Q2 2026 Grieg Seafood ASA Earnings Call

August 27, 2026

Speaker #1: Good morning, and welcome to Gig Seafood's first half 2026 presentation. My name is Nina Willemsen Grieg, and I'm the CEO of Grieg Seafood. I'm joined today by our CFO, Magnus Johannessen.

Speaker #1: This is the first time we're holding the presentation in Bergen, and I appreciate everyone who has joined us early this morning. Today's agenda includes updates on our operation and market activities.

Nina Willumsen Grieg: Bergen, and I appreciate everyone who has joined us early this morning. Today's agenda includes updates on our operation and market activities. For the first time, we are presenting farming and sales as separate segments. As usual, Magnus will take us through the financial results at the end of the presentation. This H1 has been challenging for Grieg Seafood. Weaker market conditions than we anticipated, combined with biological challenges and a company in transition, resulted in weak financial performance. The results are certainly not to the standard that we like to set for ourselves. We harvested nearly 14,000 tonnes and delivered marginally positive results in both farming and sales. The freshwater production has been strong across all sites, while at sea we have had a rough start to the year.

Speaker #1: Morgan, and I appreciate everyone who has joined us early this morning. Today's agenda includes updates on our operations and market activities. For the first time, we are presenting farming and sales as separate segments.

Speaker #1: For the first time, we are presenting farming and sales as separate segments. And as usual, Magnus will take us through the financial results at the end of the presentation.

Speaker #1: And as usual, Magnus will take us through the financial results at the end of the presentation. This first half-year has been challenging for Grieg Seafood.

Speaker #1: This first half year has been challenging for Grieg Seafood. Weaker market conditions than we anticipated, combined with biological challenges, and a company in transition, resulted in weak financial performance.

Speaker #1: Weaker market conditions than we anticipated, combined with biological challenges and a company in transition, resulted in weak financial performance. The results are certainly not to the standard that we like to set for ourselves.

Speaker #1: The results are certainly not to the standard that we like to set for ourselves. We harvested nearly 14,000 tons, and delivered marginally positive results in both farming and sales.

Speaker #1: We harvested nearly 14,000 tons and delivered marginally positive results in both farming and sales. The freshwater production has been strong across all sites, while at sea we have had a rough start to the year.

Speaker #1: The freshwater production has been strong across all sites, while at sea we have had a rough start to the year. However, I'm pleased that we have entered Q3 with close to maximum MAB and the fish is performing well.

Speaker #1: However, I'm pleased that we have entered Q3 with close to maximum MAB, and the fish is performing well. During the period, we ramped up the Garden One VAT facility and implemented actions to mitigate rising feed prices.

Nina Willumsen Grieg: However, I am pleased that we have entered Q3 with close to maximum MAB and the fish is performing well. During the period, we ramped up Gardermoen VAP facility and implemented actions to mitigate rising feed prices. Refinancing of the hybrid marked the important last step in ensuring a long-term financing structure for our company. I will get back to details on these highlights. One slide on context on the new Grieg Seafood before we turn to the numbers. 18 months ago, we were a company managing a balance sheet problem. Today, we are a focused Rogaland operator with a clean capital structure. The transition is done, and it proves that this organization can move decisively when we need to. The years 2020 to 2024 brought biological issues in Canada and Finnmark, heavy CapEx and write-downs. We found the solution without diluting our shareholders.

Speaker #1: During the period we ramped up Garden One VAT facility, and implemented actions to mitigate rising feed prices. Refinancing of the hybrid marked important last step in ensuring a long-term financing structure for our company.

Speaker #1: The refinancing of the hybrid marked an important last step in ensuring a long-term financing structure for our company. I will get back to the details on these highlights.

Speaker #1: I will get back to details on these highlights. One slide on context on the new Grieg Seafood before we turn to the numbers. 18 months ago, we were a company managing a balanced sheet problem.

Speaker #1: One slide on context for the new Grieg Seafood before we turn to the numbers. Eighteen months ago, we were a company managing a balance sheet problem.

Speaker #1: Today we are focused on operator with a clean capital structure. The transition is done, and it proves that this organization can move decisively when we need to.

Speaker #1: Today, we are focused on operating with a clean capital structure. The transition is done, and it proves that this organization can move decisively when we need to.

Speaker #1: The years 2020 to 2024 brought biological issues in Canada and Finmark. Heavy capex and write-downs. We found the solution without diluting our shareholders. First, the hybrid bond, then a disciplined investment process in which we mapped every option before we moved.

Speaker #1: The years 2020 to 2024 brought biological issues in Canada and Finnmark, heavy capex, and write-downs. We found the solution without diluting our shareholders. First, the hybrid bond, then a disciplined investment process in which we mapped every option before we moved.

Nina Willumsen Grieg: First, the hybrid bond, then a disciplined divestment process in which we mapped every option before we moved. The result is well known. We divested three of four regions and closed the sale to Cermaq at NOK 10.2 billion, which cleared the debt from our balance sheet. Over the past 12 months, we have paid NOK 4 billion in dividend, established a new bank syndicate, and last in June, issued NOK 750 million hybrid. We have also resized the organization and cost-cutting initiatives are tracking ahead of the original NOK 50 million target. From here, the agenda is simple. Strengthen the core, keep taking costs out, and optimize Post-smolt as our main competitive advantage. A transformation of this scale is demanding for any company, but it has built the decisiveness and focus that I believe leave us stronger, even with a challenging start to this year.

