ANNUAL REPORT
2022
OUR
ORGANIZATION
GRIEG SEAFOOD FARMING
We farm Atlantic salmon (Salmo salar) in Rogaland
and Finnmark in Norway, and in British Columbia
and Newfoundland in Canada. We have hatcheries,
sea farms and processing plants. Newfoundland is
a greenfield project, where we transferred our first
fish to sea in 2022.
GRIEG SEAFOOD SALES
We have our own integrated sales organization, with
offices in Norway, Canada and the USA.
2
BERGEN (HQ)
1
3
4
1
2
3
4
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
OUR VISION
R OO T ED IN N AT UR E
FAR MING T HE OCE AN F OR A BE T T ER FU T UR E
OUR VALUES
OPEN
We are open with each other. We share knowledge and ideas, and learn from each other.
We meet new perspectives with an open mind. We are always honest – also in difficult
situations. Our managers have an open door and welcome suggestions for ways to
improve.
We are open and transparent towards society. We proactively share honest information
about our operations with the public, the authorities, and the media – even before they
ask. We invite the community to our facilities, participate in the public debate, and engage
in dialogue with other users of the fjords.
AMBITIOUS
Every day, we endeavor to do our job in the best possible way. We never settle for the
average. We walk the extra mile. We always strive to improve. We think big and set
ambitious goals for everything we do. We are not afraid of making bold decisions, even if
they are tough and push us out of our comfort zone.
We embrace change and innovation. We prioritize our commitments and carry them out.
Our ambitious goals aim to make Grieg Seafood ever more profitable. Only then, we can
develop the salmon farming industry further.
CARING
We not only treat each other with respect, we care. We care about our people, and help
them flourish and develop their talents. We foster a caring environment – even in difficult
situations and when hard decisions must be made.
We care about our fish and the natural environment that is vital to the production of
healthy salmon. We work constantly to maintain good biological control and reduce
our impact on the environment. We will pass healthy fjords and salmon on to future
generations.
We care about our communities. We recognize that the fjords belong to them, and we
take their concerns seriously. We are a good neighbor. We create opportunities and
lasting value for society.
Harvested volume 2022
Harvested volume target 2023
Harvested volume target 2026
For more information on the Group structure, refer to Note 1 in the Group Accounts.
PART 01 – OUR FOUNDATION
2
OUR VALUE CHAIN
INP U T
NATURAL CAPITAL
• Public natural resources: we lend
sea areas for our sites and fresh
water for our RAS facilities.
• Privately owned natural
resources: Plant-based and
marine feed ingredients, and
salmon eggs.
TECHNOLOGICAL CAPITAL
• Farming equipment and technology
FINANCIAL CAPITAL
• Trust and investment from
investors
• Access to capital
HUMAN CAPITAL
• People (experience, ideas, passion)
• Culture
• Corporate governance
POLITICAL/SOCIAL
CAPITAL
• Our license to operate
• Trusted among our key
stakeholders
• Favorable political conditions
OU T C O ME
BREEDING
FRESHWATER
FARMING
POST-SMOLT
SEAWATER
FARMING
HARVESTING
SALES AND
DISTRIBUTION
VALUE ADDED
PROCESSING
RETAIL /
HORECA
In Rogaland, we
In all of our regions,
As part of our post-
The salmon live
We have harvesting
have a broodstock
we have land based
smolt strategy, we
and grow in the sea
plants in Rogaland
operation where we
RAS freshwater
keep the salmon
until they reach a
and Finnmark. We
breed for specific
facilities, where the
longer on land in all
harvestable size of
use a harvesting
traits, such as strong
eggs are hatched and
regions to shorten
4–5 kg.
health or resistance
the salmon spend at
the time in seawater,
to sea lice and
least the first year.
reducing risk of
diseases.
biological challenges.
In Rogaland, the
average size of the
smolt transferred to
the sea in 2022 was
550 grams compared
to 120 grams in 2015.
vessel in BC. In
Newfoundland, we
aim to establish
cooperation with a
local plant.
We have our own
We have a small
Our salmon is found
global sales and
share of VAP in
in retail stores or
market organization
Norway and BC.
on the menu at
with local offices
We will form closer
restaurants or hotels.
in the countries we
partnerships in the
Currently, we have
farm salmon and in
market and increase
the HoReCa brand
selected markets,
the value of our
Skuna Bay in Canada.
to support growth
salmon through VAP.
and the downstream
strategy.
1 500 000
HEALTHY MEALS PER
DAY*
*Based on our harvest volume in 2022,
with 68% edible yield from live weight, and
servings of 125 grams.
OUR BR ANDS
SKUNA BAY
Skuna Bay is our high-end HoReCa brand for the US
market. Skuna Bay fish is preferred by some of America’s
top chefs, and is regularly served at the James Beard
Award. Read more here.
PART 01 – OUR FOUNDATION
3
OUR BUSINESS OPPORTUNITY
AQUACULTURE IN A SUSTAINABLE GLOBAL
FOOD SYSTEM
Food systems are responsible for 70% of the water extracted from
nature, cause 60% of biodiversity loss, and generate up to a third
of human greenhouse gas emissions. A complete transformation
of our global food system is needed during the next decades. We
must provide healthy food for a growing population using fewer
resources and with a lower impact. If we do it right, food from the
ocean can play an important role.
FIGURE 1.1
FEED CONVERSION RATIO
Feed conversion ratio (FCR) measures the productivity of different protein
production methods. A lower FCR represents a more efficient use of feed resources.
PART 01 – OUR FOUNDATION
THE CHALLENGES WE MUST SOLVE
• Ensuring co-existence with nature and other species
• Improving fish welfare
• Finding sustainable feed ingredients
• Cutting carbon emissions
• Recycle resources
• Promoting human rights
TOMORROW’S SUSTAINABLE GLOBAL FOOD
SYSTEM
• Healthy and nutritious food for nine billion people
• Nature and biodiversity protected
• Low carbon and low climate risk
• Good animal welfare
• A circular economy with resources recycled
• Social and economic justice for producers in
supply chains
Aquaculture has the potential to be an important part of the solution. 70% of the Earth is covered by ocean. Today, however, we obtain
only about 2% of our food from the sea. While there are limits to the amount of wild fish that can be sustainably harvested, sustainable
aquaculture can meet the increased demand for seafood in people’s diets. With a low carbon footprint, low feed conversion ratio, low
land and fresh water consumption, and a high edible yield, farmed salmon continues to be one of the most eco-efficient forms of animal
protein. In addition, farmed salmon is a nutritious food with numerous proven health benefits. Read more here.
FIGURE 1.2
EDIBLE YIELD
Edible yield measures how much of the animal is actually used for human consumption. Farmed Atlantic
salmon has a high edible yield compared to other animal proteins.
68%
FARMED ATLANTIC
SALMON
46%
CHICKEN
52%
PORK
38%
LAMB
FIGURE 1.3
CARBON FOOTPRINT
Farmed salmon has a low carbon footprint compared to other animal proteins. Carbon footprint measures the
total greenhouse gas emissions caused directly and indirectly by production of an item. Carbon footprint is
measured as tonnes of carbon dioxide equivalent per tonne of edible protein.
0.60
FARMED SALMON
0.88
CHICKEN
1.30
PORK
5.92
BEEF
Source: GSI
4
CONTENT
OUR FOUNDATION
OUR OPERATIONAL RESULTS
OUR FINANCIAL RESULTS
GRI
HIGHLIGHTS
KEY FINANCIAL FIGURES
OUR SUSTAINABILITY SCOREBOARD
CEO LETTER
OUR 2026 BUSINESS STRATEGY
OPERATIONAL FOCUS AREAS
SUSTAINABLE FOUNDATION
7
8
9
10
11
13
16
PROFITABLE OPERATIONS
GRIEG SEAFOOD ROGALAND
GRIEG SEAFOOD FINNMARK
GRIEG SEAFOOD BRITISH COLUMBIA
GRIEG SEAFOOD NEWFOUNDLAND
OUR CERTIFICATIONS
SALES & MARKET
CLIMATE ACTION
SUSTAINABLE FEED INGREDIENTS
PEOPLE
20
23
27
31
36
39
40
43
46
48
BOARD OF DIRECTORS’ REPORT
CORPORATE GOVERNANCE
GRIEG SEAFOOD GROUP ACCOUNTS
GRIEG SEAFOOD ASA ACCOUNTS
AUDITOR’S REPORT
ALTERNATIVE PERFORMANCE MEASURES
55
70
79
118
132
135
GLOBAL REPORTING INITIATIVE (GRI) INDEX
STAKEHOLDER DIALOGUE
AUDITOR’S SUSTAINABILITY REPORT
139
146
147
HISTORY AND FUTURE
148
OUR
FOUNDATION
Farming the ocean comes with a responsibility. We are
dedicated to providing healthy seafood to people all over
the world while reducing our footprint and improving
fish welfare. People, partnerships, technologies and
innovations will help us get there. This is our tiny way
of making the world a better place.
HIGHLIGHTS
KEY FINANCIAL FIGURES
OUR SUSTAINABILITY SCOREBOARD
CEO LETTER
OUR 2026 BUSINESS STRATEGY
OPERATIONAL FOCUS AREAS
SUSTAINABLE FOUNDATION
7
8
9
10
11
13
16
HIGHLIGHTS 2022
GROUP
• Highest ever volume harvested in our current farming regions, a total of of 84 697
tonnes
• Record high Operational EBIT of NOK 1 739 million, with Operational EBIT/kg of NOK
20.5, driven by the harvested volume and an exceptionally strong salmon market
• Net profit after tax of NOK 1 154 million and earnings per share equal to NOK 10.3
• Good operational performance in our farming regions
• Sales operations achieved key milestones of establishing processing partners and
presence of own VAP products, and sold 6% of our harvested volume as VAP
• Continued focus on certification for sustainable farming, a total of 29 of 40 eligible
sites ASC certified, equivalent to 75% of budgeted net production
• Ranked second by the Coller FAIRR Protein Producer Index of the world’s most-
sustainable protein producers
• Received a Leadership (A-) score for our transparency and actions related to climate
change risks from CDP, the gold standard of environmental reporting
• Recognized by CDP as a supplier engagement leader for raising the level of climate
action across our value chain
ROGALAND
• Highest ever harvested volume of 28 387 tonnes
• Operational EBIT/kg of NOK 26.6
• Good seawater production with a survival rate of 92%
• Average weight of smolt when transferred to the sea of 550 grams, in line with our
post-smolt strategy
• No use of antibiotics due to efforts to ensure robust fish health and good results from
vaccines
• 44% reduction in biomass receiving sea lice treatments from 2021, with more than
50% of the pens from which fish were harvested did not receive sea lice treatments
due to a successful combination of preventive measures and our post-smolt strategy
• Total of five of 11 sites ASC certified (59% of budgeted net production)
• No escapes
• 66% of farms powered by renewable energy
BRITISH
COLUMBIA
• Harvested volume of 20 286 tonnes
• Operational EBIT/kg of NOK 13.3
• Good seawater production with a stable survival rate of 91%
• Total of seven out of 11 eligible sites ASC certified (71% of budgeted net production)
• Reduced use of sea lice treatments due to a successful combination of preventive
measures and mechanical treatments
• Respect the UN Declaration on the Rights of Indigenous Peoples (UNDRIP)
FINNMARK
• Highest ever harvested volume of 36 024 tonnes
• Operational EBIT/kg of NOK 25.7
• Good seawater production despite biological challenges, with a survival rate of 91%
• Total of 17 of 18 active sites ASC certified (90% of budgeted net production)
• 65% of farms powered by renewable energy
NEWFOUND-
LAND
• Successful first transfer of two million fish to the sea, year-end biomass of 2 600
tonnes
• Good seawater production, with high survival and no sea lice issues
• Harvesting expected to commence late 2023
• Operational EBIT of NOK -114.7 million
• Main priority is gradual development of the region to ensure biosecurity, fish health
and profitability
PART 01 – OUR FOUNDATION
7
KEY FINANCIAL
FIGURES
FIGURE 1.4
SALES REVENUE AND VOLUME BY MARKET
Continental Europe
UK
North America
Asia
FIGURE 1.5
HARVEST VOLUME 2022
FIGURE 1.6
SALES REVENUE 2022
FIGURE 1.7
OPERATIONAL EBIT 2022
24%
26%
34%
33%
14%
47%
39%
43%
41%
Rogaland
Finmark
British Columbia
KEY FIGURES NOK MILLION
Operational
2022
2021 *
2020 *
2019 *
2018
2017
2016
2015
2014
2013
Harvested volume (tonnes GWT)
84 697
75 601
71 142
71 700
74 623
62 598
64 727
65 398
64 736
58 061
Revenue/kg (NOK/kg) 1
Farming cost (NOK/kg) 1
Other costs incl. ownership and
headquarters costs/kg (NOK) 1
Operational EBIT/kg 1
Financial
Sales revenues
Operational EBITDA 1
Operational EBIT1
EBIT (Earnings before interests
and taxes)
Profit/loss for the year
Cash flow from operations
Capital structure
NIBD according to covenants
requirement 1
NIBD/Harvest (NOK) 1,2
Equity %
Gross investments 1,3
Profitability
Return on Capital Employed
(ROCE) 1
Dividend per share (NOK)
Earnings per share (NOK)
Total market value (Oslo Stock
Exchange)
75.8
52.7
2.5
20.5
7 164
2 191
1 739
1 498
1 154
1 562
55.7
47.2
2.7
5.9
52.8
47.0
2.5
3.3
4 599
4 384
818
442
941
604
601
602
233
-57
-316
412
56.9
40.5
1.3
15.0
4 756
1 384
1 077
822
599
1 193
58.3
43.1
0.5
14.7
7 500
1 334
1 099
1 355
997
820
58.3
43.4
0.4
14.5
7 017
1 106
904
813
601
709
1 739
1 869
3 679
1 939
1 690
1 284
20.5
50%
679
23%
3.0
10.3
24.7
52%
570
6%
0.0
10.7
42.4
41%
979
3%
0.0
-4.8
27.0
46%
667
22.6
48%
733
20.5
47%
553
19%
22%
24%
4.0
5.6
4.0
8.8
4.0
5.0
59.1
39.7
1.4
18.0
6 545
1 342
1 168
1 683
1 222
953
906
14.0
47%
255
33%
1.5
10.7
42.2
37.7
3.8
0.7
39.4
35.2
-1.1
5.3
40.5
34.0
0.5
6.0
4 609
4 100
2 404
261
48
81
4
367
484
343
219
144
157
484
348
616
431
317
1 569
1 566
1 445
24.0
38%
322
1%
0.5
-0.1
24.2
42%
312
24.9
43%
164
10%
12%
0.0
1.3
0.0
3.9
8 917
9 427
9 643
15 666
11 423
8 068
9 123
3 462
3 182
2 736
*Ex. Shetland. The Shetland assets was sold 15 December 2021. Figures up to and including 2018 include Shetland, while 2019 to 2021 do not include Shetland.
1 See more information in the Alternative Performance Measures of this report.
2 Net interest-bearing liabilities according to covenant divided by last 12 months harvested volume. For 2020, last 12 months harvest include Shetland (as Shetland was
not sold as at 31 December 2020, and NIBD as 31 December 2020 was impacted by our Shetland operations).
3 Incl. financial lease investments. (according to IFRS in force prior to 1 January 2019)
PART 01 – OUR FOUNDATION
8
OUR SUSTAINABILITY
SCOREBOARD
The sustainability scoreboard is a set of some of the key
performance indicators, where we track our performance.
The colors indicate
● Within target ● On track to meet our target ● Unsatisfactory result
PILLAR
KPI
P R OFI T &
INNO VAT ION
Return on capital employed1)
Farming cost per kg
Rogaland (NOK)
Finnmark (NOK)
British Columbia (CAD)
TARGET
12% p.a.
Cost leader in our operating regions
HE ALT H Y
OCE AN
Harvest volume (tonnes GWT)
81 000 tonnes in 2022
ASC certification2)
All sites by 2023
Rogaland
Finnmark
British Columbia
Survival rate at sea3)
93% by 2022
Rogaland
Finnmark
British Columbia
Use of antibiotics (g per tonne LWE)4)
No use of antibiotics
Rogaland
Finnmark
British Columbia
Newfoundland
Sea lice treatments (g per tonne LWE)4)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia
Newfoundland
Use of hydrogen peroxide (kg per tonne LWE)4)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia5)
Newfoundland
Escape incidents
Zero escape incidents
Rogaland
Finnmark
British Columbia
Newfoundland
Carbon emission (kgCO2e per tonne GWT)6)
35% reduction (from 2018) in total emissions by 2030
High quality product
Scope 1 + 2 location based
Scope 3
Rogaland
Finnmark
British Columbia
93% superior share
Absence rate
Below 4.5%
Rogaland
Finnmark
British Columbia
Newfoundland
Lost time incident rate
7)
Rogaland
Finnmark
British Columbia
Newfoundland
SU S TAIN A BLE
F OOD
P E OP LE
L OC AL
C OMMUNI T IE S
Workplace culture
Above average score in Great Place to Work survey
Support our local communities
Collaborate and contribute to local community
Newfoundland has been excluded from some of the metrics that are not yet
relevant due to first stocking to sea in 2022.
1) ROCE in 2019, 2020 and 2021 ex Shetland.
2) Number of sites certified and % of budgeted net production.
3) 12 months rolling survival rate calculated according to the GSI standards.
4) Amount of active pharmaceutical ingredients (APIs) used (gr/kg) per tonne of
fish produced (LWE).
5) As of 01.01.2021, the Government of Canada - Department of Fisheries
and Oceans Canada (DFO) changed the calculation formula for the API of
hydrogen peroxide from Paramove 50 from 1 L (Paramove 50) * 1.15 (density)
* 0.45 (concentration) = 1 kg H2O2 to 1 L (Paramove 50) * 1.19 (density) * 0.49
(concentration) = 1 kg H2O2, which corresponds to the method used in Norway.
Previous years (2018 - 2020) have not been recalculated.
6) All previous years have been recalculated due to the divestment of our
Shetland operations. See also GRI 102-48 and our chapter on carbon emissions.
7) LTIR figures are not scored since an LTIR target has not been defined in order
to avoid under-reporting of incidents.
PART 01 – OUR FOUNDATION
STATUS
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
2022
23%
48.2
47.3
9.1
2021
6%
44.6
43.7
8.8
2020
3%
42.1
44.1
8.0
2019
19%
35.9
37.7
8.3
2018
22%
40.3
35.6
7.4
84 697
75 601
71 142
71 700
62 699
5 (59%)
17 (90%)
7 (76%)
0
18 (100%)
12 (69%)
0
15 (80%)
11 (59%)
92%
91%
91%
0.0
6.8
34.8
0.0
1.7
0.8
0.2
0.0
0.0
6.5
12.8
0.0
0
92%
95%
92%
0.0
6.0
41.7
0.0
4.4
0.5
0.3
n/a
1.6
2.4
35.7
n/a
0
1 (2,878)
1 (4,352)
0
0
359
4 120
77%
84%
85%
5.6%
9.7%
6.4%
1.6%
25
21
9
0
2 (4)
n/a
429
4 843
81%
82%
87%
3.0%
8.7%
5.6%
1.3%
42
22
6
5
90%
92%
90%
0.0
0.0
62.3
0.0
0.0
1.0
0.2
n/a
7.2
3.6
46.6
n/a
0
0
0
n/a
456
5 720
85%
69%
86%
3.0%
5.5%
6.8%
n/a
9
28
36
n/a
0
10
n/a
93%
96%
88%
0.0
0.0
87.0
n/a
0.0
0.3
0.5
n/a
11.9
0.0
6.0
n/a
0
0
0
n/a
431
6 359
75%
86%
86%
3.5%
4.9%
2.0%
n/a
15
22
35
n/a
0
4
n/a
92%
96%
88%
0.0
0.0
151.3
n/a
1.1
0.8
0.3
n/a
3.5
14.5
5.8
n/a
0
0
0
n/a
349
6 655
74%
86%
84%
4.7%
5.4%
1.8%
n/a
24
18
38
n/a
85% (global)
85% (global)
84% (global)
79% (global)
89% (Norway)
yes
yes
yes
yes
yes
9
CEO LETTER
DEAR
SHAREHOLDER
2022 was a historic year for Grieg Seafood. In our 30 years, we
Our aim is to keep investing in innovation and new technologies
have never achieved a higher Operational EBIT, seen a stronger
to improve the industry and make it more profitable and
market or harvested higher volumes in our existing farming
sustainable, with a reduced footprint and greater fish welfare. In
regions. I want to sincerely thank all of my colleagues in farming,
Norway, our ability to deliver on this goal at the pace we would
sales and support functions for their hard work and efforts
like to see depends on how the suggested resource tax ends up.
throughout the year.
We hope the country’s parliament will amend the proposal and
ensure that we will still be able to develop the industry in local
In recent years, Grieg Seafood has reached several of our
communities along the Norwegian coast also in the future. In BC,
strategic milestones, with the aim of re-shaping the company for
we have welcomed the “transition” of the salmon farming sector.
future value creation. In 2020 and 2021, we repositioned Grieg
In this process, the Government is working with the industry,
Seafood to the geographies where we see the largest potential
First Nations and other stakeholders to improve the sector’s
for sustainable growth: we sold our Shetland operations, and
performance, with a particular focus on reducing interactions
established a new production region in Newfoundland in Eastern
with wild salmon.
Canada to complement our operations in Western Canada. In
2022, we transferred the first fish to sea farms in Newfoundland,
We live in uncertain times, moving from one global crisis to
and we plan to harvest the first fish during the autumn of 2023.
another. Nobody can predict what the future holds. But I am
From this year on, the move will allow us to serve the booming
confident that food from the ocean will play an increasingly
North American market with locally farmed salmon from both
important role, especially if the seafood industry keeps
Canadian Coasts, without relying on expensive and carbon
innovating and improving. And we have no intention of doing
intensive air freight. Similarly, we are positioned as a reliable
anything but that.
ANDREAS KVAME
CEO
supplier to the strong European market from our Northern and
Southern production regions in Norway.
Demand for salmon has soared since the Covid-19 pandemic
ended, and the outlook seems bright, despite a more challenging
economic situation in many countries. We see positive effects
of having our own in-house sales organization, which enables
production and sales to work in a more integrated fashion and
increase the value created from our fish.
Biology remains challenging in our production regions. We
are working on measures on many levels to improve biological
control. We are particularly focusing on measures to improve fish
health and welfare. We have also invested heavily in post-smolt
and digital tools to enable more preventative farming practices.
During 2022, our belief in “post-smolt” production, a technology
that enable us to shorten the time our fish spend in the ocean,
has been strengthened. We have come furthest with our post-
smolt strategy in Rogaland, with post-smolt investments both on
land and in closed-containment facilities in the ocean. Here, we
clearly see that post-smolt increases survival, strengthens sea
lice control and reduces the number of sea lice treatment needed
in the ocean phase. In other words, this technology is improving
both profitability and sustainability.
PART 01 – OUR FOUNDATION
10
OUR 2026
BUSINESS STRATEGY
Our 2026 business strategy targets three key strategic objectives
for continued business development. The development and
application of increasingly sustainable farming practices
underpins all areas of the strategy.
GLOBAL GROWTH
Ambition of a harvest volume
of 120 000-135 000 tonnes
by 2026
COST IMPROVEMENT
Cost leader in our operating
VALUE CHAIN REPOSITIONING
Evolve from raw material supplier to
regions
strategic partner
SU S TAIN A BILI T Y
Towards 2026, we aim to achieve production growth, cost improvements and to reposition the company in the value chain. Sustainability
is the foundation of all three focus areas.
STATUS AND ACTIONS TAKEN IN 2022
1
GLOBAL GROWTH
We aim for an annual harvest of 120 000-135 000 tonnes by 2026. Growth will mainly be driven by improved utilization of current
operations, in addition to establishing Newfoundland as our new farming region. We will focus on post-smolt investments, target new
licenses and seize opportunities within new technology. In some regions, there is also potential for continued improvement of site
utilization. We also participate in new growth initiatives, M&As, joint ventures and greenfield projects, and seek cooperation with farmers
in existing areas.
STATUS
• In 2022, we harvested 84 697 tonnes, the highest volume ever
GOING FORWARD
• We expect further growth to come from increased utilization
harvested in our current farming regions. This constitutes
of our seawater licenses by moving more growth to land
an increase of 9 100 tonnes, or 12%, compared to 2021.
through our post-smolt program. We have come far with our
The increase in our Norwegian regions of 3 300 tonnes, or
post-smolt strategy in Rogaland, and aim to increase post-
5% compared to 2021, is a result of improved utilization of
smolt capacity in Finnmark and BC as well.
the sites’ maximum allowable biomass (MAB). In BC, the
• Better utilization of our seawater licenses, by improving
harvested volume increased by 5 800 tonnes, or 40%, due to
biosecurity, fish health, welfare and survival rates, is also
local production arrangements.
expected to secure on-growth and harvest volumes. Flexibility
• We invested NOK 397 million in growth initiatives in 2022.
is a requirement to achieve better utilization of our capacity,
More than 50% of the investments were related to the
and we are continuously looking for opportunities to secure
preparation and digitalization of seawater locations in
access to new locations.
Newfoundland. We also invested NOK 80 million in new
• Our Newfoundland region is expected to provide a harvest of
seawater locations in Finnmark. Another key investment
15 000 tonnes in 2026. We successfully transferred our first
was the installation of barrier systems in BC. These allow
smolt to sea farms in 2022, and expect to harvest 5 000 tonnes
us to protect the fish at sea during periods of challenging
towards the end of 2023.
conditions, which we expect will increase survival rates going
• We have received four and a half development licenses for the
forward.
offshore concept “Blue Farm” and two development licenses
• We increased our investment by NOK 90 million from a 37% to
for a grow-out version of the closed containment facility
44% shareholding in Årdal Aqua, a land-based facility which
FishGLOBE. The decision on whether to build these concepts
is expected to produce 4 500 tonnes of post-smolt annually,
depends on the final version of the new Norwegian resource
with the potential to raise fish to harvestable size on land.
tax.
Construction commenced in August 2022.
• Other major growth investments that we planned to initiate in
Norway, such as a new post-smolt facility in Finnmark, were
put on hold due to the proposed resource tax in the country.
The final version of the proposal is expected to be adopted by
the Norwegian parliament in 2023.
120 000 -
135 000
71 700
71 142
75 601
84 697
82 000
FIGURE 1.8
OUR GROWTH JOURNEY:
HARVESTED TONNES GWT
Rogaland
Finnmark
BC
Newfoundland
2019
2020
2021
2022
2023E
2026E
Due to the local production arrangements and larger farms on the West Cost of Vancouver Island (where we harvested from in 2022), the harvested volume vary every
other year, regardless of the underlying biology. Measures are being done to equalize harvest volumes in BC, including securing new locations.
Newfoundland
Finnmark
Rogaland
BC
PART 01 – OUR FOUNDATION
11
2
COST IMPROVEMENT
3
VALUE CHAIN REPOSITIONING
To be cost competitive in the regions where we farm, we continuously focus on operational performance. Biological control through
preventative measures and fish health and welfare is essential in securing increased survival and reduced production costs. We will also
drive performance improvements through continuous research and development, as well as through the utilization of new technologies.
Our sales currently consist mainly of fresh, head-on gutted salmon. We aim to increase the value of our products through a stronger
presence in the market, based on partnerships, category development and brand cultivation. Repositioning Grieg Seafood from a salmon
raw material supplier to a strategic partner for selected customers is an important part of our value creation plan. Increasing our VAP
share is also an important part of reducing our greenhouse gas emissions.
STATUS
• In recent years, we have been able to reduce farming costs
GOING FORWARD
• General cost inflation and biological events in 2022 will
STATUS
• Key milestones in 2022 were to establish processing
GOING FORWARD
• We aim to establish processing partners close to key markets
through operational improvement initiatives. In 2022, industry
increase our farming cost until the fish currently at sea are
partnerships in Norway and Europe, launch our VAP
and customers in the EU and the USA, targeting 20-30% share
costs rose across the board, with feed prices, in particular,
harvested. While the underlying biology is improving, we are
products in selected markets and boost our VAP share to
of our volume for VAP by 2026. In 2023, we aim to increase our
increasing by approximately 40% in Norway and close to 20%
launching an improvement program in 2023 to review all
5-10% of harvested volume. We are in line with our targeted
VAP share to 8-12% of harvested volume.
in BC. This impacted our farming cost (cost directly related
aspects of our operations and identify areas where we can
milestones, and have started processing salmon into fresh
• We will continue to evaluate external opportunities to
to production and harvest of salmon) in all regions in 2022.
improve profitability and reduce costs.
and frozen value added products with partners in Norway,
strengthen our processing capacity.
When adjusting for general inflation only, and not taking into
• While our post-smolt strategy increases investment
as well as conducting processing trials in other countries in
• We aim to develop B2B brands going forward. Currently, we
account the higher cost of feed, the increase in the farming
expenditures and smolt costs, we expect it to reduce
Europe. Furthermore, we have established the presence of
have the successful Skuna Bay brand in the USA.
cost is limited. In addition, biological events led to an increase
operational expenditures and reduce costs related to
in the cost of reduced survival of NOK 1.3/kg in Finnmark and
mortality, disease outbreaks, sea lice treatments and fish
our own VAP products in European, Asian and the US markets.
6% of our global harvested volume in 2022 was sold as VAP.
CAD 0.4/kg compared to 2021. Adjusting for the change in
handling. Our farming experience and our data analyses
• We will continue to evaluate external opportunities to
abnormal mortality, the underlying farming costs in Finnmark
indicate that less time in the sea reduces the risk of biological
strengthen our processing capacity, such as long-term
and BC are reduced compared to 2022.
challenges such as sea lice, winter ulcers and ISA.
Farming cost/
kg
2021
2022
Rogaland (NOK)
44.6
48.2
Finnmark
(NOK)
43.7
47.3
BC (CAD)
8.8
9.1
2022
inflation
adjusted*
2022 adj for inflation*
and abnormal mortality
45.6
44.7
8.6
44.6
42.2
8.1
*Adjusted to 2021, based on the consumer price index for all goods and services,
according to the Statistics Norway.
• In BC, we have had good results with digital monitoring and
measures to mitigate the effects of harmful algae blooms,
our main biological challenge in the region. The measures
have contributed to a reduction in mortality related to algae
blooms from 3.4% in 2019 to 1.15% in 2022. Additionally,
we restructured our operations and closed down sites with
historically higher farming cost per kg compared to other
farms in the region. We expect this to contribute to reduced
costs going forward.
partnerships with third parties in Norway, North America and
Europe, as well as the development of our existing internal
processing infrastructure.
PART 01 – OUR FOUNDATION
12
OPERATIONAL
FOCUS AREAS
To achieve sustainable growth and improve competitiveness, we
focus on reducing the time fish spend at sea (post-smolt), improving
fish welfare and providing data-driven decision support (“Precision
Farming”) to our operations. Together, these focus areas strengthen
our ocean farming.
OPERATIONAL FOCUS AREAS
LESS TIME AT SEA (POST-
SMOLT)
PREVENTIVE FARMING
PRACTICES
AND FISH WELFARE
PRECISION FARMING (DATA-
DRIVEN DECISION SUPPORT)
1
LESS TIME AT SEA (POST-SMOLT)
During the first stages of their life, salmon are raised in onshore freshwater hatcheries. In traditional salmon farming, fish are
transferred to the sea when they have undergone the smoltification process, making them physiologically ready for life in saltwater. With
our post-smolt strategy, we keep the fish longer on land or in closed facilities in the sea, shortening the time that they spend growing
in open sea-pens by several months. Less time at sea will improve biological control, fish welfare, survival and quality because each
salmon is less exposed to biological risks like sea lice, seaborne diseases or other unfavorable ocean conditions such as harmful algae or
sub-optimal oxygen levels. Less exposure to these risks will also allow us to improve sea lice control better utilize preventative methods
and avoid expensive treatments. This will reduce our environmental impact as well as our production cost. Post-smolt also increases
flexibility with regard to the transfer of smolt, allowing us to fallow sites for longer periods if necessary. The fish will be larger and more
robust when entering the sea-growing phase, which we believe will increase health and welfare in and of itself.
Post-smolt transfer also allows for a more efficient production cycle. It takes less time to reach harvestable size in the sea, which
frees up capacity at farms to grow more salmon within existing licenses. The result is a lower environmental footprint per fish, better
fish health and welfare, lower costs, and increased annual harvests. Altogether, we expect post-smolt transfer to reduce operational
expenditure in the sea-growing phase, improve profitability and competitiveness, and provide opportunities for sustainable production
growth.
ACHIEVEMENTS 2022
• In Rogaland, where we are pioneering our post-smolt
GOING FORWARD
• We plan to boost post-smolt capacity in Rogaland by at least 5
strategy:
250 tonnes. In Finnmark, we target an increase of 3 000
— The average smolt transferred to the sea in 2022 weighed
tonnes of post-smolt at our current freshwater facility in
550 grams compared to an average of 120 grams in 2015.
Adamselv. Investment decisions have been postponed from
— More than 50% of fish harvested were raised from
2022 to 2023, and will depend on the final outcome of the
post-smolt (fish weighing more than 200 grams when
resource rent tax proposed by the Norwegian government.
transferred to sea).
• Grieg Seafood Rogaland aims to increase the average smolt
— Post-smolt in combination with preventive sea lice
transfer weight to approximately 800 grams in 2025.
measures can reduce production time at sea from an
• In Newfoundland, we plan to start constructing a module in
average of 18 months to 12 months.
2023, with a capacity of 1 400 tonnes post-smolt.
— Our results so far demonstrate stable production of post-
smolt up to 1 kg.
— There are strong indications of improved biological control
compared to standard smolt weight, with a significant
reduction in sea lice treatments. Compared to 2021, we
achieved a 44% reduction in biomass receiving sea lice
treatments. More than 50% of the pens from which fish
were harvested did not receive any sea lice treatment, up
from 40% in 2021.
PART 01 – OUR FOUNDATION
13
2
PREVENTION AND FISH WELFARE
We pursue a systematic, long-term approach to fish health and welfare. The key is investment in and further development of preventive
measures against seaborne hazards, such as sea lice, harmful plankton, jellyfish, low oxygen levels, infectious diseases and low
seawater temperatures.
Prevention will reduce handling and stress for the fish. It will also reduce our environmental footprint by, for instance, reducing the
number of treatments needed. Moreover, prevention instead of handling reduces production costs. The result is improved welfare,
stronger growth, increased survival, high harvesting quality and lower costs.
ACHIEVEMENTS 2022
• In BC, we have installed a combination of aeration/oxygen
GOING FORWARD
• To mitigate the future impact of the parasite Spironucleus
generation systems and retractable barriers to keep harmful
salmonicida (Spiro), which posed a challenge in Finnmark in
algae outside and push clean and oxygenated water up to the
2022, we will invest NOK 70 million in UV treatment in 2023,
fish during periods of harmful algae blooms or sub-optimal
to secure the water intake to our freshwater facility. We have
oxygen levels. The effect is increased survival and continued
also initiated a project with academia to investigate and learn
feeding and on-growth during challenging conditions, as well
more about the parasite.
as better sea lice control. Mortality related to harmful algae
• Some of our numerous ongoing initiatives to improve fish
blooms has been reduced from 3.4% in 2019 to 1.15% in 2022.
health and welfare throughout the production cycle include
• In Rogaland, due to post-smolt and the use of cleaner fish as
the selection of roe with specific qualities related to sea
a preventive method to control sea lice, more than 50% of the
lice and diseases, feed customized for the various stages of
pens of fish harvested did not receive any sea lice treatments
the salmon’s life cycle, and vaccinations targeting specific
in 2022.
diseases:
— We have enhanced our feed for use during the winter
period, utilizing best available science, to strengthen
health, welfare, robustness and quality. Examples of
changes are increased levels of essential marine fat and a
stronger vitamin mix.
— Initiatives to optimize health, welfare and robustness
of smolt and post-smolt by conducting data analysis on
historical production data to provide decision-making
support.
— Efforts to mitigate the negative impact mechanical sea lice
treatments may have on fish health and welfare. Mortality
caused by such treatments has been reduced, and we are
working to reduce it further.
— We have developed our own fish welfare indicators, based
on the Fishwell research project, to enable us to more
systematically assess and improve fish welfare throughout
our operations.
PART 01 – OUR FOUNDATION
14
3
“PRECISION FARMING” - DATA-DRIVEN DECISION SUPPORT
“Grieg Seafood Precision Farming” is our concept for digitalizing farming operations, where we apply advanced sensors, data analytics,
artificial intelligence, and automation with the aim of supporting our farmers to take insight-based decisions before eventual negative
impact occurs by utilizing prediction models based on data acquisition as early as possible in everyday operations. The aim is to work
more preventatively, improve fish welfare, reduce our impact and improve our farming. We are gaining positive results by combining
experience-based knowledge and data-based insight in our projects.
Big data analyses on previously unknown connections between the fish and the environment provide insights for strategic decision-
making. The use of digital tools and dashboards, providing real-time data on various farming parameters to operational centers as
well as to farmers, aims to improve tactical and operational decisions. They also allow us to benchmark on new parameters and learn
better from best practice. We aim to be able to predict negative events early, enabling us to apply preventative measures and improve
management decisions. The result is expected to be increased growth, reduced environmental impact, improved fish welfare, increased
productivity and lower costs. Read more about Precision Farming here.
ACHIEVEMENTS 2022
• Our internal analysis team has continued with new data
GOING FORWARD
• We are setting up a project to identify the eFCR, bFCR and
analyses to provide strategic and tactical decision-making
growth rates for different smolt sizes looking at the whole
support, aimed at mitigating biological challenges:
production cycle (freshwater & seawater), including the
— Analysis on contributing factors to Yellow mouth disease
optimal smolt size given location, time of input and cost.
in BC, where we have developed prediction models and
• Increased focus on automatic and standardized data
dashboard for visualization for potential outbreak of Yellow
acquisition in the freshwater facilities will enable us to do
mouth. The project is a collaboration with the University of
performance analyses in our hatcheries as well as build early
Alberta. The findings in the analysis have given input for
warning capabilities for potential negative trends on water
optimizing the production cycle at exposed sites in BC.
quality parameters.
— Analysis of the drivers behind unexpected mortality on
• We are setting up integrated operation centers in both
specific sites in Rogaland, by tracing the fish all the way
Newfoundland and Finnmark as a continuation of our strategy
back to the genetic providers. The results are to be further
to strengthen our seawater production by enforcing the
investigated.
utilization of digital capabilities in the group. Both centers will
— Analyzed reasons for harvest deviations in Finnmark and
be built to the same design and with similar capabilities as we
Rogaland, gaining more insight in optimized transfer of fish
are running in Rogaland.
throughout the production cycle.
— Analysis to find markers in the data for where and why
we experienced the outbreak of parasite Spironucleus
salmonicida in Finnmark. Findings have initiated
investment in risk mitigation initiatives in our freshwater
facility.
• We have developed machine learning models that can
forecast growth, mortality, and the likelihood of treatments
and diseases like PD and ISA occurring in populations at sea,
several days in advance.
• We have initiated a pilot project within democratization of
data, that will enable production managers and biological
planners to perform data analysis and gain databased insights
including simple simulation capabilities.
PART 01 – OUR FOUNDATION
15
SUSTAINABLE
FOUNDATION
OUR FIVE PILLARS AND MATERIAL TOPICS
Grieg Seafood's business is based on sustainable operations. In our long-term perspective, there is no contradiction between clean seas,
healthy fish, and financial profit. It is our task to make these aspects go hand in hand and contribute to a sustainable ocean economy. Our
targets go beyond short-term profitability. Based on our materiality assessment, our five pillars show our commitment to sustainable and
long-term value creation for all of our stakeholders. The topics listed under each pillar is identified as important to our organization and
our stakeholders, and is covered by group policies. The topics in red represents the list of material topics reported in line with the GRI
standards. Find a combined overview of our pillars, targets and Group policies here.
HEALTHY OCEAN
SUSTAINABLE
FOOD
PROFIT &
INNOVATION
PEOPLE
LOCAL
COMMUNITIES
• Fish health &
• Safe and healthy
• Profitable
• Human rights
• Local value
welfare
food
• Protecting wild
• Sustainable feed
salmon (escape
ingredients
• Climate action
• Recycling
and waste
management
• Plastic pollution
and sea lice
control)
• Protecting
biodiversity
& marine
ecosystems
(local emissions,
medicine
use, wildlife
interaction)
operations
• Our market
• Research,
development
and innovation
• Responsible
business
conduct
• Corporate
governance
• Embracing
diversity
• Creating
creation
• Indigenous
relationships
attractive jobs
• Dialogue and
• Keeping our
engagement
employees safe
S
R
A
L
L
I
P
R
U
O
T
N
E
M
N
G
I
L
A
G
D
S
S
C
I
P
O
T
L
A
I
R
E
T
A
M
PART 01 – OUR FOUNDATION
16
FINANCIAL IMPACT OF MATERIAL ESG TOPICS
All material areas, as well as many significant ones, are covered by Group
Policies, to ensure a systematic improvement efforts across the Group. While
managing many of these risks is an ethical responsibility, it also supports our
financial performance directly or indirectly.
PILLAR
MATERIAL
AREA
Fish health
and welfare
FINANCIAL IMPACT
TARGET
Mainly direct financial impact: Fish with good health and welfare grow
well. Health and welfare is important to secure the highest possible
harvest volume with the highest possible quality. Diseases and
treatments on the other hand, are key cost drivers.
93% survival at sea
by 2022
No use of antibiotics
Protecting
wild salmon -
escape
Mainly indirect financial impact: Escaped fish may interbreed with wild
salmon in some of our farming regions. Escape events increase risk of
stricter regulations and reduce the social license to operate needed to
achieve growth.
Zero escape
incidents
Healthy
ocean
Protecting
wild salmon
- sea lice
control
Mainly direct financial impact: Controlling sea lice through preventative
methods is the most cost-efficient approach. Sea lice treatments are
resource intensive and increase production cost.
Average adult
female sea lice
below 0.5 in Norway
/ Average motile
sea lice below 3.0
in BC
Protecting
biodiversity
and marine
ecosystems -
local emission
Mainly direct financial impact: Good sites that restore easily during the
fallowing period between each production cycle are the most optimal
for salmon production. They do not only have the lowest impact on the
marine ecosystem, they also typically have the best fish health, welfare,
growth and lowest cost.
All sites restored to
regulatory accepted
level between each
generation of fish.
See sea lice control above.
Mainly indirect financial impact: Impacting wild life around our farms
increases risk of stricter regulations, and reduce the social license to
operate needed to achieve growth.
Mainly direct financial impact: If our product does not meet health
and safety expectations, we risk losing confidence with our customers,
leading to loss of revenues.
No use of copper
in nets.
Minimize use of
pharmaceutical
treatments
Zero dead marine
animals.
Number of dead
birds in compliance
with ASC.
All our operations
certified according
to a Global Food
Safety Initiative
See more targets in
the policy
Protecting
biodiversity
and marine
ecosystems -
medicine use
Protecting
biodiversity
and marine
ecosystems -
wild life
interaction
Safe and
healthy food
Sustain-
able food
PART 01 – OUR FOUNDATION
LINK TO MANAGEMENT
APPROACH
Our impact and
principles: fish health and
welfare
Policy for fish health
Policy for fish welfare
Policy for use of
antibiotics
Our impact and
principles: co-existence
with wild salmon
Policy for protecting
biodiversity
Our impact and
principles: co-existence
with wild salmon, and
co-existence with
crustaceans
Policy for sea lice control
Our impact and
principles: impact on
nature
Policy for protecting
biodiversity
Our impact and
principles:
co-existence with
crustaceans
Policy for protecting
biodiversity
Our impact and
principles:
co-existence with wild life
Policy for protecting
biodiversity
Our impact and
principles: Safe food
Policy for food safety
PILLAR
MATERIAL
AREA
Sustainable
feed
ingredients
FINANCIAL IMPACT
Mainly indirect financial impact: Fish feed comprises approximately
40% of the farming cost. Ensuring access to a broad basket of potential
feed ingredients that are accepted by the consumer is important to
keeping costs down. Working proactively to improve the sustainability
of salmon feed and ensure that it meets the requirements of the future
consumer is key to ensure access to various feed ingredients and the
lowest possible feed cost in the short, medium and longer term.
Sustain-
able food
TARGET
LINK TO MANAGEMENT
APPROACH
All marine
ingredients, palm
oil and Brazilian soy
protein concentrate
certified.
GHG emissions
from feed reduced
by 30% from 2018
to 2030.
See more targets in
the policy
Our impact and
principles: sustainable
feed ingredients,
sustainable marine
ingredients, zero
deforestation
Policy for sustainable
feed
Climate action Direct financial impact: Physical climate risks, such as increased
water temperature in the ocean, may in the longer run cause financial
impacts if they are not mitigated.
35% reduction of
Scope 1, 2 and 3 by
2030
Our impact and
principles: reducing
carbon emissions
Indirect financial impact: Efforts to reduce carbon emissions reduce
transitional climate risks, such as impacts of future carbon taxes or
regulations
Responsible
business
conduct
Mainly indirect financial impact: Strong corporate governance is
essential to achieve our objectives. Breaches and non-compliances can
lead to fines and lawsuits, impacting revenues and costs.
No incidents of non-
compliance
Profit &
innovation
Corporate
governance
Human rights Mainly indirect financial impact: Promoting respect for human rights in
our operations and supply chain supports our social license to operate,
our reputation and attractiveness in the market, all of which underpin
growth and price achievement
100% completion
of Code of Conduct
program.
Human Rights Due
Diligence.
People
Keeping our
employees
safe
Mainly indirect financial impact: A safe workplace with good conditions
is a prerequisite for good performance.
Absence rate below
4.5%
Local
comm-
unities
Local value
creation
Mainly indirect financial impact: Contributing to the rural communities
where we operate is key to our social license to operate, which
underpins our growth ambitions and a prosperous industry.
Collaborate and
contribute to local
community
Indigenous
relationships
Mainly indirect financial impact: Respecting Indigenous people’s rights
in the relevant regions is also key to our social license to operate.
Policy for climate action
TCFD report
Code of Conduct
Supplier Code of Conduct
Policy for anti-money
laundering
Policy for anti-corruption
Governing policies
including Principles of
Corporate Governance
Our impact and
principles: human rights
Policy for human rights
Our impact and
principles: health and
safety
Policy for diversity
Policy for gender equity
Rogaland
Finnmark
British Columbia
Newfoundland
Our impact and
principles: indigenous
relationships
17
T H E S U S TAIN A B LE
DE V E L OP MEN T GO AL S
The UN Sustainable Development Goals guide us
towards a more sustainable food system. They highlight
opportunities to grasp and challenges to solve - both in
our farming operations and in our value chain. Read how
Grieg Seafood aligns with the various SDGs here.
R&D A C T I V I T Y
R&D is inherent to delivering on our strategy and
targets, such as improvements in fish welfare,
sustainability, cost control and product quality. Read
about our efforts here.
G L OB A L SU S TA IN A BILI T Y
I N I T I AT I V E S
PAR T NER SHIP S AND
C OLL A B OR AT ION
Grieg Seafood has committed to several initiatives
Collaboration and partnerships with researchers, peers,
that set high standards for our farming operations and
companies in our value chain, NGOs or other relevant
value chain. Initiatives range from ocean stewardship
actors is highly valued by Grieg Seafood. Only through
to the climate, deforestation, and human rights. Read
collaboration can we drive necessary change, and solve
more about these initiatives here.
the challenges we have in our industry and in our global
food system. Read more about our partnerships here.
PART 01 – OUR FOUNDATION
18
OUR OPERATIONAL
RESULTS
We aim to create shared value for shareholders,
employees, local communities and customers alike.
OPERATIONAL RESULTS FROM OUR
FARMING AND SALES ACTIVITIES
PROFITABLE OPERATIONS
GRIEG SEAFOOD ROGALAND
GRIEG SEAFOOD FINNMARK
GRIEG SEAFOOD BRITISH COLUMBIA
GRIEG SEAFOOD NEWFOUNDLAND
OUR CERTIFICATIONS
SALES & MARKET
RESULTS FROM SELECTED
SUSTAINABILITY TOPICS
Sustainability topics that are material to our farming
operations are incorporated into the section above.
Selected topics with indirect impact are covered below.
CLIMATE ACTION
SUSTAINABLE FEED INGREDIENTS
PEOPLE
20
23
27
31
36
39
40
43
46
48
GR OUP FIN ANCI AL R E S ULT S 2022
PROFIT AND LOSS
The Group harvested 84 697 tonnes GWT of Atlantic salmon
in 2022, an increase of 12% compared to 75 601 in 2021. Our
Norwegian regions contributed 76% (81%) of the volume
harvested, while British Columbia accounted for 24% (19%).
Total sales revenue for the year came to NOK 7 164 million,
up NOK 2 565 million from NOK 4 599 million in 2021. Sales
revenues from the Group’s farming regions totaled NOK 6 418
million in 2022, up NOK 2 207 million from NOK 4 211 million in
2021 (see Note 8 to the Group Accounts). The difference between
the total sales revenue for the Group and sales revenues from
farming regions is attributable to Elim/Other effects (see Note 8
to the Group Accounts), which includes the gross uplift on sales
revenue for the Group generated by the sales organization. The
increase in overall sales revenue is due to a record-high volume
harvested in Rogaland and Finnmark of 64 411 tonnes GWT in
2022 compared to 61 154 in 2021, a 40% higher volume harvested
in British Columbia, and an exceptionally strong market. The
Group's aggregate price realization for the year came to NOK
75.8 per kg (NOK 55.7 per kg). By comparison, the average
NQSALMON NOK/kg price for 2022 was NOK 82.0 per kg (57.3).
Price realization was negatively impacted by fixed-price contracts
for some of our Norwegian volume, as well as the lower price
achieved for production grade volumes.
The Group's farming cost for 2022 ended at NOK 52.7 per kg
(NOK 47.2 per kg). Although the underlying cost level was
good, costs have increased due to inflationary pressure on key
production inputs, including feed. In Finnmark, costs increased
towards the end of the year due to the parasite Spironucleus
salmonicida (“Spiro”), which led to early harvesting and the
culling of fish in certain pens. In total, our Norwegian farming
regions contributed 69% (76%) of the farming cost, an increase of
NOK 3.6 per kg in cost, from NOK 44.1 per kg in 2021 to NOK 47.7
per kg in 2022. Despite harvesting a 40% higher volume year-
on-year, British Columbia had a farming cost of CAD 9.1 per kg,
up CAD 0.4 per kg compared to CAD 8.8 per kg in 2021. The cost
was significantly impacted by reduced survival at the freshwater
stage, where the total cost recognized as abnormal mortality in
the income statement was CAD 0.6 per kg, compared to CAD 0.2
per kg lat year.
