Grieg sets out ambitious growth strategy

© Grieg
Grieg CEO Andreas Kvame

Grieg Seafood today set out its future strategy, raising production and announcing plans to process more of the salmon it harvests.

More detailed plans will be outlined later at a Capital Markets Day event in Stavanger under the headline “Farming The Oceans For A Better Future”

Grieg Seafood, which sold its Shetland and Scottish business to Scottish Sea Farms last year, confirmed its growth ambitions with a target of annual harvest volume of 90,000 tonnes this year and 120,000 to 135,000 tonnes by 2026 depending on the successful utilisation of current capacity, available expansion opportunities and new concepts.

Newfoundland represents the company’s new growth area and Grieg said it will build a platform for further sustainable growth beyond 2026 on the east coast of Canada.

Grieg Seafood’s operational and financial targets presented at the capital markets over the next two days are:

  • Harvest volume of 90 000 tonnes in 2022, and increasing harvest volumes to 120,000-135,000 tonnes in 2025
  • Maintain a clear ambition to be a cost leader in all the regions where Grieg Seafood operates
  • A long-term target of net interest-bearing debt to harvest volume ratio of NOK 30/kg
  • An equity ratio of above 31%
  • Requirement of a minimum of 12% return on capital employed (ROCE) for all investment decisions
  • Dividend policy to distribute 30%-40% of the Group’s net profit after tax adjusted for fair value appraisals

The Group said its objective is to give shareholders a competitive return on invested capital through dividend payments and appreciation in the value of the share, at a level at least equivalent to other companies with comparable risk.

“Any future dividend will depend on the Group’s future earnings, financial situation, and cash flow,” the statement continued.

“The Board believes that the dividend paid should keep pace with the group’s profit growth, while at the same time ensuring that equity remains at a healthy and optimal level.”

CEO Andreas Kvame, CEO, said: “Grieg Seafood has succeeded in delivering on our ambitions communicated on our latest capital markets update despite the fact that the past couple of years have been rife with upheaval. Today, sustainability is a core tenet of Grieg Seafood’s strategy and the three pillars; global growth, cost improvement and value chain repositioning remain our focus areas.”

He added: “Going forward, we are ready to use our existing business in Norway and British Columbia together with our new growth platform in Newfoundland to bring Grieg Seafood to the next level. Based on our long experience and strong expertise and highly skilled employees, I am convinced this will be a journey worth being a part of.”

Grieg’s farms are in Finnmark and Rogaland Norway, and British Columbia as well as Newfoundland in Canada.