Several of the smaller companies in the Grieg Group as well as Grieg Seafood showed good financial results in 2014, giving the group as a whole an acceptable year, with a profit before tax of MNOK 365. – We are pleased that our group has a wide range of businesses, and that Grieg as a group show strength, CEO Wenche Kjølås in Grieg Maturitas AS says.
Both leading companies in the Grieg Group, Grieg Star and Grieg Seafood, faced considerablechallenges in 2014. On the other hand, Grieg Shipbrokers (former Joachim Grieg & Co) turned a loss in 2013 to a profitable 2014, after increasing turnover from MNOK 63 to MNOK 91. At the same time, the turnover in Grieg Investor increased from MNOK 44 in 2013 to MNOK 51 in 2014, resulting in a profit before tax of MNOK 11,3 compared to MNOK 9,8 in 2013. The private equity and other investments of the group also added positively to the year end result.
Several challenges for seafood
Grieg Seafood’s turnover was MNOK 2 675 and profit before tax MNOK 285, up from MNOK 262 in 2013. The price of salmon was strong throughout the year, but the trade sanctions against Russia resulted in prices lower than expected towards the end of the year.
The company is focusing on increasing its utilisation of capacity, and reduce cost of production. A key part of this is to heighten the survival rate of salmon. A total of 64 736 tons were harvested in 2014, an increase of 6 675 tons on 2013. The last of four new large hatcheries has been completed and put into production. This will facilitate a significantly organic growth further on. All applications from Grieg Seafood for new green licenses in Finnmark were approved, increasing the production of salmon by about 5.000 tons of salmon each year.
Difficult shipping market
Grieg Star is a major part of the collected Grieg Group activity, having a 2014 turnover of over USD 581 by itself. Grieg Star’s loss before tax was USD 1 in 2014, down from a profit of USD 22 in 2013.
‐ The result is slightly lower than we expected a year back. Taking the weak shipping market in account, we still feel our result is strong. In a situation like this, your position in the market and degree of competence in the organisation decides how you will succeed as a company, CEO Grieg Star, Camilla Grieg says.
The main cause for an outcome weaker than expected for 2014 was that the dry bulk operation was positioned for a market recovery that never came to life. Increased in financial expenses and depreciation costs over the last years, from having completed a significant open hatch new‐building program, also affected the results.
Struck by Northland bankruptcy
Grieg Logistics’ operation in Narvik was struck as Northland filed for bankruptcy autumn 2014. Apart from that, the operation of the company has been positive. Loss before tax is MNOK 18, a result heavily affected by the bankruptcy of Northland and amortization of financial investments. The spool base at Gulen is finished and delivered, and will be in full operation from April 2015.
25% of Group profit to Grieg Foundation
The Grieg Foundation owns one quarter of the Grieg Group. The foundation supports global projects for education of children and youth, medical research, environmental projects as well as arts and cultural projects. In 2014 the foundation contributed 28 million kroner to such projects. Since the start in 2002, Grieg Foundation’s total contribution is MNOK 453.
Wenche Kjølås, CEO Grieg Maturitas: +47 916 24 434 (Click for image)
Camilla Grieg, CEO Grieg Star: + 47 900 71 491 (Click for image)
Atle Harald Sandtorv, acting CEO Grieg Seafood, +47 55 57 69 78, +47 908 45 252