Raw materials and consumables, which consist mainly of the
Group’s freshwater and seawater fish stocks, in addition to
feed, ended at NOK 2 234 million, up NOK 495 million from the
NOK 1 738 million recognized in 2021. Salaries and personnel
expenses ended the year at NOK 696 million, an increase of NOK
118 million from NOK 577 million in 2021. The increase was
partly driven by the farming regions, and partly by the synthetic
option scheme to the management group and regional directors,
as all members of Group management exercised options during
the year. See the Group Accounts Note 17 for more information.
Other operating expenses ended at NOK 2 087 million, up NOK
560 million compared to NOK 1 527 million in 2021.
Operational EBIT (see Alternative Performance Measures) in
2022 ended at a record NOK 1 739 million (NOK 442 million),
equivalent to an Operational EBIT of NOK 20.5 per kg (NOK 5.9
per kg). The increase was driven by exceptional price realization
in all farming regions. The ROCE for 2022 ended at 23%,
compared to 6% in 2021.
EBIT (earnings before interests and taxes) came to NOK 1 498
million, up NOK 557 million compared to NOK 941 million in 2021.
For a more detailed review of the Group’s financial performance
in 2022, see the Board of Directors’ report.
LEARN MORE ON OUR WEBSITE
Our share, shareholders and dividends
→
FIGURE 2.1
KEY FIGURES GRIEG SEAFOOD GROUP
NOK MILLION
Sales revenues
Operational EBITDA
Operational EBIT
EBIT (Earnings before interests and taxes)
Harvest volume (tonnes GWT)
Farming cost/kg (NOK)
Operational EBIT/ kg (NOK)
ROCE
2018
7 500
1 334
1 099
1 355
2019
4 756
1 384
1 077
822
2020
4 384
602
233
-57
2021
4 599
818
442
941
2022
7 164
2 191
1 739
1 498
74 623
71 700
71 142
75 601
84 697
43.1
14.7
22%
40.5
15.0
19%
47.0
3.3
3%
47.2
5.9
6%
52.7
20.5
23%
20
PROFITABLE
OPERATIONS
We aim to provide our shareholders with a competitive return on
capital invested, with a ROCE target of 12%. With initiatives to
reduce our environmental impact and improve fish welfare, we aim
to increase harvest rates and reduce production costs.
PART 02 – OUR OPERATIONAL RESULTS
Shetland was sold 15 December 2021. The figures from 2019 to 2021 are ex. Shetland, as the assets was held for sale as from 2020 and presented as discontinued
operations. 2018 figures have not been represented and include Shetland in its figures.
FIGURE 2.2
TOTAL TAXES (INCOME AND PROPERTY TAX) PAID IN 2022
(NOK million)
Norway
Canada
Total taxes paid
92
4
96
DI R E C T E C O NOMIC VAL UE
GENER AT ED
Taxes are important sources of government revenue. They
are central to the fiscal policy and macroeconomic stability of
countries and are acknowledged by the United Nations to as
playing a vital role in achieving its Sustainable Development
Goals. Furthermore, they are a key mechanism by which
organizations contribute to the economies of the countries
in which they operate, i.e. Norway and Canada for Grieg
Seafood. By reporting our taxes paid country-by-country, we
indicate our scale of activity and the contribution we make
through tax in these jurisdictions. Living up to our obligation to
comply with tax legislation and our responsibility to meet our
stakeholders expectations with respect to good tax practice is
extremely important to us.
The information on the creation and distribution of economic
value shall provide a basic indication of how we create wealth
for our stakeholders. In addition, the components of the
economic value generated and distributed sharpen Grieg
Seafood’s economic profile, permit a different interpretation
of the economic figures and outline the overall economic value
retained from the Group’s ordinary operations during the
year. In 2022, the economic value retained came to NOK 1 572
million, corresponding to an increase of about NOK 1 048 million
compared to 2021.
FIGURE 2.3
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
NOK MILLION
Value generated
Revenues
Total value generated
Value distributed
2018
2019
2020
2021
2022
7 500
7 500
4 756
4 756
4 384
4 384
4 599
4 599
7 164
7 164
Salaries and personnel expenses
541
493
500
577
696
Operating cost
Raw materials and consumables used
Other operating expenses
Payments to providers of capital
Net interest and other financial items
Paid dividends
Payments to government
Income taxes and production fee
Total value distributed
3 853
1 822
64
467
148
6 895
1 498
1 407
64
442
128
4 033
1 717
1 593
133
—
205
4 148
1 738
1 527
200
—
31
4 075
2 234
2 087
118
337
120
5 592
Total value retained
605
723
237
524
1 572
All figures compiled from the audited Group accounts.
PART 02 – OUR OPERATIONAL RESULTS
FIGURE 2.4
VALUE GENERATED IN 2022
Salaries and personell expenses
Raw materials and consumables used
Other operating expenses
Net interest and other financial items
Estimated taxation
Value retained
10%
22%
2%
5%
2%
29%
31%
21
CR E AT I NG SH A R EHOL DE R VA L UE
Our ambition is to create shareholder value and deliver
control 51.1% of the outstanding shares as of 31 December
competitive returns relative to comparable investment
2022. A further 4.5% was controlled by OM Holding AS and 2.6%
alternatives. We engage with the investor community in an
by Folketrygdfondet (the Norwegian National Insurance Fund)
open, transparent and continuous dialogue. Building trust and
at year-end 2022. Grieg Seafood ASA held a total of 1 351 811
awareness is critical to ensure that the information disclosed to
treasury shares as of 31 December 2022. For a detailed
the financial market, including current and potential investors,
breakdown of our 20 largest shareholders, please see Note 18 of
analysts and other stakeholders, provides the best possible basis
the Group Accounts.
for a correct valuation of Grieg Seafood.
Grieg Seafood was listed on the Oslo Stock Exchange/Euronext
The Board of Directors maintains that, as an average over time,
on 21 June 2007, under the ticker GSF. We have only one class of
dividends should correspond to 30-40% of the Group’s profit after
shares, and all shares carry the same rights. As of 31 December
tax, before fair value adjustment on biological assets (limited to
2022, the Company had 112 095 231 shares outstanding, at a
50 % by Green Bond agreement). At the same time, the Group’s
nominal value of NOK 4.00 per share (excluding treasury shares).
net interest-bearing debt per kg harvested salmon should
Total ordinary shares as at 31 December 2022 was 113 447 042.
remain below NOK 30, but can be exceeded in periods of growth
As of 31 December 2022, we had 10 590 shareholders, with our
3.0 per share to shareholders, which correspond to 46% of the
ten largest investors holding 66.7% of our shares, and the 20
net profit for FY 2021, before fair value adjustment of biological
largest investors holding 73.0%. The number of shareholders
assets. As at 31 December 2022, Grieg Seafood was in a solid
increased during the year, from 9 938 at year-end 2021.
financial position to execute strategic priorities and deliver a
Norwegian-based shareholders own the majority of the
shareholder return. The Board recommends that a dividend of
Company’s shares, with Per Grieg Jr. and the Grieg family
NOK 4.5 per share be distributed to shareholders.
investments. In 2022, the Group distributed a dividend of NOK
FIGURE 2.5
GEOGRAPHICAL OWNERSHIP (NUMBER OF SHARES)
FIGURE 2.6
THE GRIEG SEAFOOD SHARE
Norway
UK
EU
USA
KEY FIGURES GRIEG SEAFOOD SHARE
2018
2019
2020
2021
2022
Number of shares at year-end (incl. own shares)
111 662 000
111 662 000
113 447 042
113 447 042
113 447 042
Number of shares traded
Number of shareholders
Total value of shares traded per day (NOK million)
Average number of shares traded per day
Median number of shares traded per day
116 144 510
72 001 397
99 831 798
85 769 401
86 797 490
5 124
42.1
466 444
411 341
4 968
33.7
289 162
240 801
12 436
37.5
396 158
317 106
9 938
28.5
340 355
265 456
10 590
35.8
343 073
283 718
Total market value OSE (NOK 1 000)
11 423 023
15 666 178
9 642 999
9 427 449
8 916 938
Share price at year-end (NOK)
Average share price (NOK)
Lowest closing price (NOK)
Highest closing price (NOK)
Dividend per share
102.3
92.2
66.2
131.9
4.0
140.3
118.0
96.8
146.8
4.0
85.0
99.1
66.3
144.9
—
83.1
84.4
73.2
95.6
—
78.6
108.1
63.0
154.0
3.0
PART 02 – OUR OPERATIONAL RESULTS
22
GRIEG SEAFOOD
ROGALAND
Grieg Seafood Rogaland farms salmon in the county of Rogaland
on the west coast of Norway. In the region, we have seawater
licenses with a maximum allowed biomass (MAB) of 17 800
tonnes. We have smolt and post-smolt facilities and also operate
our own broodstock activity. All the salmon we harvest in this
region is processed and packed at our own facility.
28 387
26.6
TONNES GWT HARVESTED
OPERATIONAL EBIT/KG (NOK)
OP ER AT ION AL R E SULT S
A total of 28 387 tonnes was harvested in 2022, an increase of 6%
freshwater phase to ensure a robust smolt, a preventive and
compared to the 26 670 tonnes harvested in 2021. Sales revenues
targeted approach to diseases and sea lice, the utilization of
amounted to NOK 2 124 million in 2022, an increase of 48%
new digital technologies and shortening the time our salmon
compared to 2021 (NOK 1 431 million). The year-on-year increase
spend at sea. Transferring larger and more robust smolt to our
was driven mainly by higher spot prices and a higher harvested
sea farms provides improved biological control compared to
volume. The Nasdaq spot price in 2022 averaged NOK 82.0 per
smolt of standard weight. This includes a higher survival rate,
kg, compared to NOK 57.3 per kg in 2021. However, the sale of
a lower feed conversion rate and a significant reduction in the
22% of our volume under fixed-price contracts, combined with
number of sea lice treatments. Due to the use of post-smolt and
quality downgrades, negatively impacted our price achievement
cleaner fish, including wrasse, we have managed to minimize
in 2022, which came to NOK 74.8 per kg, compared to NOK 53.7
both medical and mechanical sea lice treatments. In 2021, 40%
per kg in 2021. The share of superior quality fish decreased from
of the pens from which fish were harvested did not receive any
81% in 2021 to 77% in 2022, mainly due to occurrences of winter
sea lice treatment, this increased to above 50% in 2022. This is a
ulcers in the first half of the year.
continuation of an ongoing trend, where the region has managed
to minimize sea lice treatments (both medical and mechanical)
Our freshwater production was good in 2022. We transferred
in the season where wrasse are available (August–November).
more than seven million smolt to the sea in 2022, with an
Due to efforts to ensure robust fish health and good results from
average weight of 550 grams, compared to 460 grams in 2021.
vaccines, we have not used antibiotics in Rogaland for several
The increase in the average weight of smolt is in line with our
years.
post-smolt strategy. The freshwater survival rate from our
own facility was 93% in 2022, marginally down from 94% in
In addition to sea lice, the main biological challenges in
2021. Unfortunately, we had an outbreak of Infectious Salmon
Rogaland in 2022 were Pancreas Disease (PD), winter ulcers
Anemia (ISA) at our land-based broodstock facility towards
and Cardiomyopathy Syndrome (CMS). In addition to these
the end of the year, as a result of which we euthanized our
biological challenges, some of our sites were affected by a winter
broodstock at the start of 2023. This will not impact our future
storm at the start of the year. The cost of reduced survival (cost
production and harvest volume target, as we have secured
recognized as abnormal mortality in the income statement)
external deliveries of eggs. The financial impact is also limited
came to NOK 33.6 million in 2022 (NOK 1.2 per kg), compared
due to our insurance coverage.
to NOK 30.8 million in 2021 (NOK 1.2 per kg). The farming cost
(the total cost of producing and harvesting our fish) ended at
Overall, our seawater production performed well, despite some
NOK 48.2 per kg in 2022, up from NOK 44.6 per kg in 2021. The
biological challenges during the second half of the year. High
industry experienced a general rise in costs in 2022. This applies
seawater temperatures and high sea lice levels led to reduced
growth during the autumn. Due to proactive and preventative
measures, production stabilized at year end. The 12-month
rolling survival rate for 2022 remained at the same level as in
2021, at 92%. We are working systematically to improve fish
health and welfare. This includes a greater focus on the
in particular to feed, whose price per kg has increased by almost
40% from 2021 to 2022, although electricity and fuel have also
increased significantly. This impacted our farming cost towards
the end of the year as we started to harvest fish impacted by
the increases. However, due to improvements in underlying
production, we managed to reduce the economic
PART 02 – OUR OPERATIONAL RESULTS
23
feed conversion rate (eFCR, a measure of the feed utilization)
We are committed to maintaining a good working environment
from 1.43 in 2021 to 1.38 in 2022. Combined with the increased
and keeping our employees safe. In 2022, the total absence rate
production and harvest volume, this had a positive impact on feed
for Rogaland was 5.6%, against a target of 4.5%. We monitor
costs. The farming cost was additionally impacted by harvesting
and follow up absence in accordance with our procedures
from PD-affected sites, which increased the cost of handling fish,
and guidelines. Read more about how we work to secure our
SUSTAINABILITY SCOREBOARD
including well boat costs.
employees well-being and labor rights here.
PILLAR
KPI
TARGET
STATUS
2022
2021
2020
2019
2018
Due to our continued focus on escape prevention, we did not
Aquaculture Stewardship Council (ASC) certification is an
have any escape incidents in 2022. We also strive to minimize our
important objective, as we believe it provides our customers and
impact on local wildlife. In 2022, four birds got caught in our nets,
consumers with assurance that we are operating in a responsible
compared to 13 last year. We continue our efforts to reduce our
manner and producing high-quality seafood certified to the
impact.
highest social and environmental standards. We aim to certify all
sites in Rogaland according to ASC. We started the certification
As part of our Climate Action Plan to reduce our carbon
and audit process at the start of 2022, and had five sites ASC-
emissions by 35% in 2030, we are connecting our sea farms to
certified by the end of the year. This corresponds to 59% of
the onshore power grid, thereby lowering our carbon emissions
budgeted net production for the year.
from diesel consumption. In Rogaland, 66% of our farms are
powered by onshore electricity. Due to challenges in connecting
the rest of the farms, we have ordered batteries which will enable
diesel-electric power generation at three sites. The batteries will
be installed in 2023. Read more about our work to reduce carbon
emissions here.
FIGURE 2.7
RESULTS
NOK MILLION
Harvest (tonnes GWT)
Revenue (NOK million)
2018
2019
2020
2021
2022
16 293
25 217
23 043
26 670
28 387
959.6
1 538.9
1 263.1
1 430.9
2 123.7
Operational EBIT (NOK million)
219.6
568.2
292.3
242.0
754.6
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
13.5
40.3
22.5
35.9
12.7
42.1
9.1
44.6
26.6
48.2
FIGURE 2.8
OPERATIONAL EBIT
AND HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
30 000
25 000
20 000
15 000
10 000
5 000
0
30
25
20
15
10
5
0
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
/
I
(
N
O
K
)
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
28 000 tonnes in 2022
Operational EBIT per kg (NOK)
Farming cost per kg (NOK)
Cost leader
ASC certification (# of sites)
All sites (11 eligible) by 2023
Survival rate in freshwater
Survival rate in seawater
93% by 2022
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Minimize impact on wildlife
Dead marine mammals
Minimize impact on wildlife
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
35% reduction (from 2018)
in total emissions by 2030
Scope 1 + 2 location based
Scope 3
High quality product
93% superior share
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
●
●
●
●
●
●
●
●
●
●
●
●
●
●
28 387
26 670
23 043
25 217
16 293
26.6
48.2
5
93%
92%
9.1
44.6
0
94%
92%
12.7
42.1
0
95%
90%
22.5
35.9
0
93%
93%
13.5
40.3
0
90%
92%
33 553
30 804
63 664
26 127
48 609
0.00
0.00
0.00
0.00
0.00
0.00
1.58
7.21
11.94
3.46
1.61
3.74
0.00
0.03
1.09
0.05
0.63
0.02
0.00
0.00
0
4
0
0
13
0
0
20
0
0
2
0
0
24
0
272
332
403
392
270
5 289
5 676
7 641
8 200
9 131
77%
81%
85%
75%
74%
1.24
1.26
1.22
1.17
1.33
1.38
1.43
1.44
1.28
1.52
PEOPLE
Employees
175
162
165
157
145
Absence rate
Below 4.5%
●
5.6%
3.0%
3.0%
3.5%
4.7%
Lost time incident rate
**
Turnover rate
LOCAL
COMMUNITIES
Local procurement
25
11%
42
6%
9
n/a
15
n/a
52%
60%
64%
64%
24
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available or applicable.
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
2018
2019
2020
2021
2022
PART 02 – OUR OPERATIONAL RESULTS
24
FIGURE 2.9
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
FIGURE 2.10
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2022
FIGURE 2.12
SEA LICE LEVELS (ADULT FEMALES)
2018
2019
2020
2021
2022
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.5 Limit of adult female
sea lice per fish per site
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Our sites in Rogaland are located in Norwegian production area 2 (PO2), which has a yellow light under Norway’s “traffic light” system (“yellow - moderate sea lice
density", the current level of production capacity will be maintained). Sea lice counts are conducted by visual inspections, done by lifting a minimum of 20 salmon out of
the water for each pen on a weekly or biweekly basis, depending on the seawater temperature. The number of sea lice on each fish is recorded in our systems, and this
information is used to estimate the overall prevalence of sea lice in the population. The sea lice counts are calculated as the average number of adult female sea lice per
month. Sea lice levels shall stay below the legal limit of 0.5 adult female per fish, or 0.2 during April and May when the wild salmon smolt migrate from the rivers and
pass the fjords. On average, we did not exceed the sea lice limits in 2022. We report sea lice levels and sea lice treatments to the Directorate of Fisheries on a weekly
basis. This is publicly available information, please see Barentswatch.
Target: 93%
95%
90%
85%
80%
75%
2018
2019
2020
2021
2022
We have also set targets for survival rates in fresh water. In the wild, only a
small percentage of fertilized eggs survive and become adults. That is our
biological starting point. Over the years, research has allowed us to improve
the quality of breeding process, the eggs and survival rates, but we still
experience mortality especially in the very early phase. We work systematically
at the various stages in the lifecycle to improve survival rates. These targets
can be found in our fish health and fish welfare policies. The calculation of
survival rate at sea corresponds to the GSI indicator "Fish Mortality" which
is defined as "12 months rolling mortality = total # of mortalities in sea last
12 months / (closing # of fish in sea + total # of mortalities in last 12 months +
total # of harvested fish in last 12 months + total # of culled fish in sea) x 100".
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Infectious
Virus
Bacterial
Gill infections
Non-Infectious
Life cycle
Physical
Treatments
Total
Abnormal seawater
mortality write-
down
%
336 880
317 015
38 694
507 327
51 943
21 087
1 272 946
281 895
22%
957
788
149
1 323
99
74
3 390
848
25%
FIGURE 2.11
MAIN CAUSES FOR REDUCED SURVIVAL
IN SEAWATER (NUMBER OF FISH)
Virus
Life cycle
Bacterial
Physical
Gill infections
Treatments
600 000
500 000
400 000
300 000
200 000
100 000
0
2020
2021
2022
We perform a daily count and registration of dead fish. Laboratory analysis are undertaken to establish the main cause of mortality. Site-specific information about
treatments and notifiable diseases are publicly available at Barentswatch.
Life cycle
Physical
Treatments
Gill infections
Bacterial
Virus
Virus include Pancreas Disease (PD) and Cardiomyopathy Syndrome (CMS). PD is a contagious virus and transmits between fish and between pens. It is controlled
mainly by management and biosecurity measures. We have vaccinated our fish to provide additional protection, and we have experienced a reduced impact of PD on fish
health. CMS typically increases mortality late in the production cycle, causing high economic impact. CMS is controlled mainly through good husbandry and management
practices, and we experience a lower impact of CMS in 2022 than last year. Bacterial infections include winter ulcers. In addition to being a welfare issue, the disease can
lead to increased mortality and reduced quality at harvest. Our fish are vaccinated against the disease, however, high challenge pressure and presence of other strains or
bacteria can also cause skin ulcers. The other categories relate to transport (physical), sea lice treatments, while life cycle includes a variety of causes.
PART 02 – OUR OPERATIONAL RESULTS
25
Very poor
Test not yet taken (new sites)
how larger smolt (post smolt) will significantly reduce seawater
operate, and we use local suppliers as often as we can. We hire
FIGURE 2.13
USE OF COPPER
FIGURE 2.14
RESTORED ECOSYSTEMS UNDER FARMS
Copper-free antifouling
solutions on nets
100%
Remediated ecosystems under farms before a new generation
of fish was transferred to the farms in 2022
100% of farms
We did not use copper antifouling solutions in 2022.
Restored to “very good” or “good” thresholds according to local regulations.
FIGURE 2.15
RESULTS OF B-TEST
Year
2022
2021
2020
Very good
75%
83%
83%
Good
17%
17%
8%
Poor
8%
0%
8%
0%
0%
0%
0%
0%
0%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or
copper from fish nets. This impact should never be irreversible. Read more about our impact on nature here. Between each generation of fish, we allow the ecological
system to rest and restore itself. In Norway, all farms are required to conduct independent seabed tests (B-test) at peak biomass production/max load, and undertake
regular independent tests in the area around the farms (C-test). Local regulations impose fallowing periods after each generation to ensure the environment under and
around the pen recover. The minimum fallowing period is at least two months, and longer if seabed test results indicate that is needed. Only when a farm has reached
the threshold of restoration, may we transfer a new generation of fish to the site. If fallowing is not enough to improve seabed test results, additional measures, such
as reducing production, is taken. In 2022, 92% of our sites received a very good or good score on seabed tests compared to 100% in 2021 (based on last B-test taken for
each site that is part of our ongoing operations, either at peak biomass production/max load, or before restocking when the seabed has recovered). We have one site in
Rogaland where the ecosystem takes longer to recover, and where we performed testing at peak biomass in 2020 and 2022. The site that received a poor score must
fallow for longer.
According to the Risk Report of Norwegian Fish Farming by the Institute of Marine Research, the risk of impact from organic waste from fish farming is low and the
environmental ecosystem condition is good in Rogaland (the salmon production area PO2). Grieg Seafood has partnered with other salmon farming companies in
Rogaland to commission an independent environmental monitoring program, to ensure that the combined organic emissions from all the farms do not significantly
impact the fjords. The program monitors the water quality and possible eutrophication in the Ryfylke fjord system. The results after ten years of monitoring show that the
fjord system’s environmental condition is good.
FIGURE 2.16
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
Two broodstock farms, total water surface area of 0.067km2
One specie (one bird)
We perform environmental and social impact assessment for all of our farms. The assessment also include presence of cauliflower corals. These assessments are also
part of the ASC certification process, which includes criteria to minimize environmental impact and preserve biodiversity. Two broodstock sites in Rogaland are located
in Suldalsfjorden, a "national salmon fjord" category created by the Norwegian Parliament to protect wild salmon. These seawater farms were present prior to the
establishment of the category, and became subject to certain restrictions as a result. We do have sites in the proximity of land nature reserves, but we do not have any
other sites in or adjacent to protected areas or areas of high biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High
Conservation Value Areas (HCVA) or Federal Marine Protected Areas). All site locations are available on our web site with GPS coordinates.
FIGURE 2.17
IUCN RED LIST SPECIES
Regionally extinct
Critically endangered
Endangered
Vulnerable
Lower risk: conservation
dependent
0
14
35
104
92
Data deficient
40
Our impact assessments also include identification of species listed in the IUCN Red List and Norway’s national conservation list, Artsdatabanken, with habitats in
areas where we operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation
status of plant and animal species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the
relative importance of these habitats from a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants
or animal species. We keep track of red listed species impacted in areas affected by our operations as a part of the ASC-certification. In 2022, we had an incident with a
black-backed gull, which according to Norway’s national conservation list is critically endangered. The bird got tangled in the anti-bird net due to loose strings. We have
changed our procedures to ensure we keep our nets tight to avoid similar incidents.
Each year we monitor beach areas in proximity to our active sites in Rogaland (the size of the beach areas varies and we do not keep track of this, only positioning in
terms of coordinates). This is done to ensure that the algae and seagrass vegetation and other species is healthy, and not negatively impacted by our farming operations.
Algae and seagrass can sequester carbon dioxide in its roots, and also provide nursery, refuge and foraging habitats for marine animals. In 2022, we conducted several
assessments. The results showed no significant impact from our farming operations. We continue to monitor beach areas each year to keep track of changes and will
implement protective measures if negative impact is detected.
OP ER AT ION AL P R IOR I T I E S
T O WAR DS 2026
L OC AL C OMM UNI T IE S
We expect to harvest 29 000 tonnes in 2023, with an ambition
We aim to be open and honest with local communities about
to increase harvest to 35 000-40 000 in 2026 by improving the
our production methods, our successes, and our remaining
utilization of our seawater capacity. The key to achieving this, is
challenges. We view it as our responsibility throughout all of our
to reduce production time in the sea, which we expect to result
four farming regions to engage in constructive dialogue with
in improved biological performance and a higher utilization of
all stakeholders and groups that are impacted by our activities.
each site’s maximum allowable biomass (MAB). Read more about
We create jobs and opportunities in the rural areas where we
production time, reduce our impact and improve growth in sea
local apprentices and support aquaculture schools and training
in the operational focus area chapter in Part 1 of this report. In
facilities. We sponsor sports and cultural activities, and we
2022, more than 50% of fish harvested were from post-smolt. We
engage in monitoring and protection of the local environment.
aim to increase this share to above 90% by 2026.
We also provide a grievance mechanism for local communities
We are well-positioned with land-based production, and aim
negative impact on local communities, such as pollution of local
to add at least 5 250 tonnes by increasing our post-smolt
environment and violations of human rights. In 2022, we did not
capacity. Our current freshwater facilities at Trosnavåg and
identify any significant negative impact on local communities
Hognaland have a production capacity of 1 200 tonnes smolt.
from our operations.
on our website. This enable us to identify and prevent potential
equal to 52% of total purchases, spent on goods and services purchased from
local suppliers in the county of Rogaland.
NOK 890 million
NOK 1.6 million
donated to local services and infrastructure projects, all of which are pro bono.
We support cultural events for children and young people, to make participation
in cultural activities affordable for those with few financial resources. In
Stavanger, for instance, we supported Childern’s Mablis, a family festival in the
woods. We also support sports clubs in the municipalities where we have farms.
Our aim is to contribute to the health and social life of local children and young
people. We also support organizations that engage in beach cleaning.
NOK 11.5 million
in direct support from the Norwegian Aquaculture Fund to the municipalities
where we operate, based on the production fee of NOK 0.405/kg (gutted weight).
Learn more about our relationships with our local community on
our website,
We also have a 33% shareholding in Tytlandsvik Aqua, with a
current smolt production capacity of 4 500 tonnes (where Grieg
Seafood Rogaland is entitled to 50% of the smolt). Tytlandsvik
has planned an expansion of 1500 tonnes, increasing our post
smolt share from Tytlandsvik to 3 000 tonnes. In addition, we use
two closed-containment facilities in sea, FishGLOBE, to produce
post-smolt. These facilities have a total capacity of 900 tonnes.
Further, we have invested NOK 90 million in a 44% shareholding
in Årdal Aqua, a land-based facility with the same design as
Tytlandsvik Aqua. Årdal Aqua is expected to produce 4 500 tonnes
of post smolt annually, with potential to raise fish to harvestable
size on land. Construction commenced in August 2022. We
have several projects to expand post-smolt production under
planning. However, no new investment decisions for projects
impacted by the proposed Norwegian resource tax announced
in September 2022 will be taken until the final version of the tax
regime has been adopted by the Parliament. Grieg Seafood will
then assess how the final proposal will impact the company's
strategy and investment plan. A joint venture aimed at developing
a FishGLOBE for grow-out salmon, based on development
licenses, is also on hold. A large part of our planned capital
expenditures in 2022 has been affected by the resource tax
proposal. In addition to the investment in Årdal Aqua, we spent
NOK 40 million in growth investments in 2022, mainly related
to seawater locations. We spent a total of NOK 66 million in
maintenance investments.
Another tool that will improve biology and drive growth, is our
Precision Farming strategy. Read more about Precision Farming
in our operational focus areas chapter in Part 1 of this report.
PART 02 – OUR OPERATIONAL RESULTS
26
GRIEG SEAFOOD
FINNMARK
Grieg Seafood Finnmark farms salmon in Troms and Finnmark,
the northernmost county in Norway. We have seawater
licenses with a maximum allowed biomass (MAB) of 27 000
tonnes, including green licenses which are subject to stricter
environmental standards. We also operate freshwater facilities. In
general, the salmon we harvest are processed and packed at our
local facility in Alta.
36 024
TONNES GWT HARVESTED
25.7
OPERATIONAL EBIT/KG (NOK)
OP ER AT ION AL R E SULT S
A total of 36 024 tonnes was harvested in 2022, an increase of 4%
carried out during the year to prevent any surge in numbers.
compared to the 34 484 tonnes harvested in 2021. Sales revenues
A continued high sea lice level towards the end of the year
amounted to NOK 2 629 million, an increase of 50% compared to
necessitated several treatments, resulting in reduced feeding
NOK 1 756 million in 2021.The year-on-year increase is mainly
and growth.
related to higher spot prices and a higher harvested volume, in
addition to a higher share of superior quality product compared
In addition, the parasite, Spironucleus salmonicida (“Spiro”) was
to the year before. The Nasdaq average spot price in 2022 was
detected in some fish in certain pens. This led to early harvesting
NOK 82.0 per kg, compared to NOK 57.3 per kg in 2021. Our price
and the culling of fish showing signs of ill health to protect fish
achievement in 2022 was NOK 73.0 per kg (NOK 50.9 per kg in
welfare. The source of the parasite is believed to be the water
2021). The price achieved was boosted by a somewhat higher
intake to our freshwater facility at Adamselv. Water treatment
average harvest weight compared to 2021, but depressed by the
and disinfection measures are being implemented to reduce
sale of 22% of our volume under fixed-price contracts, in addition
future risks of Spiro entering the freshwater facility. We will also
to downgrades. However, the superior quality share increased
collaborate with research institutions to increase our knowledge
from 82% in 2021 to 84% in 2022 due to lower impact from winter
relating to Spiro. We aim to limit the impact of this incident on
ulcers and no outbreak of ISA (Infectious Salmon Anemia).
the future harvestable volume by transferring more smolt to
Freshwater production at our own facility at Adamselv was good
the main reason for the reduction in our 12-month survival rate
during the year. We transferred a total of 10.8 million smolt
from 95% in 2021 to 91% in 2022. The cost of reduced survival
with an average weight of 180 grams to the sea in 2022. The
(cost recognized as abnormal mortality in the income statement)
freshwater survival rate decreased from 95% in 2021 to 90% in
came to NOK 100.6 million in 2022 (NOK 2.8 per kg), compared to
2022 mainly due to technical incidents. There was no production
NOK 53.1 million in 2021 (NOK 1.5 per kg). NOK 76.1 million (NOK
sea farms and by optimizing production at our sites. Spiro was
at our jointly owned Nordnorsk Smolt, due to the ongoing
redesign of the freshwater facility, which is scheduled for
completion in second half of 2023.
2.1 per kg) of the 2022 total relates to Spiro. This implies that
costs related to abnormal mortality less the Spiro totaled NOK
24.5 million (NOK 0.7 per kg), which is an improvement compared
to last year. The farming cost (the total cost of producing and
Seawater production was somewhat challenging this year. Colder
harvesting our fish) ended at NOK 47.3 per kg in 2022, up from
seawater temperatures in the first half of the year negatively
NOK 43.7 per kg in 2021. In addition to reduced survival and
impacted growth at sea farms, and we experienced issues with
early harvest of fish impacted by Spiro, the farming cost was
winter ulcers. In the second half of the year, high seawater
impacted by a general rise in cost. This applies in particular to
temperatures increased sealice levels. Historically, Finnmark is
a region with lower seawater temperatures which, combined with
low interconnectivity between farming sites, helps to keep sea
lice levels low. We use targeted preventive methods, such as sea
lice skirts and cleaner fish (lump suckers), to ensure that the sea
lice level remains low. Nevertheless, sea lice treatments were
feed, whose prices increased by close to 40%. This impacted our
farming cost towards the end of the year as we started to harvest
fish impacted by the increases. Additionally, reduced growth
due to the biological challenges increased our economic feed
conversion rate (eFCR, a measure of the feed utilization) from
1.34 in 2021 to 1.40 in 2022. Overall, we are working to improve
PART 02 – OUR OPERATIONAL RESULTS
27
survival rates through both general and targeted health and
batteries on six feed barges, and have three more on order with
welfare measures. Good results from vaccines and efforts to
delivery in 2023. Read more about how we work to reduce our
ensure robust fish health have eliminated the need of antibiotics
carbon emissions here.
for several years. However, we did use the antibiotic Florfenicol
at the start of the year to safeguard the welfare of fish at selected
We are committed to maintaining a good working environment
pens impacted by sores.
and keeping our employees safe. In 2022, the total absence
rate for Finnmark was 9.70%, against a target of 4.5%. We are
We have a continuous focus on escape prevention, as we regard
monitoring and following up on absence in accordance with
it as our responsibility to avoid interbreeding between our
procedures and guidelines. Read more about how we work to
farmed salmon and local wild salmon should an escape occur.
secure our employees well-being and labor rights here.
Unfortunately, we had an incident where a tear in a net pen led
to the escape of fish. 2 878 fish has been reported as escaped,
As in all our regions, Grieg Seafood Finnmark focuses on
where of 19 were recaptured. We have changed our equipment
improving fish welfare, achieving a high survival rate and working
and improved our procedures to prevent this type of incident
towards sustainable production. As a result of our efforts in the
from happening again. We are also working on measures to
area, all of our sites have been ASC certified. Due to a fish escape
minimize our impact on local wildlife. Unfortunately, 20 birds got
incident during the year, we have withdrawn our certification
caught in our nets in 2022. We will continue our efforts to reduce
at one site. At year-end, 17 out of 18 eligible sites were ASC
this number.
certified. This is equivalent to 90% of budgeted net production for
the year. New sites must reach peak biomass to be considered
As part of our Climate Action Plan to reduce our carbon
for certification.
emissions by 35% in 2030, we have connected our feed barges
to the onshore power grid. In Finnmark, 65% of our farms are
connected to the onshore grid. For sites that are not suitable for
the provision of onshore power, we use diesel-electric batteries
to reduce carbon emissions. In Finnmark, we have installed
FIGURE 2.18
RESULTS
FINNMARK
Harvest (tonnes GWT)
Revenue (NOK million)
2018
2019
2020
2021
2022
29 774
32 362
26 919
34 484
36 024
1 671.3
1 815.3
1 313.5
1 756.3
2 629.2
Operational EBIT (NOK million)
594.9
580.2
127.4
250.5
926.1
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
20.0
35.6
17.9
37.7
4.7
44.1
7.3
43.7
25.7
47.3
FIGURE 2.19
OPERATIONAL EBIT
AND HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
30
25
20
15
10
5
0
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
I
/
(
N
O
K
)
SUSTAINABILITY SCOREBOARD
PILLAR
KPI
TARGET
STATUS
2022
2021
2020
2019
2018
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
33 000 tonnes in 2022
Operational EBIT per kg (NOK)
Farming cost per kg (NOK)
Cost leader
ASC certification (# of sites)
All sites (18 eligible) by 2023
Survival rate in freshwater
Survival rate at sea
93% by 2022
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Minimize impact on wildlife
Dead marine mammals
Minimize impact on wildlife
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
35% reduction (from 2018)
in total emissions by 2030
Scope 1 + 2 location based
Scope 3
High quality product
93% superior share
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
●
●
●
●
●
●
●
●
●
●
●
●
●
●
36 024
34 484
26 919
32 362
29 774
25.7
47.3
17
90%
91%
7.3
43.7
18
95%
95%
4.7
44.1
15
89%
92%
17.9
37.7
10
87%
96%
20.0
35.6
4
89%
96%
100 567
53 133
37 495
15 055
624
6.77
5.98
0.00
0.00
0.00
6.54
2.36
3.62
0.00
14.53
0.07
0.14
0.14
0.10
0.08
0.73
0.34
0.82
0.21
0.72
1 (2 878)
1 (4 352)
20
0
8
0
0
6
0
0
2
0
0
1
0
151
166
182
169
254
3 774
4 492
5 973
5 330
6 007
84%
82%
69%
86%
86%
1.23
1.21
1.20
1.14
1.12
1.40
1.34
1.35
1.21
1.17
PEOPLE
Employees
282
262
257
256
247
Absence rate
Below 4.5%
●
9.7%
8.7%
5.5%
4.9%
5.4%
Lost time incident rate
**
Turnover rate
LOCAL
COMMUNITIES
Local procurement
21
16%
22
8%
28
n/a
22
n/a
28%
45%
60%
66%
18
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
2018
2019
2020
2021
2022
PART 02 – OUR OPERATIONAL RESULTS
28
FIGURE 2.20
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
FIGURE 2.21
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2022
FIGURE 2.23
SEA LICE LEVELS (ADULT FEMALES)
2018
2019
2020
2021
2022
Target: 93%
100%
95%
90%
85%
80%
75%
2018
2019
2020
2021
2022
We have also set targets for survival rates in fresh water. In the wild, only a
small percentage of fertilized eggs survive and become adults. That is our
biological starting point. Over the years, research has allowed us to improve the
quality of breeding process, the eggs and survival rates, but we still experience
mortality especially in the very early phase. We work systematically at the
various stages in the lifecycle to improve survival rates. These targets
can be found in our fish health and fish welfare policies. The calculation of
survival rate at sea corresponds to the GSI indicator "Fish Mortality" which
is defined as "12 months rolling mortality = total # of mortalities in sea last
12 months / (closing # of fish in sea + total # of mortalities in last 12 months +
total # of harvested fish in last 12 months + total # of culled fish in sea) x 100".
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Infectious
Bacterial
Parasite
Virus
Non-Infectious
Life cycle
Treatments
Physical
Total
Abnormal seawater
mortality write-down
%
515 581
282 613
1 370
1 261 828
113 303
63 795
2 238 490
661 685
30%
1 072
198
1
1 636
282
148
3 337
817
24%
0.5 Limit of adult female sea lice per fish per site
0.25 Limit of adult female sea lice per fish per site on green licenses
0.2 Limit when wild salmon smolt migrate from the rivers and pass the salmon farms
0.5
0.4
0.3
0.2
0.1
0.0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The sea lice counts are calculated as the average number of adult female sea lice per month. Sea lice levels shall stay below the legal limit of 0.5 adult female per fish.
At the green licenses in Finnmark, the limit is 0.25 adult female sea lice per fish, while during April and June, when wild salmon smolt migrate from the rivers and pass
the salmon farms, the limit is 0.2 adult female sea lice per fish. Sea lice counts are conducted by visual inspections, done by lifting a minimum of 20 salmon out of the
water for each pen on a weekly or biweekly basis, depending on the seawater temperature. The number of sea lice on each fish is recorded in our systems, and this
information is used to estimate the overall prevalence of sea lice in the population. On average, we did not exceed the sea lice limits in 2022. We report sea lice levels and
sea lice treatments to the Directorate of Fisheries on a weekly basis. This is publicly available information, please see Barentswatch.
FIGURE 2.22
MAIN CAUSES FOR REDUCED SURVIVAL
IN SEAWATER (NUMBER OF FISH)
Virus
Life cycle
Bacterial
Physical
Parasite
Treatments
1 400 000
1 200 000
1 000 000
800 000
600 000
400 000
200 000
0
2020
2021
2022
We perform a daily count and registration of dead fish. Laboratory analysis are undertaken to establish the main cause of mortality. Site-specific information about
treatments and notifiable diseases are publicly available at Barentswatch.
Life cycle
Physical
Treatments
Bacterial
Parasite
Virus
Bacterial infections include winter ulcers. In addition to being a welfare issue, the disease can lead to increased mortality and reduced quality at harvest. Our fish are
vaccinated against the disease, however, high challenge pressure and presence of other strains or bacterias can also cause skin ulcers. We have used antibiotics during
the year to treat our fish from winter ulcers. The parasite Spironucleus salmonicida (“Spiro”) is a rare parasite that can lead to high mortality. The other categories relate
to transport (physical), sea lice treatments, while life cycle includes a variety of causes.
Mortality figures does not include culling of fish. In 2022, we culled fish showing signs of ill health from the parasite Spiro, that was detected in some fish in certain pens.
The culling of 1.1 million fish/992 tonnes is included in the total write down related to abnormal mortality, refer to Note 9.
PART 02 – OUR OPERATIONAL RESULTS
29
FIGURE 2.24
USE OF COPPER
FIGURE 2.25
RESTORED ECOSYSTEMS UNDER FARMS
Copper-free antifouling
solutions on nets
100%
Remediated ecosystems under farms before a new generation
of fish was transferred to the farms in 2022
100% of farms
Finnmark had one pen with copper antifouling solution
as part of a research project in 2022.
Restored to “very good” or “good” thresholds according to local regulations.
FIGURE 2.26
RESULTS OF B-TEST
Year
2022
2021
2020
Very good
Good
62%
43%
26%
33%
10%
26%
Poor
0%
19%
26%
Very poor
Sites with hard seabed (do
not get a score)
Test not yet taken (new sites)
5%
5%
0%
0%
14%
16%
0%
10%
5%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or
copper from fish nets. This impact should never be irreversible. Read more about our impact on nature here. Between each generation of fish, we allow the ecological
system to rest and restore itself. In Norway, all farms are required to conduct independent seabed tests (B-test) at peak biomass production/max load, and undertake
regular independent tests in the area around the farms (C-test). Local regulations impose fallowing periods after each generation to ensure the environment under and
around the pen recover. The minimum fallowing period is at least two months, and longer if seabed test results indicate that is needed. Only when a farm has reached
the threshold of restoration, may we transfer a new generation of fish to the site. If fallowing is not enough to improve seabed test results, additional measures, such
as reducing production, is taken. 95% of our sites received a very good or good score on seabed tests in 2022, up from 53% in 2021 (based on last B-test taken for each
site that is part of our ongoing operations, either at peak biomass production/max load, or before restocking when the seabed has recovered). Longer fallowing periods
are in place for sites with poor scores, and a new generation will not be stocked until the impact is reversed and the sites have met the regulated restoration thresholds.
Access to new sites will also reduce the organic impact. In addition, we are conducting digital analyses of the marine conditions at sites to understand how the farms can
hit the currents in the most optimal way, which reduces the organic impact. We are subsequently working with local authorities to adjust the farms accordingly.
OP ER AT ION AL P R IOR I T I E S
T O WAR DS 2026
Grieg Seafood Finnmark expects to harvest 28 000 tonnes in
2023. However, we aim to increase the volume harvested to
40 000-45 000 tonnes in 2026 by improving the utilization of
our seawater capacity. The key to achieving this is to optimize
our existing site structure, obtaining new sites and reducing
production time at sea, which we expect to result in improved
biological performance and a higher utilization of each site’s
maximum allowable biomass (MAB). We currently farm smolt
at our own facility in Adamselv. Eventually, smolt will also
be produced at Nordnorsk Smolt, in which we have a 50%
shareholding. We are targeting a capacity increase of 3 000
due to the proposed resource tax regime in Norway. Larger smolt
will significantly reduce seawater production time, avoiding two
winters at sea, while also providing increased flexibility in timing
their transfer to seawater, as larger fish is more robust. Shorter
time in sea will also decrease the fishes’ exposure to issues
such as winter ulcers, sea lice and other biological challenges.
Flexibility is a requirement to achieve better utilization of our
capacity, and we are also continuously looking for opportunities
to secure access to new locations. In 2022, we spent NOK 70
million in growth investments related to new sea sites and
upgrades of onshore facilities, in addition to NOK 157 million in
tonnes of post-smolt at Adamselv, with the smolt weighing on
maintenance investments.
average up to 500 grams. Construction was planned to start at
the end of 2022, however the investment has been put on hold
According to the Risk Report on Norwegian Fish Farming by the Institute of Marine Research, the risk of impact from organic waste from fish farming in Finnmark (the
salmon production area PO12) is low and the environmental ecosystem condition is good. An environmental study of the organic impact of fish farming in the Alta fjord,
published in 2017, showed low impact on the fjord system.
L OC AL C OMM UNI T IE S
FIGURE 2.27
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
One harvest site, total area of 0.003 km2 of the water surface
Three species (15 birds)
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria
to minimize environmental impact and preserve biodiversity. Our harvesting plant in Finnmark, where we have the fish ready to be harvested in one seawater pen, is
located in Altafjorden, a "national salmon fjord" category created by the Norwegian Parliament to protect wild salmon. The harvesting plant was present prior to the
establishment of the category, and became subject to certain restrictions as a result. We do have sites in the proximity of land nature reserves, but we do not have any
other sites in or adjacent to protected areas or areas of high biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High
Conservation Value Areas (HCVA) or Federal Marine Protected Areas). All site locations are available on our web site with GPS coordinates.
FIGURE 2.28
IUCN RED LIST SPECIES
Regionally extinct
Critically endangered
Endangered
Vulnerable
Lower risk: conservation
dependent
0
14
35
104
92
Data deficient
40
Our impact assessments also include identification of species listed in the IUCN Red List and Norway’s national conservation list, Artsdatabanken, with habitats in areas
where we operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation status
of plant and animal species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative
importance of these habitats from a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal
species. We keep track of red listed species impacted in areas affected by our operations as a part of the ASC certification. In 2022, three different species listed as
endangered or vulnerable on the national conservation list and/or IUCN red list was impacted at our operations. The three species was made up of 15 birds, whereas one
Black-legged Kittiwake and six European Herring Gull was found in the anti-bird net, and eight Mew Gulls was retrieved from the pen or the anti-bird net. As a result of
the incidents the anti-bird net was carefully controlled and tightened to prevent occurring incidents.
As a part of our commitment to co-existence with wild salmon, the Alta river (total length of 47 km) and the Repparfjord river (total length of 100 km) in Finnmark
are monitored in collaboration with the Norwegian Institute for Nature Research, the management of the Alta rivers, and the West Finnmark Hunting and Fishing
Association. The objective is to investigate the impact of escaped farmed salmon from recreational fishing, and to evaluate the need for enhanced protective measures.
In 2022, 453 shell samples was submitted from the Alta river, whereas only one sample (0.2%) was identified as escaped farmed salmon. In the Repparfjord river, two
(0.2%) out of 854 shell samples submitted was identified as farmed salmon. Read more about these project here.
We aim to be open and honest with local communities about
our production methods, our successes, and our remaining
challenges. We view it as our responsibility throughout all of our
four farming regions to engage in constructive dialogue with
all stakeholders and groups that are impacted by our activities.
We create jobs and opportunities in the rural areas where we
operate, and we use local suppliers as often as we can. We hire
local apprentices and support aquaculture schools and training
facilities. We sponsor sports and cultural activities, and we
engage in monitoring and protection of the local environment.
We also provide a grievance mechanism for local communities
on our website. This enable us to identify and prevent potential
negative impact on local communities This enable us to identify
and prevent potential negative impact on local communities, such
as pollution of local environment and violations of human rights.
In 2022, we did not identify any significant negative impact on
local communities from our operations.
Finnmark has been home to the Sami people for millennia.
We recognize that the Sami people have special rights, as
acknowledged in the United Nations Declaration on the Rights
of Indigenous Peoples (UNDRIP), and take particular care to
avoid infringing them. We are in a process to understand how
we can advance the Same culture in Finnmark. We continue our
close dialogue with the Sami people and we did not identify any
violations of their rights caused by our operations in 2022.
NOK 474 million
equal to 28% of total purchases, spent on goods and services purchased from
local suppliers in the county of Troms and Finnmark. The reduction from a 45%
share in local purchases last year is due to change of feed supplier.
NOK 2.3 million
donated to local services and infrastructure projects, all of which are pro
bono. We support the local culture center, Perleporten, which offers several
social activities and events. Amongst other clubs, we support the local sports
club Bossekopp and The Alta Music Association. Bossekopp is located in Alta,
where we have our local administration office and our harvesting plant. The
Alta Music Association is the organizer of FESTIVALTA, which is an local festival
for experiencing classic music surrounded by northern winter nature. We also
sponsored Finnmarksløpet – the longest dog sled race in Europe. The 1 200
km race starts in Alta, with the course going all the way to the Russian border
and back again. Competitors must tackle challenging terrain and harsh winter
conditions. Additionally, we supported the construction of a safe and robust
Sherpa trail to Storfjellet in the center of Honningsvåg.
NOK 14.5 million
in direct support from the Norwegian Aquaculture Fund to the municipalities
where we operate, based on the production fee of NOK 0.405/kg (gutted weight).
Learn more about our relationships with our local community on
our website,
PART 02 – OUR OPERATIONAL RESULTS
30
GRIEG SEAFOOD
BRITISH COLUMBIA
Grieg Seafood BC farms salmon on the east and west sides
of Vancouver Island, and along the Sunshine Coast north of
Vancouver. The company currently holds 21 farming licenses,
including broodstock operations and land-based production
of smolt. We process our BC salmon externally.