Speaker #1: The result is well known. We divested 3 of 4 regions and closed the sale to Cermak at 10.2 billion. Which cleared the debt from our balance sheet.

Speaker #1: The result is well known: we divested 3 of 4 regions and closed the sale to Cermac at $10.2 billion, which cleared the debt from our balance sheet.

Speaker #1: Over the past 12 months, we have paid 4 billion NOK in dividend, established a new bank syndicate, and last in June issued 750 million hybrid.

Speaker #1: Over the past 12 months, we have paid NOK 4 billion in dividends, established a new bank syndicate, and, last June, issued NOK 750 million in hybrid.

Speaker #1: We have also resized the organization and cost-cutting initiatives are tracking ahead of the original 50 million target. From here, the agenda is simple: strengthen the core, keep taking costs out, and optimize post-smolt as our main competitive advantage.

Speaker #1: We have also resized the organization, and cost-cutting initiatives are tracking ahead of the original NOK 50 million target. From here, the agenda is simple: strengthen the core, keep taking costs out, and optimize post-smolt as our main competitive advantage.

Speaker #1: A transformation of this scale is demanding for any company, but it has built the decisiveness and focus that I believe leave us stronger. Even with the challenging start to this year.

Speaker #1: A transformation of this scale is demanding for any company, but it has built the decisiveness and focus that I believe leave us stronger—even with the challenging start to this year.

Speaker #1: With post-smolt and our own sales organization in place, we believe we have the setup to act as a consolidator in Western Norway. At the right time, and on our terms.

Speaker #1: With post-smolt and our own sales organization in place, we believe we have the setup to act as a consolidator in Western Norway—at the right time, and on our terms.

Nina Willumsen Grieg: With Post-smolt and our own sales organization in place, we believe we have the setup to act as a consolidator in Western Norway at the right time and on our terms. For now, the management team's top priority remains building a strong foundation, and we will keep looking for and acting on improvements across the balance sheet, the structure, and our operating model. Then to the numbers. Starting the operational review on a positive note on land. We had strong freshwater performance during the period. We released 2.9 million smolt with an average weight of 1.3 kilo. A major milestone during the quarter was the harvest of 600 tonnes of fully land-grown fish. Seawater production was affected by challenging biological conditions. The weak results in Rogaland is driven mainly from harvesting fish groups with winter wounds in Q1 and into Q2.

Speaker #1: For now, the management team's top priority remains building a strong foundation, and we will keep looking for and acting on improvements across the balance sheet the structure and our operating model.

Speaker #1: Then to the numbers. Starting the operational review on a positive note on land. We have strong freshwater performance during the period. We released 2.9 million smolt with an average weight of 1.3 kilo.

Speaker #1: Then to the numbers: starting the operational review on a positive note on land. We had strong freshwater performance during the period. We released 2.9 million smolt with an average weight of 1.3 kilos.

Speaker #1: A major milestone during the quarter was the harvest of 600 tons of fully land-grown fish. Seawater production was affected by a challenging biological conditions.

Speaker #1: A major milestone during the quarter was the harvest of 600 tons of fully land-grown fish. Seawater production was affected by challenging biological conditions.

Speaker #1: The weak results in Rogaland is driven mainly from harvesting fish groups with winter wounds in Q1 and into Q2. Sea lice issues and repeated treatment treatments in late 2025 resulted in weaker fish in a cold winter.

Speaker #1: The weak results in Rogaland are driven mainly by harvesting fish groups with winter wounds in Q1 and into Q2. Sea lice issues and repeated treatments in late 2025 resulted in weaker fish in a cold winter.

Nina Willumsen Grieg: Sea lice issues and repeated treatments in late 2025 resulted in weaker fish in a cold winter. The situation looks much better now, and we have done several operational changes to prevent this from repeating. Winter wounds led to a low superior share of 63%, and harvesting fish with lower harvest weights due to fish welfare. Building biomass left us with a harvest profile heavy at the end of Q2 where superior share had improved, but at a time where the prices were at its lowest. However, by building biomass, we are increasing the guiding for the full year back to 31,000 tonnes. Challenging biology transferred directly into a farming cost of NOK 70.9 per kilo. Production is strong so far in Q3, and we maintain our cost guiding for the full year at NOK 67.5.

Speaker #1: The situation looks much better now, and we have done several operational changes to prevent this from repeating. Winter wounds led to a low superior share of 63%.

Speaker #1: And harvesting fish with lower harvest weights due to fish welfare. Building biomass left us with a harvest profile heavy at the end of Q2, where superior share had improved but at a time where the prices were at its lowest.

Speaker #1: However, by building biomass, we are increasing the guiding for the full year back to 31,000 tons. Challenging biology transferred directly into a farming cost of 70.9 NOK per kilo.

Speaker #1: However, by building biomass, we are increasing the guiding for the full year back to 31,000 tons. Challenging biology transferred directly into a farming cost of NOK 70.9 per kilo.

Speaker #1: Production is strong so far in Q3, and we maintain our cost guiding for the full year at 67.5 NOK. Feed prices going into Q3 have increased due to challenging fisheries and tighter raw material supply.

Speaker #1: Production is strong so far in Q3, and we maintain our cost guiding for the full year at NOK 67.5. Feed prices going into Q3 have increased due to challenging fisheries and tighter raw material supply.

