than expected, but the
Norwegian subsidiaries contributed with an operating profit of NOK 210 mill. The company made a loss before tax of NOK 38 mill. A substantial strengthening of the organization both centrally and regionally was initiated and conducted throughout the year. The underlying development of the company is positive, and large-scale investments in future capacity will provide a safer and more efficient production.
Grieg Star beats the market
The Open Hatch department of Grieg Star delivered better results than expected in 2015, both compared to the shipping market in general as well as compared to its peers. The company’s loss in 2015 came primarily in conventional dry bulk, where the weak dry bulk market required extraordinary impairments and loss provisions.
Market development in 2015 made a decline in the company’s sales for the year, to USD 529 mill. Result before tax was a loss of USD 59 mill. (NOK 476 mill.) against a USD 1 mill. (NOK 8 mill.) loss in 2014.
– The organization has worked well throughout the year, which is reflected in reduced operating costs and good income growth compared to the market. The result nevertheless reflects the difficult times in the industry. Especially it becomes apparent when over USD 40 mill. (NOK 323 mill.) of the loss is directly related to write-downs and loss provisions as a result of the weak dry bulk market, says CEO of Grieg Star, Camilla Grieg.
Restructuring and new initiatives made profit
Grieg Logistics developed positively in 2015 including a successful first operational year at Gulen Base. Restructuring and improvements in other subsidiaries have also influenced positively on the company’s result. Total profit before tax was NOK 13 mill.
Grieg Shipbroker’s activities within gas, new building contracts and second hand sales contributed to the company’s positive result. The dry cargo department experienced a difficult year due to the extremely weak market, and made a loss for the company.
Grieg Green has also succeeded in getting into recycling of rigs in addition to ship recycling, delivering a profit before tax of NOK 5,5 mill. in 2015.
Grieg Investor continues strengthening its market position and increase customer portfolio.
Grieg Foundation owns 25 percent of the Grieg Group. The Foundation’s purpose is to support global projects in the education of children and youth, medical research, environmental, arts and culture. In 2015, the Foundation distributed NOK 32 mill.. Altogether, the foundation has awarded NOK 485 mill. since 2002.
For further information, see the companies’ respective websites and annual reports or see grieg.no/media/
Wenche Kjølås, CEO Grieg Maturitas :+47 916 24 434 , +47 55 57 66 00
Camilla Grieg, CEO Grieg Star: + 47 900 71 491
Andreas Kvame, CEO of Grieg Seafood: +47 907 71 441