20 286
TONNES GWT HARVESTED
13.3
OPERATIONAL EBIT/KG
(NOK)
OP ER AT ION AL R E SULT S
A total of 20 286 tonnes was harvested in 2022, 40% higher than
Enteric Redmouth disease (ERM) and Salmonid Rickettsial
in 2021 (14 448 tonnes). Harvesting volumes vary significantly
Septicaemia (SRS) to safeguard the welfare of the fish. Our use
every other year due to an imbalance in the number of farms
of antibiotics is too high, and we are pursuing non-therapeutic
and maximum allowable biomass (MAB) in the different
means to manage diseases, such as vaccines and an adapted
production areas on the East and West Coast of Vancouver
diet. Infrastructure, such as the barrier system, might also aid
Island. As a consequence, the region's volume varies every
in reducing disease transmission. Our post-smolt strategy will
other year, regardless of the underlying biological performance.
enable us to have better control of the fishes’ environment for a
Sales revenues for the year amounted to NOK 1 665 million,
longer period. It will also make the fish more robust when they
an increase of 63% compared to NOK 1 023 million in 2021.
are transferred to the sea, and a shorter period at sea will reduce
According to Urner Barry, the average spot price (farm-raised
exposure to biological risks. This in turn will reduce the risk of
salmon Seattle West Coast, fresh, whole fish) was NOK 84.1
disease outbreaks and the need for antibiotics. SRS has been a
per kg in 2022, compared to NOK 68.5 per kg in 2021. Our price
challenge in the shíshálh (Sechelt) farming area, and as we have
achievement was NOK 82.1 per kg in 2022, compared to NOK 70.8
harvested the last fish and are closing down the area, we do not
per kg in 2021. The price achievement was boosted by higher
expect treatment related to SRS going forward.
spot prices, but depressed by a lower average harvest weight and
share of superior quality. The share of superior quality ended at
BC has low sea lice levels during the important outmigration
85% in 2022, a reduction from 87% in 2021, which mainly relates
period (when the juvenile and vulnerable wild salmon pass our
to early maturation and the occurrence of winter ulcers at the
farms on their way from the rivers to the ocean). However, the
start of 2022.
region is influenced by sea lice pressure each autumn, during
the inmigration period when the adult wild salmon pass our
Freshwater production was stable during the year. We
farms on their way back to the rivers to spawn. Sea lice are then
transferred a total of 4.8 million smolt, with an average weight
transferred from the wild salmon to the farmed salmon, with
of 110 grams, to the sea in 2022. The freshwater survival rate
risk of multiplication within the farms. In BC, unlike Norway, the
decreased from 85% in 2021 to 84% in 2022. We have taken steps
wild salmon population greatly outnumbers the farmed salmon
to ensure a higher quality roe going forward.
population. Our barrier systems have shown potential to improve
sea lice control significantly. When additional measures are
Seawater production was stable in 2022. The 12-month survival
needed, we carry out the type of treatment most appropriate to
rate decreased from 92% in 2021 to 91% in 2022. The survival
the biological situation. During 2022, medicinal sea lice treatment
rate was impacted by a higher number of events of low oxygen
with hydrogen peroxide and in-feed treatments were used to
levels and algal blooms than in 2021. Despite prolonged periods
reduce and maintain a stable sea lice level. We aim to reduce the
of challenging environmental conditions, we managed to stabilize
use of medicinal sea lice treatments through a combination of a
survival due to our barrier and CO2L flow system. Mortality
barrier system between the farmed salmon and the environment
related to algal blooms have been reduced the last years due to
our efforts relating to algae mitigation, digital monitoring and
aeration systems, and came to 1.15% in 2022.
We are constantly working to reduce the use of antibiotics. In
2022, the antibiotic Florfenicol was used to treat Yellowmouth,
and use of the latest mechanical sea lice removal tool.
The cost of reduced survival (cost recognized as abnormal
mortality in the income statement) was NOK 90.7 million in 2022
(NOK 4.5 or CAD 0.6 per kg), compared to NOK 17.6 million in
2021 (NOK 1.2 or CAD 0.2 per kg). The cost was significantly
PART 02 – OUR OPERATIONAL RESULTS
31
impacted by lower quality roe, leading to reduced survival at the
flowpressors will reduce annual carbon emissions by 11 000
freshwater stage. The farming cost (the total cost of producing
tCO2e per year. Read more about how we are working to reduce
and harvesting our fish) increased from CAD 8.8 per kg (NOK
our carbon emissions here.
60.4) in 2021 to CAD 9.1 per kg (NOK 68.8) in 2022, due to the
increased cost of reduced survival. Towards year-end, we
We are committed to maintaining a good working environment
SUSTAINABILITY SCOREBOARD
harvested the last fish from the shíshálh (Sechelt) farming area,
and keeping our employees safe. In 2022, the total absence rate
PILLAR
KPI
TARGET
STATUS
2022
2021
2020
2019
2018
which has historically had a higher farming cost per kg compared
for BC was 6.43%, against a target of 4.5%. We are monitoring
to other farming areas, due to the small size of each farms. While
and following up on absence in accordance with procedures
we expect this to reduce our farming cost going forward, we see
and guidelines. Read more about how we work to secure our
increases due to the general cost inflation in the industry. This
employees well-being and labor rights here.
applies in particular to feed, whose price has increased by close
to 20%.
Obtaining ASC certification is an important signal that our salmon
is a responsible choice, as ASC has strict requirements with
In BC, the wild salmon are Pacific salmon species which cannot
respect to minimizing fish farms’ impact on the environment
interbreed with our Atlantic salmon. We did not have any escapes
and supporting local communities. As part of discontinuing our
from our sea farms in 2022. We continue our efforts to minimize
farming operations in the Sechelt area, we withdrew the ASC
our impact on other local wildlife. In 2022, six birds got caught in
certification from five of the sites that were empty and inactive at
our nets. We will continue striving to reduce our impact.
year-end. We also have one more active site in 2022 than in 2021.
As part of our Climate Action Plan to reduce our carbon
ASC certified (corresponding to 71% of budgeted net production
emissions by 35% in 2030, we exchanged our compressors with
for the year). We expect to certify the remaining sites in 2023.
At the end of 2022, a total of seven out of 11 eligible sites were
flow technology, reducing our compressor energy usage and
thereby our diesel consumption. It is estimated that the
FIGURE 2.29
RESULTS
BRITISH COLUMBIA
Harvest (tonnes GWT)
Revenue (NOK million)
Operational EBIT (NOK million)
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
Farming cost / kg (CAD)
2018
2019
2020
2021
2022
16 632
14 120
21 181
14 448
20 286
1 075.3
861.4
1 178.9
1 023.5
1 665.1
290.9
17.5
50.0
7.4
73.3
5.2
55.3
8.3
-7.4
-0.4
56.0
8.0
150.2
270.4
10.4
60.4
8.8
13.3
68.8
9.1
FIGURE 2.30
OPERATIONAL EBIT AND
HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
25 000
20 000
15 000
10 000
5 000
0
20
15
10
5
0
(5)
2018
2019
2020
2021
2022
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
/
I
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
20 000 tonnes in 2022
Operational EBIT / kg (NOK)
Farming cost per kg (CAD)
Cost leader
ASC certification (# of sites)
All sites (11 eligible) by 2023
Survival rate in freshwater
Survival rate at sea
93% by 2022
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) */ **
Minimize use of
pharmaceutical treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Minimize impact on wildlife
Dead marine mammals
Minimize impact on wildlife
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
35% reduction (from 2018)
in total emissions by 2030
Scope 1 + 2 location based
Scope 3
High quality product
93% superior share
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
●
●
●
●
●
●
●
●
●
●
●
●
●
●
20 286
14 448
21 181
14 120
16 632
13.3
10.4
-0.4
9.1
7
84%
91%
8.8
12
85%
92%
8.0
11
78%
90%
5.2
8.3
n/a
63%
88%
17.5
7.4
n/a
83%
88%
90 728
17 617
66 082
73 327
88 454
34.75
41.67
62.32
87.00
151.26
12.83
35.66
46.62
6.01
5.83
0.17
0.30
0.22
0.52
0.32
0.00
0.00
0.00
0.00
0.00
0
6
0
741
2 439
85%
2 (4)
8
1
1 091
4 025
87%
0
12
1
0
14
0
0
0
0
769
3 276
86%
1 101
5 411
86%
597
5 376
84%
1.21
1.18
1.23
1.25
1.23
1.38
1.27
1.43
1.41
1.54
PEOPLE
Employees
157
176
174
171
148
Absence rate
Below 4.5%
●
6.4%
5.6%
6.8%
2.0%
1.8%
Lost time incident rate
***
Turnover rate
LOCAL
COMMUNITIES
Local procurement
9
6
40%
30%
36
n/a
35
n/a
86%
84%
83%
83%
38
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** As of 01.01.2021, the Government of Canada - Department of Fisheries and Oceans Canada (DFO) changed the calculation formula for the API of hydrogen peroxide
from Paramove 50 from 1 L (Paramove 50) * 1.15 (density) * 0.45 (concentration) = 1 kg H2O2 to 1 L (Paramove 50) * 1.19 (density) * 0.49 (concentration) = 1 kg H2O2, which
corresponds to the method used in Norway. Previous years (2018 - 2020) have not been recalculated.
*** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
(
N
O
K
)
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
PART 02 – OUR OPERATIONAL RESULTS
32
FIGURE 2.31
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
Orange line
FIGURE 2.32
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2022
FIGURE 2.34
SEA LICE LEVELS (MOTILE SEA LICE )
2018
2019
2020
2021
2022
8.0
6.0
4.0
2.0
0.0
3 Limit of motile sea lice per fish per site (March to June)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The sea lice counts are calculated as the average number of motile sea lice per salmon. The limit as defined by the authorities is three motile sea lice per salmon in the
period from March to June during the out-migration period, recognized as a vulnerable time for wild salmon migrating out to sea. Sea lice counts are conducted by visual
inspections, done by lifting a minimum of 20 salmon out of the water for three pens on a weekly basis. The number of sea lice on each fish is recorded in our systems,
and this information is used to estimate the overall prevalence of sea lice in the population. On average, we did not exceed the sea lice limits in 2022.
Target: 93%
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Infectious
Gill infections
Bacterial
Non-Infectious
Life cycle
Physical
Treatments
Total
Abnormal seawater
mortality write-
down
%
94 753
126 122
678 113
245 043
22 809
1 166 840
335 762
29%
261
221
1 358
484
54
2 379
751
32%
95%
90%
85%
80%
75%
2018
2019
2020
2021
2022
We have also set targets for survival rates in fresh water. In the wild, only a small
percentage of fertilized eggs survive and become adults. That is our biological starting
point. Over the years, research has allowed us to improve the quality of breeding process,
the eggs and survival rates, but we still experience mortality especially in the very
early phase. We work systematically at the various stages in the lifecycle to improve
survival rates. These targets can be found in our fish health and fish welfare policies.
The calculation of survival rate at sea corresponds to the GSI indicator "Fish Mortality"
which is defined as "12 months rolling mortality = total # of mortalities in sea last
12 months / (closing # of fish in sea + total # of mortalities in last 12 months + total # of
harvested fish in last 12 months + total # of culled fish in sea) x 100".
FIGURE 2.33
MAIN CAUSES FOR REDUCED SURVIVAL
IN SEAWATER (NUMBER OF FISH)
Virus
Life cycle
Bacterial
Physical
Gill infections
Treatments
800 000
600 000
400 000
200 000
0
2020
2021
2022
We perform a daily count and registration of dead fish. We undertake routine screening to determine the cause of mortality.
Gill infections
Life cycle
Physical
Treatments
N/A
Bacterial
Virus
Gill infections are in most cases complex and multifactorial, and the primary cause is unknown. Gill infections is a welfare issue, as well as being an important cause of
mortality. Bacterial include Yellowmouth and Salmonid Rickettsial Septicaemia (SRS). Yellowmouth typically occurs during the first few weeks after transfer to the sea,
and is controlled through therapeutic treatments using antibiotics. SRS is controlled through good husbandry and management practices. The other categories relate to
transport (physical), sea lice treatments, while life cycle includes a variety of causes.
PART 02 – OUR OPERATIONAL RESULTS
33
FIGURE 2.35
USE OF COPPER
FIGURE 2.36
RESTORED ECOSYSTEMS UNDER FARMS
Copper-free antifouling
solutions on nets
100%
Remediated ecosystems under farms before a new
generation of fish was transferred to the farms in 2022
100% of farms
We did not use copper antifouling solutions on our nets in
BC in 2022.
Threshold on hard bottom according to local regulations: Beggiatoa species, similar bacteria or marine
worms does not cover 10% or more of any four segments of substrate. Threshold on soft bottom according
to local regulations: Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage
edge along two transects.
FIGURE 2.37
% OF SITES THAT ARE RESTORED
Substrate Type
Benthic exceedance thresholds at peak biomass or before re-stocking
Compliance 2022
Hard Bottom
Beggiatoa species, similar bacteria or marine worms does not cover 10% or more of
any four segments of substrate.
Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage
edge along two transects.
Sulphide does not exceed 1 500 µM outside the Allowable Zone of Effect*
Soft bottom
* ASC Salmon standard.
100%
100%
100%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or
copper from fish nets. This impact should never be irreversible. Read more about our impact on nature here. In BC, regulations require us to conduct benthic tests at
peak biomass at each farm, and fallow the farm after ended production cycle until the seabed of the site reaches the regulated threshold of remediation. The test must
be accepted by the regulators and, since our farms are BAP certified farms, an independent third party.
The Aquaculture Activities Regulation, established under the Canadian Fisheries Act, sets exceedance limits for the benthic substrate monitoring according to the
Monitoring Standard. The sites cannot be restocked if they exceed these limits.
FIGURE 2.39
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
None
None
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria to
minimize environmental impact and preserve biodiversity. We do not have sites in the proximity of land nature reserves, nor do we have sites in or adjacent to protected
areas or areas of high biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High Conservation Value Areas (HCVA) or
Federal Marine Protected Areas). All site locations are available on our web site with GPS coordinates.
FIGURE 2.38
IUCN RED LIST SPECIES
Regionally extinct
Critically endangered
Endangered
Vulnerable
Lower risk: conservation
dependent
0
5
10
11
14
Data deficient
29
Our impact assessments also include identification of species listed in the IUCN Red List and BC’s national conservation list, Species at Risk Act (SARA), with habitats
in areas where we operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation
status of plant and animal species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative
importance of these habitats from a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal
species. We keep track of red listed species impacted in areas affected by our operations as a part of the ASC-certification. No red list species was impacted in proximity
of our operations in 2022.
As wild salmon is an important part of the indigenous culture, we embrace the responsibility of not causing harm and has engaged in several wild salmon enhancement
projects in BC, including the Oyster River Enhancement Society and Nootka Sound Watershed Society. The Oyster River Enhancement Society works on habitat
restoration projects for natural spawning, rearing and overwintering of salmonids in the Oyster river (length of 15 km). Red more about the project here. The Nootka
Sound Watershed Society works to protect, restore and enhance pacific salmonids and their habitat in Nootka Sound, Esperanza Inlet (52.2 km2)through sustainable,
science-based practices. Read more about the projects and their habitat status assessments here.
OP ER AT ION AL P R IOR I T I E S
T O WAR DS 2026
Grieg Seafood BC expects to harvest 20 000 tonnes in 2023. We
in BC is operated under agreements with First Nations. These
aim to increase the volume harvested to 30 000-35 000 tonnes
relationships are very important to us. The Truth & Reconciliation
in 2026 both by developing current sites to utilize more of our
Commission: Call to Action #92 provides us with guidance on our
seawater capacity and developing new sites. Key initiatives to
role in the reconciliation process. We are working to get better
achieve our objective include the implementation of barrier
at operating with respect for the culture of our First Nations
systems to provide better biological control and higher survival
partners in every way, to deepen our understanding and to
rates. As part of the ongoing process of site restructuring, we
provide shared opportunities. Read more about our journey of
seek to develop sites that are well suited for salmon farming,
reconciliation in BC here.
and phase out older and smaller sites with more challenging
biological conditions.
By 2025, the Canadian Federal Government aims to have created
a responsible plan to transition away from traditional open
Access to high-quality smolt is also key to ensuring sustainable
net-pen salmon farming in British Columbia, in order to reduce
production growth. At the start of 2022, we completed the
interactions with wild salmon. In June 2022, the Canadian
expansion of our Gold River smolt facility, with smolt capacity
Department of Fisheries and Oceans renewed all farming
increasing from 500 tonnes to 800 tonnes. Further expansion of
licenses for two years. During this period, the government
our post-smolt capacity is under consideration. As from 2022,
aims to develop the transition plan. Grieg Seafood welcome the
we also have our own broodstock program, with the aim of
transition process and the transition framework published. We
becoming self-sufficient in high-quality eggs. Another key priority
see the renewal of our licenses and the commitment to working
to increase survival and harvest volume, is the use of digital
together with us to develop a transition plan as a sign that
monitoring and prediction technology. Harmful Algae Blooms
Canada wants a thriving, sustainable salmon farming industry
(HAB) and low-oxygen events represent significant biological
in British Columbia. Grieg Seafood embraces new strategies
risks in BC. However, mortality related to algae blooms has been
and technologies to align with the government’s transition. This
reduced the last years due to our successful efforts in the field
includes, for example, keeping the fish longer on land and a
of algae mitigation, digital monitoring and aeration systems.
shorter time in the ocean, and introducing barriers around the
Algae movements and oxygen levels are continuously monitored
farms to limit interactions between the fish and the environment.
and analyzed using high-grade real-time in-pen sensors, and
Such technologies not only reduce our impact on wild salmon
machine learning with predictive environmental software. We
and the environment, but also improve biological control. We
have installed aeration systems to enable feeding also during
are working with all levels of governments, including Indigenous
challenging situations, which increases survival during these
governments, to find a path forward that works for our First
periods. In combination with HAB and oxygen monitoring tools,
Nations partners, our local communities, the government and
we currently have barrier systems installed at three sites,
industry.
which will allow us to keep the barriers down year-round and to
maintain oxygen levels. Our capital expenditures in 2022 reflect
our growth initiatives. We spent approximately NOK 74 million
primarily on barrier systems and the expansion of Gold River, in
addition to NOK 59 million in regular maintenance investments.
The United Nations Declarations on the Rights of Indigenous
Peoples (UNDRIP), giving Indigenous peoples rights in their own
traditional territory, is under implementation in BC. This is a
process of reconciliation between the government, businesses
and First Nations. The majority of our production
PART 02 – OUR OPERATIONAL RESULTS
34
L O C A L C OMMUN I T IE S
We aim to be open and honest with local communities about
our production methods, our successes, and our remaining
challenges. We view it as our responsibility throughout all of our
four farming regions to engage in constructive dialogue with
all stakeholders and groups that are impacted by our activities.
We create jobs and opportunities in the rural areas where we
operate, and we use local suppliers as often as we can. We hire
include financial support, in-kind and employee knowledge
sharing or participation. In 2022, we supported dozens of
initiatives ranging from youth sports team funding to support
for wild salmon restoration and enhancement. Throughout the
year we have collected funds for local Food Banks, and during
the holiday season we donated presents for children through
the Campbell River Angel Tree Society and the John Howard
local apprentices and support aquaculture schools and training
Society’s KidStart program.
facilities. We sponsor sports and cultural activities, and we
engage in monitoring and protection of the local environment.
We also provide a grievance mechanism for local communities
on our website. This enable us to identify and prevent potential
negative impact on local communities, such as pollution of local
environment and violations of human rights. In 2022, we did not
identify any significant negative impact on local communities
from our operations.
We are active in the communities in which we live and work
through our sponsorship and donation program. Contributions
In British Columbia, we farm in areas that belong to Indigenous
peoples. These groups have special rights, as acknowledged
in the United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP), and Grieg Seafood takes particular care
to avoid infringing them. The vast majority of our production
is covered by agreements with First Nations, and we are
pursuing agreements with others. These agreements are a
layer of regulation requiring compliance and the details of these
agreements are unique to each Nation. They ensure transparency
and Nation oversight to our operations while providing economic
and social benefits to each community. We are continuously
working to be in compliance with the agreements.
equal to 86% of total purchases, spent on goods and services purchased from
local suppliers in BC.
NOK 1 091 million
NOK 0.6 million
donated to local services and infrastructure projects, all of which are pro bono.
We supported dozens of initiatives ranging from youth sports team funding to
support for wild salmon restoration and enhancement. Throughout the year we
have collected funds for local Food Banks, and during the holiday season we
donated presents for children through the Campbell River Angel Tree Society
and the John Howard Society’s KidStart program.
Learn more about our relationships with our local community
here, and our approach to the implementation of UNDRIP and
our journey of reconciliation with Indigenous Peoples in British
Columbia here.
PART 02 – OUR OPERATIONAL RESULTS
35
OP ER AT ION AL R E SULT S
In 2022, we successfully completed the first transfer of smolt
As part of our Climate Action Plan to reduce our carbon
to sea farms in our Newfoundland region. Production at our
emissions by 35% in 2030, we invested in diesel-electric power on
Recirculating Aquaculture System (RAS) freshwater facility in
two of our feed barges in Newfoundland. We aim to have battery
Marystown Marine Industrial Park, in Placentia Bay, remained
packs on all the feed barges, which will reduce our carbon
on track, with high survival rates. Two million smolt, with an
emissions from diesel consumption. Read more about how we
average weight of 100 grams, were transferred to two sea farms
work to reduce our carbon emissions here.
in Placentia Bay during the spring and summer of 2022.
We are committed to maintaining a good working environment
Our seawater licenses in Newfoundland require use of sterile
and keeping our employees safe. In 2022, the total absence rate
all-female salmon in order to eliminate the risk of genetic
for Newfoundland was 1.59%, well below our target of 4.5%. We
pollution of wild Atlantic salmon in case of escape. The salmon is
are monitoring and following up on absence in accordance with
of European broodstock, and we apply best practices from sterile
procedures and guidelines. Read more about how we work to
production across the globe in our operations. We have a year-
secure our employees well-being and labor rights here.
round supply of high-quality eggs, and we optimize the conditions
during the freshwater phase, the times of the year when the fish
We remain committed to developing our operations in
are transferred to the sea, and the feed composition. Triploid
Newfoundland and Labrador gradually and responsibly, and to
salmon perform well in cold environments and do not mature. So
meeting all regulatory requirements from the local provincial
far, the fish have performed well biologically, with high survival
and federal authorities. We are well prepared in terms of
and growth at sea, and we have not experienced sea lice
equipment, employees and knowledge of biological conditions,
issues. We have not detected any sea lice on our fish. At year-
and we will adjust our operations according to the experience
end, the average weight of the fish was 1.3 kg. We have not had
we gain from the first generations of fish. We are confident that
any escape incidents or conflicts with wildlife, and our equipment
we will be able to build a strong farming region in Newfoundland
withstood harsh weather and storms. We are still in an early
during the coming years and create jobs and value for our local
phase and will expand the project gradually and in line with
communities.
biological developments. Harvesting is expected to commence
towards the end of 2023. We expect to transfer more smolt to the
sea during late spring or summer of 2023.
We did not incur any costs related to reduced survival (cost
recognized as abnormal mortality) in 2022. As we have not
started harvesting, we do not have a farming cost in 2022. Most
of our production cost is accounted as inventory, though, a
portion is expensed directly to the income statement. EBIT for
2022 totaled NOK -114.7 million, compared to NOK -116.9 million
in 2021. In 2022, we spent a total of NOK 210 million on our
seawater locations, including equipment for digital monitoring.
GRIEG SEAFOOD
NEWFOUNDLAND
Grieg Seafood Newfoundland is a greenfield project with
long-term exclusive fish farming rights in Placentia Bay in
Newfoundland and Labrador. We will develop the region
gradually and responsibly, based on the biological development of
our first generations of fish.
PART 02 – OUR OPERATIONAL RESULTS
36
FIGURE 2.40
USE OF COPPER
Copper-free antifouling
solutions on nets
100%
SUSTAINABILITY SCOREBOARD
We did not use copper antifouling solutions on our nets in Newfoundland in 2022.
PILLAR
KPI
TARGET
STATUS
2022
2021
FIGURE 2.41
% OF SITES THAT ARE RESTORED
Substrate Type
Benthic exceedance thresholds at peak biomass or before re-stocking
Compliance 2022
Hard Bottom
Soft bottom
Beggiatoa species or similar bacteria, marine worms or barren substrate does not
cover 70% or more of the locations specified in the Monitoring Standard
Sampling not complete due to sites not at
peak biomass
The mean concentration of free sulfide as calculated at the locations specified in the
Monitoring Standard does not exceed 3 000 µM
No primarily soft bottom sites active in 2022
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or
copper from fish nets. This impact should never be irreversible. Read more about our impact on nature here. No sediment or visual monitoring was required in 2022,
in compliance with the Aquaculture Activities Regulations (AAR). Benthic monitoring will be completed in 2023 at a time close to peak feeding at each sea cage site that
was active in 2022, in compliance with the Aquaculture Activities Regulations. The AAR states that sampling should be conducted during the period of actual or predicted
maximum daily quantity of feed usage during the production cycle, which will occur in summer/fall 2023 for fish that were transferred to sea in 2022.
FIGURE 2.42
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
Two farming sites, total area of 0.028km2 of water surface
None
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria
to minimize environmental impact and preserve biodiversity. According to Department of Fisheries and Oceans (DFO), we have sites located in an area in Placentia
Bay (~7800 km2), which is classified as a “Ecologically and Biologically Significant Area” (EBSA). In order to receive licenses in this area, Grieg Seafood Newfoundland
conducted an Environmental Impact Statement (EIS) Assessment which was reviewed by DFO and other regulators. Approval to operate in this area has been granted
based on the assessment by both federal and provincial regulators. Our sites are located away from Important bird areas and proposed leatherback sea turtle critical
habitat identified within the EBSA.
FIGURE 2.43
IUCN RED LIST SPECIES
Regionally extinct
Critically endangered
Endangered
Vulnerable
Lower risk: conservation
dependent
0
3
4
6
5
Data deficient
10
Our impact assessments also include identification of species listed in the IUCN Red List and BC’s national conservation list, Species at Risk Act (SARA), with habitats
in areas where we operate.. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation
status of plant and animal species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative
importance of these habitats from a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal
species. We keep track of red listed species impacted in areas affected by our operations as a part of the ASC-certification. No red list species was impacted in proximity
of our operations in 2022.
Together with Provincial and Federal regulators, we have implemented monitoring procedures and protective measures as a part of our commitment to co-existence
with wild salmon in Newfoundland. In late spring and summer 2022, we monitored upstream migration of adult, wild Atlantic salmon on the Come-by-Chance River (with
a length of 5.15 km). This was the second year the Come-by-Chance River was monitored, but the first year with Atlantic salmon in sea at the Red Island site. In 2022,
there were no acute or suspected chronic releases of farmed salmon from the Red Island and Butler Island sea cage sites.
PROFIT &
INNOVATION
HEALTHY
OCEAN
Operational EBIT (NOK million)
Survival rate in freshwater
Use of antibiotics
(g per tonne LWE) *
Use of hydrogen peroxide
(kg per tonne LWE) *
Sea lice treatments - in feed
(g per tonne LWE) *
Sea lice treatments - in bath
(g per tonne LWE) *
No use of antibiotics
Minimize use of pharmaceutical treatments
Minimize use of pharmaceutical treatments
Minimize use of pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Minimize impact on wildlife
Dead marine mammals
Minimize impact on wildlife
SUSTAINABLE
FOOD
Carbon emissions
(tCO2e)
35% reduction (from 2018)
in total emissions by 2030
Scope 1 + 2 location based
Scope 3
Biological feed conversion ratio (bFCR)
Economic feed conversion ratio (eFCR)
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Below 4.5%
**
●
●
●
●
●
●
●
●
●
●
-114.7
-116.9
85%
0
0
0
0
0
0
0
2 244
8 890
1.27
1.29
104
n/a
0
n/a
n/a
n/a
n/a
n/a
n/a
2 066
735
n/a
n/a
69
1.6%
1.3%
0
42%
37%
5
83%
44%
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available or not applicable as seawater production started mid-year 2022.
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
PART 02 – OUR OPERATIONAL RESULTS
37
P R I OR I T IE S T O WAR DS 2026
The US market is the world’s largest and fastest growing market
for Atlantic salmon, but only a third of US demand is currently
met by North American production. We already have a position
in this market through our operations in British Columbia,
where we have attained significant sales and market experience.
With proximity to important markets on the US East Coast, our
Newfoundland region significantly strengthens our US market
exposure and opens for synergies with our existing operations,
as we should be able to provide a more stable supply to the US
market.
Our high-end state-of-the-art RAS facility has technology
employing 100% recirculation of water with minimal impact on
the surrounding environment. The facility currently consists of a
hatchery, nursery and a smolt unit with a capacity of 600 tonnes.
We aim to construct an additional 1 400 tonnes of post-smolt
capacity, depending on a successful first winter at sea. We have
further options to expand, and we will gradually develop our
operations to ensure biosecurity, fish health and profitability.
We currently have 13 seawater licenses, each with an allowance
of one million fish at first stocking, increasing to two million fish
in subsequent stockings. In 2023, we expect to harvest 5 000
tonnes of salmon, increasing to 15 000 tonnes by 2026, which
is possible with our current set up. We have also been awarded
rights to develop the Bays West aquaculture area, with the
potential to produce an additional 20 000 tonnes of salmon. With
this possibility, we will have exclusive rights in two production
areas, which will secure future flexibility. These areas will
provide a long-term annual harvest potential of up to 65 000
tonnes.
L OC AL C OMM UNI T IE S
We aim to be open and honest with local communities about
our production methods, our successes, and our remaining
challenges. We view it as our responsibility throughout all of our
four farming regions to engage in constructive dialogue with
all stakeholders and groups that are impacted by our activities.
We create jobs and opportunities in the rural areas where we
operate, and we use local suppliers as often as we can. We hire
local apprentices and support aquaculture schools and training
facilities. We sponsor sports and cultural activities, and we
engage in monitoring and protection of the local environment.
We also provide a grievance mechanism for local communities
on our website. This enable us to identify and prevent potential
negative impact on local communities, such as pollution of local
environment and violations of human rights. In 2022, we did not
identify any significant negative impact on local communities
from our operations.
equal to 37% of total purchases, spent on goods and services purchased from
local suppliers in Newfoundland.
NOK 200 million
NOK 0.4 million
donated to local services and infrastructure projects, all of which are pro bono.
We support the local YMCA, which has been part of life in Newfoundland and
Labrador since 1854. It is a charity dedicated to strengthening the foundations
of communities. They do this by nurturing the potential of children, teens, and
young adults; promoting healthy living; and fostering social responsibility.
YMCA offers programs of health and fitness, child care, employment enterprise
and newcomer services. We also donated to the Burin Peninsula Health Care
Foundation, a direct support of the local health care centers to improve the
quality of care for patients and long term care residents. We have supported
projects such as a garden gazebo for long-term care patients and getting 11 new
mental health first aiders trained.
Learn more about our relationships with our local community on
our website.
PART 02 – OUR OPERATIONAL RESULTS
38
OUR
CERTIFICATIONS
To ensure that local communities, customers, and civil society
can trust that we farm responsibly and to the highest standards,
we certify our farms according to several recognized, third-party
certifications.
Our farming operations in Rogaland, Finnmark and BC are
businesses that hold these recognized certificates to access all
certified according to BAP or GLOBALG.A.P. Both these
corners of the global market. Processing partners in BC hold
standards are recognized by the Global Food Safety Initiative
equivalent certification for their operations. Read more about our
(GFSI). Our sales and market organization is chain-of-custody
certifications and their current status here.
certified according to ASC and GlobalG.A.P. In 2022 we started
the process of obtaining FSSC 22000 certification for our
We experienced good demand for ASC-certified salmon in the
processing plants in Rogaland and Finnmark. We expect both
European market and are selling ASC-certified volumes with
facilities to have the GFSI recognized certification in the Q1
a consistent market premium. Additionally, the FSSC 22000
2023. While GFSI does not provide food safety certification, it
certification in Norway will allow access to new European
recognizes a number of certification programs that meet the
customers requiring processing plants to have GFSI-recognized
GFSI benchmarking requirements. GFSI-recognized certification
certifications.
is a mark of the highest standards in food safety, allowing food
CERTIFICATE
DESCRIPTION
TARGET
STATUS 31.12.2022
ASC
Aquaculture Stewardship Council (ASC) was founded in 2010 by the
100% ASC
75%* of our total
World Wide Fund for Nature (WWF) and the IDH Sustainable Trade
certification
budgeted net production
Initiative to establish global standards for sustainable seafood
(or compliance
volume is ASC-certified
production.
with ASC) for
active and
17 sites (90%
The ASC label only appears on food from farms that have been
eligible sites by
of budgeted net
independently assessed and certified as being environmentally and
2023.
production) in
socially responsible. ASC-certified salmon farms minimize impacts
Newfoundland
Finnmark,
on the local ecosystem to protect biodiversity. Farms are required
aims to certify
Seven sites (71%
to measure various water parameters and remain within set limits.
when its
of budgeted net
Farms are required to adhere to rigorous requirements to minimize
seawater sites
production) in BC, and
disease outbreaks, keep sea lice levels low and can only use certain
are eligible for
Five sites (59%
medicines under very strict conditions. Use of wild fish as an ingredient
certification.
of budgeted net
for feed must be minimized and full traceability back to a responsibly
production) in Rogaland
managed source, preferably certified, must be ensured for both wild
fish and soy. There are also strict social requirements.
have received ASC
certification.
A Chain of Custody certification ensures that companies selling
certified seafood have identification, segregation and traceability
processes and procedures in place.
Our sales and market
organizations in Norway
and Canada are ASC
Chain of Custody
certified.
GLOBALG.A.P
Global Good Agricultural Practices (GLOBALG.A.P.) is a standard for
100% of farms
100% of our farms (thus
both agriculture and aquaculture. The standard covers food safety,
in Norway
100% of our production
animal welfare, sustainability, employment and traceability.
GlobalG.A.P.
volume) in Norway are
GlobalG.A.P. certification provides assurance that food has been grown
(certification
Rogaland have been
using recognized levels of quality and safety. It also ensures that it
not relevant for
certified since 2008, and
has been produced sustainably in a way that respects the health, the
Canada)
farms in Finnmark since
environment and the welfare and safety of workers and animals.
2016.
certified
certified. Our farms in
The Chain of Custody Standard ensures that the product is sourced
from GLOBALG.A.P. certified farms.
GlobalG.A.P is particularly important for customers in Europe.
Our sales and market
organization in Norway
is GlobalG.A.P. Chain of
Custody certified.
BAP
Best Aquaculture Practices (BAP) is an aquaculture standard that
100% of
100% of our farms (thus
covers practices in all stages of the fish farming process.
farms in BC
100% of our production
BAP certification helps to assure consumers that the seafood they buy
(certification
certified since 2011.
is produced in a manner that is considerate of the animal’s welfare, the
not relevant for
Our Newfoundland
environment, workforce and community, food safety and traceability.
Norway).
region is under
BAP certified
volume) in BC have been
BAP is particularly important for customers in the United States.
establishment and is not
yet delivering to market.
FSSC 22000
FSSC 22000 is a certification scheme for Food Safety Management
100% of
The processing plant in
Systems that is aligned with the ISO Management System approach
processing
Finnmark was certified
and the ISO Harmonized Structure.
plants in
Norway FSSC
22000 certified
in December 2022, while
the Rogaland plant’s
certification audit is
scheduled in Q1 2023.
*Sites and production volume not included in the ASC-certification-% calculation is not eligible for ASC-certification due to inactive production or first production cycle
not yet completed.
PART 02 – OUR OPERATIONAL RESULTS
39
T HE GL OB AL S AL MON M AR K E T
In 2022, the global volume of Atlantic salmon harvested
Demand for farmed salmon both in the retail and HoReCa sectors
decreased by approximately 1% compared to 2021, according
was strong in 2022. However, due to the limited supply of salmon,
to Kontali. A total of 2 578 500 tonnes GWT (gutted weight
consumption decreased in most markets in 2022 compared to
equivalent) was estimated to have been harvested globally in
2021. In contrast, consumption in the USA and China increased
2022, down from 2 606 580 tonnes in 2021. Chile contributed an
by 3% and 5%, respectively. Supply to Russia decreased by 43%,
increase in output of 29 880 tonnes, while most other salmon
from 86 100 to 48 700 tonnes in 2022, due to the ongoing war
producing countries saw their output fall. The UK experienced a
against Ukraine.
reduction of 29 880 tonnes, Norway a reduction of 14 850 tonnes
and Canada a reduction of 9 450 tonnes (all figures in GWT).
The average spot price for Norwegian salmon (NQSALMON,
weekly average) for 2022 varied significantly during the year,
Salmon exports from Norway fell by 2% in 2022 compared to
depending on supply to the market. The same trend was
2021. The volume of fresh salmon exports decreased by 4%,
observed in the North American market. The spot market price
while exports of fresh salmon filet increased by 6% compared to
stood at NOK 65.3 per kg at the beginning of the year. It increased
2021. The main export markets for salmon from Norway were
to a peak above NOK 123 per kg towards the end of April, then
Europe, which accounted for 74% of the volume, while Asia
fell to the mid-50s at the end of August, before bouncing back.
accounted for 16% and North America 6% (source: Norwegian
The NQSALMON spot price closed the year at NOK 86.5 per
Seafood Council). The total volume supplied by Canada decreased
kg. The 12-month average NQSALMON for 2022 came to NOK
by 7% in 2022 compared to 2021.
82.0 per kg, compared to NOK 57.3 in 2021. Spot salmon prices
in the US market started the year at NOK 73.0 per kg, peaked at
around NOK 106 per kg and ended the year at NOK 91.5 per kg.
The average price came to NOK 84.1 per kg, up by NOK 19 per kg
compared to 2021.
FIGURE 2.44
GLOBAL HARVEST OF ATLANTIC SALMON IN 2022
FIGURE 2.45
GLOBAL CONSUMPTION OF ATLANTIC SALMON IN 2022
10%
15%
5%
6%
26%
53%
45%
11%
3%
4%
23%
Norway
Chile
UK
Canada
Other
EU & UK
USA
Brazil
Russia
Asia
Other
Source: Kontali Analyse AS
40
SALES &
MARKET
Grieg Seafood is part of a global salmon market, supplying 3.3% of
the global volume of Atlantic salmon harvested in 2022. As part
of our new strategy, we will reposition Grieg Seafood in the value
chain and become an innovative partner for selected customers.
PART 02 – OUR OPERATIONAL RESULTS
OU R S AL E S & M AR K E T R E S ULT S
In 2022 we capitalized on the benefits of having a fully integrated
OUR MARKETS
global sales organization and reached our key milestones.
We targeted 5-10% of our harvested volume for value added
Grieg Seafood accounted for 3.3% of the global supply of Atlantic
processing (VAP), to establish processing partnerships in
salmon in 2022. Sales consisted mainly of fresh, head-on gutted
Norway and Europe, as well as entry of our VAP products to
salmon. We increased our share of value-added products (VAP)
selected markets. We started processing salmon into fresh and
from 4% in 2021 to 6% of our volume in 2022, in line with our
frozen value added products with partners in Norway and doing
strategy.
processing trails in other countries in Europe. Further we have
established a presence of our own VAP products in Europe,
Continental Europe is by far our most important market,
Asian and the US markets. 6% of our global harvested volume
accounting for 63% (73%) of our harvested volume and
in 2022 was sold as VAP. We aim to build on this development by
contributing 58% of our sales revenue in 2022. North America
optimizing biological performance and market timing through
is our second largest market, and accounted for 26% (21%) of
close collaboration between farming and sales, thereby securing
our volume and 29% (27%) of our revenues in 2022. The market
good price achievement. The sales organization of Grieg Seafood
distribution of sales varies year on year, depending on the
operates as one coherent unit across the global salmon market,
volumes harvested across our regions. The main change in our
and we expect to leverage this for both our Norwegian and
sales distribution was a decrease to Continental Europe from
Canadian origins.
65% in 2021 to 58% in 2022. This is primarily attributable to a
growth in sales to the US market. We increased our harvested
By a continued focus on sustainable farming practices and good
volume by 5% from our Norwegian farming operations in 2022,
fish health and welfare, we can provide the safe, healthy, tasty,
while we harvested 40% more in our BC region compared to
and high-quality product that our customers and consumers
2021. In 2022, 17% of sales were to airborne markets, while the
demand. Through our food safety management system we ensure
remainder was sold to European markets, with a strong focus
that our products are safe throughout harvest, processing and
on key markets in southern Europe. Our main export markets
logistics on it’s way to the market. We are transparent about
from Norway were Europe (82% of our volume), Asia (12%) and
our farming and production methods and communicate our
North America (6%). 3% of our volume of Norwegian origin was
standards and results to our customers. All our products are
sold as value added products. Approximately 21% of our salmon
intended for human consumption. Read more about why our
from BC was sold in Canada, while 76% was sold to the USA and
salmon are healthy and nutritious here.
3% to Asia. 9% of our harvested salmon was processed and sold
as value added products, while the Skuna Bay brand made up
We have not had any product recalls for the last ten years, nor
approximately 5% of the volume. We did not have any sales to
did we have any in 2022. No serious incidents of food safety
Russia or Belarus in 2022. See here for further details of sales
non-conformities in regards to requirements in regulations or
revenues by markets and products.
voluntary codes have been reported in 2022. Our product is not
banned from any markets. To manage possibly product recalls
Our sales revenues amounted to NOK 7 164 million, an increase
and serious incidents related to food safety, regular training is
of NOK 2 565 million or 55.8% from 2021. The increase in sales
performed. Read more about how we work with food safety on
revenue is due to a combination of record-high harvest volume in
our web site.
our regions and an exceptionally strong market. Our harvested
volume in 2022 was up 12% compared to 2021. The group's price
achievement was NOK 75.8 per kg compared to NOK 55.7 per kg
in 2021. By comparison, the average NQSALMON price for 2022
came to NOK 82.0 per kg compared to NOK 57.3 in 2021. The
price realization was negatively impacted by contracts for some
of our Norwegian volume, in addition to price achievement on
production grade harvest volume. The total superior share came
to 81% in 2021 compared to 82% in 2021. For more information
on our harvested volume and sales performance, see the
regional chapters in this report.
FIGURE 2.46
NQSALMON WEEKLY AVERAGE (NOK/KG)
Source: NASDAQ Salmon Index
2019
2020
2021
2022
2023
120
100
80
60
40
1
6
11
16
21
26
31
36
41
46
51
2019
2020
2021
2022
2023
FIGURE 2.47
URNER BARRY FARM RAISED SALMON SEATTLE
WEST COAST, FRESH, WHOLEFISH (NOK/KG)
2019
2020
2021
2022
2023
120
100
80
60
40
PART 02 – OUR OPERATIONAL RESULTS
41
1
6
11
16
21
26
31
36
41
46
51
The Urner Barry Farm Raised Salmon Seattle West Coast, Fresh, Wholefish shown above is a weekly average of all weight classes (4-6 lb, 6-8 lb, 8-10 lb,
10-12 lb,12-14 lb, 14-16 lb, 16-18 lb) in USD/lb, converted into NOK/kg using the weekly average of Norges Bank's daily exchange rate. Prices for 2023 are not yet available
due to limited supply of salmon to the west coast of the USA.
2019
2020
2021
2022
2023
M AR K E T E XP E C TAT IONS A ND OUR
P R I OR I T I E S T O WA R DS 2026
The global harvest of Atlantic salmon in 2023 is expected to
increase by 2%, or 51 800 tonnes, compared to 2022, and come
to 2 916 800 tonnes, according to Kontali (figures in whole
fish equivalent, WFE). The current harvest estimates indicate
a significant difference between supply volumes in the first
and second half of 2023, the same pattern as in 2022. With
negative supply growth in the first half of the year and overall
limited growth in 2023, combined with an outlook for continuing
strong demand fueled by an increased focus on healthy food
and sustainably produced proteins, we currently (at the time
of publishing this report) believe in sustained strong market
prices in 2023. However, current inflation reducing household
purchasing power might impact demand from both the HoReCa
(hotels, restaurants and catering) and retail segment. The
current Fishpool forward price for 2023 is around NOK 95 per kg,
and the 2024 forward price is around NOK 87 per kg, reflecting
an optimistic market outlook. We aim to sell 20-50% of our
Norwegian volume under fixed-price contracts. The contract
market in the second half of 2022 was impacted by the proposed
resource rent tax on salmon in Norway, however we saw signs
of improvement in the beginning of 2023. At year-end 2022, our
estimated contract share for 2023 was 15%.
We aim to establish processing partners close to key markets
and customers in the EU and the USA, targeting 20-30% share
of our volume for VAP by 2026. In 2023, we aim to increase
the share of VAP volume to 8-12% of our harvested volume.
We will also continue to evaluate opportunities to strengthen
our processing capacity, such as long-term partnerships with
third parties in Norway, North America and Europe, as well as
development of existing internal processing infrastructure. We
also aim to develop B2B brands going forward. Currently, we
have the successful Skuna Bay brand in the USA.
The US market is the world’s largest and fastest growing market
for Atlantic salmon, but only a third of US demand is currently
met by North American production. We already have a position
in this market through our operations in British Columbia,
where we have attained significant sales and market experience.
With proximity to important markets on the US East Coast, our
Newfoundland region significantly strengthens our US market
exposure.
The global demand for Atlantic salmon has been increasing,
supported by growing demand for healthy food and an expanding
middle class in developing countries. Global fish consumption
has doubled since 1998, and a further 80% increase is projected
by 2050. The trend appears to have been bolstered by increased
interest in healthy eating triggered during the Covid-19
pandemic. We expect salmon prices to remain strong the next
years, driven by low supply growth and good demand.
FIGURE 2.48
OUR MARKETS BY SALES REVENUES
FIGURE 2.49
OUR MARKETS BY HARVESTED VOLUME
Continental Europe
UK
North America
Asia
PART 02 – OUR OPERATIONAL RESULTS
42
R EDUCING C AR B ON EMI S SIONS
• In Rogaland and Finnmark, we are observing the benefits
According to the High-Level Panel for a Sustainable Ocean
of using electricity from onshore and battery packs instead
Economy (Ocean Panel), food production from the sea may be
of diesel generators alone, to operate a growing number of
advantageous from a climate perspective, because the carbon
production sites.
footprint from production is low compared to terrestrial animal
• Our preventative approach to sea lice control is expected to
protein production (see Figure 1.3 in our Aquaculture in a
reduce our carbon footprint, as the use of large vessels for
sustainable global food system chapter). However, we recognize
the application of delousing treatments also causes carbon
that we must do more to cut carbon emissions from our farming
emissions. In British Columbia, where sea lice challenges
operations and supply chains. Direct carbon emissions from our
production (Scope 1 & 2) account for 8% or 30 000 tCO2e of our
total emissions. 92% or 346 000 tCO2e, of our emissions originate
from our value chain (Scope 3), particularly those aspects linked
historically have been substantial, the new semi-closed
containment systems contribute not only to solving biological
challenges but also to reducing carbon emissions.
• We have tested out methods to chill the salmon after
to fish feed and the transportation of salmon to our markets.
harvesting, which makes it possible to avoid ice in packaging
and reduce the carbon footprint per kilo of packed salmon. We
Our climate action target is to reduce carbon emissions by 35%
will invest in this equipment in the years to come.
towards 2030, and by 100% in 2050, with 2018 as the baseline
• Before making any investments, we evaluate their potential
year. This reduction target is for Scope 1, 2 & 3. Our carbon
carbon emissions and environmental impact.
emission reduction targets are classified as well-below 2°C
global warming, and aligned with the Paris Agreement. Our
Since we are growth-oriented, and are targeting higher
emission targets have been approved by the Science Based
production and harvest volumes, we cannot exclude an increase
Targets initiative (SBTi). More information can be found here.
in our total emissions in the short run. Nevertheless, we will
CLIMATE ACTION PLAN
During 2022, we have developed our climate action plan, which
continue to work towards reducing both relative and total
emissions, and to achieve our reduction targets. The divestment
of our Shetland operations in 2021 and the acquisition of the
describes the measures and investments needed to reach our
Newfoundland operations in 2020, where we are using state-of-
climate targets. This plan stresses the importance of both
the-art technology and where we are located closer to the large
operational measures, that affect Scope 1 & 2, and supply
US consumer market, are expected to contribute positively to
chain measures in Scope 3. We need to reduce our operational
those ambitions.
fossil fuel consumption, purchase renewable electricity and
set supplier requirements to be able to reduce our absolute
emission level. We need to invest in the electrification of our sites
and boats, commercialize the need for novel feed ingredients
with lower emission factors and reduce our emissions from
transportation.
We work actively to develop emission reduction initiatives,
and to improve data quality and reporting from our operations
and suppliers. Capturing the majority of emission data on
an individual production site basis allows us to compare the
energy intensity of each production site across all regions, and
to develop strategic low-carbon transition plans for 2023 and
beyond.
LEARN MORE ON OUR WEBSITE
→
→
Our policy for climate action
Reducing carbon emissions
CLIMATE
ACTION
While farmed salmon has a low carbon footprint compared to
other animal proteins, our industry must do its part to achieve
the goals set out in the Paris Agreement. New solutions must be
developed to cut emissions in our operations and along our value
chain.
PART 02 – OUR OPERATIONAL RESULTS
43
GREENHOUSE GAS EMISSIONS
In 2022, our total greenhouse gas (GHG) emissions decreased by
5%, or close to 20 000 tCO2e, compared to 2021. The decrease is
mainly attributable to a reduction in our emission factors from
feed in Scope 3. Feed emissions decreased by 19%, or close to
53 000 tCO2e compared to the year before, which secured an
overall reduction in our Scope 3 emissions, despite an increase
in Scope 2 emissions from 2021 to 2022. Seawater production
resulted in a noticeable increase in Scope 3, due to the use of
feed. As our operation continues to grow in Newfoundland, we
are expecting an increase in emissions in the years to come.
SCOPE 3 EMISSIONS
The two most substantial contributors to Scope 3 emissions
are downstream transportation and fish feed. Downstream
in emissions from downstream transportation. The utilization of
transportation accounts for 23% and fish feed for 61% of our total
electricity from the power grid and battery packs has also helped
emissions (25% and 66% of our Scope 3 emissions, respectively).
to reduce emissions in Scope 1 and 2 by approximately 6%, or
close to 2 000 tCO2e compared to 2021.
As shown in Figure 2.50, our total emissions decreased by
approximately 20 000 tCO2e in 2022.
SCOPE 1 & SCOPE 2 EMISSIONS
Our absolute Scope 1 and Scope 2 GHG emissions were reduced
by 6%, or close to 2 000 tCO2e, in 2022 compared to 2021, while
production increased by 12%. As a consequence, the emissions
measured as kilograms of CO2 equivalents per tonne harvested
decreased by 16%. In Rogaland, total emissions decreased by
Downstream transportation
In total, the percentage of air transport increased by 49%
in 2022. There are various reasons for this development.
Most importantly, air transport opportunities where reduced
significantly by Covid-19 in 2021. In addition, the choice of
transport mode is influenced by logistical restrictions, harvest
13% from 2021 to 2022, despite a 6% increase in the harvested
schedules, availability and demand for certain sizes and qualities
volume. As a consequence, emissions per tonne decreased by
18%. In Finnmark, the harvested volume increased by 4%. Total
emissions decreased by 5%, mainly due to the implementation
of fish, and prices. Due to the increase in air freight in 2022, we
increased our transport emissions by 29 000 tCO2e.
of an operational incentive program linked to the use of fuel and
In general, downstream transportation is calculated as transport
electricity.
from the harvesting facility to the airport of departure to the
destination country (capital) by air in tonne-kilometers (tkm). For
Well-boat services make up a substantial proportion of our
all sales from our Canadian operations (mostly delivered to the
emissions, and whether we decide to provide these services
North American market), transport was calculated to the state
ourselves or outsource them to external service providers has
capital in order to achieve an acceptable degree of precision.
a considerable influence on our Scope 1 emissions. In Rogaland
Value-added processing and details of the exact transportation
and BC, well-boat emissions are included in Scope 1, while well-
routes were not taken into consideration due to lack of data
boat emissions in Finnmark are categorized as Scope 3 due to
availability. With new technology, e.g. blockchain, we aim to
contractual considerations. Finnmark’s Scope 3 emissions from
well-boat activities in 2022 totaled 5 800 tCO2e.
increase the level of detail in tracking the path our salmon takes
from the harvesting facility to the final consumer in the years to
come. We are open to collaboration projects and participated in
In BC, total emissions decreased by 5%, despite an increase of
a sustainability reporting-related workshop together with our
40% in the harvested volume. This caused relative emissions
seafood logistics software provider in 2022.
per tonne to decrease by 32%. Emissions are closely tied to
seasonal environmental conditions, as there is an increase in
aeration usage during the summer months. In 2022, the summer
Fish feed
Carbon emissions from fish feed are calculated on the basis of
season arrived late in BC waters, which caused a reduction in
the amount of feed used and the carbon emission factor of the
diesel consumption related to aeration. Additionally, the RAS 34
feed products used. Our carbon emissions from fish feed are
facility was completed, enabling us to consolidate and run less
highly dependent on the different raw materials used in the feed,
equipment. Seawater production volume has limited correlation
as well as the life cycle assessments and methodology chosen
with emissions, as generators often run at a similar capacity
by our feed suppliers. More information about the composition
regardless of the biomass. The volume harvested in BC varies
of our feed can be found in our chapter on feed ingredients. Fish
significantly every other year. While these fluctuations affect total
feed carbon emission factors are calculated on the basis of life
emissions only marginally, their primary impact is on relative
cycle assessments (LCAs) and appear to be variable over time
emissions.