Nina Willumsen Grieg: Feed prices going into Q3 have increased due to challenging fisheries and tighter raw material supply. We have done targeted actions to contain costs, including revision of feed recipes and introduction of land-based proteins or poultry meal. With these measures, we have absorbed 50% of the raw material increase. While we believe the increase of price is not permanent, we see it as essential to include a wider range of alternative ingredients, both for sustainability, cost, and nutrition. As mentioned, our land-based production across sites have been strong during this period. The capacity available to us gives us the opportunity to adapt small size to the needs of our production. The pilot for land-based fish at Årdal was the ultimate test of our land-based facilities. The biological results were strong, with high survival on land and 95% superior share.

Speaker #1: We have done targeted actions to contain costs, including revision of feed recipes and introduction of land-based proteins or poultry meal. With these measures, we have absorbed 50% of the raw material increase.

Speaker #1: We have taken targeted actions to contain costs, including the revision of feed recipes and the introduction of land-based proteins, or poultry meal. With these measures, we have absorbed 50% of the raw material increase.

Speaker #1: While we believe the increase of price is not permanent, we see it as essential to include a wider range of alternative agreement ingredients both for sustainability, cost, and nutrition.

Speaker #1: While we believe the increase in price is not permanent, we see it as essential to include a wider range of alternative ingredients for sustainability, cost, and nutrition.

Speaker #1: As mentioned, our land-based production across sites have been strong during this period. The capacity available to us gives us the opportunity to adapt small size to the needs of our production.

Speaker #1: As mentioned, our land-based production across sites has been strong during this period. The capacity available to us gives us the opportunity to adapt small size to the needs of our production.

Speaker #1: The pilot for land-based fish at Ådal was the ultimate test of our land-based facilities. The biological results were strong, with high survival on land and 95% superior share.

Speaker #1: The pilot for land-based fish at Ådal was the ultimate test of our land-based facilities. The biological results were strong, with high survival on land and a 95% superior share.

Speaker #1: The main learnings related to transferring large fish to the harvest plant and purging them at sea to remove the land-based taste. Sea-based purging has never been done before.

Speaker #1: The main learnings relate to transferring large fish to the harvest plant and purging them at sea to remove the land-based paste. Sea-based purging has never been done before.

Nina Willumsen Grieg: The main learnings related to transferring large fish to the harvest plant and purging them at sea to remove the land-based taste. Sea-based purging has never been done before. The result I am most pleased with is that we saw no significant slowdown in growth among larger fish, unlike the challenges reported by other land-based projects. This production confirms that Årdal and Grieg Seafood have the setup to produce five-kilo fish on land with low mortality and high superior share. However, given the cost of production without the necessary scale, we will for now focus solely on post-smolt in all four halls at Årdal. With data from 75 post-smolt groups across varied sizes, we are now conducting a thorough analysis on the best operational strategy going forward. We know the post-smolt strategy is delivering, and we now have enough completed cycles to fine-tune it.

Speaker #1: The result I'm most pleased with is that we saw no significant slowdown in growth among larger fish. Unlike the challenges reported by other land-based projects.

Speaker #1: The result I am most pleased with is that we saw no significant slowdown in growth among larger fish, unlike the challenges reported by other land-based projects.

Speaker #1: This production confirms that Ådal and Grieg Seafood have the setup to produce 5 kilo fish on land with low mortality and high superior share.

Speaker #1: This production confirms that Ådal and Grieg Seafood have the setup to produce 5-kilo fish on land, with low mortality and a high superior share.

Speaker #1: However, given the cost of production without the necessary scale, we will for now focus solely on post-smolt in all four hauls at Ådal. With data from sizes, we are now conducting a thorough analysis on the best operational strategy going forward.

Speaker #1: However, given the cost of production without the necessary scale, we will for now focus solely on post-smolt in all four halls at Ådal. With data from 75 post-smolt groups across varied sizes, we are now conducting a thorough analysis on the best operational strategy going forward.

Speaker #1: We know the post-smolt strategy is delivering, and we now have enough completed cycles to fine-tune it. Increasingly, that tuning is about improving smolt quality, and the value each kilo realizes on different sites throughout the year.

Speaker #1: We know the post-smolt strategy is delivering, and we now have enough completed cycles to fine-tune it. Increasingly, that tuning is about improving smolt quality and the value each kilo realizes on different sites throughout the year.

Nina Willumsen Grieg: Increasingly, that tuning is about improving smolt quality and the value each kilo realizes on different sites throughout the year. We also see our available land-based capacity as a competitive advantage in a potential consolidation or collaboration, giving us flexibility to adjust the number and size of post-smolt supplied to additional sea licenses. While sales and value-added processing have been part of Grieg Seafood for many years, we present it as a segment for the first time, with figures included from 1 April 2026. The segment delivered positive EBIT contribution of NOK 15 million. However, this should not be read as the potential of the segment. Sales performance on superior graded fish was strong during the period, but price achievement was highly affected by downgraded fish, the ramp-up of Gardermoen, and currency fluctuations.

Speaker #1: We also see our available land-based capacity as a competitive advantage in a potential consolidation or collaboration, giving us flexibility to adjust the number and size of post-smolt supplied to additional sea licenses.

Speaker #1: While sales and value-added processing have been part of Grieg Seafood for many years, we present it as a segment for the first time, with figures included from 1st of April 2026.

Speaker #1: While sales and value-added processing have been part of Grieg Seafood for many years, we present it as a segment for the first time, with figures included from April 1, 2026.

Speaker #1: The segment delivered positive EBIT contribution of 15 million NOK, however, this should not be read as the potential of the segment. Sales performance on superior-graded fish was strong during the period, but price achievement was highly affected by downgraded fish, the ramp-up of Gardermoen and currency fluctuations.

