Grieg Seafood ASA

Grieg Seafood reported first-half sales revenues down 6% year over year. Group operational EBIT came in at minus NOK 30 million, equal to minus NOK 2.1 per kilo. Farming cost was about NOK 70.9 per kilo, described by management as an increase of above NOK 40 year over year. Net cash flow from operations was negative NOK 108 million, helped by EBITDA of NOK 48 million and hurt by working capital changes of negative NOK 257 million. Net cash flow from investment activities was negative NOK 80 million, including NOK 35 million of CapEx in Rogaland and NOK 44.5 million for the Ardal Aqua share issue. The company exited the half with net interest-bearing debt, excluding IFRS, of NOK 1.25 billion and available liquidity and cash above NOK 1.1 billion. Management increased full-year harvest guidance to 31,000 tonnes, kept farming cost guidance at NOK 67.5 per kilo, and reduced 2026 CapEx guidance from NOK 150 million to NOK 105 million. The sales segment delivered positive EBIT of NOK 15 million, though management said this was not representative of its full potential.

Nina Grieg framed the period as a difficult start to the year, driven by weaker-than-expected markets, biological issues in Rogaland, and a transition year, but said the company has now completed its major restructuring. She emphasized that Grieg Seafood has become a focused Rogaland operator with a clean capital structure, and that post-smolt is the core competitive advantage going forward. Her tone was cautious but constructive, with repeated focus on stabilizing operations, reducing costs, and using its land-based capacity as a platform for future consolidation or collaboration.

Magnus Johannesen focused on the financial reset and the pressure points in the P&L. He said sales revenue fell 6% year over year, farming cost was almost NOK 71 per kilo, and operational EBIT was minus NOK 30 million; he also noted net cash flow from operations of negative NOK 108 million and net debt of NOK 1.25 billion excluding IFRS at period end. On capital allocation, he highlighted the new bank syndicate, the June NOK 750 million hybrid, the repayment of the old hybrid and bridge loan, and the reduction of full-year CapEx guidance to NOK 105 million from NOK 150 million. He also said headquarter cost reduction is ahead of plan and that the company expects to move gradually toward NOK 3 per kilo and below in head office costs.

Analysts focused on covenant headroom, M&A flexibility, concentration risk after divestments, and cost inflation into 2027. Management said the equity ratio covenant steps up gradually from 20% to 25% for first-half 2026 and only reaches 30% in the second half of 2027, and that they are comfortable with the current position. On M&A, management said flexibility will come mainly from operations and debt repayment, though capital markets remain an important funding source. On biology, Nina Grieg said post-smolt is key to lowering risk on the Norwegian west coast, and on feed inflation they said some cost pressure will carry into 2027 but the increase should not be permanent; Magnus added that the impact from the new feed price will not fully show until early to mid-2027.