In Newfoundland, the first transfer of smolt to sea farms was
successfully completed this summer. As a result, we expected
an increase in Scope 1 emissions. However, production at the
freshwater facility had been running on generators in 2021, and
was completely connected to the power grid in 2022, keeping
Scope 1 emissions stable. This corresponds to the increase
PART 02 – OUR OPERATIONAL RESULTS
and different between our suppliers. The reason for this is that
data quality and transparency vary and increase in relation to the
efforts made and resources allocated to those comprehensive
analyses.
OUR GREENHOUSE GAS ACCOUNTS
FIGURE 2.50
GREENHOUSE GAS EMISSIONS SCOPE 1 + 2 + 3
REGION
Scope
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
ROGALAND
Downstream transportation
Fish feed
Other**
Total (Scope 3)
Total GHG emissions Rogaland
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
FINNMARK
Downstream transportation
Fish feed
Other**
Total (Scope 3)
Total GHG emissions Finnmark
Scope 1
Scope 2 location based****
Total (Scope 1 + 2)
Scope 3
Downstream transportation***
Fish feed
Other***
Total (Scope 3)
Total GHG emissions British Columbia
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Newfoundland
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
Other
Total (Scope 3)
Total GHG emissions Other
Scope 1 (tCO2e)
Scope 2 location based (tCO2e)
BRITISH
COLUMBIA
NEW-
FOUNDLAND
OTHER1
TOTAL EMISSIONS (tCO2e)
RELATIVE EMISSIONS (kgCO2e / tonnes)
*Baseyear
2018
2020
2021
2022
*Baseyear
2018
2020
2021
2022
3 939
456
4 395
8 875
8 519
420
331
9 295
8 850
7 433
287
7 720
58 454
67 529
40 567
86 257
102 202 104 470
4 065
6 330
6 350
54 409
89 472
6 248
148 776
176 061 151 387
150 129
153 171
185 356 160 237
157 849
7 134
420
7 554
4 123
5 122
776
591
4 899
5 713
4 948
496
5 444
52 971
19 489
13 963
21 739
115 949
132 864 131 286
101 894
9 921
8 432
9 645
12 323
178 841
160 785 154 894
135 956
186 395
165 684 160 607
141 400
9 143
15 609
15 129
14 509
783
673
629
513
270
403
332
272
9 131
9 401
7 641
8 044
5 676
6 008
5 289
5 561
254
182
166
151
6 007
6 260
5 973
6 155
4 492
4 657
3 774
3 925
9 926
16 282
15 758
15 022
597
769
1 091
741
5 376
5 973
3 276
4 044
4 025
5 115
2 439
3 180
n/a
91
143
111
n/a
n/a
30
121
51
194
438
549
45 602
38 116
5 695
89 413
99 339
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
—
33
33
253
253
286
19 296
4 884
41 963
46 700
8 120
6 563
69 379
58 147
85 661
73 905
1 847
1 637
80
429
1 927
2 066
n/a
n/a
643
643
n/a
212
523
735
12 097
29 934
7 454
49 485
64 507
1 572
672
2 244
n/a
8 427
463
8 890
2 570
2 801
11 134
—
26
26
60
60
86
1
14
15
2
12
14
991
991
1 006
4 470
4 470
4 484
20 216
30 454
30 408
28 464
1 692
1 975
1 994
1 980
Total Scope 1 + Scope 2 location based
21 908
32 429
32 402
30 444
349
456
429
359
Scope 3
TOTAL GROUP
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Group
157 027
106 314
59 414
88 245
240 322
277 029 282 668
229 727
19 934
23 585
24 072
30 958
417 283
406 928 366 154
348 930
439 191
439 357 398 556
379 374
6 655
7 005
5 720
6 176
4 843
5 272
4 120
4 479
1 Grieg Seafood ASA (HQ) and our sales organizations in Norway and North America.
*In 2022, improved data collection processes and calculation methods have enabled us to collect historic Scope 3 data to create comparable figures back to the baseline
year. **This year, we discovered some errors in the interpretation of the data related to waste in Norway, which explains the change in Other Scope 3 emissions reported
in 2020 and 2021. The quantifiable change for Rogaland is calculated to a reduction of 1 263 tCO2e in 2020 and 3 914 tCO2e in 2021. In Finnmark, the change resulted in
an increase of 63 tCO2e for 2020 and an reduction of 354 tCO2e in 2021. ***In BC, we have moved emissions from downstream transportation to upstream transportation,
as we have previously reported third-party transportation services from inbound logistics in downstream transportation. This explains the reduction in previously
reported downstream data and the increase in other Scope 3 emissions from BC in 2020 and 2021, which includes upstream transportation. The quantifiable change
shows that 1 237 tCO2e was moved from downstream transportation to other in 2020 and 937 tCO2e was moved from downstream transportation to other in 2021. ****In
BC, we received a credit note from our electricity supplier in January 2022, concerning consumption in BC in Q3 2021. Thus, the 2021 Scope 2 figures have decreased
from last year’s reported figures by 97 tCO2e.
44
Our feed-related emission factors decreased substantially from
2021 to 2022. There are two main reasons for this. In 2022, we
have been able to acquire carbon emission data down to the
specific feed product level, providing more accurate data on our
actual carbon emission footprint from purchased feed. These
improved calculative measures will make emission reductions
visible across the industry. We have also required the data to
be supplemented by a list of additional information, such as
LCA database used, calculation methodology, data aggregation
level and origin. In addition, changes in the use of raw materials
and raw material suppliers have had an impact on the 2022
emissions.
Towards the 2030 target
Our climate target is set in line with SBTi, which requires a
baseline year as starting point. In 2022, we have a total reduction
in Scope 1, 2 and 3 of 14% from our 2018 baseline year, which
shows that we are moving towards a 35% reduction in 2030.
Despite Scope 1 and 2 emissions increasing by 39% due to growth
in operations, the 17% reduction in Scope 3 emission keeps us on
track to reach our target.
Scope 3 challenges
We strive to continuously improve our collection of Scope 3
emissions data. Some of the figures are only technical estimates
of our actual emissions, calculated on the basis of science-based
emission research. However, we deem the disclosure of our
Scope 3 emissions to be an important step towards achieving
awareness of those emissions and encouraging our suppliers
to also conduct annual greenhouse gas accounting, even if data
accuracy is an aspect we need to improve on. This will help us,
our industry and all business sectors linked to our industry to
improve in concert as we go forward.
GHG REPORTING STANDARD
Our greenhouse gas emissions are reported in accordance with
the Corporate Accounting and Reporting Standard, developed
by the Greenhouse Gas Protocol Initiative (GHG Protocol), using
the operational approach. We report on all seven greenhouse
gases covered by the Kyoto Protocol (CO2, CH4, N2O, HFC, PCFs,
SF6, NF3), which are converted to CO2e. 2018 is defined as our
baseline year in accordance with SBTi guidance that companies
should "choose the most recent year for which data is available
as the base year". When structural changes, improved data
collection methods or discovery of significant errors occur, the
GHG Protocol supports recalculating the base year*. However,
it is important to note that certain changes do not require
recalculation, for example, changes involving facilities that
did not exists in the base year, out/in-sourcing of activities
previously reported under a different scope, and organic growth
or contraction.
*Grieg Seafood Shetland was divested in 2021, and is excluded from the base
year and all current years. Additionally, the sales organization, Ocean Quality,
was divested in 2020 and is thus excluded from the base year. Whereas Grieg
Seafood Newfoundland was acquired in 2020, but did not exist before the
acquiring year. Hence, it is is not included in the base year.
Scope 1 emissions are those that are directly emitted by Grieg
Seafood’s activities and include emissions from the combustion
of fossil fuels for generators, heating and our own vehicles.
Emissions are calculated based on the purchased quantities of
commercial fuels . We also have a relatively small consumption
of hydrofluorocarbons (HFC) for cooling, which are included
in Scope 1. All Scope 1 emission factors used are from DEFRA
(the UK’s Department for Environment Food and Rural Affairs).
Underlying data is collected from financial cost.
Scope 2 emissions are indirect emissions relating to third-party
generation of the electricity we consume at our sites. Emissions
are reported as location-based emissions in accordance with
the GHG Protocol (market-based Scope 2 emissions can be
found in the response field of GRI standard 305-2 in our GRI
index). Location-based factors are from the International Energy
Agency (IEA), using three-year rolling averages. For electricity
consumed in Norway, we apply the Nordic mix, since this is the
most representative emission factor for Norway. This is because
Norway is almost self-sufficient when it comes to electricity,
while the bulk of the electricity imported to Norway comes from
Sweden and Denmark (nve.no). The Nordic mix is calculated as a
weighted average of the Swedish, Norwegian, Finnish and Danish
factors. Underlying data is collected from metered electricity
consumption and invoices from electricity suppliers.
Scope 3 emissions are all other indirect emissions (not included
in Scope 2) that occur in our value chain, including both upstream
and downstream emissions. In 2021 we had the first year with
comparable Scope 3 figures. However, in 2022 we managed to
improve our data collection processes to the extent of calculating
historic Scope 3 emission to achieve a comparable trend from the
base year. We have mapped the emissions in our supply chain
in a comprehensive analysis and identified the categories most
relevant to Grieg Seafood. Upstream, we included (1) Purchased
goods and services, (3) Fuel and energy-related activities (not
included in Scope 1 or Scope 2), (4) Upstream transportation and
distribution, (5) Waste generated in operations, and (6) Business
travel. Downstream, we included (9) Downstream transportation
and distribution, and (15) Investments. The categories correspond
to the 15 Scope 3 categories defined by the GHG Protocol.
Underlying data is collected from production data, financial cost
or suppliers, or estimated based on production data.
FIGURE 2.51
SCOPE 3 MAPPING PER REGION/UNIT
Data collected
Scoped out
Data not available
Category
Subcategory
Rogaland
Finnmark BC
Newfound-
land
ASA
Sales
Norway
Sales
NA
1
Purchased goods and services
Fish feed
Capital goods
Well-boat services
EPS boxes
N/A
Fuel and energy-related activities Well-to-Tank (WTT)
Upstream transportation and
distribution*
Boat/truck transportation
Waste generated in operations
Waste
Business travel
Air travel
Employee commuting**
Employee mileage
Public/private
transportation
Upstream leased assets
N/A
Downstream transportation and
distribution
Goods transportation
Processing of sold products
Use of sold products
End-of-life treatment of sold
products***
Downstream leased assets
Franchises
N/A
N/A
N/A
N/A
N/A
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Investments
Nordnorsk Smolt****
Tytlandsvik Aqua
* Upstream transportation and distribution was included in 2022.
**We have estimated emissions related to employee commuting with the use of national statistics.
*** End-of-life treatment of sold products was excluded in 2022, as ensilage has been identified as waste generated in operations.Thus, moved to waste generated in
operations.
****Nordnorsk Smolt was scoped out in 2022, as there was no production this year.
FIGURE 2.52
GREENHOUSE GAS EMISSIONS
DEVELOPMENT FROM BASE YEAR
(1000 tCO2e)
Scope 1 + 2 (tCO2e)
Scope 3 (tCO2e)
The chart shows the last three years
compared with the base year, and our
development towards our 35% reduction
target in 2030
439
439
399
379
285
2018
2020
2021
2022
2030
PART 02 – OUR OPERATIONAL RESULTS
45
SUSTAINABLE FEED
INGREDIENTS
We are conscious of the environmental and social risks that may
be connected to feed ingredients and are committed to responsible
sourcing. We are committed to reduce the impacts from our fish
feed. As an industry, we also need to develop new feed ingredients
in order to grow sustainably.
T O WAR DS MOR E SU S TAIN A BLE
FEED I NGR EDIEN T S
Grieg Seafood has identified and mitigated the most material
risks related to our feed ingredients, such as overfishing and
TRACEABILITY
Feed traceability is a key concern in aquaculture, as it relies on
deforestation. With a growing aquaculture sector, we need new
depleted fish stocks or plant-based protein which is associated
marine and protein-based feed ingredients in order to reduce the
with natural ecosystem conversion. We are in close dialogue
environmental and social impact in the years to come.
with our feed suppliers concerning the sourcing of raw material,
CERTIFICATIONS
To ensure that our ingredients do not contribute to overfishing
and we expect continuous improvements in our feed supply
chains with respect to environmental, social and governance
(ESG) risks. We require information on each ingredient and raw
and deforestation, we require recognized certification of our
material in the feed we buy, including the origin of all ingredients
high-risk ingredients. Fish meal and fish oil from fisheries and
used as well as how they were produced. This covers the entire
Brazilian soy and palm oil are identified as high-risk ingredients.
supply chain – from farm/boat to feed manufacturer. While we
In 2022, all our marine ingredients (excluding trimmings)
recognize that it will take time to provide the traceability needed
in feed were based on fisheries certified according to the
in all supply chains, we require continuous improvements every
Marine Stewardship Council (MSC) or MarineTrust (including
year. In 2022, we improved our level of traceability on our high-
FIPs). As a member of MarinTrust Governing Body Committee
risk ingredients. We were able to identify the vast majority of
(GBC), we continuously work towards increasing the share of
the species, origin and certification of forage fisheries used in
certified fisheries across the industry. All Brazilian soy protein
our feed. Additionally, we managed to trace soy to national and
concentrate was certified according to ProTerra or Round Table
regional level.
on Responsible Soy (segregated). The only region where we used
a small amount of palm oil (0.02% of the raw material content)
was in Newfoundland. The palm oil used was certified according
to Round Table on Sustainable Palm Oil.
FIGURE 2.53
FEED INGREDIENTS IN 2022
Rapeseed oil
Fishmeal
Soy protein concentrate
Wheat gluten
Fishoil
Beans and peas
Wheat
Guar
Sunflower
Micro ingredients
This illustrates the average raw material content in
our feed used in Norway and Newfoundland. In BC,
the content is somewhat different, as, in general, a
larger proportion of vegetable protein is replaced
by animal-byproducts. Palm oil constituted 0.02%
of the raw material ingredients in the feed used in
Newfoundland.
5%
6%
7%
11%
LEARN MORE ON OUR WEBSITE
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→
→
Supplier Code of Conduct
Sustainable feed policy
Our feed approach
7%
4%
18%
17%
12%
13%
PART 02 – OUR OPERATIONAL RESULTS
46
ZERO DEFORESTATION
Our Brazilian soy protein concentrate vendors, CJ Selecta,
NOVEL FEED INGREDIENTS
The aquaculture industry is looking at developing novel feed
Imcopa and Caramuru, were the first Brazilian soy traders to
ingredients to mitigate sustainability-linked risks such as
set a 2020 cut-off date for their entire soybean business in the
deforestation and overfishing. We must ensure that a scale-
Cerrado, and establish a robust MRV system. With this move,
up of ingredients does not repeat the mistakes of the past by
they have set a new benchmark for sustainable supply chains
contributing to new or unforeseen ESG risks. As a member of the
globally. We have engaged with these producers and applaud
Global Roundtable on Marine Ingredients and the Global Salmon
their leadership. Read more here.
Initiative Climate Taskforce, we take part in commercializing
novel feed ingredients that are a good fit for a future sustainable
We participated in the CDP Forest program for the third time in
food system. In 2021, we initiated a project to perform a holistic
2022. CDP Forest provides a framework of actions to measure
evaluation of ESG risks relating to salmon feed ingredients in
and manage forest-related risks and opportunities, transparent
order to increase transparency and traceability, to enable us to
reporting on progress, and commitment to work proactively
benchmark feed ingredients on material ESG aspects and have
FIGURE 2.54
TARGETS AND ACHIEVEMENTS 2022
Targets
Achievements 2022
All marine ingredients (excluding trimmings) used are based on fisheries
certified according to MSC or MarineTrust (including FIPs)
Yes, in all regions for the full year
FFDRo below 2.52 (ASC requirement)
Yes, in all regions
FFDRm below 1.20 (ASC requirement)
Yes, in all regions. The level is below 1.0, making us a net producer of
marine protein
All Brazilian soy protein concentrate certified according to ProTerra or
segregated RTRS
Yes, in all regions using Brazilian soy protein concentrate
All Brazilian soy protein concentrate supplied by Brazilian vendors with a
2020 cut-off date + robust MRV system
Yes (in all regions using Brazilian soy protein concentrate). CJ Selecta,
Caramuru and Imcopa are the Brazilian suppliers used
for the restoration of forests and ecosystems. We scored A- on
the ability to reduce risk and drive change throughout our supply
All palm oil used certified according to Round Table on Sustainable Palm Oil
our work against deforestation related to soy and B related to
chains. The project was adopted by GSI in 2022, where Grieg
palm oil. Additionally, Grieg Seafood was acknowledged as a
Seafood is a key member working for a common methodology of
supplier engagement leader by CDP in recognition of our efforts
ESG-evaluation in the industry.
to measure and reduce climate risk within our supply chain. For
more information, please visit CDP’s website here.
FIGURE 2.55
VOLUME OF MARINE INGREDIENTS
Yes (in Newfoundland, the only region where we used a small amount of
palm oil)
Volume of marine ingredients (tonnes)
Forage fish 2021
Forage fish 2022
Trimmings 2021
Trimmings 2022
Fish meal
Fish oil
6 726
7 123
10 107
8 280
3 154
5 999
5 394
5 316
Trimmings also referred to as co-products, are viable cut-offs (e.g. entrails, fins, scales, heads, and tails) from fishing-processing activities commonly not used for other
consumption. Trimmings are often ground and dried into fishmeal.
Marine feed ingredients should come from sustainable sources. An overview of marine raw materials in our feed, including species,
country of origin and certification of each raw material, is available here.
PART 02 – OUR OPERATIONAL RESULTS
47
OUR C OLLE A GUE S
Under this scheme, they could receive one-on-one coaching from
someone who spoke their native language over a period of six
Grieg Seafood consists of people with different backgrounds,
months. This was one of the initiatives we established post-covid
genders, experiences, expertise and age. We have talented
to develop our employees, both professionally and personally.
employees range from teenage apprentices to people who will
soon retire. We have people fresh from university, people with
advanced degrees, people who have worked in the industry for
HEALTH AND SAFETY
In 2022, we once again conducted our now annual Great Place to
multiple years, and people who have grown up with salmon and
Work survey, and we are happy to say we kept our certification.
are experts in their field through dedication and experience. You
Not only does this confirm that our employees feel that Grieg
can read more about our talented employees and their stories on
Seafood is a great place to work, they also think it is a safe
our website.
DIVERSITY
We consider diversity and equality one of the most important
place to work. We have a zero accidents vision and are happy
with the positive trend in 2022. All employees receive health
and safety training when they join us, and are required to
re-take the courses regularly. Employees have the possibility
topics when it comes to living our culture. We are committed to
to actively participate in and contribute to the development of
being an equal opportunity employer. We aim to, and we have,
their workplace safety through their employee representative.
a diverse workforce consisting of 828 employees representing
External health services provide health checks and advice to
28 nationalities and with a gender balance of 240 women (30%)
employees. In some regions they are represented on our Health
and 572 men (70%). A result of our work on gender balance
and Safety committees. We provide a health-plan for employees,
and equality is a score of 73 on the SHE Index, which we have
ranging from dental and medical to counselling depending on
participated in since 2019 in order to be transparent about the
the region, and we offer a variety of health programs to the
gender balance.
employees (competitions, gym membership). We have a strong
health and safety program to ensure our workers are protected
In 2022, we had a special focus on the development of female
and risks are minimized. We will never compromise on the health
leaders and potential leaders, through the international program
and safety of our employees. Through our Supplier Code of
FiftyFifty as well as other local initiatives. FifityFifty is a think-
Conduct, we expect the same from our suppliers.
tank and networking collaboration between different companies,
inciting internal projects to take place. Our participants had
a focus on diversity, covering topics such as bias, awareness
HUMAN RIGHTS
We are committed to respecting fundamental rights in our
training and what is acceptable in today’s modern work life. Grieg
operations, our value chain, and in the communities where
Seafood is a safe place to work for all, and we believe work like
we operate. In 2022, the Norwegian Transparency Act entered
this will only continue to highlight the Grieg Seafood values -
into force. Grieg Seafood will operate in compliance with the
Open, Ambitious and Caring.
Norwegian Transparency Act and is committed to following
the UN Guiding Principles on Business and Human Rights
With a continued strong focus on recruitment, we select and
(UNGPs). As part of this, we began conducting a human
appoint the most suitable person for a position on the basis
rights assessment in 2022. We are currently in the phase of
of their skills, qualifications and aptitudes, from aquaculture
determining the probability and intensity of risk for all relevant
technicians to regional directors. A big part of our recruitment
rights and rights-holders. In this phase of the assessment, we
strategy is being an attractive employer and being visible where
recognize that there are sub-suppliers in the feed supply chain
the next generation of aquaculture talent is coming from. In 2022,
which pose a significant risk with respect to the use of child
we opened our brand-new educational barge at Teistholmen,
labor or young workers in the production of raw materials, and
Rogaland, in cooperation with Strand High School, which offers
originate in high-risk geographies. A specific incident was tied
a study program focusing on natural resources and biological
to the extraction of guar beans in India. We are in the process of
production. Grieg Seafood will operate the barge, where students
mapping possible incidents and measures will be taken when the
from Strand High School will have classes. We believe this is an
assessment is final. The final assessment will be published on
investment in the future generations of the aquaculture industry.
our website no later than 30 June 2023. Additionally, some areas
in our supply chain entail a particularly high risk of breaching
We are committed to ensuring that all of our staff enjoy the
human rights through forced or compulsory labor. Labor rights
same opportunities, rights, and respect, regardless of their
in the transportation industry is one such area of concern,
background. To ensure fairness, strategies must often be
available to compensate for historical and social disadvantages
that prevent women and men from operating on a level playing
field. Gender equity leads to gender equality, where there are
equal rights, responsibilities, and opportunities for women and
men. In addition to FiftyFifty, we therefore initiated a digital
coaching program for our employees regardless of gender.
where several controversies have been related to the question
of adequate working conditions for truck drivers (so-called
“social dumping”). Most of our salmon is transported by truck to
European or North American markets. There are some particular
risks connected to this part of our supply chain, which we are
aware of and are working to mitigate. More information about our
initiatives will be published here.
PEOPLE
Every single day, whether it is sunny, stormy or freezing cold, our
fantastic employees are out there working hard in the hatcheries,
on the farms or at the harvesting plants. Their passion and
dedication drive Grieg Seafood forward.
LEARN MORE ON OUR WEBSITE
→
→
→
→
→
→
Our policy and grievance mechanisms for human rights
Human rights in our operations and value chain
Our policy for diversity
Our policy for gender equity
Embracing diversity
Health and safety principles
PART 02 – OUR OPERATIONAL RESULTS
48
OU R R E S ULT S
SHE
Index
THREE IMPORTANT FACTORS THAT PAVE THE
WAY FOR WORKFORCE EQUALITY
01.
02.
03.
Bold leadership
Top management have defined policies,
strategies, goals and practices.
Transparency
A diverse leadership team that openly sets,
shares and measures equality targets.
An empowering environment
One that trusts employees, respects
individuals and offers equal opportunities.
We received a score of 73 points (High score) in the SHE Index
for 2022. The average score across Norwegian companies was
72. We have reported on the SHE Index since 2019 in order to
be transparent about the gender balance in our organization.
The SHE Index is a voluntary measurement of how companies
perform on gender balance, gender equality policies, diversity
and inclusion. Our goal is to improve our gender balance and
diversity to become a preferred employer. Change takes time,
and we should pay more attention to the work being done to
create greater diversity and inclusion. During 2022, Grieg Seafood
has taken several steps to improve the gender balance. This
includes appointing women to fill vacant management positions,
drawing from both internal and external candidates, as well as
appointing another female regional director. In 2022, 32% of our
new hires were women. One of the tools we use for gender equity
is performing annual evaluation of the salaries and benefits
offered to our employees, by using the Kornferry methodology to
benchmark our salaries.
FIGURE 2.56
UNIONIZED EMPLOYEES (%) AT YEAR-END 2022
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Share
34%
43%
n/a
n/a
n/a
n/a
We accept and welcome labor union membership among employees. Grieg Seafood has established a good, collaborative relationship with our union representatives.
This collaboration extends beyond periodic salary negotiation to a variety of internal improvement projects.
The numbers reflect membership of the United Federation of Trade Unions (Fellesforbundet) and The Norwegian Food and Allied Workers Union (NNN), the largest labor
unions in our industry. Due to privacy and security laws, we do not have access to data on all types of memberships, such as associations of professionals and graduates.
It is therefore presumed that the actual number of unionized employees is higher than depicted. We also accept and welcome collective bargaining, by union or employee
representation. Any employee working in the same jobs as those covered by either of the above will receive the same working conditions and terms.
FIGURE 2.57
CODE OF CONDUCT PROGRAM
FIGURE 2.58
HARASSMENT INCIDENTS
FIGURE 2.59
WHISTLEBLOWER CASES
92%
5
0
A total of five harassment incidents were reported
in 2022. Grieg Seafood has zero tolerance for
misconduct in the workplace, and all reports of
harassment are dealt with in accordance with
established procedures. However, for reasons
of privacy protection, we are unable to comment
specifically on the reported incidents.
92% (744) of our 812 employees (ex contractors)
have completed our Code of Conduct program,
broken down by 138 (19%) permanent and 13 (2%)
temporary employees from Rogaland, 233 (31%)
permanent and 28 (4%) temporary employees
from Finnmark, 91 (12%) permanent and 4 (1%)
temporary employees from Newfoundland,
147 (20%) permanent and 2 (0.4%) temporary
employees from BC. Lastly, 80 (11%) permanent
and 8 (1%) temporary employees from HQ and
Sales. Seven (100%) of our Group Executive Team
have completed the Code of Conduct program, all
from Norway. Two out of six members (33%) of
the Board of Directors from Norway, has received
communication and training about our Group
policies.
Our Code of conduct program involves
presentation and training on all of our principles.
The Code of Conduct program is required to be
completed every second year by all our employees
FIGURE 2.60
HUMAN RIGHTS TRAINING
FIGURE 2.61
NON-DISCRIMINATION TRAINING
31%
49%
In 2022, 253 employees (31%) were given human
rights training. This includes, but is not limited to,
our Code of Conduct.
Overall, 49% of our 812 employees (ex contractors)
have completed a non-discrimination training
course. 36% of our employees completed the
course in 2022. This does not include our Code
of Conduct program, which also includes a non-
discrimination section.
No cases was reported through our whistle blower
channel in 2022.
All employees have both the right and a
responsibility to raise concerns. Such concerns
should be reported immediately to line
management, Group Management or the CHRO, or
through our external whistleblower channel. All
notifications through our external whistleblower
channel are handled in a professional manner by
EY. Depending on the content of the notification,
it is logged either as an issue of information or
as a whistleblower concern to be followed up.
The CHRO receives a summary report from the
operator of the whistleblower channel, and all
reported incidents are reported to the CEO and
Board of Directors. All reported incidents are
investigated. Unless the whistleblower has chosen
to remain anonymous, they will be kept adequately
informed about the process and its outcome. We
prohibit any retaliation against anyone for raising
or helping to address a concern about violation of
our policies.
Our Supplier Code of Conduct requires suppliers
to provide a safe and healthy environment for their
workers and contractors, and minimize workers´
exposure to potential safety hazards. Furthermore,
we expect our suppliers to adhere to all applicable
laws and regulations. In 2022, we acquired an
external whistleblower channel for our suppliers
to report negative occupational health and safety
impacts in business relationships.
PART 02 – OUR OPERATIONAL RESULTS
49
FIGURE 2.62
GENDER BALANCE AT YEAR-END 2022
Female
Female
Male
Male
ROGALAND
23%
77%
FINNMARK
25%
75%
BRITISH COLUMBIA
32%
68%
NEWFOUNDLAND
33%
67%
ASA
41%
59%
SALES & MARKET
54%
46%
0%
100%
At year-end 2022, the Grieg Seafood Group had 812 employees (240 women and 572 men), including full-time and temporary workers but excluding contractors. Hence,
women make up 30% of the workforce, while 70% are men. Management and support functions at Grieg Seafood ASA and the Sales & Market teams have the highest
proportion of female employees.
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its
continued quality. The data provided is collected from the HR database in head-count at the end of the reporting period.
FIGURE 2.63
GREAT PLACE TO WORK
85%
FIGURE 2.64
APPRENTICESHIP PARTICIPATION AT
YEAR-END
FIGURE 2.65
APPRENTICESHIP ACHIEVEMENTS
33
24
Great Place to Work assesses and evaluates
organizations and the practices that underpin
workplace culture, based on the experience of
employees. In 2022, we took part in the Great Place
to Work survey for the fifth time in Norway, and for
the fourth time globally. We are proud to announce
that all our regions maintained the Great Place
to Work certification in 2022. The Group achieved
a total score of 85%, which is a continuance from
85% in 2021. The high score shows that Grieg
Seafood is among the best companies to work for.
85% of our employees also confirmed that they
feel a sense of pride when they look at what we
have accomplish at Grieg Seafood. With a high
participation rate, this certification is an enormous
credit to the employees and their hard work and
loyalty.
At year-end 2022, a total of 33 employees
were participating in an apprenticeship:
seven in Rogaland, 25 in Finnmark and one in
Newfoundland. British Columbia did not have any
apprentices in 2022.
In 2022, a total of 24 employees received their final
certificate of apprenticeship: eight in Rogaland, 12
in Finnmark, and four in Newfoundland.
In cooperation with the North Island College and
Fleming College, Grieg Seafood British Columbia
has established the “Seawater Technician
Advancement Program” (TAP). The program
provides mandatory additional training for
technicians, as well as further training for higher
positions within aquaculture. The program has so
far been a success.
PART 02 – OUR OPERATIONAL RESULTS
50
FIGURE 2.66
THE WORKFORCE AT YEAR-END
Permanent
Temporary
Contractor
Permanent
Temporary
Contractor
FIGURE 2.68
TURNOVER RATE
100%
2021
2022
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
ASA
SALES & MARKET
0%
79%
84%
97%
96%
93%
83%
15%
5%
16%
0%
1% 1%
4%
0%
2%
5%
13%
4%
100%
The compiled data is reported in head-count as of 31 December 2022. Overall, 87% (724 of 828) of our workers were permanent employees in 2022 (incl. contractors).
We had some temporary employees, particularly seasonal workers in our processing facilities and apprentices at our farms. Most of our apprentices are offered a
permanent position with us after their apprenticeship is over. Contractors are mainly used in Norway during peak periods of harvesting, or in office roles, providing
regular services as needed (mostly IT-related work).
0%
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its
continued quality.
83%
40%
42%
30%
11%
6%
16%
8%
23%
19%
14%
5%
0%
3%
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEWFOUNDLAND *
ASA
SALES & MARKET
GROUP
These figures are calculated based on the total number of permanent employees since it is only these employees who are meant to stay with the company permanently.
Temporary employees and contractors have been excluded from these figures. As per GRI definition, employee turnover includes all employees who leave the
organization voluntarily or due to dismissal, retirement, or death in service.
Turnover has increased in 2022 compared to 2021 due to a very competitive employee market. Grieg Seafood Newfoundland experienced a lower turnover in 2022
compared to 2021, but still high due to downsizing. We expect more stability in the future. The turnover in BC has been high, which has been common through all
industries in this region, as it was challenging to attract candidates in a competitive market. We continue to support our good relationships with First Nations and local
communities to help attract potential employees from the region. We also work closely with training institutions to offer employment to applicants that have chosen
aquaculture as their desired career path. Through our commitment to supporting the Truth and Reconciliation process in Canada, employment priority goes to First
Nations candidates who want to work in their traditional territories. Part of this turnover is due to our commitment to respecting the First Nations request to cease
operations in the Sechelt production area.
FIGURE 2.67
THE WORKFORCE AT YEAR-END
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Total
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Permanent
Temporary
Contractor
Total
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
25
106
48
184
47
105
34
64
16
24
27
18
4
12
5
0
2
1
0
2
0
0
0
0
7
11
11
18
1
1
0
3
1
0
0
4
4
6
7
10
0
0
0
1
0
0
1
2
3
5
0
0
1
1
0
0
0
0
2
0
698
26
57
31
12
0
2
0
0
0
0
0
0
0
2
0
0
4
43
142
71
212
51
108
34
70
17
26
30
24
828
PART 02 – OUR OPERATIONAL RESULTS
51
FIGURE 2.69
FATALITIES
0
We had zero fatalities in 2022.
FIGURE 2.70
ABSENCE RATE
10%
Short-term 2021
Short-term 2022
Target
Long-term 2021
Long-term 2022
5.7%
4.0%
5.1%
3.6%
3.6%
2.0%
1.3%
1.7%
0%
ROGALAND
FINNMARK
4.3%
2.2%
4.4%
1.2%
BRITISH
COLUMBIA
0.1%
1.5%
0.6%
0.8%
0.2%
0.3%
NEWFOUNDLAND
ASA
1.5%
0.8%
0.5%
0.5%
SALES &
MARKET
3.6%
2.4%
3.1%
0.5%
GROUP
In Rogaland, Sales & Market, Finnmark, British Columbia and Newfoundland, the absence rate has increased compared to the year before. The absence rate in
Finnmark, British Columbia and Rogaland is above our target of 4.5%, mainly due to long-term illness. We continue to monitor the situation and implement actions to
reduce the absence rate. In Finnmark, we have an ongoing process related to facilitating reduced work assignments and we are introducing training in absence follow-up
for all employees. All initiatives in this area are implemented in consultation with employee representatives.
FIGURE 2.71
SAFETY INDICATORS
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market *
Hours worked
(incl. overtime)
Total work-related
injuries
Rate of work-related
injuries**
High-consequence
work-related injuries
Rate of High-consequence
work-related injuries**
236 461
388 068
316 903
195 856
68 305
85 706
6
8
17
2
0
0
25
21
54
10
0
0
2
0
0
0
0
0
8
0
0
0
0
0
* Estimate based on number of employees and general annual working hours.
**Rate of work-related injuries divided by the total number of hours worked (incl. overtime), multiplied by 1 000 000. Permanent and temporary employees are included
in our incident data. Information on contractors is not currently available.
100% of our (828) employees are covered by health and safety systems, including contractors. We use occupational health and safety systems and standards in line
with local regulations in each country. All of our health and safety procedures are internally audited and reviewed by management. As a part of our ASC, GAP and BAP
certifications and ongoing certification processes all of our health and safety management procedures are certified by an external party. The administrative support
department are not directly covered by an occupational health and safety management system, but are subject to occupational health services and represented by a a
staff-elected safety representative.
Health and safety incidents are registered in our systems and reviewed as part of our monthly HSE meetings. Our occupational health services provider helps to map
and assess the risk of the work environment, including physical, organizational and psychosocial factors. Job risks in each department are formally evaluated and
categorized using a risk matrix. Job hazard assessments are also carried out for non-routine jobs.
Injuries are caused mainly by being struck by objects, handling equipment, crushing, cuts, slips, and falls. Risk assessments show that high-consequence injuries derive
from being struck by an object, crushing and cuts. High-consequence injuries in 2022 related to being struck by an object, falls and crushing. The injuries were assessed
and reported to other sites to prevent similar accidents from happening.
All our staff have the right to stop any type of work or task if they feel unsafe or that they are not competent enough to carry out their duties. These routines are
established in all our regions and all new employees are given the information about how these systems work and they can also report anonymously through their union
representative, employee representative or our whistleblowing channel for major issues which is handled by an external partner EY. We have a "no reprisal" policy when
it comes to reporting health and safety issues. This is described in our Code of Conduct.
Our improvement and preventative initiatives are based on thorough evaluation of all accidents and near misses that are reported in our deviation system and are
designed to reduce risk and prevent the reoccurrence of unwanted incidents. Mitigating measures may, for example, include servicing machinery, ordering new
equipment, training employees, or changes in procedures and instructions.
We always use required Personal Protective Equipment (PPE) to do our job as safely as possible, and our operations pose no known ill-health risks.
FIGURE 2.72
H1-FACTOR/LTIR
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Group
H1-factor/LTIR *
Absence rate
2018
2019
2020
2021
2022
2018
2019
2020
2021
24
18
38
15
22
35
9
28
36
n/a
n/a
n/a
0
0
0
0
n/a
n/a
0
0
24
42
22
6
5
0
0
25
21
9
0
0
0
4.7%
5.4%
1.8%
n/a
0.1%
0.6%
3.5%
4.9%
2.0%
n/a
3.1%
5.6%
6.8%
n/a
0.3%
1.1%
0.5%
0.0% **
16
13
3.3% **
3.2% **
4.9% **
3.0%
8.7%
5.6%
1.3%
0.5%
0.9%
5.0%
2022
5.6%
9.7%
6.4%
1.6%
0.4%
2.2%
6.0%
* H1-factor/LTIR: number of lost-time injuries divided by the total number of hours worked (incl. overtime from and including 2022), multiplied by 1 000 000. Permanent
and temporary employees are included in our incident data. Information on contractors is not currently available.
** Including Shetland.
In Rogaland, the number of LTI incidents in 2022 was substantially lower than the year before, mainly due to the countermeasures taken and risk assessments conducted
in 2021. In Grieg Seafood BC, we have been working for several years to improve our openness and reporting in order to create a more mature safety performance
culture. We implemented the BrainSafe program as a pilot project in BC. The intention is to roll this out to all our regions based on its success. Our ultimate goal is that
people feel safe, that we have an open reporting culture and that HSE always are at the top of our agenda. In our quarterly Business Reviews with our regions, we always
start the meetings by going through the HSE statistics. We conduct audits and inspections, execute both safety action plans and safety observations, and, if possible,
assess the quality of observations and how actions are closed. We also conduct safety training and safety meetings.
In order to avoid any under-reporting of incidents, no LTIR target has been defined.
PART 02 – OUR OPERATIONAL RESULTS
52
OUR FINANCIAL
RESULTS
BOARD OF DIRECTORS’ REPORT
CORPORATE GOVERNANCE
GRIEG SEAFOOD GROUP ACCOUNTS
GRIEG SEAFOOD ASA ACCOUNTS
AUDITOR’S REPORT
ALTERNATIVE PERFORMANCE MEASURES
55
70
79
118
132
135
B O AR D OF DIR E C T OR S
Our Board of Directors will provide leadership to the company
and deliver shareholder value over the long term.
Find the presentation of our Board of Directors here.
GR OUP E XE CU T I V E
M AN A GEMEN T T E AM
Our executive management team is responsible for
overseeing the Group’s day-to-day operations and working to
realize our vision, values and targets.
Find the presentation of our management team here.
PART 03 – OUR FINANCIAL RESULTS
54
BOARD OF
DIRECTORS’ REPORT
PART 03 – OUR FINANCIAL RESULTS
BOARD OF DIRECTORS’ REPORT
GRIEG SEAFOOD’S VISION AND AMBITIONS
OPERATIONAL REVIEW
FINANCIAL PERFORMANCE GROUP FINANCIAL STATEMENT
FINANCIAL PERFORMANCE GRIEG SEAFOOD ASA
RISK AND RISK MANAGEMENT
CORPORATE AND SOCIAL RESPONSIBILITIES
EVENTS AFTER THE REPORTING DATE
OUTLOOK
GOING CONCERN
STATEMENT FROM THE BOARD OF DIRECTORS AND THE CEO
56
58
60
64
65
67
68
68
69
69
55
GR IEG SE AF OOD’S V ISION AND
AM BI T IONS
The Grieg Seafood Group is one of the world's leading salmon
farmers. The Group has licenses for seawater farming and land-
based smolt production in Finnmark and Rogaland in Norway,
and British Columbia and Newfoundland in Canada.
The Group's vision "Rooted in nature – farming the ocean for
a better future", represents how the Group intends to make a
difference and what it aims to accomplish. It also encompasses
the foundation for the Group's operational development – a
healthy ocean, sustainable food, profitable growth and innovation,
good jobs for everyone, and local value creation. With its 2026
strategy, the Group aims to harvest 120 000-135 000 tonnes
in 2026 at a competitive cost level, and to evolve from purely
a commodity supplier to an innovation partner for selected
customers. Sustainable farming practices are the foundation
of Grieg Seafood’s operations. Achieving the lowest possible
environmental impact and the best possible fish welfare are
both an ethical responsibility and a prerequisite for long-
term profitability. To achieve sustainable growth and improve
competitiveness, the Group focuses on reducing the time fish
spend at sea, improving fish health and welfare, and providing
digital decision-making support to its farmers.
TARGETS AND ACHIEVEMENTS
Global growth, value chain repositioning and cost improvement
are the key areas of the Group’s strategy to 2026.
As part of the strategy, the Shetland operations were sold in
2021 to concentrate the Group’s focus on the regions with the
greatest potential for profitable growth - Norway and Canada.
An important project for Grieg Seafood is the development
of Grieg Seafood Newfoundland, where we transferred
salmon to the sea for the first time in 2022. We expect to start
harvesting towards the end of 2023. The Group originally
estimated a harvest volume of 90 000 tonnes in 2022. The actual
harvest volume was impacted by a combination of expedited
harvest to capitalize on a strong market and reduced growth at
sea due to biological challenges. The harvest came in at 84 697
tonnes GWT - a record-high volume for Rogaland, Finnmark and
British Columbia as a whole, with both Rogaland and Finnmark
delivering their highest ever annual harvested volume. The
market demand for farmed salmon both in the retail and HoReCa
sectors was exceptionally strong in 2022, providing Grieg Seafood
tailwind as biological challenges and cost inflation put pressure
on our farming cost. The Board is pleased with this year’s
performance, which is a result of the hard work, passion and
dedication of our employees.
MAIN
ACHIEVEMENTS
• Highest ever volume harvested in our current farming regions, a total of 84 697 tonnes
• Record high Operational EBIT of NOK 1 739 million, with Operational EBIT/kg of NOK 20.5, driven by the harvested volume and an
exceptionally strong salmon market
• Net profit after tax of NOK 1 154 million and earnings per share equal to NOK 10.3
• Good operational performance in our farming regions
• Sales operations achieved key milestones of establishing processing partners and presence of own VAP products, and sold 6% of our
harvested volume as VAP
• Continued focus on certification for sustainable farming, a total of 29 of 40 eligible sites ASC certified, equivalent to 75% of budgeted
net production
• Ranked second by the Coller FAIRR Protein Producer Index of the world’s most-sustainable protein producers
• Received a Leadership (A-) score for our transparency and actions related to climate change risks from CDP, the gold standard of
environmental reporting
• Recognized by CDP as a supplier engagement leader for raising the level of climate action across our value chain
FIGURE 3.1
HARVEST VOLUME (1 000 TONNES GWT)
Group ex Shetland
Shetland (Sold 15 December 2021)
90
80
70
60
50
40
30
20
10
0
PART 03 – OUR FINANCIAL RESULTS
5656
2018
2019
2020
2021
2022
2023E
PART 03 – OUR FINANCIAL RESULTS The Group aims to be cost competitive. The industry experienced
are needed to develop the Group's operations sustainably, and
general cost inflation during 2022, including a sharp rise in
sustainable operations are needed to safeguard long-term
feed prices, which drove up the farming cost in all regions. In
financial results and performance, and create or maintain value
addition, biological challenges put pressure on the farming cost,
for all stakeholders. That is why sustainable farming practices
particularly in Finnmark, where the rarely occurring parasite
form the very foundation of all areas of Grieg Seafood’s strategy.
Spironucleus salmonicida (Spiro) impacted both the survival rate
The Board was pleased to see that Grieg Seafood was rated
and cost.
2nd on the Coller FAIRR Index, as one of the world’s most-
sustainable protein producers. Grieg Seafood also received the
Biological control is the main cost driver and the primary
Leadership (A-) score from the CDP for its transparent reporting
operational focus area. The Group has implemented several cost
and actions related to climate change. The Group has climate
improvement initiatives, in the area of research and development
reduction targets approved by the Science Based Target initiative
(R&D) and the utilization of new technologies, which, combined
(SBTi), with the aim of reducing carbon emissions by 35% by 2030
with a higher harvested volume, are expected to reduce or
and 100% by 2050. In 2022, the Group decreased total emissions
stabilize the farming cost.
by 5% compared to the year before. The decrease is mainly
attributable to a reduction in the emission factors from feed in
Creating shareholder value is a prerequisite for company growth
Scope 3. Feed emissions decreased by 19% compared to the
and survival, and Return on Capital Employed (ROCE) is the
year before, which secured an overall reduction in the Scope 3
Group’s ultimate financial performance indicator (see Alternative
emissions, despite an increase in emissions from downstream
Performance Measures for definition). The ROCE for 2022 ended
transportation. The absolute Scope 1 greenhouse gas (direct
at 23%, compared to the ROCE target of 12% per year. This is
emissions from company-owned and controlled resources) and
mainly attributable to the exceptionally high salmon spot market
Scope 2 (indirect emissions from the generation of purchased
prices during the year.
The sustainability scoreboard includes some of the key
energy) emissions have been reduced by 6%, while production
increased by 12%. Measured as kilograms of C02 equivalents
per tonne harvested, emissions decreased by 16%. Scope 3
performance indicators (KPIs) for the Group. Sustainability and
emissions (emissions that occur upstream and downstream in
financial results go hand in hand. Good financial results
the value chain) accounted for 92% of total emissions in 2022.
Even though farmed Atlantic salmon already has a low carbon
production for 2022 was ASC certified. The Group aims to certify
footprint, more work needs to be done to reduce the impact from
more sites in 2023.
the global food system. Grieg Seafood has been recognized by
CDP as a supplier engagement leader for raising the level of
Production and harvest volumes depend on the number of smolt
climate action across the value chain, and will continue to work
transferred to the sea, and how well that fish performs in terms
with its suppliers.
of growth and survival. By effectively preventing and combating
sea lice and health issues, and by understanding the salmon’s
Salmon feed is the most important and cost-intensive input
behavior, the Group’s farming regions have worked continuously
factor in salmon farming. The industry needs to develop new
to improve survival and growth rates. Grieg Seafood targeted
feed ingredients in order to grow sustainably. Grieg Seafood has
a survival rate of 93% for 2022. As biological issues negatively
identified and mitigated the most material risks related to feed
impacted the survival rate in 2022, none of the regions reached
ingredients, overfishing and deforestation. To ensure that feed
this target. The survival rate in Rogaland was unchanged at 92%,
ingredients does not contribute to overfishing and deforestation,
while BC decreased from 92% to 91% due to incidents of low
Grieg Seafood requires recognized certification of its high-risk
oxygen levels and algae blooms. In Finnmark, the parasite Spiro
ingredients. Fish meal and fish oil from fisheries and Brazilian
impacted survival, which decreased from 95% to 91% in 2022.
soy and palm oil are identified as high-risk ingredients. Grieg
To mitigate Spiro, Grieg Seafood will invest NOK 70 million in
Seafood has been acknowledged by CDP Forest with an A-score
UV treatment facilities in 2023 to secure the water intake to the
for its work against deforestation related to soy and a B-score for
freshwater facility in Finnmark. Grieg Seafood has also initiated a
its work related to palm oil.
project with academia to investigate and learn more about Spiro.
In general, it is expected that the Group’s post-smolt program
Aquaculture Stewardship Council (ASC) certification is an
will further improve fish health and welfare, as it provides
important objective for the Group, as it provides the market with
better control of the fish’s environment for a longer period of
assurance of responsible operations and production of high-
time. Post-smolt makes the fish more robust before they are
quality seafood certified to the highest social and environmental
transferred to the sea farms, and reduces their exposure to
standards. As at year-end, 75% of the Group’s budgeted net
seaborne biological risks. Other initiatives to improve fish health
and welfare include the selection of roe with specific qualities
FIGURE 3.2
FARMING COST PER KG
FIGURE 3.3
ROCE AND OPERATIONAL EBIT/KG
Rogaland (NOK/kg)
Finnmark (NOK/kg)
British Columbia (CAD/kg)
ROCE
ROCE target (12%)
Operational EBIT/kg
NOK/kg
g
k
/
K
O
N
70.0
60.0
50.0
40.0
30.0
CAD/kg
10.0
C
A
D
k
g
/
9.0
8.0
7.0
6.0
5.0
ROCE
30%
20%
E
C
O
R
10%
0%
2018
2019
2020
2021
2022
Rogaland (NOK/kg)
Finnmark (NOK/kg)
British Columbia (CAD/kg)
PART 03 – OUR FINANCIAL RESULTS
2018
2019
2020
2021
2022
ROCE
ROCE target (12%)
Operational EBIT/kg
Operational EBIT/kg
30
20
10
0
O
p
e
r
a
t
i
o
n
a
l
I
E
B
T
/
k
g
5757
PART 03 – OUR FINANCIAL RESULTS
related to sea lice and diseases, feed customized for the various
was impacted by occurrences of winter ulcers early in the year,
stages of the salmon’s lifecycle, and vaccinations to immunize
while Finnmark had an improvement in quality share compared
against specific diseases.
to 2021. The Group’s post-smolt program, with reduced exposure
to biological challenges in the sea, is expected to contribute to an
Grieg Seafood managed to reduce the overall use of medical
increased superior share going forward.
sea lice treatments in 2022 due to its continued efforts to
Grieg Seafood operates in many rural communities, and is
grateful for their permission to farm salmon in their inlets and
ROGALAND
Grieg Seafood Rogaland harvested a record-high volume of
fjords. The Group aims to create local jobs and opportunities,
28 387 tonnes in 2022, an increase of 6% compared to the
use local suppliers, and engage in and support various local
26 670 tonnes harvested in 2021. Sales revenues amounted to
projects and activities. Communities’ social license to operate
NOK 2 124 million, compared to NOK 1 431 million in 2021. The
is essential for sustainable growth. In British Columbia, Grieg
increase was mainly driven by the exceptionally strong market
use targeted preventive methods, such as sea lice skirts and
Unfortunately, the Group reported one escape incident in 2022,
Seafood is farming in areas that belong to indigenous peoples,
in 2022 in addition to a higher harvested volume compared to the
cleaner fish in Rogaland and Finnmark. Grieg Seafood BC uses
in Finnmark. Management has taken steps to prevent similar
while Finnmark has been home to the Sami people for millennia.
previous year. In 2022, price achievement came to NOK 74.8 per
a combination of a barrier system between the farmed salmon
incidents from happening again. In addition to ensuring that
Grieg Seafood recognizes that these groups have special rights,
kg, up NOK 21.2 per kg from NOK 53.7 per kg in 2021. The price
and the environment and use of the latest mechanical sea lice
farms have high technical standards and that procedures are
as acknowledged in the United Nations Declaration on the Rights
achievement in 2022 was negatively impacted by the sale of 22%
removal tool to keep sea lice levels down. The Group’s use of
being followed, all employees regularly attend courses on escape
of Indigenous Peoples (UNDRIP), and takes particular care to
of the volume under fixed-price contracts, in addition to quality
antibiotics also decreased compared to 2021. Management aims
prevention.
to avoid use of antibiotics when possible. In Norway, effective
vaccines have reduced the use of antibiotics. However, limited
The Group does not compromise on occupational health and
amounts have been used to secure the welfare of the fish when
safety, and follows up accidents and absence rates. The Group
there are no other alternative treatments, which was the case in
had two high-consequence work-related injuries in Rogaland,
Finnmark and BC in 2022.