Speaker #1: The segment delivered a positive EBIT contribution of NOK 15 million; however, this should not be seen as reflective of the segment’s potential. Sales performance on superior-graded fish was strong during the period, but price achievement was significantly affected by downgraded fish, the ramp-up at Gardermoen, and currency fluctuations.

Speaker #1: We have had a contract share of 30% year to date, delivering a positive contribution to results. And the contract share will be stable into second half of the year.

Speaker #1: We have had a contract share of 30% year to date, delivering a positive contribution to results. The contract share will be stable into the second half of the year.

Nina Willumsen Grieg: We have had a contract share of 30% year to date, delivering a positive contribution to results. The contract share will be stable into H2 of the year. Grieg Seafood Sales purchase fish from external suppliers to support contract fulfillment and maintain production volumes at our processing facility. While this is mainly done from week to week, we recently entered into an annual agreement to sell 50% of Lingalaks volume through our sales organization. Our new value-added processing facility at Gardermoen started production in January, and establishing a new production line takes time. One-off ramp-up costs and negative earnings driven from low capacity utilization has affected our results this period. Production at the facility is picking up speed, and an important milestone of break-even volumes was reached during July.

Speaker #1: Grieg Seafood sales purchase fish from external suppliers to support contract fulfillment and maintain production volumes at our processing facility. While this is mainly done from week to week, we recently entered into an annual agreement to sell 50% of Lyngelax volume through our sales organization.

Speaker #1: Grieg Seafood sales purchase fish from external suppliers to support contract fulfillment and maintain production volumes at our processing facility. We have also recently entered into an annual agreement to sell 50% of Lyngdalak's volume through our sales organization.

Speaker #1: Our new value-added processing facility at Gardermoen started production in January, and establishing a new production line takes time. One of ramp-up costs and negative earnings driven from low capacity utilization has affected our results this period.

Speaker #1: Our new value-added processing facility at Gardermoen started production in January, and establishing a new production line takes time. One-off ramp-up costs and negative earnings, driven by low capacity utilization, have affected our results this period.

Speaker #1: Production at the facility is picking up speed, and the important milestone of break-even volumes was reached during July. Going into Q3, focus is on stabilizing volumes, and optimizing both the line and our product portfolio to ensure the best result in total.

Speaker #1: Production at the facility is picking up speed, and the important milestone of break-even volumes was reached during July. Going into Q3, the focus is on stabilizing volumes and optimizing both the line and our product portfolio to ensure the best result overall.

Nina Willumsen Grieg: Going into Q3 focuses on stabilizing volumes and optimizing both the line and our product portfolio to ensure the best result in total. I believe we have a strong team on VAP and the facility, and we expect the positive trend to continue through H2 of the year. With that, I leave the stage to Magnus.

Speaker #1: I believe we have a strong team on WAP and the facility, and we expect the positive trend to continue through second half of the year.

Speaker #1: I believe we have a strong team on WAP and the facility, and we expect the positive trend to continue through the second half of the year.

Speaker #1: And with that, I leave the stage to Magnus.

Speaker #2: Thank you, Nina. And good morning, everyone. It's great to present in Bergen, but it would be even better if the results were representing the strong track record we have in Rogaland.

Magnus Johannesen: Thank you, Nina. Good morning, everyone. It is great to present in Bergen, but it would be even better if the results were representing the strong track record we have in Rogaland. Starting with the profit and loss. Our sales revenues are down 6% year over year. This is due to a high share of downgraded fish in an already soft price environment, and it is even magnified by the lower harvest volume that we have in 2026 compared to 2025 and in the H1. The biological challenges, of course, then impacts our revenues. Equally, our farming cost is not satisfactory for this H1. We see the farming cost being almost NOK 71 per kilo, which is an increase of above NOK 14 year over year. The biological challenges led to higher capitalized cost through the generation, which was harvested both in Q1 and Q2.

Speaker #2: Starting with the profit and loss. Our sales revenues are down 6% year over year. This is due to a high share of downgraded fish in an already sought price environment, and is even magnified by the lower harvest volume that we have in 2026 compared to 2025 in the first half year.

Speaker #2: Starting with the profit and loss, our sales revenues are down 6% year over year. This is due to a high share of downgraded fish in an already soft price environment, and it's even magnified by the lower harvest volume that we have in 2026 compared to 2025 in the first half of the year.

Speaker #2: The biological challenges, of course, then impact our revenues. Equally, our farming cost is not satisfactory for this half year. We see the farming cost being almost 71 NOK per kilo, which is an increase of above 14 NOK year over year.

Speaker #2: The biological challenges, of course, then impact our revenues. Equally, our farming cost is not satisfactory for this half-year. We see the farming cost being almost NOK 71 per kilo, which is an increase of above NOK 14 year-over-year.

Speaker #2: The biological challenges led to higher capitalized cost to the generation, which was harvested both in Q1 and Q2. And combined with the lower harvests, adaptation of our harvest plan to accommodate the changes following the incident, as well as general price increase, cost increase, the farming cost was high for the first half year as a whole.

Speaker #2: The biological challenges led to higher capitalized costs through the generation, which was harvested both in Q1 and Q2. Combined with the lower harvests, adaptation of our harvest plan to accommodate the changes following the incident, as well as general price increases and cost increases, the farming cost was high for the first half of the year as a whole.

