Grieg prioritises dividends
After the agreement to sell much of its estate to Cermaq, Grieg Seafood focuses on Rogaland in Norway and payments to shareholders.
Published
Today, Grieg Seafood presented its second quarter results. The report is the first since the company announced that significant parts of its business would be sold to Cermaq for NOK 10.2 billion (£738 million).
The agreement means that Grieg's operations in Finnmark in Norway, and in Newfoundland and British Columbia in Canada, will be sold, while Rogaland will remain as the company's core area.
"After the transaction, Rogaland will remain the cornerstone of our business. The region continues to deliver results at the top of the industry, with stable growth, high survival and disciplined cost control," states chief executive Nina Willumsen Grieg in a quarterly report published today.
“Our production cost per kilo remains competitive, confirming our post-smolt strategy and operating model. We aim to maintain this strong position and build on it as a foundation for future growth and profitability.”
At the same time, the company announced that Nina Willumsen Grieg, who has led the group since March this year, is now moving from interim to permanent CEO.
Prioritizing dividends
When the sale to Cermaq was announced, the company said that details regarding the capital structure and use of the sale proceeds would be provided in connection with the quarterly presentation on August 26.
Grieg Seafood now reports that the administration has recommended that the board prioritise dividends first.
"From a financial perspective, the sale to Cermaq is part of our broader work to strengthen our financial position and position Grieg Seafood for the future. With this in place, the administration has recommended that the board prioritise dividends when determining the capital allocation strategy. This underlines our commitment to creating value for shareholders," Nina Willumsen Grieg writes in the report
She says that this will both ensure a stable financial platform and make it possible to maximise value creation in Rogaland.
"If a dividend is approved, already implemented measures and profitable operations in Rogaland give us flexibility to strengthen the areas where we have the greatest competitive advantage, while ensuring a more robust capital structure."
The results in Rogaland
For the remaining operations in Rogaland, an operating profit of NOK 91m was reported in the second quarter, up from NOK 18m in the same period last year.
Operating profit per kilogram was NOK 16.5, compared to NOK 19.9 in 2024. Revenue ended at NOK 662.1m, and superior share of harvest was 86%.
The harvest volume in Rogaland was 8,900 tonnes in the quarter. The company has a target of 30,000 tonnes by 2025 from the region, which will be the cornerstone of the group's operations going forward.
Losses in the business being sold
For the areas that will be transferred to Cermaq – Finnmark, Newfoundland and British Columbia – the quarter ended with a total loss after tax of NOK 258m.
The operating loss in these regions was NOK 48m, approximately at the same level as in the second quarter of last year (NOK 52m).
In total, Grieg Seafood harvested 21,800 gutted weight tonnes in the quarter, divided into:
Rogaland: 8,900 gwt
Finnmark: 9,000 gwt
British Columbia: 4,000 gwt
Newfoundland: 0 gwt