Diseases, winter ulcers and other biological issues can affect the
quality of the salmon. A superior quality salmon gives a positive
overall impression, with good meat quality and no external
damage or faults, while downgraded salmon has external and/
or internal faults or damage, and obtains a lower price in the
market. The Group aims for 93% of its salmon to be graded as
superior quality. As biological issues negatively impacted the
quality of the fish harvested in 2022, none of the regions reached
this target. The quality of the salmon in both Rogaland and BC
which are being followed up in accordance with established
procedures and guidelines. The Group targets an absence rate
of below 4.5%. The target was reached only in Newfoundland in
2022. Management has routines in place to monitor and follow
up absence. The Group conducted the global Great Place to Work
survey also in 2022. The Board is proud to report that all regions
received their Great Place to Work certification. The total score
of 85% for the Group was very satisfactory, and in line with last
year, proving that Grieg Seafood is among the best companies to
work for.
avoid infringing them.
OP ER AT ION AL R E V IE W
downgrades. The share of superior quality fish decreased from
81% in 2021 to 77% in 2022, mainly due to occurrences of winter
ulcers in the first half of the year.
The freshwater production has been good in 2022. During the
year, seven million smolt were transferred to the sea, with an
In general, both freshwater and seawater production through
average weight of 550 grams, in line with the post-smolt strategy.
the year was good, however with some challenges to seawater
Overall, the seawater production performed well, despite some
production impacting the farming cost. For further details, see
biological challenges during the second half of the year. High
the separate regional chapters in Part 2 Profit & Innovation.
seawater temperatures and high sea lice pressure led to reduced
A summary for Rogaland, Finnmark, British Columbia,
Newfoundland and the sales organization follows below.
growth during the autumn. Due to proactive and preventative
measures, production stabilized at year-end. The 12-month
rolling survival rate for 2022 remained at the same level as in
2021, at 92%.
FIGURE 3.4
SURVIVAL RATE AT SEA
FIGURE 3.5
SUPERIOR SHARE OF SALMON
Rogaland
Finnmark
British Columbia
Target (93%)
Rogaland
Finnmark
British Columbia
Target (93%)
Rogaland
Finnmark
British Columbia
Target (93%)
100%
90%
80%
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
100%
90%
80%
70%
60%
Survival rate calculated as a rolling twelve month survival rate. Newfoundland not reported as at 31 December 2022 as fish were transferred to the sea in mid-year.
Rogaland
Finnmark
British Columbia
Target (93%)
PART 03 – OUR FINANCIAL RESULTS
58
The farming cost ended at NOK 48.2 per kg in 2022, up NOK
harvesting and the culling of fish showing signs of ill health
3.7 per kg from NOK 44.6 per kg in 2021. The rise was due
to protect fish welfare. The source of the parasite is believed
87% in 2021. The lower superior share mainly relates to early
Production at the freshwater facility has been on track, with high
maturation and the occurrence of winter ulcers at the start of
survival rates. Two million smolt, with an average weight of 100
in particular to feed, whose price has increased by almost
to be the water intake at the freshwater facility at Adamselv.
2022.
40%, although electricity and fuel costs have also increased
Measures related to water treatment and disinfection are being
grams, were transferred to two sea farms during the spring/
summer of 2022. The seawater licenses in Newfoundland require
significantly.
implemented to reduce risk of Spiro entering the freshwater
facility in future. Spiro has reduced our 12-month survival rate
Operational EBIT for the year ended at NOK 755 million,
from 95% in 2021 to 91% in 2022.
compared to NOK 242 million in 2021. This corresponds to NOK
Freshwater production was stable during the year, however, roe
use of sterile all-female salmon in order to eliminate the risk
quality impacted the number of smolt transferred to sea this
of genetic pollution of wild Atlantic salmon in case of escape.
year. Seawater production was stable in 2022. The 12-month
So far, the fish have performed well biologically, with a high
survival rate decreased from 92% in 2021 to 91% in 2022. The
seawater survival rate and good growth, and the company has not
26.6 per kg in 2022, up NOK 17.5 per kg from NOK 9.1 per kg in
The farming cost ended at NOK 47.3 per kg in 2022, up NOK 3.6
survival rate was impacted by incidents of low oxygen levels and
experienced any sea lice issues. At year-end, the average weight
2021.
per kg from NOK 43.7 per kg in 2021. The industry experienced
algae blooms. However, Grieg Seafood BC managed to stabilize
of the fish was 1.3 kg. Newfoundland expects to harvest the first
a general rise in costs in 2022. This applies in particular to feed,
survival in periods of challenging environmental conditions due
batch of fish in late 2023.
Read more about Grieg Seafood Rogaland’s operational priorities
whose prices increased by almost 40%. Additionally, reduced
to its barrier and CO2L flow systems.
in the regional chapter in Part 2 Profit & Innovation.
FIGURE 3.6
ROGALAND OPERATIONAL EBIT/KG YEAR-OVER-YEAR
growth due to the biological challenges increased the economic
feed conversion rate (eFCR, a measure of the feed utilization)
from 1.34 in 2021 to 1.40 in 2022.
The farming cost increased from CAD 8.8 per kg (NOK 60.4) in
production cost has been accounted for as inventory (biological
2021 to CAD 9.1 per kg (NOK 68.8) in 2022, mainly due to the
assets excluding fair value adjustment) in the balance sheet,
lower survival rate and costs recognized as abnormal mortality
although a portion has been expensed directly to the income
As Newfoundland has not yet started harvesting, most of the
21.2
in 2021, up NOK 18.4 per kg from NOK 7.3 per kg in 2021.
historically had a higher farming cost per kg compared to other
Operational EBIT for 2022 ended at NOK 926 million, compared to
in the income statement. Towards year-end, the last fish from
statement. Operational EBIT for 2022 totaled NOK -114.7 million,
NOK 251 million in 2021, which corresponds to NOK 25.7 per kg
the shíshálh (Sechelt) farming area was harvested. The area has
compared to NOK -116.9 million in 2021.
26.6
-3.7
Read more about Grieg Seafood Finnmark’s operational priorities
closing down this farming area, which is expected to reduce the
chapter in Part 2 Profit & Innovation.
in the regional chapter in Part 2 Profit & Innovation.
farming cost going forward. However, cost increases due to the
farming areas due to the farms’ small size. Grieg Seafood is
Read more about Grieg Seafood Newfoundland in the regional
9.1
OpEBIT/kg
2021
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2022
Source: Group Accounts Note 8
FINNMARK
Grieg Seafood Finnmark harvested a record-high volume of
36 024 tonnes in 2022, an increase of 4% compared to the 34 484
tonnes harvested in 2021. Sales revenues amounted to NOK 2
629 million, an increase of 50% compared to NOK 1 756 million in
2021. The increase was mainly driven by the exceptionally strong
market in 2022 as well as a higher harvested volume. Finnmark
FIGURE 3.7
FINNMARK OPERATIONAL EBIT/KG YEAR-OVER-YEAR
22.1
25.7
-3.6
7.3
general cost inflation is impacting the industry. This relates in
particular to feed, whose price has increased by almost 20%.
SALES & MARKET
Grieg Seafood is on an exciting journey of growth, which
In 2022, operational EBIT ended at NOK 270 million for British
fully integrated global sales organization, the Group aims to
Columbia, compared to NOK 150 million in 2021, which
optimize biological performance and market timing through
corresponds to NOK 13.3 per kg in 2022, up NOK 2.9 per kg from
close collaboration between farming and sales, thereby securing
involves building a stronger presence in the market. With a
NOK 10.4 per kg in 2021.
good price achievement. The downstream strategy is based
on strategic partnerships, value added processing and brand
Read more about Grieg Seafood British Columbia’s operational
cultivation. While sales currently consist mainly of fresh, head-on
priorities in the regional chapter in Part 2 Profit & Innovation.
gutted salmon, the target is for Value Added Processing (VAP)
FIGURE 3.8
BRITISH COLUMBIA OPERATIONAL EBIT/KG YEAR-OVER-YEAR
to account for 20-30% share of the harvested volume by 2026.
To this end, the Group aims to establish processing partners
close to key markets and customers in the EU and the USA.
Increasing the VAP share is also an important part of reducing
OpEBIT/kg
2021
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2022
11.2
CO2 emissions.
also improved its superior share compared to the previous
Source: Group Accounts Note 8
year, which impacted price achievement. Finnmark achieved an
average price of NOK 73.0 per kg in 2022, up NOK 22.1 per kg
from NOK 50.9 per kg in 2021. Price achievement was negatively
BRITISH COLUMBIA
Grieg Seafood British Columbia (BC) harvested 20 286 tonnes in
impacted by the sale of 22% of the volume under fixed-price
2022, 40% more than in 2021 (14 448 tonnes). Harvesting volumes
contracts, but positively impacted by somewhat higher average
vary significantly every other year in BC due to local production
harvest weight compared to last year.
region arrangements and fewer farms on the West Coast of
Vancouver Island compared to the East Coast. As a consequence,
Freshwater production at Adamselv was good during the year. A
the region's volume varies every other year, regardless of the
total of 10.8 million smolt, with an average weight of 180 grams,
underlying biology.
were transferred to the sea in 2022. Seawater production was
somewhat challenging this year. Colder seawater temperatures
in the first half of the year negatively impacted growth at sea, in
addition to issues with winter ulcers. In the second half of the
year, high seawater temperatures increased sea-lice levels.
In addition, the parasite, Spironucleus salmonicida (Spiro) was
detected in some fish in certain pens. This has led to early
Sales revenues for the year amounted to NOK 1 665 million, an
increase of 63% compared to NOK 1 023 million in 2021. The
strong market drove price achievement to NOK 82.1 per kg in
2022, up NOK 11.2 per kg compared to NOK 70.8 per kg in 2021.
The improved price achievement was somewhat offset by a lower
superior share, which ended at 85% in 2022, compared to
10.4
-8.3
13.3
OpEBIT/kg
2021
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2022
Today, the Group has the successful Skuna Bay brand in the USA,
and aims to develop B2B brands going forward. Key milestones
in 2022 were to establish processing partnerships in Norway
and Europe, introduce VAP products to selected markets and
reach 5-10% of harvested volume for VAP. Grieg Seafood is in
line with the targeted milestones, and have started processing
with partners in Norway and conducting processing trials in other
countries in Europe. Furthermore, the Group has established its
own VAP products in European, Asian and the US markets, and
sold 6% of the harvested volume as VAP in 2022. The Group aims
to increase the share of VAP volume to 8-12% of the harvested
Source: Group Accounts Note 8
volume in 2023.
NEWFOUNDLAND
Grieg Seafood Newfoundland is a greenfield project acquired in
For more information on the sales organization and the markets,
see the Sales & Market chapter in Part 2 Profit & Innovation.
2020. 2022 saw the successful first transfer of smolt to sea farms
in Grieg Seafood Newfoundland.
PART 03 – OUR FINANCIAL RESULTS
59
FI N A NCI AL P E R F OR M A NCE
GROUP FINANCIAL STATEMENTS
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRS).
PROFIT AND LOSS
Sales revenue and harvested volume
The Group harvested 84 697 tonnes GWT in 2022, an increase
prices for North American salmon in Seattle and Chilean
salmon in Miami. Market prices are correlated across regions,
but significant short-term variations between markets are not
uncommon.
Market demand remained strong in 2022. Relative to 2021, it is
estimated by Kontali Analyse that the global volume of Atlantic
salmon harvested decreased by approximately 1%. However, due
to a limited supply of salmon, consumption decreased in most
markets in 2022 compared to 2021. The largest relative increases
of 12% compared to 75 601 in 2021. The Norwegian regions
in consumption were found in the USA, up 3%, and China, up 5%,
contributed 76% (81%) of the harvested volume, while British
while the demand in EU & the UK was down by 1%.
Columbia contributed 24% (19%).
The Group’s main product, fresh whole gutted Atlantic salmon,
kg (NOK 55.7 per kg) on aggregate for its farming regions. By
is traded largely as a commodity, and the prices achieved largely
comparison, the average NQSALMON NOK/kg price for 2022
reflect a general market price. The prices achieved will, to some
was NOK 82.0 per kg (57.3). The Group’s price realization
The Group's price realization for the year was NOK 75.8 per
FIGURE 3.9
SENSITIVITY ANALYSIS SALES REVENUE/KG
The difference between the total sales revenue for the Group of
NOK 7 164 million and sales revenue from farming regions of
NOK 6 418 million is attributable to the Elim/Other effect (see
Sales revenue/kg
opEBIT/kg impact
Note 8 to the Group Accounts), which includes the gross uplift on
Actual for 2022
+/- 2.5 %
+/- 5.0 %
+/- 7.5 %
+/- 10.0 %
+/- 12.5 %
75.8
77.7 / 73.9
79.6 / 72.0
81.5 / 70.1
83.4 / 68.2
85.2 / 66.3
1.9
3.8
5.7
7.6
9.5
The calculation is performed bottom-up, based on separate calculations for
Rogaland, Finnmark and British Columbia, by analyzing incremental percentage
changes in sales revenue, all other factors remaining unchanged. Newfoundland
is not included in the sensitivity analysis as no fish had been harvested at year-
end 2022.
sales revenue for the Group generated by the sales organization.
The Group’s primary market is Continental Europe. Sales to
Continental Europe comprised 58% of sales revenue in 2022 (63%
of volume sold), down from 65% of the sales revenue in 2021
(73% of volume sold). The USA and Canada, or North America,
is the second largest market, and totaled 29% of sales revenue
in 2022 (26% of volume sold), up from 27% of the sales revenue
in 2021 (21% of volume sold). Sales to Asia accounted for 9% of
the sales revenue in 2022 (6% of the volume), compared to 6%
in 2021 (4% of volume). Even though salmon is regarded as a
commodity, prices vary across geographical markets, with the
(relatively) highest price/kg generated in Asia and North America.
extent, deviate from the spot market price, based on quality,
was negatively impacted by contracts for some of the Group’s
Total sales revenue for the year came to NOK 7 164 million,
sales contracts and the ability to place the salmon effectively
Norwegian volume, in addition to price achievement on
up NOK 2 565 million from NOK 4 599 million in 2021. The sales
Grieg Seafood did not have sales to Russia in 2022 or 2021. Sales
in the market. Price achievement is measured relative to the
production grade harvest volume. The increase in sales revenue
revenue from the Group’s farming regions totaled NOK 6 418
to Ukraine accounted for 0% of Grieg Seafood’s total revenue in
relevant observed market price or reference price. There are
for the Group is mainly due to exceptionally high market prices,
million in 2022, up NOK 2 207 million from NOK 4 211 million in
2022, compared to 1% in 2021.
several reference prices for salmon. In Norway, Fish Pool
especially during the first half of the year, and higher harvest
provides historic price information, as well as future salmon
volume.
derivative prices FCA Oslo as part of the NASDAQ Salmon Index
(NQSALMON). In the USA, Urner Barry provides reference
The sensitivity analysis below illustrates the impact changes in
2021 (see Note 8 to the Group Accounts). The increase in sales
revenue is due to a combination of record-high harvest volume
in Rogaland and Finnmark in 2022 compared to 2021, 40% higher
harvest volume in British Columbia, and an exceptionally strong
sales revenue/kg have on Operational EBIT/kg.
market in 2022.
PART 03 – OUR FINANCIAL RESULTS
60
FIGURE 3.10
SENSITIVITY ANALYSIS FARMING COST/KG
FIGURE 3.11
FARMING COST
the farming cost. In addition, costs related to harvesting and
Actual for 2022
Farming cost
Costs directly related to the production and harvesting of salmon
comprise the farming cost. The inputs needed to raise a live
salmon from roe to harvestable size account for the bulk of
processing are included. Performance is tracked through the
farming cost per kg of harvested salmon. Tracking the underlying
drivers that influence the cost of salmon to be harvested in the
future, such as survival, feeding and growth, is therefore vital.
The regional Operational EBIT is calculated as sales revenue
less the farming cost. See Note 8 to the Group Accounts and
Alternative Performance Measures for more information.
Until harvest, the production cost of the salmon is capitalized
to inventory and included in the line item ‘biological assets’ in
the balance sheet. The production cycle for a salmon, from roe
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
Farming cost/kg
opEBIT/kg impact
52.7
51.4 / 54.1
50.1 / 55.4
48.8 / 56.7
47.5 / 58.0
46.1 / 59.3
1.3
2.6
4.0
5.3
6.6
The calculation is performed bottom-up, based on separate calculations for
Rogaland, Finnmark and British Columbia, by analyzing incremental percentage
changes in farming cost, all other factors remaining unchanged. Newfoundland
is not included in the sensitivity analysis as no fish had been harvested at year-
end 2022.
to harvest weight, is about three years, whereas the production
In addition to purchase prices for inputs to production,
cycle after smoltification is about 12-24 months. Working capital
profitability is also influenced by how quickly the salmon grow
requirement is, per generation, generally progressive throughout
and how efficiently feed is converted into weight gain (feed
the production cycle. Due to the long production cycle for Atlantic
conversion rate). Water temperatures, biological conditions,
salmon with a harvest weight of about 4-5 kg, the expensed
farming practices and fish survival are key drivers for salmon
farming cost through the income statement at the point of
growth. Higher seawater temperatures increase growth, but
Feed cost
Admin
Despreciation
Smolt
Salaries
Other
Feed cost
Admin
Depreciation
Smolt
Salaries
Other
39%
41%
37%
37%
2018
2019
2020
2021
2022
4%
4%
12%
6%
33%
4%
5%
11%
6%
32%
4%
5%
12%
6%
36%
4%
5%
15%
6%
39%
4%
4%
14%
5%
33%
33%
harvest reflects all costs for all past periods (if not previously
also increase biological risks in the form of diseases, sea lice
0%
100%
expensed as abnormal mortality).
and algal blooms. This may in turn result in lost feeding days,
lower growth and reduced survival. Through the introduction of
Production cost capitalized to inventory (biological assets
improved sensor technology, use of advanced imaging analysis
excluding fair value adjustment, see Note 9 of the Group
and other technologies, the Group is continuously improving the
Accounts) comprises feed as well as health, treatment and
ability to make informed decisions about feeding and protective
fish welfare-related expenses. In addition, the production cost
measures.
capitalized to inventory includes salary, depreciation of fixed
assets and administration costs that are allocated to production.
Strong and healthy fish, combined with high feed quality and good
Feed cost comprises the largest individual part of the production
feeding practices, are the key to achieving a low production cost.
cost.
Farming performance is measured through the economic feed
conversion rate, or eFCR, and relative growth indices (achieved
In recent years, the industry has faced challenges with respect
growth compared to own and feed supplier expectations). Feed
to sea lice. This has caused an increase in costs directly related
accounted for 39% of the total cost per kg harvested fish in 2022,
to treatments and increased investments in equipment and
an increase from 37% in 2021, primarily due to increased feed
technologies. This development has had a noticeable impact on
prices. At the same time, the economic feed conversion rate
the relative allocation of cost factors, as well as the total cost
(eFCR) increased from 1.35 in 2021 to 1.39 in 2022 for the Group.
level in the industry. In terms of cost per kg, however, the loss
The eFCR measures how much fish feed is used to produce one
of harvested volumes has had a significantly larger impact than
kilogram of live salmon (net of mortality). The main difference
the direct cost increases. As production cost per kg has risen
between eFCR and bFCR (biological feed conversion rate) is that
in recent years, the directly variable cost of feed has become a
bFCR does not adjust the production figure for mortality.
smaller part of the total incurred cost per kg produced salmon.
At the same time, other costs, such as salaries, health costs and
Salmon growth, survival rates and the economic feed conversion
maintenance, have become a larger share of the total. Although
rate (eFCR), are strongly linked to fish health, disease and sea
the industry has seen feed prices increase by up to 40% during
lice. Treatments, fasting and reduced appetite negatively impact
2022, this has not been fully captured in the expensed farming
growth, reduce our harvested volumes and increase the cost
cost in 2022 and will continue to impact farming cost in 2023.
per kg of harvested fish. In short, an efficient feed conversion is
FIGURE 3.12
ECONOMIC FEED CONVERSION RATE
Rogaland
Finnmark
Rogaland
British Columbia
Finnmark
Newfoundland
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1.0
Grieg Seafood Group
British Columbia
Newfoundland
Grieg Seafood Group
The sensitivity analysis illustrates the impact changes in
farming cost/kg have on the Operational EBIT/kg, expressed as
percentage changes in the 2022 financials.
crucial to being cost competitive.
2018
2019
2020
2021
2022
PART 03 – OUR FINANCIAL RESULTS
61
FIGURE 3.13
KEY FIGURES
Rogaland
Finnmark
British Columbia
Newfoundland
Elim/Other
2022
28 387
36 024
20 286
—
—
2021
26 670
34 484
14 448
—
—
Grieg Seafood Group
84 697
75 601
Source: Group Accounts, Note 8
Harvest volume GWT tonnes
Operational EBIT/kg (NOK)
Operational EBIT (NOK million)
Finnmark had an increase in cost of reduced survival of NOK 1.3
The Group's farming cost for 2022 ended at NOK 52.7 per kg
(NOK 47.2 per kg). The underlying cost has been good, however
increasing due to inflation pressure on key input to production,
EBIT
Operational EBIT
Operational EBIT (see Note 8 to the Group Accounts and
including feed. In Finnmark, the farming cost has increased
Alternative Performance Measures for more information) in 2022
towards the end of the year due to the parasite Spironucleus
ended at a record-high of NOK 1 739 million (NOK 442 million),
salmonicida (Spiro), which has led to early harvesting and the
equivalent to NOK 20.5 per kg (NOK 5.9 per kg). The increase was
culling of fish showing signs of ill health to protect fish welfare.
driven by exceptional price realization in all farming regions.
2022
26.6
25.7
13.3
—
—
20.5
2021
9.1
7.3
10.4
—
—
5.9
2022
755
926
270
-115
-97
1 739
2021
242
251
150
-117
-84
442
per kg in 2022 compared to 2021. In total, the Norwegian farming
The difference between Operational EBIT and the EBIT line
regions contributed to 69% (76%) of the farming cost, an increase
item presented in the income statement for 2022 relates to the
of NOK 3.6 per kg in cost, from NOK 44.1 per kg in 2021 to NOK
non-operational share of profit from associates, the production
47.7 per kg in 2022. British Columbia had, despite a 40% higher
fee on the volume harvested in Norway, fair value adjustment
harvest volume year-on-year, a farming cost of CAD 9.1 per kg,
of the Group’s biological assets, impairment of tangible and
up CAD 0.4 per kg compared to CAD 8.8 per kg in 2021. Biological
intangible non-current assets, litigation and legal claims, and
events led to an increase in cost of reduced survival of CAD 0.4/
decommissioning costs, as explained in the following.
kg in BC compared to 2021.
The salmon farming industry might be volatile, due to both
biological and market conditions. The sensitivity analysis of 2022
illustrates the impact changes in eFCR has on the Operational
EBIT/kg, calculated as percentage changes on the 2022
financials.
FIGURE 3.14
SENSITIVITY ANALYSIS ECONOMIC FEED CONVERSION RATIO
(EFCR)
eFCR
opEBIT/kg impact
Actual for 2022
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
1.39
1.36 / 1.43
1.32 / 1.46
1.29 / 1.50
1.25 / 1.53
1.22 / 1.57
0.5
1.0
1.6
2.1
2.6
The calculation is performed bottom-up based on separate calculations for
Rogaland, Finnmark and British Columbia, by analyzing incremental percentage
changes in eFCR, all other factors remaining unchanged. Newfoundland is not
included in the sensitivity analysis as no fish has been harvested at year-end
2022.
Raw materials, salaries and other operating expenses
Raw materials and consumables, which consist mainly of the
Group’s freshwater and seawater fish stocks, in addition to feed,
ended at NOK 2 234 million, up NOK 495 million compared to
NOK 1 738 million in 2021. Salaries and personnel expenses
ended the year at NOK 696 million, an increase of NOK 118
million from NOK 577 million in 2021. The increase was partly
driven by the farming regions, and partly by the synthetic option
scheme to the management group and regional directors, as
all members of Group management exercised options during
the year. See the Group Accounts Note 17 for more information.
Other operating expenses ended at NOK 2 087 million, up NOK
560 million compared to NOK 1 527 million in 2021.
FIGURE 3.15
GRIEG SEAFOOD GROUP OPERATIONAL EBIT/KG YEAR-OVER-YEAR
20.1
0.2
20.5
-5.5
5.9
OpEBIT/kg 2021
Sales revenue/kg
Farming cost/kg
Other cost/kg
OpEBIT/kg 2022
Source: Group Accounts, Note 8.
Non-operational share of profit from associated
companies, production fee and fair value adjustment of
biological assets
The share of profit from associated companies included in
Operational EBIT ended at NOK -1 million for 2022 (NOK -1
million), see Note 8 to the Group Accounts. The share of profit
from associated companies not included in Operational EBIT
for 2022 was NOK 23 million, which related to a gain resulting
from dilution through a capital issue in Årdal Aqua. In total,
the share of profit from associated companies included in the
income statement for 2022 was NOK 21 million, up from NOK -1
million in 2021. The production fee, calculated as NOK 0.405 per
kg salmon harvested by the Norwegian regions, came to NOK 26
million in 2022 (NOK 24 million), while the fair value adjustment
of biological assets impacted the Group positively by NOK 83
million in 2022, down NOK 440 million from NOK 523 million in
2021.
PART 03 – OUR FINANCIAL RESULTS
62
Write-down of non-current tangible and intangible
assets, litigation and legal claims, and decommission
costs
At the end of the year, Norwegian aquaculture licenses were
EBIT presented in the income statement is provided in Note
8 of the Group Accounts. The reconciliation items between
Operational EBIT and EBIT presented in the income statement
are commented on above, see “Non-operational share of profit
operations in 2022 came to NOK 1 154 million, up NOK 549
Biological assets measured at cost totaled NOK 2 896 million
million from NOK 604 million in 2021.
as at 31 December 2022, up NOK 417 million from NOK 2 479
million as at 31 December 2021. Measured relative to total
In 2021, Grieg Seafood sold its Shetland assets, thus no impact
assets, the accumulated capitalized cost of inventory contributed
written down by NOK 47 million in the income statement (see
from associated companies, production fee and fair value
from discontinued operations was recognized for 2022. See Note
22% of the balance sheet as at 31 December 2022, compared to
Note 10 to the Group Accounts). During the year, Grieg Seafood
adjustment of biological assets” and “Write-down of non-current
6 for further details. The net profit from discontinued operations
23% as at 31 December 2021. Grieg Seafood’s biological assets
decided to end production in the shíshálh (Sechelt) farming area
tangible and intangible assets, litigation and legal claims, and
in 2021 came to NOK 600 million, bringing the net profit for the
are primarily fish at sea, which represented 94% of the book
of British Columbia, negatively impacting the income statement
decommission costs”.
year for 2021 to NOK 1 205 million.
with a write down of licenses and relevant seawater assets of
NOK 93 million, in addition to site clean-up costs estimated at
NOK 24 million (NOK 0 million). Total write-down not included in
Operational EBIT in 2022 was NOK 140 million (NOK 0 million).
The site clean-up costs are included in the financial statement
NET FINANCIAL ITEMS, TAXES AND NET
PROFIT FOR THE YEAR
Net financial items
Net financial items came to NOK -50 million in 2022, up NOK 37
FINANCIAL POSITION
As at 31 December 2022, the book value of the Group's assets
value of biological assets, excluding fair value adjustment, as at
31 December 2022. The comparable figure for 31 December 2021
was 93%. By weight, biological assets totaled 50 614 tonnes at
year-end 2022, down 8 507 tonnes from 59 121 tonnes at year-
totaled NOK 12 875 million, up NOK 2 161 million from NOK
end 2021. Biological assets stocked at sea accounted for 99%
10 714 million as at 31 December 2021. The increase in the
of this amount at year-end 2022 (99% as at year-end 2021). The
line item "Decommissioning costs" (see Note 10 and 28 of
million from NOK -87 million in 2021. Compared to 2021, the debt
Group's balance sheet compared to 2021 was primarily due to the
average live weight of the fish on aggregate (on land and at sea)
the Group Accounts for more information). In 2022, the Group
service cost in 2022 was lower than in 2021. This is primarily due
refinanced syndicated debt in Q1 2022 and increased net working
was 1.1 kg as at 31 December 2022, compared to 1.0 kg at year-
recognized NOK 157 million (NOK 0 million) as litigation and legal
to the refinanced loan facility in 2022 as well as the improved
capital following the exceptionally strong market prices during
end 2021.
claims costs related to lawsuits in North America. The costs are
leverage ratio of Grieg Seafood following the sale of Shetland at
the first half of the year.
included in the financial statement line item "Litigation and legal
the end of last year. However, the lower debt service cost was
As at 31 December 2022, Grieg Seafood was in a solid financial
costs" and thus not included in the Group’s Operational EBIT (see
offset by differences in net currency gains/losses compared to
The Group's goodwill, licenses, other intangible assets, and
position. The cash balance at the end of the year was NOK
Note 28 of the Group Accounts for more information).
2021.
EBIT
EBIT (Earnings before interests and taxes) ended at NOK 1 498
Taxes and net profit for the year
Profit before tax in 2022 totaled NOK 1 448 million, which is an
property plant and equipment including right-of-use assets
643 million, down NOK 286 million from NOK 928 million as at
totaled NOK 6 205 million as at 31 December 2022, up NOK
31 December 2021. In 2022, approximately NOK 1 000 million of
569 million from NOK 5 636 million as at 31 December 2021.
surplus cash has been invested in money market funds, which
Measured relative to total assets, these assets contributed 48%
largely explain the negative net cash flow of the year. Current
million in 2022, up NOK 557 million from NOK 941 million in 2021.
increase of NOK 594 million from NOK 854 million in 2021. The
of the balance sheet as at 31 December 2022, compared to 53%
assets (excluding fair value adjustment of biological assets)
A reconciliation between Operational EBIT and the
tax expense for 2022 came to NOK 294 million, compared to a tax
as at 31 December 2021.
expense of NOK 249 million in 2021. Net profit from continued
over current liabilities measured 2.8 as at 31 December 2022,
compared to 3.5 as at 31 December 2021. The lower ratio is
FIGURE 3.16
EQUITY RATIO AND NIBD/HARVEST
Equity ratio
NIBD/Harvest
Equity-ratio
o
i
t
a
r
-
y
t
i
u
q
E
55%
50%
45%
40%
35%
PART 03 – OUR FINANCIAL RESULTS
2018
2019
2020
2021
2022
NIBD/Harvest calculated as NIBD according to covenant divided by last 12 months harvested volume.
Equity ratio
NIBD/Harvest
NIBD/Harvest
45
43
40
38
35
33
30
28
25
23
20
63
/
I
N
B
D
H
a
r
v
e
s
t
due to installments on debt for the next twelve being higher
For 2022, the net cash flow from investing activities totaled NOK
than year-end 2021 and a higher tax payable at year-end 2022.
-1 651 million (NOK -560 million), of which investments in non-
Furthermore, the Group had undrawn credit facilities of NOK
current tangible and intangible assets totaled NOK 564 million
1 700 million as at 31 December 2022, compared to NOK 885
(NOK 565 million). In addition, investments of NOK 112 million
million as at 31 December 2021. The change in undrawn liquidity
(NOK 15 million) have been made in associated companies.
is due to the refinanced syndicated debt in Q1 2022. Total equity
Finally, approximately NOK 1 000 million of surplus cash has
as at 31 December 2022 came to NOK 6 486 million, up NOK 922
been invested in money market funds in 2022.
million from NOK 5 563 million as at 31 December 2021. The
equity-ratio as at 31 December 2022 was 50% compared to 52%
The net cash flow from financing activities for 2022 was NOK
as at 31 December 2021.
-204 million (NOK -1 430 million). In 2022, a dividend of NOK 337
million (NOK 3.0 per share) was paid, in addition to shares being
The Group's debt structure comprises sustainability-linked loans
repurchased for NOK 30 million at the end of the year (of which
with a NOK 750 million term loan, an EUR 75 million term loan, a
24 million were settled in cash before year-end). Furthermore,
NOK 1 500 million revolving credit facility and a NOK 200 million
the Group has repurchased bonds worth NOK 77 million during
overdraft facility. As at 31 December 2022, net interest-bearing
the year, of which NOK 50 million had been settled in cash by
liabilities (NIBD) excluding the effect of IFRS 16 totaled NOK
year-end 2022, with the remaining NOK 25 million paid in January
1 739 million, down NOK 157 million from NOK 1 895 million as
2023. Finally, the Group’s syndicated debt was refinanced in
at 31 December 2021. NIBD including the effects of IFRS 16 was
the first half of 2022, where the revolving credit facility and
NOK 2 223 million, down NOK 68 million from NOK 2 291 million
the outstanding EUR term loan under the previous finance
as at 31 December 2021, which equals 17% of the Group’s assets
arrangement was settled (in total, approximately NOK 865
as at 31 December 2022, compared to 21% as at 31 December
million), offset by a drawdown of NOK and EUR term loans under
2021. Lastly, NIBD excluding the effect of IFRS 16 divided by the
the new facility arrangement of approximately NOK 1 463 million.
last twelve months’ actual harvest volume (tonnes GWT) equalled
As the revolving credit facility and overdraft were undrawn at 31
NOK 20.5 per kg as at year-end 2022, compared to NOK 25.1 at
December 2022, a total of NOK 1 700 million was available for
year-end 2021, well below the long-term target of NOK 30 per kg.
utilization by the Group.
The Group was in compliance with its financial covenants as
The net change in cash and cash equivalents for the 2022 was
at 31 December 2022. As at 31 December 2022, the equity
NOK -292 million (NOK -1 389 million from continued operations),
ratio according to covenant was 52%, compared to 54% as at
and as at 31 December 2022, the Group had a cash balance of
31 December 2021. As at 31 December 2022, 75% of gross
NOK 643 million, down NOK 286 million from NOK 928 million as
interest-bearing liabilities (See Note 12 to the Group Accounts)
at 31 December 2021.
were green or sustainability-linked, compared to 47% as
at 31 December 2021. The increase in the share of green
and sustainability-linked financing is primarily due to the
sustainability-linked facility of NOK 3 200 million, which was
refinanced with secured lenders in Q1 2022.
GR IEG SE AF OOD A S A
PROFIT FOR THE YEAR
The parent company’s financial statements have been prepared
Grieg Seafood aims to provide shareholders with a competitive
in accordance with Norwegian accounting principles (NGAAP).
return on invested capital through payment of dividends and
share price increases. The Board of Directors maintains that, as
Grieg Seafood ASA is the holding company of the farming and
an average over time, dividends should correspond to 30-40%
sales operations in the Grieg Seafood Group. In addition, the
of the Group’s profit after tax, adjusted for the effect of the
company is the employer of Group management as well as
fair value of biological assets (limited to 50 % by Green Bond
centralized functions of the Group.
agreement). At the same time, the Group’s net interest-bearing
debt per kg harvested salmon should remain below NOK 30,
Total operating income for the year ended at NOK 288 million
but can be exceeded in periods of growth investments. As at 31
in 2022, up NOK 190 million compared to NOK 98 million in
December 2022, Grieg Seafood was in a solid financial position
2021. The company’s operating income has increased in 2022
to execute strategic priorities and deliver shareholder return.
compared to 2021 primarily due to the establishment of a royalty
The Board recommends that a dividend of NOK 4.5 per share be
fee model within the Group in 2022, as well as adjustments made
distributed to shareholders in the first half of 2023.
on the management fee model compared to 2021.
CASH FLOW
The net cash flow from operating activities for 2022 totaled
NOK 1 562 million (NOK 601 million). The higher cash flow
from operating activities is attributable to exceptional price
achievement by all our farming regions in 2022.
Salaries and personnel expenses totaled NOK 118 million in
2022, up NOK 47 million compared to NOK 72 million in 2021.
The company has issued options to executive management and
regional directors. The options’ strike price is the stock market
price on the date of issue, rising by 0.5% per month until the
FIGURE 3.17
GROSS INVESTMENTS, HARVEST VOLUME TONNES GWT AND GROSS INVESTMENTS/KG
Gross investments
Harvest volume GWT
NOK MILLION
1 200
800
400
0
1 000 TONNES
1
0
0
0
T
O
N
N
E
S
90
80
70
60
I
I
N
O
L
L
M
K
O
N
2018
2019
2020
2021
2022
Gross investments
Harvest volume GWT
NOK/kg
/
g
k
K
O
N
15
10
5
2018
2019
2020
2021
2022
The cash payment of NOK 620 million made on the acquisition of Grieg Newfoundland is not included in the 2020 figure presented in the chart above. All figures in the
chart above are exclusive of Shetland. The peak in 2020 (gross investments of NOK 13.8/kg) is largely attributable to capital investments in the freshwater facility in
Newfoundland. The freshwater facility in Newfoundland was completed in 2021.
PART 03 – OUR FINANCIAL RESULTS
64
exercise date. The increase in personnel expenses is primarily
Total equity at the end of 2022 stood at NOK 3 011 million, up
Seafood ASA in order to facilitate the employees’ share-based
due to costs from the synthetic option scheme, as all members of
NOK 267 million compared to NOK 2 744 million in 2021. During
incentive scheme.
the management team exercised options during the year.
the year, a dividend of NOK 3.0 per share, or NOK 337 million in
Depreciation and amortization of non-current tangible and
ASA had an equity ratio of 42%, compared to 48% the year before.
compared to NOK 793 million as at 31 December 2021.
total, was distributed to shareholders. At year-end, Grieg Seafood
As at 31 December 2022, available cash totaled NOK 525 million,
intangible assets ended at NOK 7 million, in line with the year
At the end of the year, Grieg Seafood was in compliance with
before.
its financial covenants. Grieg Seafood ASA’s financial covenant
is tied to the equity ratio (excl. the effect of IFRS 16) in the
Other operating expenses totaled NOK 200 million in 2022,
Grieg Seafood Group, which was 52% as at 31 December 2022
up NOK 102 million from NOK 97 million. In 2022, the Group
compared to 54% at the end of 2021.
recognized litigation and legal claims costs related to lawsuits
in North America under other operating expenses. The increase
The company has a syndicated sustainability-linked loan with
in other operating expenses for the year is primarily due to the
secured lenders totaling NOK 3 200 million, which compromises
settlement paid in North America, for which a portion of the
a NOK 750 million term loan, an EUR 75 million term loan, a
settlement relates to Grieg Seafood ASA. See the Group Accounts
NOK 1 500 million revolving credit facility and a NOK 200 million
Note 28 for more information.
overdraft facility. At the end of the year, NOK 1 700 million of the
revolving credit facility and the overdraft facility was available for
The parent company recorded an operating loss of NOK 37
utilization. The total amount outstanding on the syndicated debt
million in 2022, compared to a loss of NOK 77 million in 2021.
was NOK 1 474 million as at 31 December 2022 (excl. amortized
Net financial items ended at NOK 1 053 million in 2022, up NOK
NOK 1 424 million (excl. amortized loan costs), which matures in
loan costs). The company also has a green bond issue of NOK
487 million from 2021. The higher net financial items are due
June 2025.
primarily to higher group contributions from subsidiaries in
2022 compared to 2021. Group contributions from subsidiaries
Grieg Seafood ASA’s net cash flow from operations in 2022
are included in net financial items in the amount of NOK 995
totaled NOK -39 million, compared to NOK 147 million in 2021.
million in 2022 (NOK 308 million in 2021). Interest expenses from
The difference in net cash flow from operations between 2022
external financing decreased in 2022. This is primarily due to the
and 2021 is due to higher income tax paid in 2022 compared to
refinanced loan facility in 2022 as well as the improved leverage
the year before and timing differences in net working capital.
ratio of Grieg Seafood following the sale of Shetland at the end of
2021.
Cash flow from investing activities came to NOK -575 million
(NOK 1 611 million in 2021). The difference from 2021 to 2022
Profit before tax for Grieg Seafood ASA totaled NOK 1 016 million
is primarily due to a cash surplus of approximately NOK 1 000
in 2022, up NOK 527 million from NOK 489 million in 2021. The
million being invested in money market funds in 2022.
tax expense in 2022 ended at NOK 222 million, compared to NOK
81 million in 2021, bringing net profit for the year to NOK 794
Net cash flow from financing activities came to NOK 346 million,
million, up NOK 387 million from NOK 407 million in 2021.
compared to NOK -1 149 million in 2021. The change in net cash
flow from financing activities from 2021 to 2022 is primarily
Total assets amounted to NOK 7 178 million at the end of 2022,
due to the refinanced syndicated debt in Q1 2022, where the
up NOK 1 501 million from NOK 5 677 million the year before. The
revolving credit facility and the outstanding EUR term loan
change in the book value of assets is primarily due to changes in
under the previous finance arrangement was settled (in total,
current assets and working capital items, including receivables
approximately NOK 865 million), offset by a drawdown of NOK
from subsidiaries. As Grieg Seafood ASA is the owner of the cash
and EUR term loans under the new facility arrangement of
pool arrangement, net cash flow from the subsidiaries part in
approximately NOK 1 463 million. In addition, surplus cash has
the group account impacts Grieg Seafood ASA’s working capital
also been utilized to repurchase bonds. In total, approximately
through changes in cash and cash equivalents and short-term
NOK 77 million of the green bond loan was repurchased in 2022,
receivables/liabilities to subsidiaries.
of which NOK 50 million had been settled in cash by year-end
2022, with the remaining NOK 25 million paid in January 2023.
The book value of investments in subsidiaries came to NOK
As a consequence of the improved leverage subsequent to the
1 903 million, which is unchanged compared to the year before.
Shetland transaction at the end of 2021, the debt service costs
Long-term loans to subsidiaries amounted to NOK 798 million,
up NOK 11 million from NOK 787 million due to changes in
foreign exchange rates. In 2022, a cash surplus, generated by the
combination of the sale of Shetland in late 2021, the refinanced
syndicated debt in early 2022 and the strong salmon market in
2022, has been invested in money market funds, which had a
book value of NOK 1 013 million as at 31 December 2022.
in 2022 compared to 2021 were substantially lower. In 2022, a
dividend of NOK 3 per share was paid to shareholders, equivalent
to NOK 337 million in total. In December 2022, treasury shares
worth NOK 30 million were repurchased, of which NOK 24 million
was settled in cash by 31 December 2022, and the remainder
settled in January 2023. Treasury shares are held by Grieg
PART 03 – OUR FINANCIAL RESULTS
FINANCIAL RESULTS AND ALLOCATIONS –
GRIEG SEAFOOD ASA
Our ambition is to create shareholder value and deliver
competitive returns relative to comparable investment
alternatives. The Group’s dividend policy is that the dividend
should, over time, average 30-40% of the Group's net profit after
tax before fair value adjustment of biological assets (limited to
50% by Green Bond agreement). At the same time, the Group’s
net interest-bearing debt per kg harvested salmon should remain
below NOK 30, although this may be exceeded in periods of
growth investments. At year-end, the financial position of Grieg
Seafood ASA was solid, and the Board proposes that a dividend of
NOK 4.5 per share be distributed to shareholders.
The parent company, Grieg Seafood ASA, recorded a profit after
tax of NOK 794 million for 2022, which the Board proposes that
the Annual General Meeting allocate as follows:
FIGURE 3.18
ALLOCATION OF PROFIT/LOSS FOR THE YEAR, GRIEG SEAFOOD ASA
NOK million
Provision for dividends
Transfer to retained equity
Total allocated
504.1
290.0
794.1
R ISK AND R I SK M AN A GEMEN T
The Group is exposed to risks in numerous areas, such as
biological production, the effects of climate change, degradation
of nature, compliance risk, the risk of accidents, changes in
salmon prices, and the risk of politically motivated trade barriers.
The Group’s internal controls and risk exposure are subject to
continuous monitoring and improvement, and efforts to reduce
risk in different areas have a high priority. Management has
established a framework for managing and eliminating most of
the risks that could prevent the Group from attaining its goals.
OPERATIONAL RISK
The greatest operational risk relates to biological developments
within the Group’s smolt and marine aquaculture operations. The
book value of live fish at cost at year-end was NOK 4 046 million,
of which the fair value adjustment was NOK 1 150 million. The
book value of live fish at cost at year-end 2022 was NOK 2 896
million, or 22% of the balance sheet. Biological risks include
oxygen depletion, diseases, viruses, bacteria, parasites, algae
blooms, jelly fish and other contaminants. To reduce this risk,
the Group focuses on improving fish health and welfare through
several initiatives, including joint fallowing and area-based
management, switching from pharmaceutical to mechanical
delousing treatment methods, and use of sensor technology to
reduce algae challenges. The Group’s post-smolt strategy, where
fish are grown to a larger size on land, thereby shortening the
time they spend in open sea pens, is an important element of the
effort to reduce biological risk.
Throughout the year, the underlying biology, and freshwater
and seawater production, have been good in all regions. In BC,
freshwater production has been somewhat challenging, with
reduced survival due to egg quality issues. This has impacted
the number of smolt transferred to the sea this year, and might
impact volume to be harvested in 2024. The Group has taken
steps to ensure a higher quality of roe going forward. Infectious
Salmon Anemia (ISA) was detected in the broodstock facility
in Rogaland, and in the beginning of 2023, the broodstock was
euthanized. This will not have any impact on smolt production
or harvested volume going forward, as Grieg Seafood Rogaland
is able to secure roe in the market. In Rogaland, high seawater
temperatures and high sea lice pressure led to reduced growth
during the autumn of 2022. In Finnmark, colder seawater
temperatures in the first half of the year adversely impacted
growth in the sea. In the second half of the year, high seawater
temperatures increased sea-lice pressure. Finnmark continues
to see the impact of the parasite Spironucleus salmonicida,
which was detected in some of the pens with fish at sea farms
in Finnmark in late 2022. Although mortality rates have been
low, fish showing indications of illness have been culled out of
concern for their welfare. This has impacted, and will continue to
impact, the farming cost in Finnmark. The source of the parasite
is believed to have been found, and measures to reduce the risk
of such an event happening again are being implemented. Both
freshwater and seawater production in Newfoundland continue
See the Group’s risk overview here. A summary of some of these
according to plan.
risks, in the short and medium term, is included below.
The members of the Board of Directors and the CEO are covered
by Directors and Officers (D&O) insurance. The insurance
provides liability cover for members of the Board of Directors and
the CEO with respect to claims arising from decisions or actions
they may take on behalf of Grieg Seafood ASA.
The aquaculture industry has experienced major issues with
sea lice and algae in recent years. The Group collaborates
actively with the authorities and other aquaculture players to
implement measures and initiate activities to reduce biological
risk. Some of the initiatives are joint fallowing and area-based
management. The Group has initiated a digitalization process to
facilitate operational improvements. The aim is to use sensor
technology to reduce the algae challenges in BC in particular.
The introduction of sensor technology to monitor algal blooms
enables the type of algae to be determined at an early stage
65
and the appropriate feeding response selected. This is of vital
The Group’s has its own internal sales and market organization,
The proposed tax will apply to commercial marine-phase salmon
including industry and First Nations, are participating in the
importance as different types of algae have different effects on
including a value-added department. The Group has secured
and trout aquaculture activity. Based on the proposal as per 28
process, which is expected to be concluded during 2023. Grieg
the salmon.
value-added processing capacity in both Norway and Canada to
March 2023, the resource tax will have a rate of 35 % on profits
Seafood supports the transition and it aligns with the Group’s
reduce the risk of low price achievement on production grade
generated by the marine-phase aquaculture activity, in addition to
technological investments to improve biological control, such as
The industry has experienced general cost inflation in 2022. This
fish. Continental Europe is the Group’s most important market,
regular corporate taxes. Grieg Seafood farms Atlantic salmon in
post-smolt and barrier systems. The possibility of introducing
applies in particular to feed, whose price has increased by close
with North America as the second largest market. The Group
both Norway and Canada, and the proposed Norwegian resource
different types of licenses to advance improvements are
to 40% in Norway and close to 20% in BC in 2022 compared to
does not sell salmon to Russia due to the ongoing war against
rent tax will not directly impact the Group’s operations in British
discussed as a part of the transition strategy. It is expected that
2021. The feed industry is characterized by large global suppliers
Ukraine.
operating under cost plus contracts. Feed prices are therefore
Columbia and Newfoundland, as they are subject to Canadian tax
regular licenses will be incorporated into the strategy. Grieg
legislation. The proposed resource rent tax will, however, directly
Seafood is committed to working with the government and
directly linked to the global markets for fishmeal, vegetable
The Group targets a contract share of 20-50% for its Norwegian
impact the operations in Rogaland and Finnmark, as the taxation
Indigenous communities to find a viable path forward.
meal, animal proteins and fish/vegetable/animal oils, which
harvested volume. The estimated contract share for 2023 is
of the sea farm operations in those regions may increase from
are the main ingredients in fish feed. Access to terrestrial feed
15%. The contract market has been impacted by the proposed
22% to 57%, should the proposed resource tax be adopted in its
In addition, farm tenures in BC are renewed by the province on a
ingredients has improved due to good crops, while access to
resource rent tax on salmon farming in Norway, although there
current form.
marine feed ingredients continues to be limited. The key drivers
are signs of improvement going into 2023. The Group does not
for the increased feed prices are inflationary pressure on the
have contracts in BC.
prices of the raw materials used in the production of fish feed,
such as soy, wheat, canola, sunflower, corn, and fish meal and
fish oil. In addition, Grieg Seafood’ feed cost over the year was
COMPLIANCE RISK
Grieg Seafood is committed to conducting its business ethically
The Group has put all new growth investments in Norway, worth a
the farm is located will not be renewed. Grieg Seafood supports
total of approximately NOK 2.3 billion, on hold until a final version
the implementation of the United Nations Declaration on the
of the tax regime has been adopted. Once the final version of
Rights of Indigenous Peoples (UNDRIP) into BC regulations, and
the tax has been adopted, Grieg Seafood will assess how it will
we are engaging in the ongoing process of reconciliation between
regular basis. From 2022, farm tenures that are not accepted by
the First Nation that is the rights-holder of the territory where
affected by a fall in the value of the Norwegian Krone (NOK). The
and with integrity. The Group performs risk assessments on its
impact the company's strategy and plans. The proposed tax
the government, First Nations and industries. In 2022, the
inflation pressure is driven by supply limitations due to ripple
operations and value chain, and has implemented mitigating
may divert more of the Group’s investments to Canada. Overall,
Coalition of First Nations for Finfish Stewardship was launched,
effects of the Covid-19 pandemic as well as disturbances seen in
measures and controls to prevent corruption and money
salmon farming in Norway may lose competitiveness compared
highlighting the positive role that the salmon farming industry
the feed value chain (production and logistics) due to the war in
laundering activities. The Group did not experience any incidents
to aquaculture in other countries. With new technologies being
can play as part of the reconciliation process. Grieg Seafood
Ukraine.
of corruption or money laundering activities in 2022. The Group
adheres to all relevant sanctions related to Russia and Belarus.