Magnus Johannesen: Combined with the lower harvest, adaption of our harvest plan to accommodate the changes following the incident, as well as general price increase, cost increase, the farming cost was high for the H1 as a whole. However, there are also positive elements in the H1. For instance, our headquarter cost reduction is tracking ahead of plan. We see additional cost initiatives being explored, defined, and implemented as we go into 2027. We do believe that we gradually will come down to NOK 3 per kilo and below. All in, we see that our operational EBIT for the group came in at -NOK 30 million, which is equivalent to a -2.1 per kilo, which is not satisfactory or representative of the new platform Grieg Seafood is building on. Moving then to cash flow. Our net cash flow for operations ended at -NOK 108 million.

Speaker #2: However, there are also positive elements in the first half year. For instance, our headquarter cost reduction is tracking ahead of plan. We see additional cost initiatives being explored, defined, and implemented as we go into 2027.

Speaker #2: However, there are also positive elements in the first half-year. For instance, our headquarter cost reduction is tracking ahead of plan. We see additional cost initiatives being explored, defined, and implemented as we go into 2027.

Speaker #2: And we do believe that we gradually will come down to 3 NOK per kilo and below. All in, we see that our operational EBIT for the group came in at minus 30 million.

Speaker #2: And we do believe that we gradually will come down to NOK 3 per kilo and below. All in, we see that our operational EBIT for the group came in at minus NOK 30 million.

Speaker #2: Which is equivalent to a negative 2.1 per kilo. Which is not satisfactory or representative of the new platform Grieg Seafood is building on. Moving then to cash flow.

Speaker #2: Which is equivalent to a negative 2.1 per kilo, which is not satisfactory or representative of the new platform Grieg Seafood is building on. Moving, then, to cash flow.

Speaker #2: Our net cash flow for operations ended at negative 108 million. It was positively impacted by the EBITDA of 48 million, and negatively impacted by changes in working capital of negative 257, partly offset by lower biomass at sea.

Speaker #2: Our net cash flow from operations ended at negative NOK 108 million. It was positively impacted by the EBITDA of NOK 48 million, and negatively impacted by changes in working capital of negative NOK 257 million, partly offset by lower biomass at sea.

Magnus Johannesen: It was positively impacted by the EBITDA of NOK 48 million and negatively impacted by changes in working capital of -NOK 257 million, partly offset by lower biomass at sea. Looking at the net cash flow from investment activities, we see this coming in at -NOK 80 million. This includes NOK 35 million CapEx investments in our Rogaland segment, as well as NOK 44.5 million participation in the share issue at Årdal Aqua early in this year. However, looking at investments, this is a positive element in today's presentation. We reduced our CapEx guidance for the full year 2026 from NOK 150 million to NOK 105 million, and this increase is expected to come mainly from the farming segment. A statement to the strong and well-invested value chain that we have built up in Rogaland over many, many years.

Speaker #2: Looking at the net cash flow from investment activities, we see this coming in at negative 80 million. This includes 35 million CAPEX investments in our Rogaland segment, as well as 44.5 million participation in the share issue at Årdal Aqua.

Speaker #2: Looking at the net cash flow from investment activities, we see this coming in at negative NOK 80 million. This includes NOK 35 million CAPEX investments in our Rogaland segment, as well as NOK 44.5 million participation in the share issue at Årdal Aqua, early in this year.

Speaker #2: Early in this year. However, looking at investments, this is a positive element in today's presentation. We reduced our CAPEX guidance for the full year 2026 from 150 million to 105 million.

Speaker #2: However, looking at investments, this is a positive element in today's presentation. We reduced our CAPEX guidance for the full year 2026 from NOK 150 million to NOK 105 million.

Speaker #2: And this increase is expected to come mainly from the farming segment. A statement to the strong and well-invested value chain that we have built up in Rogaland over many, many years.

Speaker #2: And this increase is expected to come mainly from the farming segment—a testament to the strong and well-invested value chain that we have built up in Rogaland over many, many years.

Speaker #2: Looking then at the largest items in the financing, sorry, in the cash flow, which is net cash flow from financing. This is not surprisingly impacted by the dividend of 4 billion paid in end of April, as well as the refinancing of the group's capital structure.

Speaker #2: Looking then at the largest items in the cash flow, which is net cash flow from financing. This is, not surprisingly, impacted by the dividend of NOK 4 billion paid at the end of April, as well as the refinancing of the group's capital structure.

Magnus Johannesen: Looking then at the largest items in the financing, sorry, in the cash flow, which is net cash flow from financing. This is not surprisingly impacted by the dividend of NOK 4 billion paid in end of April, as well as the refinancing of the group's capital structure of net NOK 339 million. In this number, you will have both the repayment of the hybrid bond, the issue of the new hybrid bond, the drawdown on the new RCF credit facility, as well as the repayment of the bridge loan. As such, this is a net figure representing the full restructure that we did on the finance capital structure. Moving then to our net interest-bearing debt. The net interest-bearing debt started off going into 2026 with a positive cash position of almost NOK 2.5 billion.

Speaker #2: Of net 339 million. And in this number, you will have both the repayment of the hybrid bond, the issue of the new hybrid bond, the drawdown on the new RCF credit facility, as well as the repayment of the bridge loan.

Speaker #2: Of net NOK 339 million. And in this number, you will have both the repayment of the hybrid bond, the issue of the new hybrid bond, the drawdown on the new RCF credit facility, as well as the repayment of the bridge loan.

Speaker #2: As such, this is a net figure representing the full restructure that we did on the finance capital structure. Moving then to our net interest bearing debts.

