February 15, 2018 / 5:14 AM / 3 months ago

BRIEF-Grieg Seafood Q4 earnings miss on low output; raises 2018 target

Feb 15 (Reuters) - Grieg Seafood Asa:

* GRIEG SEAFOOD ASA: Q4 2017 - LOWER HARVEST VOLUME THAN GUIDED IN Q4, 28 % VOLUME GROWTH IN 2018

* ‍PROFIT DECLINE AS A RESULT OF LOWER MARKET PRICES AND REDUCED HARVESTED VOLUMES​

* GRIEG SEAFOOD Q4 HARVEST ‍18,667​ TONNES (REUTERS POLL 21,975 TONNES)

* ‍3,000 TONNES OF HARVEST VOLUME TRANSFERRED FROM 2017 TO 2018​

* GRIEG SEAFOOD 2018 HARVEST GUIDANCE ‍80,000 TONNES VERSUS 77,000 TONNES SEEN IN NOVEMBER (REUTERS POLL 78,000 TONNES)

* GRIEG SEAFOOD Q4 REVENUE NOK ‍1,731​ MILLION (REUTERS POLL NOK 1,866 MILLION)

* GRIEG SEAFOOD Q4 EBIT BEFORE ADJUSTMENT NOK ‍151​ MILLION (REUTERS POLL NOK 249 MILLION)

* ‍EBIT PER KG AMOUNTED TO NOK 8.1 FOR QUARTER, COMPARED WITH NOK 21.8 IN Q4 2016​

* ‍OVERALL GOAL IS TO INCREASE PRODUCTION BY MINIMUM 10% PER YEAR UP UNTIL 2020​

* ‍AMBITION IS FOR PRODUCTION COSTS TO BE ON LEVEL WITH OR LOWER THAN INDUSTRY AVERAGE​

* ‍HAS ENTERED INTO COOPERATION AGREEMENTS WITH NORWAY ROYAL SALMON (NRS) AND BREMNES SEASHORE, TO INCREASE COMPANIES’ SMOLT CAPACITY IN FINNMARK AND ROGALAND​

* ‍GSF’S OWN HATCHERIES IN NORWAY WILL BE EXPANDED BY SEVERAL SEPARATE LINES​

* ‍LOWER MARKET PRICES ARE EXPECTED TO STIMULATE MARKET ACTIVITY, WHICH IN TURN WILL LEAD TO INCREASED DEMAND OVER YEAR​

* ‍THIS MAY HAVE A POSITIVE EFFECT ON SALMON PRICES THROUGH 2018​

* ‍TOTAL SHARE OF FIXED PRICE CONTRACTS IN NORWAY IN Q4 2017 WAS 21 %. FOR Q1 2018 SHARE OF FIXED PRICE CONTRACTS IS ESTIMATED TO BE 46 %​

* ‍FOR 2018 AS A WHOLE, SHARE OF FIXED PRICE CONTRACTS IS ESTIMATED TO BE APPROX. 22 %​

* ‍EXPECTS TO HARVEST APPROX. 8,900 TONNES DURING Q1 2018​

* ‍UPSURGE IN MARKET ACTIVITY AND GOOD DEMAND EXPECTED IN 2018​

* Q4 PRETAX PROFIT NOK 293 MILLION VERSUS YEAR-AGO 684 MLN‍​

* DIVIDEND FOR THE FISCAL YEAR 2017 WILL BE DECIDED BY THE ANNUAL GENERAL MEETING. THE BOARD WILL RETURN WITH ITS RECOMMENDATION FOR THE SIZE OF THE DIVIDEND‍​

* SAYS INDUSTRY’S EXPECTED GLOBAL HARVEST QUANTITY GROWTH IN 2018 IS 5 %‍​ Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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