The risk of cyberattacks is relevant for the Group. Cyberattacks
developed, where there is no reliance on a coastline with
recognizes the First Nations as an additional level of government
naturally tempered water, aquaculture investors may find it more
where we operate, and we are working to ensure that our
attractive to invest and develop the industry in places with lower
production takes place under agreements with the rights-holders
may cause disruption to the ordinary course of operations, both
In February 2019, the European Commission launched an
tax levels.
within the Group and at third parties, as well as damage and/
investigation to explore potential anti-competitive behavior in
of the territories where it is located. The vast majority of Grieg
Seafood’s production are under long-term agreements with the
or incapacitate critical infrastructure necessary to operate
the Norwegian salmon industry. Grieg Seafood is one of the
The proposal must be approved by the Norwegian parliament
First Nations in those areas, and we are pursuing agreements
the Group’s freshwater and seawater sites. The outcome of
companies under investigation. At date, no decision has been
before it can be incorporated into Norwegian tax law. The
with more First Nations. See Note 4 of the Group Accounts for
a cyberattack may adversely impact fish welfare at affected
made by the European Commission. Grieg Seafood is not aware
Parliament is expected to discuss the proposal and enact the law
more information.
sites, the Group’s reputation and financial performance. Grieg
of any anti-competitive behavior within the Group, neither in
before July 2023. Thus, the Parliament may still make changes
Seafood are continuously working to strengthen our defense
Norway, nor the EU, or Canada. Grieg Seafood rejects that there
to the proposal which has now been published. The tax will be
towards cyberattacks and other malicious attempt to disrupt
is any basis for the claims and considers the complaints to be
implemented with retrospective effect as from 1 January 2023.
our infrastructure. Cybersecurity is high on management’s
entirely unsubstantiated.
agenda, and is addressed through securing the digital systems
As the resource rent taxation is a proposal by the Norwegian
FINANCIAL RISK
Financing risk
The Group operates within an industry characterized by high
and infrastructure (incl. monitoring and analysis of all network
Grieg Seafood had also been sued by indirect purchasers in the
government, and was not incorporated into Norwegian tax law as
volatility, which entails financial risk. The Group’s business and
traffic in our infrastructure), as well as awareness and training,
USA. In 2022, a settlement offer from the indirect purchaser
at 31 December 2022, there has been no impact on the Group's
future plans are capital intensive. To the extent that sufficient
strengthening the focus on securing remote access for
plaintiffs was accepted. In February 2023, the settlement was
tax estimates recognized in the statement of financial position
cash is not generated from operations in the long term, additional
employees and vendors. Furthermore, we have procedures in
finally approved by the court of Southern District of Florida.
and income statement as at 31 December 2022.
funding needs to be raised to pursue the Group’s growth strategy
place for incident handling and strategic crisis management
The settlement does not involve any admission of liability or
should a cyber incident occur.
MARKET RISK
The global volume of Atlantic salmon harvested in 2023 is
expected to increase by only 2% compared to 2022. With limited
supply growth, combined with an outlook for continuing strong
demand fueled by an increased focus on healthy food and
sustainably produced proteins, the Group believes in sustained
wrongdoing. Costs incurred and provisions for expected costs
related to the lawsuits in North America have been expensed in
2022. See more information in Note 28 and Note 31 of the Group
Accounts.
POLITICAL RISK
Norway
On 28 September 2022, the Norwegian government proposed the
Canada
In British Columbia (BC), licenses are renewed by the federal
and finance capital expenditures. Adequate sources of capital
funding might not be available when needed, or may only be
available on unfavorable terms. Financial and contractual
Department of Fisheries and Oceans (DFO) on a regular basis,
hedging is a matter of constant consideration, in combination
with different length. In June 2022, all licenses were renewed
with operational measures. Management draws up rolling
for two years. The Canadian Government has launched a new
liquidity forecasts, extending over five years. These forecasts are
strategy for salmon farming in BC, to transition the sector from
based on conservative assumptions for salmon prices and form
traditional open-net pen practices into an improved industry
the basis for calculating liquidity requirements. This forecast also
(it does not specify what the industry should transition to).
forms the basis for the Group’s financing needs.
strong market prices in 2023. However, the current rate of
introduction of a resource tax on farming of salmon and trout in
The process was launched 29 June 2022, with the following
inflation that is reducing household purchasing power might
impact demand from both the HoReCa and retail sectors. The
current Fishpool forward price for 2023 is around NOK 95 per kg,
and the 2024 forward price is around NOK 87 per kg, reflecting an
optimistic market outlook.
Norway with effect from 1 January 2023 and on 28 March 2023
the Norwegian government presented a bill providing further
details to the tax regime in addition to modifications made to the
proposal communicated 28 September 2022.
PART 03 – OUR FINANCIAL RESULTS
objectives: Minimize or eliminate interactions between farmed
and wild salmon, improve transparency on how the government
assesses and responds to new scientific information, provide
greater opportunities for collaborative planning and decision-
making with First Nations partners and advance innovation and
attracting investment to support the adoption of alternative
production technologies in British Columbia. Stakeholders,
In September 2022, and updated in March 2023 (see the section
for Political Risk), the Norwegian government proposed the
introduction of a resource rent tax on the farming of salmon and
trout in Norway at an effective tax rate of 35% with effect from
1 January 2023. Available financing could be impacted by the
proposed Norwegian resource rent tax regime, as - all else equal
- less cash will be available to service debt and provide a return
on investment for shareholders.
66
The Group renegotiated its syndicated bank loan agreement in
Part of the long-term intercompany loans to subsidiaries in
climate-change regulation or significant changes in consumer
better predict outcomes and implement mitigating actions early;
2022, thereby securing the working capital needed to achieve
the Group are in the local currency and are regarded as net
preferences could affect the Group’s bottom line and access to
and experimenting with new farming technologies that create
the Group’s growth targets. The Group's new debt structure
investments, as there are no set plans for their repayment.
capital. On the other hand, Grieg Seafood is being uniquely placed
barriers between the fish and the natural environment, such
comprises sustainability-linked loans, including a NOK 750
The currency effect of these net investments is included in the
to mitigate these risks and take advantage of climate-related
as semi-closed sea-based systems, land-based farming and
million term loan, an EUR 75 million term loan, a NOK 1 500
Group's consolidated statement of other comprehensive income
opportunities. In 2022, the Group developed is Climate Action
offshore farming.
million revolving credit facility and a NOK 200 million overdraft
(OCI).
Plan, which describes the measures and investments needed
facility. See Note 12 of the Group Accounts for more information.
In addition, the Group has a senior unsecured green bond issue
with an outstanding amount of NOK 1 424 million, which matures
in June 2025.
Interest rate risk
The Group is exposed to interest rate risk through its borrowing
activities, and to fluctuating interest rate levels in connection
with the financing of its activities in the various regions. The
to reach the climate targets (reducing carbon emissions by 35%
The EU Taxonomy will enter into force as from 2023 in Norway.
towards 2030, and 100% in 2050, with 2018 as a baseline year).
As at 31 December 2022, the economic activities characteristic
This plan stresses the importance of both operational measures
of the seafood and aquaculture industries have not yet been
that affect Scope 1 and 2, and supply chain measures in Scope 3.
classified by the EU and Grieg Seafood will report on the EU
The Group needs to reduce operational fossil fuel consumption,
Taxonomy as from the Annual Report of 2023.
As at 31 December 2022, the Group had NOK 2 223 million in
Group's existing loans are at floating interest rates, but separate
purchase renewable electricity and set supplier requirements
net interest-bearing liabilities (NOK 1 739 million, excluding the
fixed-rate contracts have been entered into to reduce interest
to be able to reduce its absolute emissions. The Group needs to
effect of IFRS 16), and an equity ratio of 50% compared to 52% as
rate risk. Grieg Seafood’s policy is to have 20–50% of interest-
at 31 December 2021. The equity-ratio according to the financial
bearing debt hedged through interest rate swap agreements. A
invest in electrification of its sites and boats, choose fish feed
that has a lower emission factor and reduce emissions from
C OR P OR AT E S OCI AL
R E S P ONSIBILI T Y
covenants was 52% compared to 54% as at 31 December 2021.
given proportion shall be at floating rates, while consideration
transportation. The largest direct source of emissions is from the
See Note 12 of the Group Accounts for more information.
will be given to entering and exiting hedging contracts for the
Cash and cash equivalents at 31 December 2022 totaled NOK
remainder.
643 million (NOK 928 million). In addition, NOK 1 013 million
of surplus cash had been placed in money market funds with
maturity of less than three months as at 31 December 2022. The
Credit risk
Credit risk is managed at Group level. Credit risk arises from
Group had a solid financial foundation at year-end 2022.
transactions involving derivatives and deposits in banks and
Liquidity risk
The Group has invested substantial amounts during the last few
financial institutions, transactions with customers, including
trade receivables, and fixed contracts as well as loans to
associates. The Group has procedures to ensure that products
fuel that powers the boats, use of well-boats, vehicles, and on-
site electricity generators. Transitioning to equipment that will
enable reduction in fossil fuel consumption will be done gradually
through replacement investments, in addition to investments
targeting growth. Before making any investments, the Group
evaluates the potential carbon emissions and environmental
impact of the investment. This is an integrated part of the
Group’s CapEx process. To get a full overview over how these
climate-related risks and opportunities may evolve and affect
years. This includes the acquisition of Grieg Newfoundland and
are sold only to customers with satisfactory creditworthiness.
the Group, likelihood and impact analyses under different
the build-up of biological assets in all regions. The Group utilizes
The Group normally sells to new customers solely against
emission pathways and time horizons have been developed and
factoring agreements to finance its trade receivables in Norway.
presentation of a letter of credit or against advance payment, and
will be regularly revised. The Group’s TCFD report, including the
The trade financier purchases credit-insured trade receivables
credit insurance is used when deemed necessary.
climate-related scenario analysis, is available here.
(maximum NOK 500 million of outstanding receivables) from the
Norwegian sales organization, transferring significant (95%) risk
and control to the credit insurer. The receivables purchased by
CLIMATE AND NATURE RISK
The effects of climate change, such as extreme weather events,
the trade financier are derecognized from the Group’s statement
fluctuating seawater temperatures and a decline in biodiversity,
of financial position.
could have a significant financial impact in the coming decades.
Knowledge of the possible financial consequences of global
Monitoring of the Group’s liquidity reserve is carried out at group
warming, biodiversity loss, or even ecosystem collapse, and
level in collaboration with the operating companies. Management
the integration of climate risk and nature risk as a separate
and the Board seek to maintain a high equity ratio (50% at
risk category, are an essential part of Grieg Seafood’s risk
31 December 2022), to be well positioned to meet financial
management strategy. Grieg Seafood aims to increase its
and operational challenges. The Group factors in the expected
understanding of climate and nature-related risks, in order to
outcome of, as well as different scenarios for, the Norwegian
find solutions to reduce adverse impacts.
resource rent tax proposed by the Norwegian government in the
Group's liquidity projections and forecasts.
The Group has mapped its climate-related risks, which is
reported in accordance with the recommendations of the
Currency risk
The Group is primarily impacted by currency exposure to CAD,
Task Force on Climate-related Financial Disclosures (TCFD).
The Group has also prepared a climate-related scenario
USD and EUR. The production companies sell in local currencies
analysis, assessing the impact of transitional risks and physical
to the sales organization, which hedges its transactions against
risks. These risks and opportunities are included in the risk
currency fluctuations related to CAD/USD, EUR/NOK and USD/
assessment as part of the Group’s regular forecast process.
NOK, and other currencies if required. However, the Group may
not be successful in hedging against currency fluctuations, and
significant fluctuations may have a material adverse effect on the
Group's financial results and business. Hedge accounting is not
applied by the Group.
Overall, the impacts of climate-related risks are expected to be
moderate in the short term, with no quantifiable impact as per
year-end 2022. However, these impacts could become more
severe in the medium to long term. Any significant physical
change is likely to interfere with the Group’s current business
model or damage facility infrastructure, both of which could be
costly. Similarly, the transitional risks related to increased
PART 03 – OUR FINANCIAL RESULTS
The Group also acknowledges that biodiversity, diversity within
and between species, and diversity of ecosystems, is declining
globally faster than at any other time in human history. Nature
and ecosystems provide the basic building blocks of the global
economy, and biodiversity loss and ecosystem collapse will
also affect the Group’s operations, supply chains and markets.
Grieg Seafood is a Member of the Taskforce on Nature-related
Financial Disclosures (TNFD). TNFD aims to develop a risk
management and financial disclosure framework on nature-
related risks, and will support organizations to report and act
on both their impacts and dependencies on nature. The finalized
framework is earmarked for release in late 2023. For further
information, visit the TNFD’s website.
The salmon farming industry is regulated to avoid impact
on biodiversity and the marine environment. In addition,
certifications like the Aquaculture Stewardship Council (ASC)
help raise the bar above regulatory limits. As of year-end, 75%
of the Group’s budgeted net production was ASC certified.
Grieg Seafood acknowledges that there are still challenges to
overcome and believes that preventive farming is key to reducing
the Group’s impact on both the climate and nature. Several of
the Group’s ongoing initiatives target climate and nature-related
challenges, such as shortening the time the fish spend at sea and
are exposed to risks; using real-time ocean data, data analytics,
machine learning and artificial intelligence to
Grieg Seafood’s vision “Rooted in nature – farming the ocean
for a better future” demonstrates the Group’s commitment to
corporate responsibility by operating profitably and sustainably
in a manner that conforms with fundamental ethical norms
and respect for the individual, society and the environment.
Sustainable operations underpin the Group’s license to
operate and its strategy. In a long-term perspective, there is
no contradiction between clean seas, healthy fish and financial
profit. It is the Group’s task to make these aspects go hand in
hand and contribute to a sustainable ocean economy. The targets
go beyond short-term profitability. Read more about the Group’s
foundation, value chain and strategy in Part 1 of this Annual
Report.
Grieg Seafood’s sustainability strategy is built on material topics
and the five pillars: Healthy Ocean, Sustainable Food, Profit
& Innovation, People, and Local Communities. These pillars
are founded on external expectations, based on dialogues with
stakeholders, and the company’s own goals and ambitions. The
topics are covered by group policies. Find an overview of the
pillars, targets and policies here. The five pillars are aligned with
topics assessed as material according to the GRI standards. The
GRI Index is included in Part 4 of this Annual Report. The Group
has also prepared an overview of the material topics’ financial
impacts, please refer to Part 1 of this report.
The Group has a responsibility to protect biodiversity wherever
it operates. The aim is to use farming methods that allow co-
existence with other species, such as wild salmon, cod, shrimp,
wild mammals and birds. The Group has targets to minimize its
impact on biodiversity, and has adopted policies and operational
procedures, as well as high technical standards on equipment,
to reduce the risk of impact. Environmental impact assessments
are performed prior to establishing new seawater sites as well
as a part of the continuing ASC certification process. Please refer
to the regional sections in Part 2 of this report for information
relating to use of treatments and medicines, escape, wildlife
interaction and local emissions.
Along with the rest of the industry, the Group needs to develop
67
new feed ingredients in order to grow sustainably. The Group
regions are regularly carried out to discuss R&D needs. Short
workplace diversity and to be the preferred employer, regardless
Business integrity is essential for the Group, which has zero
does not produce its own fish feed, but set requirements for the
descriptions of the ongoing projects are available in an internal
of industry. A good working environment creates attractive jobs,
tolerance for fraud, corruption or other misconduct. In 2022,
feed suppliers to develop more sustainable feed. Input factors in
project archive, and finalized projects and results are shared.
and the Group has established and lives by the values: Open,
there were no reported incidents of corruption and no reported
fish feed, both marine ingredients and plant-based ingredients,
The global functional team for R&D works continuously with the
Ambitious and Caring. For the fifth time in Norway, and the
whistleblowing cases. The whistleblower channel, operated
should come from sustainable sources. Ingredients associated
farming regions to facilitate the operational implementation of
fourth time globally, the Group participated in the Great Place
by EY, is available for the employees to report any unwanted
with a high risk (fish meal and fish oil from fisheries, Brazilian
the R&D results.
soy and palm oil) are certified by recognized certification
schemes. The Group has also committed to a deforestation
statement. Read more about the Group’s work on sustainable
EMPLOYEES AND HUMAN RIGHTS
As an industry with global supply chains both upstream and
to Work survey. The Board is proud to announce that all regions
behavior and breaches of the Group’s Code of Conduct. The
maintained the Great Place to Work certification in 2022.
Group has established grievance mechanisms for external
The Group also works systematically to safeguard its employees’
regional websites. No incidents involving infringement of the
parties and local communities, available through the Group’s
feed ingredients in Part 2 of this report.
downstream, Grieg Seafood has a responsibility to respect and
health, safety and working environment. The aim is to prevent
rights of indigenous peoples were reported in 2022.
promote human rights both at its own operations and in its
work-related injuries, illness, accidents and fatalities. The
While farmed salmon has a low carbon footprint compared to
value chains. The Group has a Human Rights policy and Code of
Group expects nothing less from its supply chain. Human
The company’s reporting on corporate social responsibility is
other animal proteins, the industry must do more to contribute
Conduct in place, and adheres to various related global principles
resources are managed locally in compliance with local rules
based on several standards, such as the Euronext guidance on
to the Paris Agreement’s climate goals. New technologies
and practices. The Group also requires its suppliers to abide by
and regulations, and in accordance with the Group’s guidelines.
ESG reporting, the OECD Guidelines for Multinational Enterprises
must be developed to cut emissions in our own operations and
its Supplier Code of Conduct. In accordance with the Norwegian
The Group is working continuously to strengthen global routines
and the Global Reporting Initiative (GRI). Grieg Seafood is also
value chain. The Group has a policy for climate action, and has
Transparency Act, the Group will publish a transparency
and guidelines for human resources and health and safety
committed to the UN Global Compact, and has signed the
set a Science Based Target for emission reduction. The Group
statement based on the human rights assessment that was
throughout the Group, and actively seeks to reduce sick leave
Sustainable Ocean Principles. Corporate social responsibility
undertakes climate accounting and performs a systematic
performed in 2022. The transparency statement will be available
and the number of health and safety incidents. All such incidents
reporting is integrated in this Annual Report.
assessment of its emissions, for Scope 1, 2 and 3. For more
on www.griegseafood.com no later than 30 June 2023.
are registered and reviewed as part of monthly HSE meetings.
information on the Group’s climate action plan and emission
Read more about how the Group is committed to safeguarding its
The Board has assessed the Group’s achievements in relation
reductions, see the climate action section in Part 2 of this report.
To reach goals and solve challenges, Grieg Seafood needs the
employees and the results of this work in the People section of
to the above-mentioned topics as part of the sustainability
The Group is grateful to the local communities for giving
political, religious, or sexual persuasion. The Group embraces
best people, regardless of their gender, age, ethnicity, origin, or
this report.
scoreboard, see “Targets and achievements” at the beginning of
the Board of Director’s report. Overall, the Board is satisfied with
permission to farm salmon in their fjords and inlets. In
diversity and is committed to being an equal opportunity
To strengthen the corporate culture and encourage employee
the Group’s achievements and efforts in relation to corporate
return, the Group not only does what it can to safeguard local
employer. This is reflected in the Group’s Gender Equity policy
loyalty, Grieg Seafood continues to give its employees the
social responsibility and the management of the Group’s impact
biodiversity and apply sustainable farming methods, but also
and the Diversity policy. At year-end 2022, the majority of the
opportunity to become company shareholders through the annual
on the economy, environment and people in 2022. The Group
aims to contribute to vibrant local communities in the rural
Group’s employees, including managers, are men. The Group
share-purchase program. Through this program, participants
will continue working to reduce or minimize its impact on the
areas in which it operates. See the end of each regional section
aims to have 40% female representation in management
receive a 30% discount on the purchase price of shares. The
environment, to have a positive social impact and maintain strong
for information on our contribution to local communities.
positions and in positions such as supervisors, site managers
maximum number of shares per employee in 2022 was 704.
corporate governance.
Grieg Seafood has a responsibility to engage in constructive
and other administrative positions, by 2026. At year-end 2022,
There is a lock-up period of 18 months for the shares. Primary
dialogue with all stakeholders and groups that are impacted by
the Group had 28% female representation in the Group executive
insiders employed by Grieg Seafood ASA are also eligible under
its activities. In British Columbia, Grieg Seafood is farming in
team, while 50% of the regional directors were female. In total,
the share program.
areas that belong to indigenous peoples, while Finnmark has
812 people were employed at the Group as at 31 December 2022,
long been home to the Sami people. Grieg Seafood recognizes
of whom 240 (30%) were women and 572 (70%) were men. Grieg
that these groups have special rights, as acknowledged in the
Seafood annually monitors and reports on gender balance, pay
The Group has guidelines for management remuneration,
available here and the remuneration report for 2022 is
United Nations Declaration on the Rights of Indigenous Peoples
gaps, women in management positions and key roles through
available here.
(UNDRIP), and takes particular care to avoid infringing them.
the SHE Index. In the last SHE Index, published in March 2023,
RESEARCH AND DEVELOPMENT AS PART
OF ACHIEVING SUSTAINABLE GROWTH
The main objective of Grieg Seafood’s R&D activities is to create
value, ensure sustainability and promote innovation in the Group.
The activities and priorities are anchored in the Group’s strategy.
A continuous process of identifying the most important issues to
be addressed forms the basis for R&D activities.
The project portfolio covers most areas of Grieg Seafood’s value
chain. The majority of projects are related to fish health and
welfare, environmental documentation and impact, nutrition and
feeding, as well as novel and improved production methods both
in the freshwater and the seawater phases of production. An
internal R&D strategy provides guidance in the process of project
prioritization and qualification to secure each project's relevance
and industry value. Projects are aligned with the needs of the
farming regions in order to ensure the relevance and potential
applicability of the planned endeavors. Meeting with the farming
the Group received 73 points (High score), compared to an
average score across Norwegian companies of 72. The Group
conducts annual assessments of its pay structure to identify any
pay gaps between men and women performing jobs of equal
value. Non-administrative positions are covered by labor union
agreements and there are no differences between women and
men. The only differences that may occur are based on seniority,
which is also regulated by union agreements. The Group uses
the Korn Ferry methodology to benchmark salaries and benefits
against the market. Salaries that are not on the median level
are adjusted according to the benchmark – both for women and
men. The Group’s positions and pay structure are based on a
matrix where all positions are given a score/number based on
their responsibility, mandate and content. There is no gender-
based discrimination in this matrix. Salaries are based on roles
and responsibility, not on gender, cultural background or place
of origin. The Group offers flexible working hours to office staff
and seeks to ensure a good work-life balance throughout its
operations. The goal is to attract the best skills, improve
E V EN T S AF T ER T HE R EP OR T ING
D AT E
No significant events have taken place after the reporting date of
31 December 2022.
OU T L OOK
MARKET EXPECTATIONS AND
POSSIBILITIES
For the past 25 years, literally all new fish volumes have come
The Board wishes to thank all employees for their dedication,
efforts and contributions in 2022.
CORPORATE GOVERNANCE
Strong corporate governance is essential to achieving the
Group’s objectives and acting as a responsible organization.
from aquaculture. Wild fishing has long had to cope with smaller
The Group’s governance system includes its vision, core values,
catches, quotas and other regulatory restrictions. Since 1990,
strategies, objectives, operational performance, impact on the
the volume of farmed fish has multiplied more than six-fold, with
economy, environment and people, and related risk, as well as
salmon making up less than 2.5% of the volume. In line with the
compliance with laws and regulations. Grieg Seafood ASA seeks
ongoing global megatrends relating to health and sustainability,
to comply, where applicable, with the Norwegian Code of Practice
there has been growing interest in the health and potential
for Corporate Governance issued by the Norwegian Corporate
environmental benefits of sustainable aquaculture. Currently,
Governance Board (NUES). The Group follows NUES’s latest
recommendations and has updated its existing rules and defined
values in accordance with changes to the Norwegian Code of
Practice published in 2021. The company’s corporate governance
policies and practices are disclosed in the Corporate Governance
section of this report.
Europe is the largest and most mature market for Atlantic
salmon, consuming more per capita than other continents. There
are, however, countless ongoing initiatives to introduce salmon
to a larger number of new consumers across the globe. An
increase in consumption per capita in large markets and growing
economies such as the USA, Brazil, China and India is expected to
contribute to rising demand for Atlantic salmon over time.
PART 03 – OUR FINANCIAL RESULTS
68
S TAT EM EN T FR OM T HE B O AR D OF
DIR E C T OR S AND CE O
We hereby confirm that, to the best of our knowledge, the financial
statements for the period from 1 January to 31 December 2022
have been prepared in accordance with applicable accounting
standards and give a true and fair view of the Group and of the
Group’s assets, liabilities, financial position and overall results.
We also confirm that the Board of Directors’ Report gives a
true and fair view of the development and performance of the
business and the position of the company and the Group, as well
as a description of the principal risks and uncertainties facing the
company and the Group.
Bergen, 30 March 2023
The Board of Directors of Grieg Seafood ASA
According to Kontali, the global harvest of Atlantic salmon in
2023 is expected to increase by 2%, or 51 800 tonnes, compared
PRODUCTION
At the time of issuing this report, biological production is good
to 2022, and come to 2 916 800 tonnes (figures in whole fish
in Rogaland, British Columbia and Newfoundland. Infectious
equivalent, WFE). With limited supply growth in 2023, combined
Salmon Anemia (ISA) has been detected in one farm in Rogaland
with an outlook for continuing strong demand fueled by an
increased focus on healthy food and sustainably produced
in March 2023. However, we do not expect that this will have a
material impact on the production or the volume to be harvested
proteins, the Group currently (at the time of publishing this
in 2023. The biological situation at year-end in Finnmark was
report) believe in sustained strong market prices in 2023.
However, current inflationary pressure, which is reducing
challenging, due to the parasite Spiro. This has continued into
2023. The Group’s farming operations are running as normal, and
household purchasing power, might impact demand from both
salmon is being harvested according to plan. The emphasis is
the HoReCa (hotels, restaurants and catering) and retail sectors.
on continued optimization of production, focusing on fish health
The Board acknowledges that there is a natural and inherent
and welfare. For 2023, Grieg Seafood expects to harvest a total
uncertainty related to estimated future market demand, trends,
of 82 000 tonnes GWT. The industry experienced a general rise in
growth, and outlook in general.
costs in 2022. This applies in particular to feed. The production
cycle for a salmon, from roe to harvestable weight, is about three
The US market is the world’s largest and fastest growing
years. The production cost of fish is capitalized to inventory.
market for Atlantic salmon, but only a third of US demand is
At the point of harvest, therefore, the expensed farming cost
currently met by North American production. The Group already
recognized in the income statement reflects all costs for all
has a position in this market through its operations in British
past periods. Because of this, not all of the cost inflation impact
Columbia, with significant sales and market experience. Grieg
has been captured in the Operational EBIT for 2022. As a result,
Seafood Newfoundland expects to harvest its first fish in late
the farming cost for 2023 is expected to increase compared to
2023. With proximity to important markets on the US East Coast,
2022. The Group has initiated an improvement program aimed at
the Newfoundland region significantly strengthens the Group’s
optimizing production and reduce costs.
US market exposure and opens for synergies with existing
operations, as the Group should be able to provide a more stable
supply to the US market.
FINANCIAL POSITION
As at 31 December 2022, Grieg Seafood was in a solid financial
position, with NOK 643 million in cash and cash equivalents, as
There is a consensus in the market that the existing coastal,
well as NOK 1 013 million of surplus cash invested in money
open-pen aquaculture industry will achieve modest organic
market funds. In addition, the Group had NOK 1 700 million of
growth. This will primarily be driven by the opening of new sites
undrawn credit facilities as at 31 December 2022.
and areas for sea farms, new and improved technologies and
farming practices, and better cooperation both between industry
players and with the public authorities. The industry needs
stable regulatory conditions to be able to grow in a sustainable
manner going forward. In Norway, the proposed resource rent
GOING C O NCER N
tax has generated a lot of uncertainty, especially since the details
The Board is of the opinion that the financial statements give a
concerning the taxation are still not clear and because the
true and fair presentation of the Group’s assets and liabilities,
proposed tax level is high. As a consequence, the Group has put
financial position and financial results. Based on the above
all new growth investments, worth a total of approximately NOK
presentation of the Group’s results and financial position, and
2.3 billion, on hold until a final version of the tax regime has been
in accordance with the Norwegian Accounting Act, the Board
adopted. The proposed tax may divert the investments to British
confirms that the annual financial statements have been
Columbia and Newfoundland in Canada. Overall, salmon farming
prepared on a going concern basis, and that the requirements for
in Norway may lose competitiveness compared to aquaculture in
so doing have been met.
other countries. With new technologies being developed, where
there is no reliance on a coastline with naturally tempered water,
aquaculture investors may find it more attractive to invest and
develop the industry in places with lower tax levels.
PART 03 – OUR FINANCIAL RESULTS
69
COMPONENTS OF CORPORATE
GOVERNANCE
A sound corporate structure, with viable decision-making
engagement. The CEO is also responsible for establishing rules
for handling conflict of interest.
processes, a clear division of responsibility and authority,
The CEO delegates authority and responsibility to the group
appropriate information and communication processes as well
executive management team, from where responsibilities
as remuneration and reward schemes, is key to Grieg Seafood
cascade throughout the Group. The executive management team,
being able to achieve its strategies and objectives. The main
which consists of senior executives representing all aspects
components of the Group’s corporate governance consist of
of our operations, is responsible for establishing operational
objectives and directions, structure, organizational planning and
plans and targets, allocating resources to its members’ specific
management as well as learning and improvement. Together
functions and following-up their operational performance.
with the external context, these components underpin our
In 2022, the executive team consisted of the Chief Financial
ability to create value and achieve goals. Our operations are
Officer (CFO), the Chief Operational Officers (COO, responsible
clearly connected with a multitude of external expectations.
for our farming operations in Norway and Canada), the Chief
We therefore seek to maintain a regular dialogue with our
Commercial Officer (CCO, responsible for our sales function),
stakeholders, as they are the basis for our social license to
in addition to the supporting functions lead by Chief Technology
operate. Transparency and disclosure are vital in building trust,
Officer (CTO), the Chief Human Resource Officer (CHRO) and the
and engaging in a dialogue with our stakeholders enables us to
Global Communication Manager. The executive management
better understand the role we play in local communities and in
team is responsible for implementing group policies, monitoring
society as a whole.
GOVERNANCE STRUCTURE
The shareholders are the owners of the company, and the
their functions’ impacts on the economy, environment and
people, managing related risks and securing compliance with
laws and regulations. This also includes ensuring that our
employees receive the proper training of policy commitments.
General Meeting, which all shareholders are invited to attend,
The CEO and the group executive management team together
is the company’s highest decision-making body. The General
engage with the Group’s stakeholders, which is key to be able
Meeting provides instructions to the Nomination Committee,
to grasp emerging opportunities for our business, and at the
which safeguards shareholders’ interests by nominating board
same time to understand and mitigate economic, environmental
members. The Board of Directors has a supervisory role,
and social risks. Results of stakeholder engagement is reported
overseeing the conduct and management of Grieg Seafood. The
to the Board as part of risk management procedures and
Board’s responsibilities to ensure good corporate governance
regular business updates in board meetings. See examples of
include approving the vision, core values, strategies, objectives,
stakeholder engagements in Part 4 of this report.
plans, budgets and overall organization of the operations,
monitoring operational performance and due diligence, and the
The CEO has delegated the establishment of group policies
company’s impact on the economy, environment and people, as
to the Sustainability Steering Committee, which prepares and
well as related risks, and verifying compliance with laws and
updates them on the basis of a holistic assessment of economic
regulations.
and environmental, social and governance (ESG) issues (our
materiality assessment). Relevant organizational functions
The Board nominates board members to specific committees
and expertise take part in preparing the policies. Our policies
(Audit Committee and Remuneration Committee) to provide
are approved by the CEO while our Board of Directors monitors
counsel and advice or to handle tasks on the Board's agenda.
compliance with the policies. Policies are presented to the group
The Audit Committee members have a particular responsibility
management team and the regional management team, and are
for overseeing the integrated reporting process, the audit
available to all employees through our internal risk management
process, the company's system of risk management, internal
system. We have a special focus on our Code of Conduct, where
controls and compliance with laws and regulations. The role of
our employees are required to complete a program every second
the Remuneration Committee is to establish and maintain an
year. In 2022, 92% of our employees completed the Code of
appropriate rewards policy that attracts and motivates executives
Conduct program. Our policies are available to the public through
to achieve the long-term interests of shareholders.
our website. The group policies contain a set of targets and
The Board has delegated management of the Group’s overall
in the sustainability scoreboard in the company’s quarterly
operations and resources to the CEO. The CEO’s responsibilities
and annual reports as part of the material topic they relate
includes establishing a vision, core values, strategies, objectives,
to. As such, the Board, and in particular the Audit Committee,
plans and budgets for the Group. The CEO is also responsible for
reviews and approves the Group’s performance with respect to
Key Performance Indicators (KPIs), of which most are included
establishing and approving group policies, and is accountable
for the Group’s operational performance and its impacts on
the economy, environment and people. In addition, the CEO is
responsible for managing related risks and ensuring compliance
with laws and regulations. The CEO acts as the main point of
communication between the Board and the Group’s operations,
and is the public face of the Group, responsible for stakeholder
material topics, including the management of its impact on the
economy, environment and people. Combined with the quarterly
risk assessment and the review of the quarterly and annual
report, the Audit Committee and the Board are advancing their
knowledge on sustainable development. Additionally, the Board
has been presented the climate action plan in 2022.
CORPORATE
GOVERNANCE
Grieg Seafood believes that strong corporate governance is an
essential element in achieving our overall objectives and acting as a
responsible organization. Our vision “Rooted in nature – farming
the ocean for a better future” demonstrates our commitment to
corporate responsibility by operating profitably and sustainably
in a manner that conforms with fundamental ethical norms and
respect for the individual, society and the environment.
PART 03 – OUR FINANCIAL RESULTS
70
RESPONSIBLE BUSINESS CONDUCT
Our values and Code of Conduct underpin the way we conduct
corruption incidents that resulted in the termination or non-
renewal of contracts with a business partner. We will continue to
ourselves and our approach to responsible business behavior.
perform these risk assessments.
Our Code of Conduct sets out the ethical principles and standards
that must be upheld by each and every employee, and any
Our policy set out our mechanisms for grievance and remediation
agent that acts on our behalf, including our Board of Directors.
of negative impacts, as well as for seeking advice and raising
Through our Supplier Code of Conduct, we demonstrate that
concerns. We aim to have an open and transparent dialogue with
we expect no less from our supply chain. A large share of our
all our stakeholders, and regularly invite stakeholders to our
suppliers, in purchase value, have signed the Supplier Code of
sites or meet with stakeholders. Our employees can raise any
Conduct. Additionally, our Procurement policy provides global
concerns about our business conduct, business relationships, or
standards for how we source goods and services. Through our
potential and actual negative impacts through our whistleblower
Human Rights policy, we recognize that we can contribute to the
channel. All reported incidents are investigated and reported
fulfillment of human rights. We have a responsibility to prevent,
to the CEO and Board of Directors. Employees can also
mitigate, and address adverse human rights impacts in our own
raise concerns through their line manager or HR functions,
operations, but we also use our leverage to promote respect for
through their labor unions. or relevant human rights tribunals.
human rights in our value chain. Our approach to responsible
Complaints by local communities or other stakeholders
business conduct including human rights is based on the OECD
can be raised through meetings or through the regional
Guidelines for Multinational Enterprises, the OECD Due Diligence
websites. In 2022, we did not receive any such concerns from
Guidance for Responsible Business Conduct, the UN Convention
our stakeholders, nor were any whistleblower cases reported,
Against Corruption, the UN Guiding Principles on Business and
and as such, we have not provided any remediation. While our
Human Rights, the Universal Declaration of Human Rights, the
policies set out our commitments related to the environment and
ILO Declaration on Fundamental Principles and Rights at Work,
social impacts, we recognize that we can improve our grievance
the United Nations Convention on the Rights of the Child, the UN
mechanisms and remediation processes.
Convention on the Elimination of Discrimination against Women,
the UN Declaration on the Rights of Indigenous Peoples, and the
UN Global Compact.
INVESTIGATIONS
In February 2019, the European Commission launched an
investigation to explore potential anti-competitive behavior in
Our policies sets out guidelines and precautionary principles to
the Norwegian salmon industry. Grieg Seafood is one of the
enable adoption of precautionary measures. We are committed
companies under investigation. At date, no decision has been
to respecting fundamental human rights in our operations, our
made by the European Commission. Grieg Seafood is not aware
value chain, and in the communities where we operate. We
of any anti-competitive behavior within the Group, neither in
use our influence to promote the fulfilment of human rights
Norway, nor the EU, or Canada. Grieg Seafood rejects that there
and always seek to avoid involvement, even indirectly, in their
is any basis for the claims and considers the complaints to be
abuse. Please find the details of our commitment in the Human
entirely unsubstantiated.
Rights policy on our website. We also aim to conduct proper due
diligence when engaging with third parties. During 2022, we have
Grieg Seafood had also been sued by indirect purchasers in the
developed our human rights due diligence, covering both our
USA. In 2022, a settlement offer from the indirect purchaser
own operations and our supply chain, in line with the Norwegian
plaintiffs was accepted. In February 2023, the settlement was
Transparency Act. It will be made public in June 2023.
finally approved by the court of Southern District of Florida.
The settlement does not involve any admission of liability or
Our policies state that we do not permit or tolerate engagement
wrongdoing. Costs incurred and provisions for expected costs
in any form of corruption or money laundering activities. We
related to the lawsuits in North America have been expensed
also refrain from anti-competitive behavior, anti-trust and
in 2022. For more information, see Note 28 and Note 31 to the
monopolistic practices, as this can severely affect consumer
Financial Statements.
choice, pricing and other factors that are essential for efficient
salmon markets. As part of our risk management process,
we assess our operations for risks related to corruption and
COMPLIANCE
We aim to comply with all relevant laws and regulations in
implement mitigating measures or controls to prevent corruption
the regions in which we operate. Salmon farming is a highly
and money laundering activities. According to Transparency
regulated industry, and we are subject to strict standards for fish
International/OECD, aquaculture is not assessed as an industry
welfare, environmental impact, food production and production
of high risk for corruption. Our risk assessments in 2022, which
equipment. We must comply with operational requirements
included all of our sales and farming operations, did not uncover
any significant risks that required specific mitigation actions.
None of the countries in which we operate were considered
high-risk countries according to the Transparency International
Corruption Perception Index. We did not experience any incidents
of corruption or money laundering activities in 2022. We had no
related to the use of medicines and chemicals, biomass levels,
sea lice levels, stock density, water quality, etc. We report
regularly to public authorities on, for instance, biomass levels,
sea lice levels and disease outbreaks. We are also subject to
regular inspections and audits by local, national and international
stakeholder groups and authorities.
PART 03 – OUR FINANCIAL RESULTS
FIGURE 3.19
NON-COMPLIANCE WITH LAWS AND REGULATIONS IN 2022
Area of non-compliance
Description
Fines (NOK)
Number of non-monetary sanctions
Dispute resolution mechanisms
Environmental
Social
Economic
n/a
n/a
n/a
0
0
0
0
0
0
In 2022, we did not receive any fines related to non-compliance, nor were any non-monetary sanctions imposed on us. Additionally, we did not have any significant
instances of non-compliance (where significant is determined to be any instances, except charges related to delayed reporting to authorities).
None
None
None
71
CORPORATE GOVERNANCE
PRINCIPLES
Adopted by the Company’s Board of Directors on
20 April 2007, and updated on 30 March 2023.
FIGURE 3.20
GRIEG SEAFOOD'S COMPLIANCE WITH THE NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
Section of the Norwegian Code of Practice for Corporate Governance
Deviation from the Code of Practice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Statement of corporate governance
Activities
Share capital and dividends
Equal treatment of shareholders and transactions with related parties
Negotiablility
General Meeting
Nomination Committee
Corporate Assembly and Board of Directors - composition and independence
Work of the Board of Directors
Risk management and internal control
Directors' fees
Remuneration of executive personnel
Information and communication
Company takeovers
Auditor
No deviation
No deviation
No deviation
No deviation
No deviation
Two deviations, see below
Two deviations, see below
One deviation, see below
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
1. IMP LEM EN TAT ION AND R EP OR T ING ON C OR P OR AT E GO V ER N ANCE
PRESENTATION OF CORPORATE GOVERNANCE
Responsibility for ensuring that the company has good corporate governance rests with the Board of Directors (the Board). The Board
reviews the updates the Grieg Seafood Group’s corporate governance policy, which is part of the Group’s governing framework and forms
the basis of this summary. Grieg Seafood´s principles for corporate governance are based on standards such as the Norwegian Code
of Practice for Corporate Governance as recommended by the Norwegian Corporate Governance Board (NUES), the Institute of Internal
Auditors Norway’s guidelines for governance, in addition to best practices from, for example, the Euronext guidance on ESG reporting,
the OECD Guidelines for Multinational Enterprises and the Global Reporting Initiative (GRI).
The company abides by the latest Norwegian Code of Practice for Corporate Governance as recommended by the Norwegian Corporate
Governance Board (NUES), published 14 of October 2021. The company has adopted the “follow or explain principle” with respect to the
Code’s application. This means that the company provides an explanation whenever it deviates from the Code of Practice.
Deviations from the Norwegian Code of Practice: None
2. BU SINE S S
GRIEG SEAFOOD ASA
The company's business is defined in Article 3 of its Articles of Association: “The object of the company is to engage in the production and
sale of seafood and in naturally related activities, including investment in companies engaged in the production and sale of seafood and in
other naturally related activities.”
The company is established and registered in Norway, and is required to comply with Norwegian law, including laws and regulations
pertaining to companies and securities.
GRIEG SEAFOOD ASA’S VISION, TARGETS AND STRATEGY
In keeping with Grieg Seafood’s vision “Rooted in nature - farming the ocean for a better future”, we demonstrate our commitment to
corporate social responsibility by operating profitably and sustainably in a manner that conforms to fundamental ethical norms and
respect for the individual, society as a whole and the environment. Through its five pillars, Grieg Seafood is committed to creating
sustainable and long-term value. Sustainability is fundamental to the industry and strongly impacts our financial performance. Our 2026
strategy comprises three key strategic objectives for continued business development: global growth, cost improvement and value chain
repositioning. Increasingly sustainable farming practices underpin all areas of the strategy.
The Board is committed to sound corporate governance, and our governance structure helps enable the Board to fulfil its fiduciary
duties to our shareholders and ensure our long-term success. The Board has established objectives, strategies and risk profiles for the
company’s defined business scope, in order to create value for its shareholders. The Board has an annual plan for its endeavors and
follows a five-year cycle in its strategy work. This includes a review of risk areas and internal controls, as well as approving the strategy,
objectives and risks relating to sustainable development.
The company aims to comply with all relevant laws and regulations, and with the Norwegian Code of Practice for Corporate Governance.
This also applies to all companies controlled by the Group. To the extent possible, therefore, this statement of principle also applies to
all companies within the Group. The company has its own Code of Conduct, which all employees and contract workers must abide by. The
company also has its own Supplier Code of Conduct, which we expect all our suppliers to comply with.
MANAGEMENT OF THE GROUP
Control and management of the Group is divided between the shareholders, represented by the General Meeting, the Board of Directors
and the CEO, and is exercised in accordance with prevailing company legislation.
Deviations from the Norwegian Code of Practice: None
PART 03 – OUR FINANCIAL RESULTS
72
3. EQU I T Y AND DI V IDEN DS
EQUITY
At any given time, the Group shall have a level of equity and a capital structure that are appropriate to the Group’s cyclical activities. The
Board requires that, as a minimum, equity consistently complies with current loan covenants.
As at 31 December 2022, the company's consolidated equity totaled NOK 6 486 million, equivalent to 50% of total assets and a debt-to-
equity ratio of 1.0. The Board of Directors considers the current capital structure to be satisfactory in relation to the company’s objectives,
strategy, and risk profile.
DIVIDEND
The Group’s 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 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.
In addition, the Board must ensure that there are adequate financial resources to pave the way for future growth and investment, and
meet its desire to minimize capital costs.
The Board has adopted a dividend policy whereby the average dividend, over a period of several years, should correspond to 30-40% of
profit after tax before fair value adjustment of biological assets (limited to 50% by Green Bond agreement). Furthermore, although a
net interest-bearing debt per harvested kg of up to NOK 30 is considered reasonable, it may be exceeded in periods of growth-related
investments. Based on this, the size of the dividend could be adjusted within the margin set out above.
4. EQU AL T R E AT M EN T OF SH AR EHOLDER S AND T R ANS A C T IO NS W I T H
R EL AT ED PAR T I E S
SHARE CLASS
The company has one class of shares, and all shares carry the same rights. As at 31 December 2022, the company had
113 447 042 outstanding shares, including treasury shares.
TREASURY SHARES
If the company trades in its own (treasury) shares, the Norwegian Code of Practice’s provisions relating to the equal treatment of
shareholders and transactions with related parties shall be observed.
As at 31 December 2022, the Company held 1 351 811 treasury shares.
APPROVAL OF AGREEMENTS WITH SHAREHOLDERS AND OTHER RELATED PARTIES
All non-immaterial transactions between the company and a shareholder, board member, senior employee, or their related parties,
shall be subject to valuation by an independent third party. If the consideration exceeds one-twentieth of the company’s share capital,
transactions of this kind shall be approved by a General Meeting of shareholders, in so far as this is required under Section 3-8
of the Norwegian Public Limited Companies Act. The company has adopted a policy for transactions with related parties/majority
shareholders. There were no significant transactions with related parties in 2022. Day to day transactions with related parties have taken
place under market conditions in accordance with arm's length principle, and are described in Note 25 to the Group Accounts.
CAPITAL INCREASES
Should shareholders’ preferential subscription right be waived, the Norwegian Code of Practice shall be observed. There were no capital
increases in 2022.
In 2022, the Group distributed a dividend of NOK 3.0 per share to shareholders, which corresponds to 46% of the net profit before fair
Deviations from the Norwegian Code of Practice: None
value adjustment of biological assets for the 2021 fiscal year.
BOARD AUTHORIZATIONS
The Board can ask the Annual General Meeting (AGM) to grant a general mandate to pay out dividends in the period until the next AGM. An
explanation must be given for the Board´s proposal. The dividend will be based on the Group's current policy. Dividends should be paid on
the basis of the last financial statements approved within the scope of the Norwegian Public Limited Companies Act. Upon authorization
being granted, the Board determines the date from which the shares are to be traded ex-dividend.
The Board has a general authorization to increase the company’s share capital through share subscriptions for a total amount not
exceeding NOK 45 378 817, divided into not more than 11 344 704 shares at the nominal value of NOK 4.00 each. The authorization covers
merger decisions as provided for in Section 13-5 of the Norwegian Public Limited Companies Act. The Board is entitled to increase the
share capital on several occasions and may itself determine the amount of the share capital increase in each case.
The Board has a general authorization to acquire the company’s own (treasury) shares in accordance with the provisions of Chapter 9 of
the Norwegian Public Limited Companies Act for an aggregate nominal amount not exceeding NOK 45 378 817. The company shall pay not
less than NOK 4.00 per share and not more than NOK 180.00 per share when acquiring treasury shares. In December 2022, the company
acquired 385 000 treasury shares, see Note 18 to the Group Accounts.
All the authorizations remain in effect until the next AGM, but not later than 30 June 2023. Going forward, the company will observe the
Norwegian Code of Practice in respect of new proposals to authorize the Board to implement capital increases and acquire treasury
shares.
Deviations from the Norwegian Code of Practice: None
5. SH AR E S AND NEGO T I A BILI T Y
There are no limitations with regards to owning, trading or voting for the company’s shares. All shares are freely negotiable to all parties.
Deviations from the Norwegian Code of Practice: None
6. GENER AL M EE T ING S
The shareholders are the owners of the company, and the General Meeting is the company’s highest decision-making body. All
shareholders are invited to attend the Annual General Meeting (AGM). With respect to the timing and facilitation of General Meetings, the
Board of Directors will do its best to ensure that as many shareholders as possible may attend and exercise their rights, thereby making
the General Meeting an effective forum for the views of shareholders and the Board of Directors.
The company’s AGM shall be held each year before the end of June. The Board will assess whether the meeting is to be conducted
physically as well as via a digital meeting platform. The AGM shall consider and, if thought fit, adopt the annual financial statements,
the integrated annual report and proposed dividend, and the annual report on remuneration of executive personnel. It shall also decide
other matters which under current laws and regulations pertain to the AGM. Guidelines in accordance with the Norwegian Public Limited
Liability Companies Act, Section 6-16a, and the regulations about guidelines and reporting for remuneration of executive personnel were
adopted by the AGM in June 2021. Pursuant to Sections 6-16a and 6-16b of the Public Limited Liability Companies Act, the remuneration
report must approved by the AGM. The remuneration guidelines must be reviewed and approved every four years or earlier in the event of
significant changes.
PART 03 – OUR FINANCIAL RESULTS
73
The Board may convene an Extraordinary General Meeting (EGM) at whatever time it deems necessary or when such a meeting is
required under current laws or regulations. The company’s auditor and any shareholder or group of shareholders representing more
than 5% of the company’s share capital may require the Board to convene an EGM.