Speaker #2: As such, this is a net figure representing the full restructure that we did on the finance capital structure. Moving then to our net interest-bearing debts.

Speaker #2: The net interest bearing debt started off going into 2026 with a positive cash position of almost 2.5 billion. The cash position was positively impacted from the operational EBITDA, as well as the reduction of biomass at sea.

Speaker #2: The net interest-bearing debt started off going into 2026 with a positive cash position of almost NOK 2.5 billion. The cash position was positively impacted by the operational EBITDA, as well as the reduction of biomass at sea.

Magnus Johannesen: The cash position was positively impacted from the operational EBITDA, as well as the reduction of biomass at sea. Then we also have reduced the cash position through our investments, the dividend, as well as other changes in our debt structure. All in all, we exit the H1 with a net interest-bearing debt, excluding IFRS, of NOK 1.25 billion. Despite having a more normalized capital structure, we still have available liquidity and cash of above NOK 1.1 billion, and we still have a robust liquidity position. However, I think it's important to spend some time on our capital allocation strategy that is revised in going out of the H1. Even though Grieg Seafood maintains a robust balance sheet, the carrying value of our licenses are significantly below the fair value of those licenses.

Speaker #2: And then we also have reduced the cash position through our investments, the dividend, as well as changes in our sorry, as well as other changes in our debt structure.

Speaker #2: All in all, we exit the first half year with a net interest bearing debt excluding IFRS of 1.25 billion. Despite having a more normalized capital structure, we still have available liquidity and cash of above 1.1 billion.

Speaker #2: All in all, we exit the first half-year with net interest-bearing debt, excluding IFRS, of NOK 1.25 billion. Despite having a more normalized capital structure, we still have available liquidity and cash of above NOK 1.1 billion.

Speaker #2: And we still have a robust liquidity position. However, I think it's important to spend some time on our capital allocation strategy that is revised in going out of the first half year.

Speaker #2: And we still have a robust liquidity position. However, I think it's important to spend some time on our capital allocation strategy, which has been revised going out of the first half of the year.

Speaker #2: Even though Grieg Seafood maintains a robust balance sheet, the carrying value of our licenses are significantly below the fair value of those licenses. For instance, our licenses is only valued in our books at 250 million, despite being worth many billions.

Speaker #2: Even though Grieg Seafood maintains a robust balance sheet, the carrying value of our licenses is significantly below the fair value of those licenses. For instance, our licenses are only valued in our books at NOK 250 million, despite being worth many billions.

Magnus Johannesen: For instance, our licenses is only valued in our books at NOK 250 million, despite being worth many billions. This makes our balance sheet more sensitive to changes in price and earnings expectations. At the same time, there are risks that we need to account for. We see political, regulatory, and market risk. Most importantly, there are significant opportunities in this sector, opportunities that Grieg Seafood wants to explore and move towards. As such, we will prioritize creating headroom in our balance sheet to be able to more easy and flexibility to act on those opportunities. That is why we repeat our three pillars in the strategy. We still will strengthen our core, but most importantly, we will prioritize important and also exciting opportunities that we believe the industry will be facing, and Grieg Seafood plans to have a key role in that process.

Speaker #2: This makes our balance sheet more sensitive to changes in price and earnings fluctuations. At the same time, there are risks that we need to account for.

Speaker #2: We see political, regulatory, and market risk. But most importantly, there are significant opportunities in the sector. Opportunities that Grieg Seafood wants to explore and move towards.

Speaker #2: We see political, regulatory, and market risk. But most importantly, there are significant opportunities in this sector—opportunities that Grieg Seafood wants to explore and move towards.

Speaker #2: As such, we will prioritize creating headroom in our balance sheet to be able to easier, more easy, and flexibility to act on those opportunities.

Speaker #2: As such, we will prioritize creating headroom in our balance sheet to be able to more easily and flexibly act on those opportunities.

Speaker #2: And that is why we repeat our three pillars in the strategy. We still will strengthen our core, but most importantly, we will prioritize important and also exciting opportunities that we believe the industry will be facing.

Speaker #2: And that is why we repeat our three pillars in the strategy. We will still strengthen our core, but most importantly, we will prioritize important and also exciting opportunities that we believe the industry will be facing.

Speaker #2: And Grieg Seafood plans to have a key role in that process. Also, we have done strong and decisive investments over 10 years in our post-mold technology.

Speaker #2: And Grieg Seafood plans to have a key role in that process. Also, we have made strong and decisive investments over the past 10 years in our post-mold technology.

Speaker #2: But we are also open on exploring new technologies if the time and if the time and price is right. But for now, we are prioritizing strengthening the core and the expansion of Grieg Seafood.

Magnus Johannesen: Also, we have done strong and decisive investments over 10 years in our post-smolt technology. We are also open on exploring new technologies if the time and price is right. But for now, we are prioritizing strengthening the core and the expansion of Grieg Seafood. Due to that, we also want to invite our shareholders to our Capital Markets Day on 27 April next year. We believe that this Capital Markets Day is important to go through the new Grieg Seafood platform, as well as looking and discussing the opportunities that we see ahead. Further information about this Capital Markets Day will be published in due time, an invitation will be sent out. For those who are unable to attend in person, there will be a streaming of the presentation itself.

Speaker #2: But we are also open to exploring new technologies if the timing and price are right. But for now, we are prioritizing strengthening the core and the expansion of Grieg Seafood.