The Board must give at least 21 days’ notice that a General Meeting is to be held. During this period, the notice and documents pertaining
to matters to be considered at the General Meeting shall be accessible on the company’s website. The same applies to the Nomination
Committee’s recommendations. When documents are made available in this manner, the statutory requirements for distribution to
shareholders do not apply. Nevertheless, a shareholder may ask to be sent physical documents concerning matters to be considered at
the General Meeting.
The deadline to register for attendance at the General Meeting is set by the Board in the notice, normally five days prior to the meeting’s
scheduled date.
Shareholders can vote on each individual matter, including on each individual candidate nominated for election. Shareholders unable to
attend may vote by proxy. An authorization form containing a vote option for each agenda item will be enclosed with the notice of meeting.
Shareholders may also authorize the Board’s chair or the CEO to vote on their behalf.
The Nomination Committee proposes candidates for election to the Board by the AGM.
The company will publish the minutes of General Meetings in accordance with the stock exchange regulations, in addition to making them
available for inspection at the company’s registered offices. The minutes of meetings are available here.
The Board’s chair and the CEO will attend the General Meeting. The Board’s chair will normally chair the General Meeting. The Board
of Directors will ensure that, if it so requests, the General Meeting is also able to appoint an independent chair. A member of the
Nomination Committee will attend the General Meeting if they are likely to be needed or are available.
7. NOMIN AT ION C OMMI T T EE
On 13 February 2009, the AGM approved a resolution to establish a Nomination Committee. This is described in Article 8 of the Articles
of Association. At the same time, the AGM adopted instructions for the Nomination Committee. According to these instructions, the
Nomination Committee should safeguard the interests of the shareholders by nominating board members according to principles set out
in the Norwegian Code of Practice for Corporate Governance.
The present Nomination Committee was elected at the AGM on 9 June 2022.
Nomination Committee
Elisabeth Grieg
Yngve Myhre
Marit Solberg
Role
Chair
Member
Member
Considered independent
Served since
Term expires
No
Yes
Yes
12.06.2018
07.06.2017
02.06.2021
AGM 2023
AGM 2023
AGM 2023
The members of the Nomination Committee are elected for a term of one year. At least 2/3 of the Nomination Committee’s members
shall be independent of the Board, and may not be board members. The CEO cannot be a member of the Nomination Committee. The
Nomination Committee shall have meetings with the directors, CEO and relevant shareholders. None of the members of the Nomination
Committee are company executives.
The Nomination Committee´s recommendations to the AGM must be submitted well ahead of time and accompany the notice of the
AGM, no later than 21 days before the meeting. The Nomination Committee’s recommendations must include information about each
candidate’s impartiality, competence, age, education and professional experience. Upon proposal for re-election, the recommendation
should include additional information about how long the candidate has been a board member, as well as details of their attendance at
board meetings.
The Board shall not contact the company’s shareholders outside the General Meeting in a manner which could be deemed to constitute
preferential treatment or which could be in conflict with current laws or regulations.
All shareholders are entitled to submit proposals to the Nomination Committee for candidates to the Board of Directors and other
appointments. Proposals must be submitted to the Nomination Committee no later than two months prior to the AGM.
In 2022, Grieg Seafood Group held its AGM on 9 June as a digital meeting.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Code of Practice in two ways.
1. The AGM is not led by an independent chair, but by the Board’s chair. This is in accordance with its Articles of Association. Given the
matters considered by the AGM, an independent chair has not been considered necessary. In cases that involve related parties, the AGM
is chaired by an independent board member.
2. Not all members of the Board or the Nomination Committee attend the AGM. The Board of Directors considers it sufficient that the
Board’s chair is present. Other board members and members of the Nomination Committee and Audit Committee attend as needed.
Recommendations concerning candidates for the Nomination Committee itself should also include relevant information about the
candidates.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Norwegian Code of Practice in one way.
1. The Code of Practice recommends that all shareholders should be able to submit proposals to the Nomination Committee for
candidates to the Board of Directors and other appointments in a simple and easy manner. Currently, shareholders must contact the
Nomination Committee directly. The company will observe the Norwegian Code of Practice in respect of new proposals to facilitate that
all shareholders can propose candidates to the Board and Nomination Committee.
8. B O AR D OF DI R E C T OR S:
C OM P O SI T ION AND INDEP ENDENCE
BOARD MEMBERS
Pursuant to Article 6 of its Articles of Association, the company’s Board of Directors comprises up to seven members, all elected by the
General Meeting. Board members are chosen based on their competence and experience representing the company’s need of expertise
in various fields. At least 40% of the board members must be of each gender.
The Board’s chair is elected by board members. The chair is not an executive in the company. In the event of a tied vote, the Board’s chair
has the casting vote. The CEO is appointed by the Board and has both a right and a duty to attend board meetings but is not a member of
the Board. The CEO is only entitled to vote on board decisions if he or she is an elected member of the Board.
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74
ELECTION PERIOD
All board members are elected at the AGM, for a one-year term of office. Board members may be re-elected.
9. T HE W OR K OF T HE B O AR D OF DIR E C T OR S
INDEPENDENT BOARD MEMBERS
As at 31 December 2022, the Board of Directors consisted of the following non-executive members (whereof 50% men and women):
Name
Per Grieg Jr.
Tore Holand
Role
Chair
Vice chair
Marianne Ødegaard Ribe
Board member
Katrine Trovik
Nicolai Hafeld Grieg
Board member
Board member
Ragnhild Janbu Fresvik
Board member
Considered
independent
Served since
Term expires
2022 meeting
attendance
% of shares in GSF
per 31.12.2022
No
Yes
Yes
Yes
No
No
20.05.2009
AGM 2023
12.06.2018
AGM 2023
14.05.2020
AGM 2023
14.05.2020
AGM 2023
04.11.2021
AGM 2023
09.06.2022
AGM 2023
100%
100%
100%
100%
100%
46%
51.06% *
0.00%
0.00%
0.00%
1.87% **
0.0%
*Per Grieg Jr. and indirectly via the Grieg Group.
** Indirectly through a private investment company Maneo Holding AS.
Ragnhild Janbu Fresvik is defined as not independent of Grieg Seafood ASA because she is employed by Grieg Maturitas AS, the largest
shareholder of Grieg Seafood ASA via Grieg Aqua AS. Grieg Seafood ASA has three board members defined as not independent. The
Board works on the basis that there may be cases where one or more of its members may be insiders. This is followed up by ensuring
that this is clarified before the meeting is held. A board member or members who are not independent must refrain from participating in
the relevant matter.
Board members’ qualifications are wide-ranging, with the relevant competencies relevant to the impacts of the Grieg Seafood. Two of
the members have extensive knowledge within salmon farming, having both served on boards and been employed in the industry for
several years. Five board members have a finance background, whereof three have work within banking and financial institutions, and
also innovation and marketing. One board member is currently engaged in the development of new business opportunities related to the
energy transition within the maritime segment, where part of this knowledge can be applicable to Grieg Seafood’s business. The average
age of the elected board members is 56.
Board members are not included in share option programs as Board members are only elected for one year at a time while the share
option program runs over a longer period.
The company’s website provide information on board members’ backgrounds, expertise as well as quarterly updated board members’
shareholdings in the company.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Norwegian Code of Practice in one way.
1. The majority of the members elected to the board of directors by shareholders should be independent of the company’s executive
personnel and its main business connections. The Board of Grieg Seafood has 50% independent members.
DUTIES AND ANNUAL PLAN
The Norwegian Public Limited Liability Companies Act regulates the duties and workings of the Board of Directors. In addition, the Board
has adopted supplementary rules of procedure covering the duties of the Board and the Group’s CEO, the division of labor between the
Board and the CEO, the annual plan for the Board, notices of board proceedings, administrative procedures, minutes, board committees,
handling of conflicts of interests, transactions between the company and shareholders, and confidentiality.
The Board’s main task is to safeguard the shareholders' interests. The Board has a supervisory role, overseeing the conduct and
management of Grieg Seafood. The Board’s responsibilities to ensure good corporate governance include approving the vision, core
values, strategies, objectives, plan and budgets. It also includes approving the overall organization of the operations, including an efficient
and value-creating management structure. The Board also monitors the Group’s operational performance and financial position, and
its impacts on the economy, environment and people, as well as related risks, and verifies compliance. The Board shall initiate any
investigations it considers necessary to perform its duties, or investigations requested by one or more board members.
To ensure all matters are given unbiased and satisfactory consideration, members of the Board and executive management cannot
consider matters in which they have a special and prominent interest. The Board jointly assess each board member´s impartiality with
respect to matters under consideration.
INSTRUCTIONS
The Board has drawn up a set of instructions for its members and executive management, which contain a more detailed description
of the Board’s duties, procedural matters relating to board meetings, including attendance and schedule, separate entries in the board
minutes, and duty of confidentiality.
The Board and the CEO have separate roles, and there is a clear division of responsibility between the two. The Board of directors has
delegated the management of the Group’s overall operation and resources to the CEO. The Board underlines that special care must be
exercised in matters relating to financial reporting and the remuneration of the executive management team.
The instructions for the Board and executive management were last revised by the Board on 20 September 2017.
CONFLICT OF INTEREST
Board members and the Group’s executive management team shall inform the Board if they have any significant interest in a transaction
to which the company is a party. Any such conflicts of interest must be registered by the administration and disclosed in the annual
report. Please refer to Note 25 to the Group Accounts in the Annual Report 2022. The Group has adopted a policy that sets out Grieg
Seafood’s principles for interaction with the Group’s majority shareholder, with the aim of ensuring equal treatment of all shareholders.
In matters of importance where the Board’s chair is or has been actively involved, the Board’s discussions shall be chaired by the vice
chair.
ANNUAL ASSESSMENT
Each year, the Board shall carry out an assessment of its work, including its performance in overseeing the conduct and management of
the Company in the previous year. The assessment is based on the results of a questionnaire completed anonymously by each member
of the Board and the executive management team. The latest assessment, completed in the autumn of 2022, did not uncover any need for
changes to the composition of the Board or organizational practices.
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75
AUDIT COMMITTEE
The Board has set up a sub-committee, Audit Committee, comprising a minimum of two and a maximum of three members with relevant
Internal control comprises activities and procedures carried out to safeguard the Group’s resources and those of its customers, and to
financial and operational background and experience, elected from among the Board’s members, and has drawn up a mandate for its
realize its goals through appropriate operations. The achievement of these goals requires systematic strategy development and planning,
work. The mandate was last updated in 2021.
identification of risk, choice of risk profile, as well as establishing and implementing control measures to verify that the goals are
achieved. The Group’s internal control system is designed to provide reasonable assurance that the Group’s goals will be achieved. Such
The Audit Committee has a particular responsibility for overseeing the integrated financial and sustainability reporting process, the
goals include targeted, efficient, and appropriate operations, reliable internal and external reporting, as well as compliance with laws and
audit process, the company's system of risk management, internal controls and compliance with laws and regulations. The Audit
regulations, including internal policies and principles.
Committee reviews the Group’s quarterly and annual reports before they are put to the full Board for final approval. In 2022, the Audit
Committee held seven meetings, in accordance with its annual plan. The Audit Committee also carries out an annual assessment of is
The Board has a responsibility to ensure that the Group has proper risk management and such internal control as is required by
work, including its performance in overseeing the conduct, impact and management of all risk areas, as well as its own composition. The
statute. The Audit Committee has been given a particular responsibility to monitor critical business risks and address the quality and
Group’s external auditor participates in all Audit Committee meetings.
As at 31 December 2022, the Audit Committee consisted of one woman and one man:
effectiveness of relevant risk-reducing measures. Management performs a risk assessment quarterly, which is reviewed by the Audit
Committee in connection with quarterly reporting. The Audit Committee informs the Board after each meeting.
Considered independent
Served since
2022 meting attendance
Each year, the external auditor carries out a review of the Group’s performance of internal control relevant for financial reporting. The
Board´s Audit Committee
Katrine Trovik
Tore Holand
Role
Chair
Member
Yes
Yes
14.05.2020
13.06.2019
86%
100%
REMUNERATION COMMITTEE
The Remuneration Committee is governed by a separate set of instructions adopted by the Board of Directors. The members of the
Remuneration Committee are appointed by and from among the members of the Board of Directors and shall be independent of the
company's executive management. As at 31 December 2022, the Remuneration Committee consisted of one woman and one man:
Board's Remuneration Committee
Per Grieg Jr.
Marianne Ødegaard Ribe
Role
Chair
Member
Considered independent
Served since
No
Yes
13.06.2009
14.05.2020
The role of the Remuneration Committee is to have an appropriate reward policy that attracts and motivates executives to achieve the
long-term interests of shareholders. The Remuneration Committee assists and facilitates the Board’s decision-making in matters
related to the remuneration of the executive management team It also reviews recruitment policies, career planning and management
development plans, and prepares matters relating to other material employment issues with respect to executive management. The
Remuneration Committee monitors that remuneration is in line with guidelines approved by the AGM, and prepares a remuneration
report which must be both audited by the company’s auditor and approved by AGM.
The committee shall hold discussions with the CEO concerning his/her financial terms of employment. The committee shall submit a
recommendation to the Board concerning all matters relating to the CEO’s financial terms of employment.
The committee is also the advisory body for the CEO in relation to remuneration schemes which cover all employees to a significant
extent, including the Group’s bonus system and pension scheme. Matters of an unusual nature relating to personnel policy, or matters
considered to entail an especially great or additional risk, should be put before the committee.
The Remuneration Committee reports and makes recommendations to the Board, but the Board retains responsibility for implementing
such recommendations.
The composition of the committee is subject to assessment each year.
Deviations from the Norwegian Code of Practice: None.
RISK MANAGEMENT AND INTERNAL CONTROL
Governance is intended to provide a means by which management and other employees can contribute to the achievement of the
company’s objectives, plan for sound internal control and risk management, support efficient and effective operations with the required
level of monitoring and reporting, and establish effective independent control and assurance. Risk management is part of governance
and involves identifying the types of risk exposure the company faces, measuring these potential risks, proposing means to hedge, insure
or mitigate the risks, and estimating the impact of various risks and opportunities on the future earnings. Internal control represents a
subset of the broader risk management activities.
auditor’s review is submitted to the Audit Committee.
Grieg Seafood has established risk management principles based on the COSO Enterprise Risk Management (COSO ERM) framework,
which is the most widely used risk management framework. Based on this, a described and quantified risk appetite and risk tolerance
level have been established. Risk management processes are established at all relevant levels of the Group, including strategic and
operational levels. Day-to-day implementation of risk management and risk assessment are a line management responsibility, with
ultimate responsibility lying with the Board and executive management. Risks are attributed to risk owners according to the functional
matrix of the organization. Risk owners decide, manage and accept risk exposure and identify and ensure implementation of adequate
controls to close any risk gaps. The company follows the “three lines model” to implement roles responsible for risk management,
internal control and assurance activities.
The Group categorizes its main risks as: strategic risk, operational risk, financial risk, compliance risk, political risk and climate and
nature risk. Management conducts continuous assessments of acute risks and scenarios for possible outcomes. The Group’s greatest
risk relates to biological development during the production of smolt in freshwater facilities and production in open net pens in seawater.
The Group works continuously and systematically to develop processes that safeguard animal welfare and reduce disease and mortality,
and ensure that "best practices" are implemented at all levels. Control routines have been prepared for employee working conditions, as
well as for escape prevention, animal welfare, pollution, water resources and food safety.
The Group is exposed to the following financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk),
credit risk and liquidity risk. The Group’s overall risk management plan focuses on the unpredictability of the capital markets and seeks
to minimize any potentially negative effects on the Group’s financial results. The Group uses financial derivatives to hedge against some
risks. Risk management is undertaken at group level and involves identifying, evaluating and hedging financial risk in close cooperation
with the Group’s operational units. The Group has written principles for risk management related to foreign exchange and interest rate
risk, price risk and the use of financial instruments. The Board has established procedures for reporting financial risk within the Group.
At the start of each year, the Board adopts a budget for the year. Deviations from the budget are reported on a monthly basis. Forecasts
are drawn up for the next five years and updated every month.
Every month, executive management reviews a set of Key Performance Indicators (KPIs) for the Group’s farming and sales and marketing
operations. Example of KPIs include the number of smolt transferred to the sea, freshwater and seawater production, production cost,
feed factor, harvested volume, farming cost and Operational EBIT/kg. Analyses are made and measured against budget figures and
forecasts, aligned with the overall strategy of the Group. The performance data is summarized in a report submitted to the Board.
Each quarter, the Group’s executive management holds meetings with the managements of each region. The aim of such meetings is to
follow up the results achieved in relation to the strategies and goals that have been set.
Deviations from the Norwegian Code of Practice: None.
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11. R EMU N ER AT ION OF T HE B O AR D OF DIR E C T OR S
The company´s Board approved the allocation of cash options based on the AGM´s resolution on the share and cash options program.
The last approval granted by the AGM dates from 2 June 2021. Members of executive management are included in the synthetic options
program, see Note 17 to the Group Accounts in the Annual Report. The option agreements have been entered into within the scope of the
Proposals concerning the remuneration of the Board are submitted by the Nomination Committee. The guidelines approved by the AGM
resolution adopted by the AGM. Minutes of this AGM can be accessed here.
state that remuneration to board members shall be a fixed remuneration and not performance-related. Remuneration shall reflect the
position’s complexity, responsibility and time spent, with remuneration reflecting the levels at comparable companies. No board member
has any special duties in relation to the company over and above those they have as a board member. No board members participate in
any incentive or share-purchase programs.
OPTION PROGRAM
A synthetic option scheme has been established for executive management and regional directors. The Board wishes executive
management and regional directors to become shareholders through the option program. The Board believes this is a decisive tool for
realizing its ambitions and building the company, by allowing executive management and regional directors to take part in the company’s
Board remuneration is shown in the financial statements of both the parent company and the Group.
dividends from growth and success.
Deviations from the Norwegian Code of Practice: None.
12. R EMU N ER AT ION OF T HE GR OUP E XE CU T I V E T E AM
INCENTIVE PLAN
Grieg Seafood ASA has also established an incentive plan that applies to all employees. Its aim is to stimulate goal achievement, while
promoting good risk management, preventing excessive risk taking and contributing to the avoidance of conflicts of interest. Annual
goal achievement and pay-outs from the incentive plan are regulated by the Remuneration Committee. Taking into consideration the
company’s financial position, risks and costs, as well as its capital requirements and liquidity, the committee will decide if the payment
The objective of the guidelines approved by the AGM for salary and other remuneration payable to executive employees within the Group
of variable compensation under the incentive plan is acceptable. If so, the committee will submit a recommendation to the Board, which
is both to attract people with the required competence and retain key personnel. The guidelines shall create a wage culture which
makes the final decision. If the company cannot achieve the financial results associated with the incentive plan, no bonus pay-out will
promotes the company’s long-term interests, business strategy and financial strength. The guidelines should also motivate employees to
be awarded. The bonus is a function of the number of fixed monthly salaries (maximum six month) and the individual’s level within the
work with a long-term perspective to achieve the company´s goals.
organization."
The determination of salary and other remuneration payable to the Group’s executive management team is based on the following
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
guidelines:
• Ensuring that salaries and other remuneration are competitive and motivating for each executive.
according to the guidelines approved of the AGM. Schemes which entail an allotment of shares, subscription rights, options and other
forms of remuneration related to shares or the development of the company’s share price, are determined by the AGM. Each year,
the Board must report to AGM that remuneration to executive personnel complies with the guidelines. The Board´s statement on
• Linking salaries and other remuneration to, among other things, the company’s value creation, the company’s stakeholders and
management remuneration is a separate item on the AGM’s agenda. The AGM votes separately on guidelines to the Board and on
shareholders.
remuneration comprising the synthetic options program. The guidelines and the remuneration report will be published on the company’s
• Attracting, motivating and retaining an executive management team with qualifications that correspond to the company’s size and
website.
complexity.
• Developing competence and creating continuity in management.
• Ensuring transparency and publishing management’s remuneration in the company.
SHARE PURCHASE PROGRAM
The Company’s share purchase program aims to stimulate co-ownership and a sense of common interest with the Company. The Board
can decide annually that all employees, including executive management, shall be offered shares at a discount. All permanent employees
The principles used to determine salary and other forms of remuneration shall be simple and understandable to employees,
who have been employed for at least six months at Grieg Seafood ASA or a wholly owned subsidiary are included in this program. Minor
shareholders and the public at large.
changes in qualifications to this program may be approved by the Remuneration Committee.
Salaries, other remuneration and important terms for the executive management team are evaluated by the CEO annually. Salary, other
remuneration and key terms for the CEO are evaluated annually by the Remuneration Committee, which prepares a recommendation
SEVERANCE PAY
The CEO and the CFO are entitled to 12 months’ severance pay after termination of the employment relationship by the company. The
for the Board’s decision on remuneration to the CEO. The committee shall hold discussions with the CEO about financial terms annually
CEO is further entitled to full salary during sick leave lasting up to 12 months.
and, at the latest, by the end of June each year. The Remuneration Committee presents its evaluation to the Board, which makes the final
decision.
Deviations from the Norwegian Code of Practice: None.
The salary paid to the members of the Group’s executive management team in 2022 consisted of a fixed and a variable element. A fixed
basic salary is the main component of executive compensation and should be competitive, taking into consideration the industry and the
individual’s qualifications, and ensuring effective operations to achieve the company’s strategic aims. The variable element depends on
good financial results being achieved as well as company or personal goals and priorities, based on a pre-defined set of key performance
indicators (KPIs). As an example, in 2022, one of the personal goals of members of the executive management team included establishing
a climate action plan towards 2030.
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
according to the guidelines approved of the AGM. Schemes which entail an allotment of shares, subscription rights, options and other
forms of remuneration related to shares or the development of the company’s share price, are determined by the AGM. Each year,
the Board must report to AGM that remuneration to executive personnel complies with the guidelines. The Board´s statement on
management remuneration is a separate item on the AGM’s agenda. The AGM votes separately on guidelines to the Board and on
remuneration comprising the synthetic options program. The guidelines and the remuneration report will be published on the company’s
website.
PART 03 – OUR FINANCIAL RESULTS
77
13. I NF OR M AT ION AN D C OM MUNIC AT ION
14. TAK E O V ER S
FINANCIAL INFORMATION
The guidelines for reporting financial and other information to the stock market are defined within the framework established by
CHANGE OF CONTROL AND TAKEOVERS
The company has not established mechanisms which can prevent or avert takeover bids. Any such decision must be made by a General
securities and accounting legislation and the rules and regulations of the stock exchange. The company also complies with the Oslo Stock
Meeting of shareholders and requires a majority of two-thirds of the votes cast and of the share capital represented. After a takeover
Exchange (Euronext) Code of Practice for IR, published on 1 March 2021.
bid has become known, the Board will not use its authority to prevent it without the approval of the General Meeting. If a takeover bid
is received, management and the Board will ensure that all shareholders are treated equally. The Board will obtain a valuation from
The Group’s investor relations policy clarifies roles and responsibilities related to financial reporting, and regulates contact with
a competent independent party and advise the shareholders whether to accept or reject the bid. Shareholders will be advised of any
shareholders and the investor market. This policy is based upon the key principles of transparency and equal treatment of market
difference of views among board members in the Board’s statements on the takeover bid.
participants to ensure they receive accurate, clear, relevant, complete and balanced information about performance and outlook. The
IR policy is available on the company’s website. The company shall at all times provide its shareholders, the Oslo Stock Exchange
At its meeting on 13 October 2015, the Board adopted some core principles for how it will act in the event of any takeover bid. These core
(Euronext), and other stakeholders (through the Oslo Stock Exchange information system) with timely information. The Board shall
principles are in accordance with the Norwegian Code of Practice.
ensure that the company’s quarterly reports give a correct and complete picture of the Group’s financial and operational position, and
whether the Group’s operational and strategic objectives are being met.
Deviations from the Norwegian Code of Practice: None.
In addition, the Board has adopted a separate policy on the disclosure of inside information, which sets forth the company's disclosure
obligations and procedures.
The company shall be open and active with respect to investor relations, and shall hold regular presentations in connection with the
15. A UDI T OR
announcement of its interim results. The company publishes all information on its own website and through stock exchange/press
Through its Audit Committee, the Board seeks to collaborate fully and transparently with the Company’s auditor. Each year, the Audit
releases. Quarterly reports, annual reports and stock exchange/press releases are published on the company’s website in accordance
Committee obtains confirmation that the auditor meets the requirements of the Norwegian Auditing Act concerning the independence
with the company’s financial calendar. The presentation of each quarter’s results is available as a webcast.
and objectivity of the external auditor.
SHAREHOLDER INFORMATION
The Board shall ensure that information is provided on matters of importance for shareholders and for the stock market’s assessment
of the company, its activities and results, and that such information is made publicly available without undue delay. Publication shall take
The Board of Directors ensures that the auditor’s auditing plan is submitted to the Audit Committee once a year. In particular, the Audit
Committee considers whether the auditor is performing a satisfactory control function.
place in a reliable and comprehensive manner, and by means of information channels which ensure that everyone has equal access to the
Both the company’s management and the auditor comply with guidelines issued by the Financial Supervisory Authority of Norway
information.
concerning the extent to which the auditor may provide advisory services.
All information shall be provided in English. The company has procedures to ensure that this is done. The Board of Directors’
The Board invites the auditor to the meeting which address the annual financial statements. The auditor attends all meetings with the
communication with shareholders and other stakeholders is delegated to the Board’s chair, or other appointed persons in specific cases.
Audit Committee to consider quarterly reports and other relevant matters, and has at least one meeting a year to report on the Group’s
The Board’s chair shall ensure that the shareholders’ views are communicated to the entire Board.
accounting principles, risk areas and internal control procedures. Moreover, each year the Board has a meeting with the auditor at which
Deviations from the Norwegian Code of Practice: None.
neither the CEO nor anyone else from company management is present.
The auditor’s fee appears in the relevant note in the Annual Report, showing the breakdown of the fee between auditing and other
services.
Deviations from the Norwegian Code of Practice: None.
Bergen, 30 March 2023
Grieg Seafood ASA
PART 03 – OUR FINANCIAL RESULTS
78
GRIEG SEAFOOD
GROUP ACCOUNTS
GR OUP A C C OUN T S
80
Income statement
80
81
82
82
Comprehensive income statement
Statement of financial position
Statement of changes in equity
Cash flow statement
NO T E S
83
84
90
94
95
96
97
98
99
101
103
104
106
107
108
109
110
111
113
113
113
114
114
114
115
115
115
116
116
116
117
117
NOTE 1
General information
NOTE 2
Accounting Policies
NOTE 3
Financial risk management
NOTE 4
Accounting estimates and judgments
NOTE 5
Climate-related risk
NOTE 6
Discounted operations
NOTE 7
Investment in associates
NOTE 8
Segment information and revenue from contracts with customers
NOTE 9
Biological assets and other inventories
NOTE 10
Intangible assets
NOTE 11
Property, plant and equipment incl. right-of-use assets
NOTE 12
Borrowings
NOTE 13
Leases
NOTE 14
Classification of financial instruments
NOTE 15
Taxes
NOTE 16
Salaries and personnel expenses
NOTE 17
Share-based payments
NOTE 18
Share capital and shareholder information
NOTE 19
Earnings per share and dividend per share
NOTE 20
Cash and cash equivalents
NOTE 21
Investment in money market funds
NOTE 22
Trade receivables
NOTE 23
Other non-current receivables
NOTE 24
Other current receivables
NOTE 25
Related parties
NOTE 26
Financial income and financial expenses
NOTE 27
Other operating expenses
NOTE 28
Litigation and legal claims, and decommissioning costs
NOTE 29
Other current liabilities
NOTE 30
New accounting standards, amendments and interpretations
NOTE 31
Contingent liabilities
NOTE 32
Events after the reporting date
PART 03 – OUR FINANCIAL RESULTS
79
INC OME S TAT E ME N T
GRIEG SEAFOOD GROUP NOK 1 000
CONTINUING OPERATIONS
Sales revenues
Other income
Other gains/losses
Share of profit from associates
Raw materials and consumables used
Salaries and personnel expenses
Other operating expenses
Depreciation property, plant and equipment and right-of-use assets
Amortization licenses and other intangible assets
Write-down of tangible and intangible non-current asset
Production fee
Fair value adjustment of biological assets
Litigation and legal claims
Decommissioning costs
EBIT (Earnings before interest and taxes)
Financial income
Financial expenses
Net financial items
Profit before tax from continuing operations
Income tax expense
Net profit for the year from continuing operations
DISCONTINUING OPERATIONS
Net profit for the year from discontinued operations
CONTINUING AND DISCONTINUING OPERATIONS
Net profit for the year
ALLOCATED TO
Controlling interests
PROFIT AVAILABLE TO SHAREHOLDERS IN PARENT COMPANY
Earnings per share from continuing operations (NOK)
Diluted earnings per share from continuing operations (NOK)
Earnings per share - total (NOK)
Diluted earnings per share - total (NOK)
NOTE
2022
2021
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
2022
2021
Net profit for the year
1 153 779
1 204 668
C OM P R EHENSI V E INC OME S TAT EMEN T
3
3
6
6
109 335
24 792
-5 454
—
—
42 112
32 222
-7 089
-105 848
22 709
128 673
-15 894
1 282 452
1 188 774
1 282 452
1 188 774
8
8
8
7
9
7 163 956
4 598 585
NET OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT/LOSS IN SUBSEQUENT YEARS
31 490
13 393
21 096
70 745
-6 752
-1 486
Currency effect on investment in subsidiaries
Currency effect on loans to subsidiaries
Tax effect
-2 233 655
-1 738 267
Recycled accumulated OCI related to sale of Shetland
16/17
-695 577
-577 434
Tax effect of recycled accumulated OCI related to sale of Shetland
13/22/27
-2 087 310
-1 527 347
Total other comprehensive income for the year, net of tax
Total comprehensive income for the year
ALLOCATED TO
Controlling interests
11/13
10
10/11
3/9
28
28
26
26
15
6
19
19
19
19
-434 641
-16 706
-140 074
-26 350
83 412
-157 065
-24 382
-368 482
-7 192
—
-24 463
523 036
—
—
1 497 586
940 944
121 609
-171 553
-49 944
125 233
-212 499
-87 266
1 447 642
853 678
-293 863
1 153 779
-249 301
604 377
—
600 291
1 153 779
1 204 668
1 153 779
1 204 668
10.3
10.3
10.3
10.3
5.4
5.4
10.7
10.7
PART 03 – OUR FINANCIAL RESULTS
80
S TAT EME N T OF F IN A NCI AL P O SI T ION
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2022
31.12.2021
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2022
31.12.2021
ASSETS
Deferred tax assets
Goodwill
Licenses incl. warranty licenses
Other intangible assets incl. exclusivity agreement
Property, plant and equipment incl. right-of-use assets
Indemnification assets
Investments in associates
Other non-current receivables
Total non-current assets
Inventories
Biological assets
Trade receivables
Other current receivables
Derivatives and other financial instruments
Investments in money market funds
Cash and cash equivalents
Total current assets
Total assets
15
10
10/12
10/12
11/13
7
7/23
9/12
9/12
3/12/22
24
3/14
21
3/20
—
691 094
59
660 071
EQUITY AND LIABILITIES
Share capital
Treasury shares
1 463 710
1 536 319
Contingent consideration (acquisition of Grieg Newfoundland AS)
14 689
36 828
4 035 590
3 402 629
40 000
216 624
17 935
40 000
104 675
90 897
6 479 642
5 871 477
240 172
128 299
4 045 800
3 449 412
259 137
157 060
37 988
1 012 848
642 719
151 793
147 332
37 592
—
928 342
6 395 723
4 842 771
Other equity
Retained earnings
Total equity
Deferred tax liabilities
Share-based payments
Borrowings
Lease liabilities
Total non-current liabilities
Current portion of borrowings
Current portion of lease liabilities
Share-based payments
Trade payables
Tax payable
Public duties payable
12 875 365
10 714 248
Derivatives and other financial instruments
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
BERGEN, 30 MARCH 2023
18
18
15
17
12
453 788
-5 407
701 535
197 180
5 138 612
6 485 708
453 788
-4 532
701 535
68 205
4 344 307
5 563 302
1 041 101
1 069 802
6 756
11 115
2 838 809
2 381 000
12/13
653 650
577 797
4 540 316
4 039 714
12
12/13
17
3
15
3/14
29
141 968
226 910
589
717 498
353 191
55 963
64 928
288 293
54 475
178 032
29
523 196
88 641
32 088
22 350
212 422
1 849 341
1 111 232
6 389 657
5 150 946
12 875 365
10 714 248
PER GRIEG JR.
CHAIR
TORE HOLAND
VICE CHAIR
KATRINE TROVIK
BOARD MEMBER
MARIANNE RIBE
BOARD MEMBER
NICOLAI HAFELD GRIEG
BOARD MEMBER
RAGNHILD JANBU FRESVIK
BOARD MEMBER
ANDREAS KVAME
CEO
PART 03 – OUR FINANCIAL RESULTS
81
S TAT EME N T OF C H A NGE S I N EQUI T Y
GRIEG SEAFOOD GROUP NOK 1 000
SHARE
CAPITAL
TREASURY
SHARES1
CONTINGENT
CONS.2
OTHER
EQUITY3
RETAINED
EQUITY
NON-
CONTROLLING
INTERESTS
Equity at 01.01.2021
Profit for 2021
Other comprehensive income 2021
Total comprehensive income 2021
Sale of treasury shares to employees1
Transactions with owners [in their
capacity as owners] 2021
Total change in equity 2021
453 788
-4 686
701 535
84 401
3 135 880
—
—
—
—
—
—
—
—
—
154
154
154
—
—
—
—
—
—
—
1 204 668
-16 197
303
-16 197
1 204 971
—
—
3 456
3 456
-16 197
1 208 427
Equity at 31.12.2021
453 788
-4 532
701 535
68 205
4 344 307
Equity at 01.01.2022
Profit for 2022
Other comprehensive income 2022
Total comprehensive income 2022
Sale of treasury shares to employees1
Purchase of treasury shares
Dividend
Transactions with owners [in their
capacity as owners] 2022
Total change in equity 2022
453 788
-4 532
701 535
68 205
4 344 307
—
—
—
—
—
—
—
—
—
—
—
385
-1 260
—
-875
-875
—
—
—
—
—
—
—
—
—
1 153 779
128 976
-303
128 976
1 153 476
—
—
—
—
6 510
-28 739
-336 942
-359 171
128 976
794 305
Equity at 31.12.2022
453 788
-5 407
701 535
197 180
5 138 612
1 The recognized amount equals the nominal value of the parent company's holding of treasury shares.
2 Contingent consideration related to the acquisition of Grieg Newfoundland AS.
3 Other equity, reclassified through OCI.
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
TOTAL
4 370 918
1 204 668
-15 894
1 188 774
3 610
3 610
1 192 384
5 563 302
5 563 302
1 153 779
128 673
1 282 452
6 895
-29 999
-336 942
-360 046
922 406
6 485 708
SPECIFICATION OF RETAINED EQUITY NOK 1 000
Book value at 01.01.2021
Changes in 2021
Changes in 2022
EFFECT OF
SHARE-BASED
REMUNERATION
PURCHASE/
SALES OF
TREASURY
SHARES *
ACCUMULATED
INCOME LESS
ACCUMULATED
DIVIDEND
TOTAL
1 094
—
—
-5 476
3 456
3 140 261
3 135 880
1 204 668
1 208 124
-22 229
816 839
794 610
Book value at 31.12.2022
1 094
-24 249
5 161 767
5 138 612
* The amount classified under "purchase of treasury shares" equals the cost price in excess of nominal value. See also Note 2.
SPECIFICATION OF ACCUMULATED OTHER COMPREHENSIVE INCOME
NOK 1 000
Book value at 01.01.2021
Changes in 2021
Recycle of accumulated OCI (sale of Shetland in 2021)*
Changes in 2022
Book value at 31.12.2022
*See Note 6 for more information.
PART 03 – OUR FINANCIAL RESULTS
CHANGES IN
FAIR VALUE
OF EQUITY
INSTRUMENTS
CURRENCY
EFFECT ON
LOANS TO
SUBSIDIARIES
CURRENCY
EFFECT ON
INVESTMENT IN
SUBSIDIARIES
-37
—
—
—
-37
26 370
25 134
-80 513
19 338
-9 672
58 068
42 111
-2 626
109 336
206 888
TOTAL
84 401
67 244
-83 139
128 674
197 180
C A SH FL O W S TAT EMEN T
GRIEG SEAFOOD GROUP NOK 1000
EBIT (Earnings before interest and taxes)
Depreciation, amortization and write-down of non-current assets
Gain/loss on sale of property, plant and equipment
Share of profit from associates
Fair value adjustment of biological assets
Change in inventories and biological assets excl. fair value
Change in trade and other receivables
Change in trade payables
Change in other accruals
Change in non-current, cash-settled share option liability
Taxes paid
Net cash flow from operating activities - continued operations
Proceeds from sale of property, plant and equipment
Payments on purchase of property, plant and equipment
Payments on purchase of intangible assets incl. licenses
Government grant
Investment in money market funds
Investment in associates and other invest.
Net cash flow from investing activities - continued operations
Revolving credit facility (net draw-down/repayment)
Proceeds of long-term int. bearing debt
Repayment long-term int. bearing debt
Repayment lease liabilities
Interests paid
Other financial items
Repurchase of own shares
Paid dividends
Net cash flow from financing activities - continued operations
Net change in cash and cash equivalents - continued operations
Net change in cash and cash equivalents - discontinued operations
Net change in cash and cash equivalents - total
Cash and cash equivalents - 01.01.
Currency translation of cash and cash equivalents
Cash and cash equivalents - 31.12.
NOTE
10/11
7
9
15
11
10
21
12
12
12
12/13
26
26
20
2022
1 497 586
591 422
-5 535
-21 096
-83 412
-529 150
-117 071
194 302
133 514
-4 359
-93 865
1 562 336
17 112
-561 916
-2 581
9 119
-1 000 224
-112 212
-1 650 702
-440 000
1 463 423
-522 146
-225 468
-140 002
21 898
-24 400
-336 942
-203 637
2021
940 944
375 674
-88
1 486
-523 036
-330 555
13 327
-39 652
159 654
10 624
-6 895
601 484
11 229
-561 041
-3 833
8 443
—
-15 000
-560 202
-556 222
39 147
-527 652
-184 925
-189 381
-11 021
—
—
-1 430 055
-292 003
-1 388 773
—
2 040 350
-292 003
928 342
6 380
642 719
651 577
275 427
1 339
928 342
82
NO T E 1 GE NE R AL I NF OR M AT I ON
Grieg Seafood ASA is an integrated Norwegian seafood company
engaged in farming of Atlantic salmon. The Group’s integrated
In the following, "Group" describes information relating to the
sales organization sell the farmed salmon from our regions
Grieg Seafood Group, while "Company" refers to the parent
to the market, primarily as fresh head-on gutted, but also
company, Grieg Seafood ASA.
processed through external processing partners. Grieg Seafood
Grieg Seafood. The Shetland disposal group includes the prior
reporting segment of Shetland UK, in addition to the UK sales
To be able to correctly calculate and report the proposed
operations. The Shetland disposal group was deconsolidated
resource rent tax in Norway as from 2023 (see Note 15), Grieg
from the Group as of 15 December 2021. The financial position
Seafood has considered it necessary to reorganize the ownership
of the Shetland disposal group is therefore not included in Grieg
of aquaculture licenses in Norway into separate commercial
Seafood’s consolidated statement of financial position at year-
and non-commercial aquaculture licenses by legal entities. As
end 2021. The Group received a preliminary cash settlement
such, Grieg Seafood Rogaland Sjø AS has been established as
in December 2021. However, settlement was not finalized until
a subsidiary (100%) of Grieg Seafood Rogaland AS, and Grieg
ASA is a public limited company registered in Norway. Its head
In November 2020, we announced that the Board of Grieg Seafood
February 2023. For more information, see Note 6.
Seafood Finnmark Sjø AS as a subsidiary (100%) of Grieg Seafood
office is located at C. Sundtsgt. 17/19, Bergen, Norway. The
had decided to divest our investment and operations in Shetland,
Company was listed on the Oslo Stock Exchange (Euronext) on
as we wished to focus on our operations in Norway and Canada
21 June 2007 and has operations in Norway and Canada. Until 15
going forward. Grieg Seafood ASA sold 100% of the shares in
December 2021, the Company also had operations in Shetland
Grieg Seafood Hjaltland Ltd on 15 December 2021 to Scottish Sea
Grieg Seafood Group comprised the following entities at
31 December 2022:
Finnmark AS. The commercial aquaculture licenses in Norway
are owned by Grieg Seafood Rogaland Sjø AS and Grieg Seafood
Finnmark Sjø AS. These four entities are all domiciled in Norway.
in the UK. The ultimate parent company of Grieg Seafood ASA is
Farms Ltd. In turn, Grieg Seafood Hjaltland Ltd owned 100 % of
Grieg Seafood Sales Ltd (owned 100% by Grieg Seafood Norway
The remaining subsidiaries are domiciled in Norway and owned
Grieg Maturitas AS, the parent company of Grieg Maturitas II AS,
Grieg Seafood Shetland Ltd, which operated the Group's salmon
AS) is domiciled in the UK. Grieg Seafood Sales Ltd was not
by Grieg Seafood ASA.
which in turn own 100 % of Grieg Aqua AS, which owns 50.17% of
farming (and as from 2021 related sales) operations. Grieg
part of the Shetland disposal group, and the entity has been
Grieg Seafood ASA.
Seafood Shetland Ltd owned 100% of the (up until 15 December
2021) dormant company Isle of Skye Salmon Ltd. Grieg Seafood
dormant throughout 2021-2022. Grieg Seafood BC Ltd. (and its
Grieg Seafood Canada AS and Grieg Seafood Newfoundland AS
100% owned subsidiary Grieg Seafood Sales North America Inc)
are holding companies within the Group, and wholly own the
The consolidated financial statements as per 31 December 2022
Hjaltland Ltd, together with Grieg Seafood Shetland Ltd and
is domiciled in British Columbia, Canada, while Grieg Seafood
production companies Grieg Seafood BC Ltd. (incl. subsidiaries)
for the period 1 January to 31 December have been prepared in
Isle of Skye Salmon Ltd, form the Shetland disposal group. The
Newfoundland Ltd (incl. the subsidiaries Grieg Marine NL Ltd and
and Grieg Seafood Newfoundland Ltd (incl. subsidiaries),
accordance with International Financial Reporting Standards
operations of the Grieg Seafood Hjaltland UK Ltd Group were,
Grieg NL Nurseries Ltd) is domiciled in Newfoundland, Canada.
respectively.
(IFRSs) as adopted by the EU, and were approved by the Board of
from Q4 2020 until their sale on 15 December 2021, classified as
Grieg Seafood Premium Brands Inc (domiciled in the USA) is
Directors on 30 March 2023.
held for sale in the consolidated statement of financial position,
and presented as discontinued operations in the consolidated
owned 100% by Grieg Seafood Sales North America Inc. Grieg
Grieg Seafood Rogaland AS has investments in three associated
Seafood Sales USA Inc (domiciled in the USA) is owned 100% by
companies; Tytlandsvik Aqua AS (33.33%), Årdal Aqua (44.44%)
All amounts in these financial statements with note disclosures
income statement and consolidated cash flow statement of
Grieg Seafood Norway AS.
and Nextseafood AS (50.00%), while Grieg Seafood Finnmark has
are stated in NOK thousand unless otherwise specified.
an investment (50.00%) in Nordnorsk Smolt AS.
G R O U P L E G A L S T R U C T U R E
S E G M E N T S T R U C T U R E T H R O U G H 2 0 2 2
GRIEG
SEAFOOD
ASA
OWNER
SHARE: 99%
GRIEG
SEAFOOD
ASA
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD
SALES UK LTD
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
CANADA AS
GRIEG SEAFOOD
NEWFOUNDLAND AS
GRIEG SEAFOOD
ROGALAND SJØ AS
GRIEG SEAFOOD
FINNMARK SJØ AS
GRIEG SEAFOOD BC
LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
TYTLANDSVIK
AQUA AS (33,33%)
NORDNORSK
SMOLT AS (50%)
ÅRDAL AQUA
AS (44.44%)
NEXTSEAFOOD
AS (50%)
GRIEG SEAFOOD
SALES NORTH
AMERICA INC
GRIEG SEAFOOD
PREMIUM BRANDS
INC.
GRIEG MARINE
NL LTD
GRIEG NL
NURSERIES LTD
The Grieg Sefood Hjaltland Group was sold from Grieg Seafood ASA on 15 of
December 2021. The companies were reported at help for sale through 2021.
PART 03 – OUR FINANCIAL RESULTS
NOR
NOR
CAN
CAN
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
ROGALAND SJØ AS
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
FINNMARK SJØ AS
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD SALES
NORTH AMERICA INC.
GRIEG SEAFOOD SALES
NORTH AMERICA INC.
GRIEG SEAFOOD
BC LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
83
NO T E 2 A C C OUN T I NG P OL ICI E S
The principal accounting policies applied in the preparation
of these consolidated financial statements are set out below.
These policies have been consistently applied to all the periods
presented, unless otherwise indicated.
BASIS OF PREPARATION
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU.
The consolidated financial statements have been prepared under
the historical cost convention, modified for biological assets,
equity instruments and financial assets/liabilities (including
derivative instruments) at fair value through profit or loss. The
preparation of financial statements in accordance with IFRS
requires the use of estimates. It also requires management to
exercise its judgement in the process of applying the company’s
accounting policies. Areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are
material to the consolidated financial statements are described
in Note 4.
NEW STANDARDS ADOPTED BY THE GROUP
No new IFRS accounting standards have been implemented in
2022. See Note 30 for more information concerning relevant
amendments and interpretations.
CONSOLIDATION PRINCIPLES
SUBSIDIARIES
Subsidiaries are all entities (including structured entities) over
which the Group exercises control. Control over an entity arises
when the Group is exposed to variability in the return from the
entity and has the ability to impact this return by virtue of its
influence over the entity. Subsidiaries are consolidated from the
day control arises and deconsolidated when control ceases.
The acquisition method of accounting is applied for acquisitions.
The consideration is measured as the fair value of any
transferred assets, liabilities or issued equity instruments. The
fair value of all the assets or liabilities resulting from contingent
consideration agreements is included in the consideration.
Identifiable assets and liabilities and contingent liabilities
assumed in a business combination are initially measured at
fair value at the acquisition date. Non-controlling interests in
the acquired entity are measured from time to time either at
fair value, or at their proportionate share of net assets of the
acquired entity.
Costs relating to business combinations are expensed as they are
incurred. In the case of multi-stage acquisitions, the proportion
of ownership from any earlier purchases is restated at fair value
at the date of control, with changes in value recognized in the
income statement.
PART 03 – OUR FINANCIAL RESULTS
Contingent consideration classified as equity shall not be
remeasured and its subsequent settlement shall be accounted
for within equity. Other contingent considerations shall be
measured at fair value at each reporting date and changes in fair
value shall be recognized in the income statement.
Intragroup transactions, intercompany balances, and unrealized
profits and losses between Group companies are eliminated.
Reported figures from the subsidiaries are restated when this
is necessary to achieve consistency with the Group's accounting
policies.
CHANGES IN SHAREHOLDINGS IN SUBSIDIARIES WITHOUT LOSS OF
CONTROL
Transactions with non-controlling owners of subsidiaries that
do not involve loss of control are treated as equity transactions.
When shares are purchased from non-controlling owners, the
difference between the consideration and the proportionate
percentage of net assets recognized in the subsidiary’s statement
of financial position relating to such shares is recognized in the
parent company’s owners’ equity. Gains or losses on disposals of
non-controlling owners are similarly recognized in equity.
DIVESTMENT OF SUBSIDIARIES
When the Group no longer has control, any residual ownership
interest is measured at fair value with changes in value
recognized in profit or loss. Using this fair value as deemed cost,
the interest is subsequently classified either as an investment in
associates or as a financial asset. Amounts previously recognized
in other comprehensive income relating to this company are
treated as if the Group had disposed of the underlying assets and
liabilities. This could mean that amounts that were previously
recognized in other comprehensive income are reclassified to
profit or loss.
ASSOCIATES
Associates are entities over which the Group exercises significant
influence, but not control. Significant influence will generally
exist when the Group has a shareholding of between 20% and
50% of the voting rights. Investments are recognized at cost at
the time of acquisition, and the Group’s share of the results in
subsequent periods is recognized through profit or loss. The
amount recognized in the statement of financial position includes
any implicit goodwill identified at the date of purchase.
The Group’s share of its associates’ post-acquisition profits
or losses is recognized in the income statement, the share of
other comprehensive income is recognized in the consolidated
statement of comprehensive income and both are added to the
investment in associates in the statement of financial position.
When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other
unsecured receivables towards the entity, the Group does not
recognize further losses, unless it has incurred obligations
or made payments on behalf of the associate. If necessary,
the associates’ financial statements are restated to achieve
consistency with the Group’s accounting policies.
At the end of each accounting period, the Group determines
TRANSACTIONS AND BALANCE SHEET ITEMS
Foreign currency transactions are translated into the functional
currency using the exchange rates in force at the transaction
date. Foreign exchange gains or losses resulting from the
settlement of such transactions, are recognized in profit or loss.
Translation differences on monetary items (assets and liabilities)
that are not denominated in the entity´s functional currency are
whether there is any need to recognize an impairment of the
also recognized through profit or loss.
investment in the associate. In such cases, the impairment
amount is measured as the difference between the recoverable
amount of the investment and its carrying value, and the
GROUP COMPANIES
The income statements and statements of financial positions
difference is recognized in the income statement together with
of the Group entities (none of which has the currency of a
share of profit or loss in “Share of profit from associates”.
hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the
In the event of any gains or losses on transactions between the
presentation currency as follows:
Group and its associates, only the proportionate share relating
to external shareholders is recognized. Unrealized losses are
eliminated unless there is a need to recognize an impairment
• The statement of financial position is translated using the
closing rate at the end of the period.
for the asset that was the subject of the transaction. Accounting
• Income and expense items are translated at average
policies of associates are changed when necessary to ensure
consistency with the accounting policies adopted by the Group.
Dilution gains and losses arising on investments in associates
are recognized in the income statement.
exchange rates for the period (if the average is not a
reasonable estimate of the cumulative effects of using the
transaction rate, the transaction rate is used).
• Translation differences are recognized in other
comprehensive income and specified separately.
In the event of a reduction in a shareholding in an associate
where the Group continues to exercise significant influence, only
When a foreign operation is sold, the exchange difference, which
a proportionate share of amounts previously recognized in other
in previous periods was recognized in other comprehensive
comprehensive income is reclassified to profit or loss.