Speaker #2: And due to that, we also want to invite our shareholders to our capital markets day on the 27th of April next year. We believe that this capital markets day is important to go through the new Grieg Seafood platform, as well as looking and discussing the opportunities that we see ahead.

Speaker #2: And due to that, we also want to invite our shareholders to our Capital Markets Day on the 27th of April next year. We believe that this Capital Markets Day is important to go through the new Grieg Seafood platform, as well as looking at and discussing the opportunities that we see ahead.

Speaker #2: Further information about this capital markets day will be published in due time. An invitation will be sent out. For those who are unable to attend in person, there will be a streaming of the presentation itself.

Speaker #2: And based on that, I thank you very much for the presentation, and me and Nina will take questions from the web and in the room.

Speaker #2: And based on that, I thank you very much for the presentation, and Nina and I will take questions from the web and in the room.

Magnus Johannesen: Based on that, I thank you very much for presentation, and me and Nina will take questions from the web and in the room. Thank you. Let's start with the web, unless there's any questions in the room. Yep.

Speaker #2: Thank you. Let's start with the web, unless there's any questions in the room. Yeah.

Speaker #2: Thank you. Let's start with the web, unless there are any questions in the room. Yeah?

Speaker #1: Your equity ratios sit at 30%, while the covenants were 26 is the same as 30%. How comfortable are you with this position?

Speaker #1: Your equity ratios sit at 30%, while the covenants were 26%, so it's the same at 30%. How comfortable are you with this position?

[Analyst]: Your equity ratio sits at 30%, while the covenant for 2026 is the same at 30%. How comfortable are you with this position?

Speaker #2: So we have in the new bank syndicate, we have a gradually increasing or stepwise covenant. So it started out at 20% equity ratio, and out of the first half of 2026, it was 25%, and it will not be 30% until exiting the first half year 27.

Speaker #2: So, in the new bank syndicate, we have a gradually increasing, or stepwise, covenant. It started out at a 20% equity ratio, and at the end of the first half of 2026, it was 25%. It will not be 30% until after the first half of 2027.

Magnus Johannesen: In the new bank syndicate, we have a gradually increasing or stepwise covenant. So it started out at 20% equity ratio, and out of the H1 of 2026 it was 25%, and it will not be 30% until exiting the H1 2027. So we are comfortable when it comes to our equity ratio. At the same time, the important changes we do to the capital allocation strategy is to exactly create the necessary headroom to have that opportunity to act without being in breach of covenants. We have a very good dialogue with the bank syndicate on these matters.

Speaker #2: So we are comfortable when it comes to our equity ratio. At the same time, there are importance the important changes we do to the capital allocation strategy is to exactly create the necessary headroom to have that opportunity to act without being in breach of covenants.

Speaker #2: So we are comfortable when it comes to our equity ratio. At the same time, the important changes we make to the capital allocation strategy are to exactly create the necessary headroom to have that opportunity to act without being in breach of covenants.

Speaker #2: And we have a very good dialogue with the bank syndicate on these matters.

Speaker #1: How will you create the financial flexibility to pursue M&As?

Speaker #2: And we have a very good dialogue with the bank syndicate on these matters.

Speaker #2: So there's several of course options to that. We are reducing cost. We are doing adaptions to how we operate. As well as implementing the initiatives Nina talked about on post-mold.

Speaker #1: How will you create the financial flexibility to pursue M&As?

[Analyst]: How will you create the financial flexibility to pursue M&As?

Speaker #2: So there are several course options we are doing, adaptations to how we operate, as well as implementing the initiatives Nina talked about on post-mold.

Magnus Johannesen: There are several, of course, options to that. We are reducing costs. We are doing adaptions to how we operate, as well as implementing the initiatives Nina talked about on post-smolt. More importantly, it will be to repay debt. Given that our balance sheet is so small compared to the underlying values, there are not that much earnings that need to come in in order to improve this equity ratio significantly. It will be through the operations. Of course, just to add, the capital markets, of course, will still be an important source of capital for us.

Speaker #2: But more importantly, it will be to repay debt. And given our given that our balance sheet is so small compared to the underlying values, there are not that much earnings that need to come in in order to improve this equity ratio significantly.

Speaker #2: But more importantly, it will be to repay debt. And given that our balance sheet is so small compared to the underlying values, there are not that much earnings that need to come in in order to improve this equity ratio significantly.

Speaker #2: So it will be through the operations. Of course, but of course, just to add, the capital markets, of course, will still be an important source of capital for us.

Speaker #2: So, it will be through the operations. Of course, but just to add, the capital markets will still be an important source of capital for us.

Speaker #1: Following the recent investment, you're farming footprint is now highly concentrated. How do you plan to mitigate the increased biological risk and achieve industry standard margins with a reduced geographic setup and limited growth capabilities in PO2?

Speaker #1: Following the recent divestment, your farming footprint is now highly concentrated. How do you plan to mitigate the increased biological risk and achieve industry-standard margins with a reduced geographic setup and limited growth capabilities in PO2?

[Analyst]: Following the recent divestment, your farming footprint is now highly concentrated. How do you plan to mitigate the increased biological risk and achieve industry-standard margins with a reduced geographic setup and limited growth capabilities in PO2?

Speaker #3: I think our main our main the post-mold is what really takes down the risk in in the western coast of Norway. So that is our main focus.

Nina Willumsen Grieg: I think the post-smolt is what really takes down the risk in the western coast of Norway. That is our main focus, and we also believe that 30,000 tonnes and the 13 sites that we have available is giving an okay risk return to that. That is also one of the reasons why we believe we need to grow into PO3 and PO4 to reduce that risk.

Speaker #3: I think our main, the post-mold, is what really takes down the risk on the western coast of Norway. So that is our main focus.

Speaker #3: And we also believe that 30,000 tons and the 13 sites that we have available is is giving an okay risk return to that. But that is also one of the reasons why we believe we need to grow into PO3 and PO4 to reduce that risk.

Speaker #3: And we also believe that 30,000 tons and the 13 sites that we have available is giving an okay risk-return to that. But that is also one of the reasons why we believe we need to grow into PO3 and PO4 to reduce that risk.

Speaker #1: Can you please give a breakdown of the earnings in weapon sales and give indications of the earnings potential in each?

Speaker #1: Could you please give a breakdown of the earnings from weapon sales and provide indications of the earnings potential in each category?

[Analyst]: Can you please give a breakdown of the earnings in VAP and sales and give indications of the earnings potential in each?

Speaker #2: I don't think I will do the breakdown live on on stage, but what we can say is that the VAT contribution is the most significant contribution when you look at the facility and the VAT income and the VAT income separately.

Speaker #2: I don't think I will do the breakdown live on stage, but what we can say is that the VAT contribution is the most significant contribution when you look at the facility and the VAT income, and the VAT income separately.

Magnus Johannesen: I don't think I will do the breakdown live on stage. What we can say is that the VAP contribution is the most significant contribution when you look at the facility and the VAP income separately, as well as the salmon processing. Oslo Salmon Processing, the VAP facility is also contributing positively going into H2. It's a combination of those who are positive for H1. For the sales performance, the sales performance on the superior-graded fish is very strong. It is the downgraded fish that is offsetting that performance in this quarter. To break it down, I would say that the price achievement on superior is the key driver, and then the negative key driver would be the operational result in the Gardermoen facility, and then offset by the VAP performance.

Speaker #2: As well as the salmon processing Oslo salmon processing, the VAT facility is also contributing positively going into H2. But it's a combination of those who are positive for H1.

Speaker #2: As well as the salmon processing, Oslo salmon processing, the VAT facility is also contributing positively going into H2. But it's a combination of those which are positive for H1.

Speaker #2: When it when it's for the sales performance, the sales performance on the superior graded fish is very strong. But it is the downgraded fish that is offsetting that performance in this quarter.

Speaker #2: When it comes to sales performance, the sales of superior graded fish are very strong. But it is the downgraded fish that is offsetting that performance in this quarter.

Speaker #2: So to break it down, I would say that the price achievement on superior is the key driver. And then the negative key driver would be the operation or the result in the Gardamo facility.

Speaker #2: So, to break it down, I would say that the price achievement on Superior is the key driver. And then the negative key driver would be the operational result in the Gardamo facility.

Speaker #2: And then offset by the VAT performance. That is the overall breakdown. And then I can come back to the numbers next time.

Speaker #2: And then offset by the VAT performance. That is the overall breakdown, and then I can come back to the numbers next time.

Speaker #1: One last question. How do you see cost developing into 27 based on the current inflationary environment in feed?

Magnus Johannesen: That is the overall breakdown, and then I can come back to the numbers next time.

Speaker #1: One last question. How do you see costs developing into 2027, based on the current inflationary environment in feed?

[Analyst]: One last question. How do you see cost developing into 2027 based on the current inflationary environment in feed?

Speaker #3: The the inflation on feed prices from marine ingredients now is is high. As we said, we have done what we can to to contain that price increase.

Nina Willumsen Grieg: The inflation on feed prices from marine ingredients now is high. As we said, we have done what we can to contain that price increase. I think it will not stay forever. Fisheries will start up again next year. For us, it has been really important to create the flexibility in that prices. Yes, there will be some inflation from feed absolutely into 2027.

Speaker #3: The inflation on feed prices from marine ingredients is high now. As we said, we have done what we can to contain that price increase.

Speaker #3: So but and I think it it will not stay forever. Fisheries will start up again next year. But for us, it has been really important to to create the flexibility in in that prices.

Speaker #3: So, but, and I think it will not stay forever. Fisheries will start up again next year. But for us, it has been really important to create the flexibility in those prices.

Speaker #3: So yes, some feed there will be some inflation from feed, absolutely, into 2027.

Speaker #3: So yes, some feed—there will be some inflation from feed, absolutely, into 2027.

Speaker #2: Yeah. And just to add to that, given that the generations we have in the sea now is fed with feed on the old price, the implementation of the feed increase will not be seen until early medio 2027.

Magnus Johannesen: Yeah. Just to add to that, given that the generations we have in the sea now is fed with feed on the old price, the implementation of the feed increase will not be seen until early medio 2027. So April, May. There is an implementation effect from the feed increase as well.

Speaker #2: Yeah. And just to add to that, given that the generations we have in the sea now are fed with feed at the old price, the implementation of the feed increase will not be seen until early to mid-2027.

Speaker #2: So April, May. So there is an implementation effect from the feeding price increase as well.

Speaker #1: But you will the cost go up or down compared to 26?

Speaker #2: So, April, May. So, there is an implementation effect from the feeding increase as well.

Speaker #1: But will the cost go up or down compared to 2026?

[Analyst]: Will the cost go up or down compared to 2026?

Magnus Johannesen: It will go significantly down. On that, we end the stream, and thank you very much for following. Appreciate it.

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Q2 2026 Grieg Seafood ASA Earnings Call

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Grieg Seafood

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