DISCONTINUED OPERATIONS
Discontinued operations are excluded from the results of
income, is not accrued. The accumulated exchange difference
on the sale of the foreign operation is hence reversed in
other comprehensive income. Gains or losses on the sale are
recognized on a basis of zero exchange difference in the net
continuing operations and are presented as a single amount
profit on ordinary activities.
as profit or loss after tax from discontinued operations in the
income statement.
Goodwill and fair value adjustments of assets and liabilities
on the acquisition of a foreign entity are treated as assets and
Disclosures for the Group’s discontinued operations are provided
liabilities of the foreign entity and are translated using the
in Note 6. All other notes to this consolidated financial statement
closing currency rate at the balance sheet date.
refer to the Group’s continuing operations, unless the note
explicitly states otherwise.
SEGMENT INFORMATION
Operating segments are reported in a manner consistent
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at historical cost less
depreciation and impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the
with internal reporting to the chief operating decision-maker.
asset.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
Improvements are recognized in the asset’s carrying amount
segments, has been identified as the group management.
FOREIGN CURRENCY TRANSLATION
The financial statements of each of the Group’s entities are
generally measured using the currency of the economic area
in which the entity operates (“the functional currency”). The
consolidated financial statements are presented in Norwegian
Kroner (NOK), which is the parent company’s functional and
presentation currency.
or as a separate asset when it is probable that future economic
benefits associated with the improvement will flow to the Group
and the cost of the item can be reliably measured. All other
repairs and maintenance are recognized in the income statement
during the financial period in which the costs are incurred.
84
Land and buildings mainly comprise freshwater facilities,
• Licenses granted with a finite useful life, but where the
harvesting plants and offices. Land is not depreciated. Other
license holders can renew the licenses without incurring
operating assets are depreciated in accordance with the straight-
considerable expenses.
line method so that the cost, or remeasured value, is written
down to residual value over its expected useful economic life as
Licenses with a finite useful life are amortized over their useful
follows:
• Buildings/real estate 10–50 years
lives, and tested for impairment if there are indications that
future earnings do not justify the asset’s carrying value. Such
• Plants, barges, onshore power supply 5–30 years
licenses relate to water licenses for hatcheries and some specific
• Nets/cages/moorings 5–25 years
• Other equipment 3–35 years
seawater licenses. The following sections provide a description of
licenses in Norway and Canada. See Note 10 Intangible assets for
an overview of the licenses.
The assets’ useful lives and residual values are estimated at each
balance sheet date and adjusted if necessary. In 2022 there has
not been any changes to the estimated useful life of the Group’s
Norway
The licensing regime for the production of salmon in Norway is
property, plant and equipment as a consequence of climate-
enacted by the Norwegian Parliament through the Aquaculture
Hatchery licenses
Section 9 of the Aquaculture Act sets out the basis for withdrawal
Young salmon are defined as eggs, juveniles, parr or smolt to
of an aquaculture license. This states that there must be
be released at another location, see Section 4(f) of the Salmon
significant breaches of the terms of an aquaculture license
Allocation Regulation. Such licenses are not limited and thus
before it can be revoked.
subject to continuous application for new licenses or changes to
existing licenses. Pursuant to the regulations, annual production
is limited to 15 million fish.
Broodstock and R&D licenses
These licenses are not limited in number. The purpose of
BC
Grieg Seafood BC Ltd (GSF BC) has farms on both the west and
east coasts of Vancouver Island. To operate farms in British
Columbia, Canada, the following three licenses must be in place:
broodstock licenses is to produce roe and milt from salmon with
1. Aquaculture license – issued by the Department of Fisheries
improved and/or specific traits. Broodstock licenses include
and Oceans and the First Nations.
both a land and sea phase, i.e. broodfish and egg production are
2. License of Occupation (Tenures) – issued by the Ministry of
covered by the same licensing process. The purpose of an R&D
Forest, Lands and Natural Resource Operations.
license is to encourage important research projects that can
3. Navigation Water Permit – issued by Transport Canada
related risk.
Act. The Ministry of Trade, Industry and Fisheries grants permits
for aquaculture (licenses). All aquaculture operations are subject
bring the Norwegian aquaculture industry forward. Permits are
(Canadian public authority).
means tested, meaning that the applicant must demonstrate a
An asset’s carrying value is written down to its recoverable
to licensing, and no one can produce salmon without permission
need for the production of eggs, specific research projects or for
For restrictions regarding production quantity, see table in Note
amount if the carrying value is greater than its estimated
from the authorities, see Section 4 of the Aquaculture Act.
recoverable amount. Gains and losses on disposals are
recognized on a net basis as “other gains and losses” in the
The aquaculture permit allows the production of salmon
income statement and represent the difference between the
in limited geographic areas within the current determined
sales price and the carrying value.
limitations of the permit scope. The Aquaculture Act is
INTANGIBLE ASSETS
Intangible assets that arise internally within the Group are not
recognized.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over
the fair value of the Group’s share of the net identifiable assets
administered centrally by the Ministry of Trade, Industry and
Fisheries, with the Directorate of Fisheries as the supervisory
authority. Regionally, several industry authorities jointly manage
full administrative and supervisory responsibility within the
regulating range of the Aquaculture Act. The county council is the
regional administrative body, while the Directorate of Fisheries
serves as appellate body in locality and licensing matters.
educational purposes.
Educational licenses
10.
Duration and renewal
Educational licenses in Norway are given to universities, colleges
1. Aquaculture license – duration of one year, renewal each year
or high schools offering aquaculture-related courses of study.
is a formality.
Salmon farming companies can lease educational licenses from
2. License of Occupation – duration of 2–20 years. Renewal is
the educational institution. Part of the students’ training will then
applied for on expiration.
take place at these salmon farms.
3. Navigation Water Permit – duration of five years, but possible
Harvesting pen licenses
Licenses utilized for holding pens where live fish are kept prior to
New renewal process in Canada West
harvesting. These relate to specific locations.
In British Columbia, licenses are renewed by the federal
to apply for renewal.
Department of Fisheries and Oceans (DFO) on a regular basis,
were the next renewal should have been in June 2022. This
of the acquired entity at the date of acquisition. Goodwill on
Seawater licenses
Duration and renewal
acquisitions of subsidiaries is classified as an intangible asset.
Each license for the farming of salmon in the sea is subject to
Goodwill on the purchase of a share in an associate is included
a production limit in the form of “maximum allowed biomass”
in “investments in associates”. Goodwill is tested annually for
(MAB) on both company and location/seawater site level. The
impairment and carried at cost less accumulated impairment
system means the license holder can at no time have a standing
losses. Impairment losses on goodwill are not reversed. Gains
biomass (number of kg of live fish in seawater) that exceeds
and losses on the disposal of an entity include the carrying
the company level MAB, in addition that no location can have a
amount of goodwill relating to the entity sold.
standing biomass that exceeds the seawater site’s MAB. When
The Ministry may in individual decisions or regulations specify
has been put on hold because of the current Canadian federal
further provisions on the content of aquaculture licenses,
Government has in its mandate letter to the Minister of Fisheries,
including matters relating to scope and time limitations, see
Ocean and Canadian Coast Guard stated that a transition plan
Section 5(2) of the Aquaculture Act. Nonetheless, the preparatory
should be developed by 2025 in collaboration with Indigenous
work for the Aquaculture Act specifies that licenses are normally
communities and the BC Province, outlining how the industry will
granted without a time limit.
transition from open-net pen in coastal BC. See Note 4 for more
information.
a seawater site is approved, a maximum level of tonnes of fish
Grieg Seafood’s general fish farming and hatchery licenses are
For the purpose of impairment testing, goodwill is allocated to
is set, based on the location and environmental conditions
those cash-generating units or groups of cash-generating units
on the site. The normal size of a permit is 780 tonnes at the
that are expected to benefit from the business combination in
license level ex. the county of Troms and Finnmark, while the
which the goodwill arose.
LICENSES
Fish-farming licenses with an indefinite useful life are not
normal size of a permit in Troms and Finnmark is 945 tonnes.
While the extent of biomass a company can possess primarily
depends on the type and number of licenses, the limitation at
site level is primarily dependent on the site’s environmental
not time-limited under current regulations. After the reform
in 2009, a number of licenses were time-limited, mainly for
Newfoundland
Grieg Seafood Newfoundland has exclusive farming rights to
15 years. As no government practices have been established
Placentia Bay. To operate aquaculture sites in Newfoundland,
relating to the renewal of broodstock licenses, the current
Canada, the following approvals and licenses must be in place:
understanding is that they will be renewed upon application.
Expiration of licenses allows for application for renewal on
• Aquaculture License – issued by the Department of Fisheries
demand. A license for harvesting pens is valid for ten years and
Forestry and Agriculture
amortized but reviewed for impairment annually, or more
sustainability. See Section 15 of the Salmon Allocation Regulation
must be renewed on expiration, provided that the license is still
• Lease License for Occupancy – issued by Crown Lands division
frequently if there are indications that the carrying value may
(“Laksetildelingsforskriften”).
connected to an approved harvesting facility.
of Department of Fisheries Forestry and Agriculture
have decreased.
The Group considers the following licenses to have indefinite
useful lives:
• Licenses granted with an indefinite useful life, where the
company has no other contractual restrictions relating to the
use of the license.
PART 03 – OUR FINANCIAL RESULTS
Norway also has green licenses, with stricter environmental
criteria. The sea lice limit is half that of regular licenses, with
stricter criteria for escape prevention technologies and limits on
the amount of medical treatment permitted per generation.
Disposal and withdrawal
All licenses can be transferred and mortgaged in accordance
with Section 19 of the Aquaculture Act. Transfers and mortgages
must be recorded in a separate register (the Aquaculture
Register). It is not permitted to rent out licenses or license
capacity.
• Canadian Navigable Waters Act - issued by Transport Canada
• Water Use Approval – issued by Department of Environment,
Climate Change, and Municipalities
85
Duration and renewal
Ordinary purchases and sales of investments are recognized on
• The financial asset is held within a business model with
Aquaculture licenses are granted for a six-year term. Each
the trade-date, the date on which the Group commits to purchase
the objective to hold financial assets in order to collect
FINANCIAL LIABILITIES
Financial liabilities are classified, at initial recognition, as
year, licensees must complete the validation process and abide
or sell the asset. All financial assets that are not stated at fair
contractual cash flows and,
amortized cost (loans and borrowings), or as financial liabilities
by the legislative references: Aquaculture Act and the Policy
value through profit or loss are initially recognized at fair value
• The contractual terms of the financial asset give rise on
at fair value through profit or loss.
cross references as Aquaculture License Renewal AP 6, Annual
plus transaction costs.
reporting AP 7 and site utilization. For renewal, licensees are
required to follow and comply with the requirements set out
in AP 6 License Renewal. Licensees must abide by license
FAIR VALUE HIERARCHY
The following of the Group’s financial instruments are not
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured
Financial liabilities at amortized cost (loans and
borrowings)
After initial recognition, interest-bearing loans and borrowings
conditions, policies, and regulations at all times. Licenses may
measured at fair value: cash and cash equivalents, accounts
using the effective interest (EIR) method and are subject to
are subsequently measured at amortized cost using the EIR
be suspended or cancelled if a breach occurs, or they may not be
receivables, other current receivables and payables, bank loans,
impairment. Gains and losses are recognized in profit or loss
method. Gains and losses are recognized in profit or loss when
renewed.
bond loans and leasing liabilities. See Note 3 for information on
when the asset is derecognized, modified or impaired.
the liabilities are derecognized as well as through the EIR
valuation techniques.
amortization process.
The timeline supports two production cycles and promotes
The Group's financial assets at amortized cost includes trade
longer-term investment and stability. Ensuring sites are being
The Group uses the following hierarchy of valuation techniques to
receivables and other short-term deposit. Trade receivables that
Amortized cost is calculated by taking into account any discount
utilized and developed by license holders in accordance with
determine and disclose the fair value of financial instruments:
do not contain a significant financing component are measured
or premium on acquisition and fees or costs that are an integral
approved plans on file with the department falls under AP 8 Site
• Level 1: Quoted (unadjusted) prices in active markets for
at the transaction price determined under IFRS 15 Revenue from
part of the EIR. The EIR amortization is included as finance costs
Utilization. If sites are not being utilized based on approved plans
identical assets or liabilities
Contracts with Customers.
in the income statement.
on file, they may not be renewed.
OTHER INTANGIBLE ASSETS
Acquired customer portfolios and computer software licenses
• Level 2: Other techniques for which all inputs that have a
significant effect on the recorded fair value are observable,
either directly or indirectly
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
• Level 3: Techniques which use inputs that have a significant
the statement of financial position at fair value, with net changes
financial derivative contracts. Derivatives are initially recognized
are recognized in the statement of financial position at cost and
effect on the recorded fair value that are not based on
in fair value recognized in the income statement.
at fair value on the date a derivative contract is entered into, and
amortized over their estimated useful lives. Customer portfolios
observable market data.
are recognized in the statement of financial position at cost
on the date of purchase. Amortization is calculated using the
For recurring level 3 measurements, transfers between the
Derivatives are initially recognized at fair value on the date a
derivative contract is entered into, and are subsequently stated
straight-line method over the estimated useful life, as follows:
levels in the fair value hierarchy are evaluated when reassessing
at fair value on an ongoing basis. The category also include the
are subsequently stated at fair value on an ongoing basis.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the
the categories of the financial instruments at the end of the
Group’s investments in debt instruments and money market
liability is discharged or cancelled or expires. When an existing
• Computer software 3–10 years
period. During the 2022 reporting period, there were no changes
funds.
IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets with an indefinite useful life are not amortized but are
tested annually for impairment. Assets that are subject to
amortization are reviewed for impairment whenever there are
in the fair value measurement which caused transfers between
level 1 and level 2, and no transfers to or from level 3.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the
FINANCIAL ASSETS
Financial assets are classified, at initial recognition, as
asset or part of a group of similar financial assets) is primarily
recognition of a new liability. The difference in the respective
derecognized (i.e., removed from the Group’s consolidated
carrying amounts is recognized in the income statement.
indications that future earnings do not justify the carrying value.
subsequently measured at amortized cost, fair value through
statement of financial position) when:
other comprehensive income (OCI), and fair value through profit
a. The rights to receive cash flows from the asset have expired, or
An impairment loss is recognized for the amount by which the
or loss.
asset’s carrying value exceeds its recoverable amount. The
b. The Group has transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received
HEDGING
Hedge accounting
The Group do not utilize the hedge accounting principles of IFRS
recoverable amount is the higher of an asset’s fair value less
The classification of financial assets at initial recognition depends
cash flows in full without material delay to a third party under a
9.
costs to sell and value in use. For the purposes of assessing
on the financial asset’s contractual cash flow characteristics
“pass-through” arrangement; and either
impairment, assets are grouped at the lowest levels for which
and the Group’s business model for managing them. With the
i. the Group has transferred substantially all the risks and
there are separately identifiable cash flows (cash-generating
exception of trade receivables that do not contain a significant
rewards of the asset, or
Non-hedge accounting
The Group engage in short-term derivative contracts to hedge
units). Non-financial assets, other than goodwill, that have
financing component, the Group initially measures a financial
ii. the Group has neither transferred nor retained substantially all
currency- and interest risk. Such contracts are recognized at fair
suffered an impairment are reviewed for indicators of possible
asset at its fair value plus, in the case of a financial asset not at
the risks and rewards of the asset, but has transferred control
value through profit or loss and presented as financial income/
reversal of the impairment at each reporting date.
fair value through profit or loss, transaction costs. The Group has
of the asset.
financial expenses.
FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial
financial assets classified as follows:
• Financial assets at amortized cost (debt instruments)
Impairment of financial assets
The Group recognizes an allowance for expected credit losses
FISH POOL SALE AND PURCHASE AGREEMENTS
For the financial contracts entered into with Fish Pool, changes
• Financial assets designated at fair value through OCI with no
(ECLs) for all debt instruments not held at fair value through
in unrealized gains and losses on the sale and purchase
asset for one entity and a financial liability or equity instrument
recycling of cumulative gains and losses upon derecognition
profit or loss. ECLs are based on the difference between the
agreements are recognized net in the income statement as a
for another entity. The classification is performed in accordance
with the substance of the contractual arrangement, and in line
with the definitions of a financial asset, a financial liability and an
equity instrument.
(equity instruments)
• Financial assets at fair value through profit or loss
Financial assets measured at amortized cost
The Group measures financial assets at amortized cost if both of
the following conditions are met:
contractual cash flows due in accordance with the contract and
all the cash flows that the Group expects to receive, discounted at
an approximation of the original effective interest rate.
value adjustment of biological assets, while the carrying value is
reported as a derivative in the statement of financial position at
the gross carrying amount of sales and contracts, respectively.
See the “Trade receivable” section in this note for specific
accounting principles on expected credit loss on trade
receivables.
PART 03 – OUR FINANCIAL RESULTS
86
INVENTORIES
Inventories are stated at the lower of cost and net realizable
and payable fees for completion, constitutes the cash flow.
No deductions are made for sales expenses, as these are not
value. Cost is determined using the first-in, first-out (FIFO)
observable in the market. Such expenses are also deemed
method. The net realizable value is the estimated sales price less
immaterial.
the estimated costs of completion and sale.
BIOLOGICAL ASSETS
The accounting treatment of live fish by enterprises applying
Incoming cash flow is calculated as a function of estimated
volume multiplied by estimated price. For fish not ready for
estimated expenses required to fulfil the contract. This implies
that the Group may experience loss-making (onerous) contracts
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, bank deposits
according to IAS 37 even if the contract price for physical delivery
and other short-term highly liquid investments with original
contracts is higher than the actual production cost for the
maturities of three months or less. The overdraft facility is
products. If that occurs, a provision is made for the estimated
included in current borrowings in the statement of financial
negative value.
position.
IFRS is regulated by IAS 41 Agriculture. IAS 41 comprises a
grow the fish to harvestable weight. The cash flow is discounted
as “fair value adjustment of biological assets”. The liability in the
harvest, a deduction is made to cover estimated residual costs to
Changes arising from physical delivery contracts are recognized
SHARE CAPITAL
Ordinary shares are classified as equity. Costs directly
hierarchy of methods for the measurement of biological assets at
monthly by a discount rate. The discount rate comprises three
statement of financial position is recognized as other current
attributable to the issue of new shares or options, net of tax, are
level 3. The basic principle is that such assets shall be measured
main components: 1) the risk of incidents that influence cash
liabilities.
shown in equity as a deduction, net of tax, from the proceeds.
at fair value less costs to sell. Fair value is defined in IFRS 13
flow, 2) hypothetical license lease and 3) the time value of
as “the price that would be received to sell an asset or paid to
money. See Note 4 on significant accounting estimates for more
Fish farming naturally comes with a certain level of loss of
transfer a liability in an orderly transaction between market
information.
participants at the measurement date”. According to IFRS 13,
the highest and best use of the biological asset establishes the
When estimating the actual accumulated cost at the respective
valuation premise.
seawater facility, direct costs (fish feed and similar) are allocated
to each group of fish transferred to the sea at the same location.
Biological assets comprise of smolt and fish in the sea. The
Financial costs are not included in the costs of production.
fish are divided into two main groups, depending on the stage of
fish along the production cycle, and our budgets are typically
BORROWINGS
Borrowings are initially recognized at fair value when the funds
produced with an inherent assumption of a 0.5-1% monthly
are received, net of transaction costs incurred. Borrowings are
mortality. The losses associated with normal levels of survival
subsequently stated at amortized cost applying the effective
are not directly recognized in the income statement. In periods
interest method. Any difference between the proceeds (net of
where specific abnormal incidents lead to reduced survival, we
transaction costs) and the redemption value is recognized in the
immediately recognize write-downs of the biomass inventory to
income statement over the period of the borrowings. Borrowings
better reflect the actual biomass in the sea or on land. The write-
are classified as current liabilities unless the Group has an
the life cycle. At the earliest stage of the life cycle, the fish are
The sales price for fish in the sea is based on the forward price
down costs are recorded in the income statement as they arise,
unconditional right to defer settlement of the liability for at least
classified in group 1) roe, fry and smolt. Group 1 biological assets
from Fish Pool. Fish Pool is a marketplace for financial purchase
included in the financial statement line item “raw materials and
12 months after the reporting date.
is disclosed as “biological assets on land” in Note 9.
and sale agreements for superior Norwegian Salmon size 3-6
consumables used”.
When the fish are large enough to be transferred to the sea, they
but Grieg Seafood’s opinion is that the observable forward
are classified in group 2) biomass in sea. The group 2 biological
prices must be seen as the best approach to a price for the
assets classification is further decomposed in Note 9 as
“immature fish in sea, round weight < 4.60 kg” and “mature fish
in sea, round weight > 4.60 kg”.
sale of salmon. Regarding foreign countries, the most relevant
price information available for the expected harvesting period
is applied. For fish in the sea, the forward price in Norway is
adjusted for historical differences in achieved prices between
kg head-on gutted weight. The volume on Fish Pool is limited,
TRADE RECEIVABLES
Trade receivables arising from the trading of goods or services
INCOME TAX EXPENSE AND DEFERRED
TAX
Income tax expense consists of the tax payable and changes to
within the ordinary operating cycle and under normal terms
deferred tax.
of payment are initially recognized at nominal value. Trade
receivables with longer terms of payment are discounted to
Deferred tax is provided for in full at nominal value, using the
present value and represents the Group’s unconditional right to
liability method, on temporary differences arising between the
• Fish onshore (smolt) are recognized at accumulated cost. The
Norway and Canada. The price/net sales value is adjusted for
consideration from the customer.
best estimate of fair value is the accumulated cost because
quality differences (superior, ordinary and production grade),
of very little biological transformation. This assessment
and for logistics expenses and sales commissions. Estimated
must be seen in the light of the fact that smolt are currently
harvesting expenses are deducted.
EXPECTED CREDIT LOSS (ECL) ON TRADE RECEIVABLES
For trade receivables, the Group applies a simplified approach
value of assets and liabilities for tax and accounting purposes.
Deferred tax is determined using tax rates and laws that have
been enacted or substantively enacted by the reporting date and
that are expected to apply when the related deferred tax asset is
transferred to the sea at a stage when their weight is still
in calculating ECLs. For receivables where the credit risk has
realized, or the deferred income liability is settled. Deferred tax
relatively low.
The volume (biomass) is based on the actual number of
increased substantially after establishment, a write-down shall
assets are recognized to the extent that it is probable that future
• For fish in sea, the fair value is calculated by applying a cash-
individuals in the sea at the balance sheet date, adjusted to cover
flow based present value model.
estimated mortality up to harvest date and multiplied by the
estimated harvest weight per individual at the time of harvest.
The fair value of fish in the sea is estimated for each location.
The fair value estimate for the fish in sea figure is adjusted
be made for the expected credit loss over the maturity of the
taxable income will be available, from which the temporary
receivables. The model for calculating loss allowance classifies
differences can be deducted. Deferred tax is calculated on
the trade receivables into two groups: normal risk and high-
temporary differences arising on investments in subsidiaries
risk, based on their country of origin. Furthermore, the trade
and associates, except where the timing of the reversal of
for gutting waste, as the price is measured for gutted weight.
receivables are classified as credit-insured receivable or not.
the temporary difference is controlled by the Group and it is
In accordance with the principle relating to highest and best use,
Budgeted harvesting and freight costs are applied. Foreign
The provision is the difference between nominal and recoverable
probable that the temporary difference will not be reversed in the
Grieg Seafood considers that the fish have optimal harvest weight
currency forward contracts associated with the date of harvesting
amount, which is the present value of estimated future cash
foreseeable future.
when they have a live round weight of 4.60 kg, which corresponds
are applied when translating the price to CAD.
flows, discounted at the original effective interest rate. Loss
to 4.00 kg gutted weight. Fish with a live round weight of 4.60 kg
allowance is recognized as “other operating expenses” in the
Taxes payable and deferred taxes are recognized directly in
or more are classified as ready for harvest (mature fish), while
The change in the fair value of biological assets is recognized
income statement.
equity to the extent that they relate to equity transactions.
fish that have still not achieved this weight are classified as not
in the income statement as “fair value adjustment of biological
ready for harvest (immature fish).
assets”.
The cash-flow based present value model does not rely on
historical and company specific factors. In a hypothetical market
with perfect competition, a hypothetical buyer of live fish would
maximum be willing to pay the present value of the estimated
future profit from the sale of the fish when it is ready for harvest.
The estimated future profit, considering all price adjustments
Onerous contracts are contracts where the expenses of fulfilling
the contracts are higher than the economic yield the company
expects to gain by fulfilling the contracts. The Group enters
from time to time into contracts for future deliveries of salmon.
As biological assets are recognized at fair value, the fair value
adjustments of the biological assets will be included in the
FACTORING AGREEMENTS
The Group is engaged in factoring agreements that cover
financing of outstanding receivables for the sales organization
in Norway. Receivables purchased by the factoring company are
derecognized from the statement of financial position. See the
section “Derecognition of financial assets“ in this note for the
related accounting principle.
PART 03 – OUR FINANCIAL RESULTS
EMPLOYEE BENEFITS
PENSION OBLIGATIONS
The Company pays premiums to local, defined-contribution
schemes for all employees. The Company's Norwegian pension
schemes meet the requirements of the Norwegian Mandatory
Occupational Pension Act. Pension premiums are recognized in
the income statement through operations on an ongoing basis.
Employer’s social security contributions are expensed based on
paid pension premiums. The Group companies Grieg
87
Seafood Rogaland AS and Grieg Seafood Finnmark AS have a
contractual early retirement pension scheme (AFP). The financial
PROVISIONS
Provisions (e.g. environmental improvements, restructuring
Cash refunds are given to the customer if the sold product is
The lease payments included in the measurement comprise:
delivered with discrepancies compared to the agreed sales
• Fixed lease payments (including in-kind fixed payments), less
commitments associated with this scheme are included in the
costs and legal claims) are recognized when:
contract, or if the product is damaged. Generally, refunds are not
any lease incentives receivable
Group’s pension expenses. The AFP early retirement scheme
• the Group has a present legal or constructive obligation as a
material.
follows the rules for public sector AFP, and both companies
result of past events;
• Variable lease payments that depend on an index or a rate,
initially measured using the index or rate in effect on the
are members of the Norwegian Confederation of Trade Unions
• it is more likely than not that an outflow of resources will be
Revenue is shown net of value added tax, returns, rebates and
commencement date
(LO)/the Confederation of Norwegian Enterprise (NHO) scheme.
required to settle the obligation;
discounts and after eliminating intragroup sales.
The pension payment calculations are based on standard
• the amount of the obligation can be reliably estimated.
assumptions relating to the development of mortality and
disability as well as other factors such as age, years of service
Provisions are not recognized for future operating losses.
OTHER REVENUE STREAMS
In addition to the sale of fresh and frozen salmon, the Group
Lease payments generally also include any exercise price of a
purchase option/payments of penalties for terminating a lease,
provided that the Group is reasonably certain to exercise such an
and remuneration. Pension premiums are recognized in the
also sells roe, smolt and ensilage. Harvesting (processing) for
option.
income statement through operations as they arise.
Where there are a number of similar obligations, the likelihood
external companies are performed if overcapacity on our own
SHARE-BASED REMUNERATION
The Group operates a share-based management remuneration
that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision
is recognized even if the likelihood of an outflow with respect
scheme with settlement in cash. Under the scheme, individual
to any one item included in the same class of obligations may
employees may buy shares proportionate to their annual salary.
be small. Provisions are measured as the present value of the
harvesting plants. Together, these have historically made up a
The lease liability is subsequently measured by increasing the
non-significant part of the total sales of Grieg Seafood.
carrying amount to reflect interest on the lease liability, reducing
DIVIDEND INCOME
Dividend income from investments or equity instruments is
the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or
lease modifications, or to reflect adjustments in lease payments
The fair value of the employee services received in exchange for
expenditures expected to be required to settle the obligation,
recognized when the right to receive payment is established.
due to an adjustment in an index or rate.
the grant of the options is recognized as an expense. The total
using a pre-tax discount rate that reflects the current market
Dividend income from entities recognized under the equity
amount to be charged over the vesting period is calculated based
situation and the risks specific to the obligation. The increase in
method are not recognized but recorded as a reduction in the
The Group presents its lease liability separately from other
on the fair value of the options granted, excluding the impact
the provision due to the change in value because of the passage
carrying value of the investment.
liabilities in the statement of financial position.
of any non-market vesting conditions (for example, profitability
of time is recognized as a financial expense.
and sales growth targets). Non-market vesting conditions are
included in assumptions about the number of options that are
expected to vest. At each balance sheet date, the company
REVENUE RECOGNITION
Revenue from contracts with customers is recognized when
GOVERNMENT GRANTS
Government grants are recognized when it is reasonably certain
Right-of-use assets
The Group measures the right-of-use asset at cost, less any
that the company will meet the conditions stipulated for the
accumulated depreciation and impairment losses, adjusted for
revises its estimates of the number of options that are expected
control of the goods or services are transferred to the customer
grants and that the grants will be received. Operating grants
any remeasurement of lease liabilities. The cost of the right-of-
to be vested and recognizes the impact of the revision relative
at an amount that reflects the consideration to which the Group
are recognized systematically during the grant period. Grants
use asset comprises:
to original estimates, if any, in the income statement. The
expects to be entitled in exchange for those goods or services.
are deducted from the cost which the grant is meant to cover.
• The amount of the initial measurement of the lease liability
Black and Scholes option pricing model is used for valuation.
The Group’s revenue derives primarily from the sale of whole and
Investment grants are capitalized and recognized systematically
recognized,
The company´s obligations are recognized under non-current
processed fish. Sales contracts cover both spot sales and fixed-
over the asset’s useful life. Investment grants are recognized
• Any lease payments made at or before the commencement
liabilities if the latest possible redemption date is more than one
price deliveries. Revenue from the sale of salmon is generally
either as deferred income or as a deduction of the asset’s
date, less any incentives received, and
year into the future.
recognized upon delivery, as the Group considers delivery as the
carrying amount.
• Any initial direct costs incurred by the Group.
SHARE SAVINGS PROGRAM
Grieg Seafood established a share savings program for its
point in time when control of the goods/service is transferred
to the customer. Each sales contract – either for a spot sale or
a fixed delivery – is considered as one performance obligation.
employees in 2018 and it was continued throughout 2022. It is
Each week, the sale of fish is settled with the customer.
LEASES
IDENTIFYING A LEASE
At the inception of a contract, The Group assesses whether the
The Group presents its right-of-use assets on the financial
statement line item “Property, plant and equipment incl. right-of-
use assets”.
the Board's intention that the plan shall be a continuing part of
The fixed-price delivery contracts that are entered into with
contract is, or contains, a lease. A contract is, or contains, a lease
the company's employee incentive scheme. The Board shall,
customers, specify a per-week volume.
if the contract conveys the right to control the use of an identified
The Group applies the depreciation requirements in IAS 16
however, have the right to decide, at its sole discretion, whether
asset for a period of time in exchange for consideration.
Property, Plant and Equipment when depreciating the right-of-
the plan will be extended in the future, and the terms of the plan.
The sales price is determined upon contract settlement and is
TERMINATION BENEFITS
Termination benefits are payable when employment is
based on available market price (for example Nasdaq prices
including transport and margin, and the price is per kilogram).
The price varies according to the quality of the salmon and its
RECOGNITION OF LEASES AND EXEMPTIONS
At the lease commencement date, the Group recognizes a
use asset, except that the right-of-use asset is depreciated from
the commencement date to the earlier of the lease term and the
remaining useful life of the right-of-use asset. The Group applies
lease liability and corresponding right-of-use asset for all lease
IAS 36 Impairment of Assets to determine whether the right-of-
terminated by the Group before the normal retirement date,
size, and the fish is mainly sold Delivery Duty Paid (DDP) to the
agreements in which it is the lessee, except for short-term
use asset is impaired and to account for any impairment loss
or whenever an employee accepts voluntary redundancy in
customer. Payment is settled upon delivery, and the performance
leases (defined as 12 months or less) and lease agreements
identified.
exchange for these benefits. The Group recognizes termination
obligation related to the sale of fish is satisfied at delivery. That
where the leased asset is of low value.
benefits when it is demonstrably committed to either terminating
also applies to the fulfillment of physical delivery contracts.
the employment of current employees according to a detailed
formal plan without the possibility of withdrawal or providing
The normal credit term of the Group’s sales transactions is 30
termination benefits as a result of an offer made to encourage
voluntary redundancy.
PROFIT-SHARING AND BONUS SCHEMES
The Group recognizes a provision where it has a contractual
obligation or where there is a past practice that has created a
constructive obligation.
days. Based on the nature of the sale of fresh and frozen fish,
the Group generally has no material contract liabilities. The
Group does not generally engage in customer contracts where
fulfillment of the performance obligation lies more than one year
in the future. Therefore, the Group does not disclose further
information on contract liabilities and related performance
obligations.
Lease liabilities
The Group measures the lease liability at the present value of the
lease payments for the right to use the underlying asset during
the lease term that are not paid at the commencement date. The
lease term represents the non-cancellable period of the lease,
together with periods covered by an option either to extend or
to terminate the lease when the Group is reasonably certain to
exercise this option.
DIVIDENDS
Dividends payable to the company’s shareholders are recognized
as a liability in the Group’s financial statements when the
dividends are approved by the AGM.
PART 03 – OUR FINANCIAL RESULTS
88
BORROWING COSTS
Borrowing costs incurred during the construction of operating
Contingent liabilities acquired through the purchase of
The Group has prepared an overview of cash and non-cash
operations (an acquisition) are recognized at fair value even if it
changes in the Group’s liabilities, which is included in Note 12.
assets are capitalized during the period of time that is required
is not probable that the liability will become unconditional. The
EVENTS AFTER THE REPORTING DATE
New information on the Group’s financial position at the close of
the reporting period, which becomes known after the reporting
to complete and prepare the asset for its intended use. Other
assessment of probability and fair value is subject to constant
Changes in financial assets are disclosed if cash flows have been,
period, is recognized in the annual accounts. Events after
borrowing costs are expensed in the income statement.
review. Subsequent measurement is at the higher of the amount
or will be, included in the cash flow from financing activities. This
the reporting period which do not affect the Group’s financial
initially recognized (less any amount recognized as revenue) and
may be the case, for instance, for assets pledged as security for
position on the close of the reporting period but which will affect
the amount according to the general provision-measurement
financial liabilities.
the company’s financial position in the future are disclosed if
CONTINGENT ASSETS AND LIABILITIES
Contingent liabilities are defined as:
• possible obligations resulting from past events whose
rules.
existence depends on future events,
Contingent assets are not recognized in the statement of
EARNINGS PER SHARE
Earnings per share are calculated by allocating the profit for the
significant.
• obligations that are not recognized because it is not probable
financial position, but are disclosed if it is likely that a benefit will
year to the Company’s shareholders based on a weighted average
that they will lead to an outflow of resources entailing
accrue to the Group.
financial benefits from the company,
• obligations that cannot be measured with sufficient reliability.
CASH FLOW STATEMENT
The Group’s cash flow statement shows the overall cash flow
Contingent liabilities are not recognized in the annual financial
broken down into operating, investing and financing activities
statements apart from contingent liabilities resulting from
using the indirect method. The cash flow statement illustrates
the acquisition of an entity. Material contingent liabilities are
the effect of the various activities on cash and cash equivalents.
disclosed, with the exception of contingent liabilities where the
probability of the liability materializing is remote.
of the number of issued ordinary shares during the year. Diluted
earnings per share are calculated by adjusting the weighted
average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares.
PART 03 – OUR FINANCIAL RESULTS
89
NO T E 3 FIN ANCI AL R IS K M AN A GEMEN T
CAPITAL MANAGEMENT
The Group aims to ensure sufficient access to capital to enable the business to develop in accordance with adopted strategies, and thus
continue to be one of the leading players in the sector. Historically, the industry has always been vulnerable to price fluctuations in the
market. For this reason, accounting results may fluctuate considerably from year to year. Consequently, the Group strives to ensure that
the business maintains an appropriate level of disposable liquidity.
Grieg Seafood aims to provide shareholders with a competitive return on invested capital through payment of dividends and share
price increases. The Board of Directors maintains that, as an average over time, dividends should correspond to 30-40% of the Group’s
profit after tax, adjusted for the effect of the fair value of biological assets (limited to 50 % by Green Bond agreement). At the same
time, the Group’s net interest-bearing debt per kg harvested salmon should remain below NOK 30, but can be exceeded in periods of
growth investments. As at 31 December 2022, Grieg Seafood was in a solid financial position to execute strategic priorities and deliver
shareholder return.
At 31 December 2022, the Group had net interest-bearing liabilities, including lease liabilities, of NOK 2 223 million, see Note 12. The
Group’s funding is primarily a green bond issue of NOK 1 500 million issued in 2020 (with NOK 1 424 million currently outstanding, as
bonds have been repurchased throughout 2022), sustainability-linked bank loans and leasing liabilities. At year-end 2022, 75% (2021:
47%) of our gross interest-bearing liabilities derived from green or sustainability-linked financing. The level of liabilities and alternative
forms of funding are subject to constant evaluation.
FINANCIAL RISK FACTORS
The Group is exposed to a number of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk),
credit risk and liquidity risk. The Group’s overall risk management program focuses on the volatility of the financial markets and seeks
to minimize potential adverse effects on the Group’s financial performance. The Group uses financial derivatives to reduce certain risks.
As at 31 December 2022 (31 December 2021), the Group does not apply hedge accounting. The Group identifies, evaluates and hedges
financial risks in close cooperation with the Group’s operational units. The Board has established written principles for the management
of foreign exchange risk, interest rate risk and use of the Group’s financial instruments.
IBOR reform
The Group is exposed to the ongoing IBOR reform, as the Group has bank and bond loans, and engages in interest-rate swaps, which are
exposed to the the relevant IBOR rate. The bank loans, which are denominated in NOK and EUR, carry an interest rate which is based on
the 3M IBOR plus a margin set per interest period based on a margin ratchet. The 3M IBOR and the margin is fixed per interest period.
The bond loan’s interest rate, which is denominated in NOK, is 3M NIBOR plus a margin of 3.4 percentage points. 3M NIBOR is fixed per
interest rate period.
The Group monitors the IBOR reform and its potential impacts on the Group. As at 31 December 2022, the IBOR reform is not expected to
significantly impact the Group. The information concerning our interest rate swaps disclosed below, explicitly states the swaps exposed
to NIBOR. At the very end of this Note, we have disclosed the maturity profile of the bank loans and bond loan. See also Note 12 for more
information on our interest-bearing liabilities.
I) MARKET RISKS
(i) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk relating to various currencies, primarily CAD, USD, GBP and
EUR. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities and net investments in foreign
operations. The Group enters into foreign currency forward contracts to manage this risk.
PART 03 – OUR FINANCIAL RESULTS
90
TRADE RECEIVABLES AND
TRADE PAYABLES
CURRENCY IN NOK 1 000
2022
Trade receivables
Trade payables
2021
Trade receivables
Trade payables
NOK
USD
EUR
GBP
CAD
JPY
OTHER
CURRENCIES
TOTAL
214 681
17 207
23 901
1 517
1 911
556 910
1 044
12 590
174
143 587
44 591
64 959
23 912
—
18 907
391 599
2 298
9 608
15 494
101 844
—
—
-576
—
-81
259 137
3 193
717 498
—
151 793
2 353
523 196
NET INTEREST-BEARING LIABILITIES
CURRENCY IN NOK 1 000
2022
NOK
USD
EUR
GBP
CAD
JPY
OTHER
CURRENCIES
TOTAL
Cash and cash equivalents
284 965
88 647
87 485
41 877
134 040
209
5 496
642 719
Money market funds
Loans to associated companies
Interest-bearing liabilities*
1 012 848
8 300
2 678 379
—
—
—
—
—
755 679
—
—
—
—
—
452 331
—
—
—
— 1 012 848
—
8 300
— 3 886 390
Net interest-bearing liabilities
1 372 266
-88 647
668 194
-41 877
318 292
-209
-5 496
2 222 522
2021
Cash and cash equivalents
-22 537
44 252
58 346
750 778
94 238
Loans to associated companies
Interest-bearing liabilities*
2 111
2 893 312
—
—
—
—
—
—
—
327 662
Net interest-bearing liabilities
2 913 737
-44 252
-58 346
-750 778
233 424
44
—
—
-44
3 223
928 342
—
2 111
— 3 220 974
-3 223
2 290 520
*See Note 12 for more information on the Group’s net interest-bearing liabilities.
The Group has a group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company, is the legal account
holder. Subsidiaries party to the agreement can utilize the group cash pool arrangement and overdraft individual bank accounts
(currencies), provided that Group's total bank deposit is positive. Not all subsidiaries are part of the cash pool arrangement. The
subsidiaries participating in the group account scheme are jointly and severally liable for the entire amount of the commitment under the
scheme. Cash and cash equivalents include the currency exposure in the group account scheme. At 31 December 2022, the net amount of
bank deposits in the group account scheme amounted to NOK 524 million (2021: NOK 787 million).
The Group has investments in foreign subsidiaries whose net assets are exposed to foreign currency translation risk. Currency exposure
arising from the net assets of the Group’s foreign operations was previously managed primarily through borrowings denominated in the
relevant foreign currencies.
The base currency of the syndicated bank loan is split into NOK 750 million and EUR 75 million. Since a substantial portion of the
Group's sales revenues are denominated in EUR, the EUR loan acts as a natural, economical hedge on foreign currency translation rate
fluctuations.
In 2020, we issued our first green bond, worth a total of NOK 1 500 million, through two tap issues. Throughout 2022, the Group has
repurchased NOK 77 million of the green bond. The outstanding amount of the bond loan was NOK 1 424 million at year-end 2022. The
bond matures in 2025, and is denominated in NOK.
The holding companies in the Group extend current and non-current loans to the subsidiaries, denominated in these companies’
functional currencies. The non-current loans, with some exceptions, are considered to be equity in these companies, as there is no
planned repayment of the principal amount outstanding. The currency effect of loans is recognized under "currency effect on loans to
subsidiaries" in the Other Comprehensive Income (OCI) statement. The numerical effects for 2022 and 2021 are presented in the table
below.
PART 03 – OUR FINANCIAL RESULTS
CURRENCY EFFECTS ON LOANS TO SUBSIDIARIES NOK 1 000
Currency effect
Tax effect (22%)
Currency effect - recycled accumulated OCI related to sale of Shetland*
Tax effect (22 %) - recycled accumulated OCI related to sale of Shetland*
Net effect recognized in equity through OCI
*See Note 6 for more information.
2022
24 792
-5 454
—
—
19 338
2021
32 222
-7 089
-103 223
22 709
-55 380
Sensitivity analysis
A depreciation (appreciation) of 10% in the rate of exchange between the NOK and the USD, CAD, GBP and EUR at the reporting date (all
other factors remaining unchanged) would be expected to have the following effects on net interest-bearing liabilities (NOK 1 000). The
numerical effects for net interest-bearing liabilities for year-end 2022 and 2021 are presented below.
SENSITIVITY NOK 1 000
10 % CHANGE IN
FX-RATE
USD
EUR
GBP
CAD
2022
Assets
Liabilities
Net interest-bearing liabilities
2021
Assets
Liabilities
Net interest-bearing liabilities
-/+
-/+
-/+
-/+
-/+
-/+
-8 865
—
8 865
-4 425
—
4 425
-8 749
-75 568
-66 819
-5 835
-42 452
-36 618
-4 188
—
4 188
-75 078
—
75 078
-13 404
-45 233
-31 829
-9 424
-32 766
-23 342
A depreciation of NOK versus USD/EUR/GBP/CAD will, in general, decrease the assets (which increases net interest-bearing liabilities), and decrease the liabilities,
which reduces the net interest-bearing liabilities.
FORWARD CURRENCY CONTRACTS
The Group does not apply hedge accounting. Value changes in current forward contracts affect profit or loss, as these contracts are
recognized at fair value through profit or loss, see accounting policies (Note 2).
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT AND LOSS
SOLD
EUR
USD
USD
Total
AMOUNT
CURRENCY
IN 1 000
BOUGHT
AMOUNT
CURRENCY IN 1 000
WEIGHTED
HEDGING RATE MARKET RATE
MATURITY INTERVAL *
MARKET VALUE
NOK 1 000
31.12.2022
2 600
3 518
415
NOK
NOK
CAD
27 376
37 091
561
10.5291
10.5433
1.3515
10.5180
01.01.2023 - 03.01.2023
9.8573
03.01.2023 - 29.12.2023
1.3538
06.01.2023 - 03.02.2023
29
2 721
-9
2 741
*Maturity specified as an interval for multiple contracts
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT AND LOSS
AMOUNT
CURRENCY
IN 1 000
BOUGHT
AMOUNT
CURRENCY IN 1 000
WEIGHTED
HEDGING RATE MARKET RATE
MATURITY INTERVAL *
MARKET VALUE
NOK 1 000
31.12.2021
SOLD
EUR
EUR
USD
Total
*Maturity specified as an interval for multiple contracts
6 408
1 000
7 771
NOK
NOK
CAD
63 597
10 031
9 921
9.9246
1.2651
1.2767
9.9888
01.02.2022 - 31.12.2022
-1 149
9.9888
01.01.2022 - 31.01.2022
1.2692
01.01.2022 - 28.02.2022
42
404
-704
91
As at 31 December 2022, the Group had financial salmon contracts for 2022 totaling NOK -64.9 million (2021: NOK -20.6 million), of which
all were sales contracts.
Fair value of financial derivatives
The carrying value of derivatives and other financial instruments as at 31 December 2022 and 31 December 2021 is shown in the table
below. All the financial derivative instruments included in the table below are measured according to level 2 of the fair value hierarchy.
For more information, see the section on the “Fair value estimation” below, as well as Note 14.
(ii) Interest rate risk
Since the Group has no significant interest-bearing assets apart from bank deposits and money market funds, its income and operating
cash flows are largely independent of changes in market interest rates. The Group’s interest rate risk arises from borrowings.
Borrowings at variable rates expose the Group to cash flow interest rate risk. Fixed-interest contracts are used to reduce this risk.
The Group continuously monitors its interest rate exposure. The Group calculates the impact on profit or loss of a defined interest rate
change. The same change in the interest rate is used for all currencies in each simulation. The scenarios are only run for liabilities that
represent major interest-bearing positions.
Sensitivity calculations show the following expected values: If the interest rate had been 1% lower (higher) throughout the year, all other
factors remaining unchanged, the pre-tax profit would have increased (decreased) by NOK 28.3 million in 2022 and NOK 38.5 million in
2021 due to the floating rate of interest on loans and deposits. The sensitivity analysis is based on average net interest-bearing liabilities
from our bank loans (term loans in NOK and EUR, including revolving credit facility) and bond loan during 2022 and 2021, irrespective of
concluded interest rate swap agreements.
SENSITIVITY NOK 1 000
Effect on profit before income tax
The sensitivity table is for our bank and bond loans. A reduction in interest rates will increase profit before tax.
Total financial instruments at fair value**
CHANGE IN INTEREST RATE POINTS
2022
2021
Interest rate swap agreements
-/+1%
+/- 28 257
+/-38 545
Financial salmon contract - sales contracts*
FAIR VALUE OF FINANCIAL DERIVATIVES NOK 1 000
Forward currency contracts at fair value through profit or loss
Cross-currency interest rate swap w/ interest rate floor-option
2022
2021
ASSETS
2 749
—
35 238
—
37 988
CURRENT
LIABILITIES
9
—
—
64 920
64 928
ASSETS
446
22 560
14 587
—
37 592
CURRENT
LIABILITIES
1 149
—
590
20 611
22 350
INTEREST RATE SWAP AGREEMENTS
The purpose of the Group’s risk management activities is to establish an overview of the financial risk that exists at any given time and
to provide more time to adapt to relevant developments. To this end, the Group has chosen to employ interest rate swap agreements to
establish greater stability for the Group’s loan-related, variable-rate interest expenses. The Group has decided that at any given time, a
certain percentage of its variable interest-bearing liabilities should be hedged using interest rate swap agreements. The Group does not
apply hedge accounting. A given proportion will always be at a floating rate, while the remainder will be subject to potential hedging. This
situation is constantly reviewed in light of the market situation.
INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
1.61
1.35
1.07
0.71
0.72
Nibor 3 months
28.08.2023
Nibor 3 months
04.03.2024
Nibor 3 months
05.07.2024
Nibor 3 months
18.12.2024
Nibor 3 months
18.12.2024
MARKET VALUE
NOK 1 000
31.12.2022
MARKET VALUE
NOK 1 000
31.12.2021
2 670
5 018
7 627
9 963
9 961
-590
874
2 628
5 561
5 524
Total
35 238
13 997
Interest rate swap contracts assessed at market value, excluding accrued interest
CROSS CURRENCY INTEREST RATE SWAP
PRINCIPAL
MATURITY
Cross-currency interest rate swap (NOK/EUR)
NOK 200 million / EUR 23 million
25.06.2025
Interest rate option, floor
Total
The cross currency interest-rate swap contract was settled in 2022, see Note 26.
NOK 250 million
25.06.2025
MARKET VALUE
NOK 1 000
31.12.2022
MARKET VALUE
NOK 1 000
31.12.2021
—
—
—
22 327
233
22 560
(iii) Price risk
Financial salmon price contracts allow the buyer and seller to agree prices and volumes for future delivery. The Group uses financial
contracts to hedge the sales price for the volume harvested by our two Norwegian regions, Rogaland and Finnmark. As at 31 December
2022, the estimated contract share for the Norwegian harvest volume is 15% for the full-year 2023. We target a contract share of 20-50%
of our Norwegian volume. Although the contract market has been impacted by the proposed resource rent tax on salmon farming in
Norway, we see signs of improvement going into 2023.
In 2022, fixed-price contracts accounted for 22% of the volume harvested in our Norwegian regions. The financial contracts are presented
gross in the balance sheet, with changes in value recognized through profit/loss as part of the fair value adjustment of biological assets.
As biological assets are recognized at fair value, the expected costs to meet contract terms will be included in the fair value adjustment.
*In addition, as at year-end 2022, Grieg Seafood had NOK 31 million (2021: NOK 13 million) classified as current liabilities (see note Note 29) related to realized financial
salmon contracts. This amount represents settled price contracts, not part of the fair value-derivative amount.
**Measured according to level 2 of the fair value hierarchy.
II) CREDIT RISK
Credit risk is managed at Group level. Credit risk arises from transactions involving derivatives and deposits in banks and financial
institutions, transactions with customers, including trade receivables, and fixed contracts as well as loans to associates. The sales
companies secure the bulk of the sales through credit insurance and bank guarantees. The Group has procedures to ensure that
products are only sold to customers with satisfactory creditworthiness. The Group normally sells to new customers solely against
presentation of a letter of credit or against advance payment. For customers who have a reliable track record with the Group, sales up
to certain previously agreed levels are permitted without any security. The Group utilizes a factoring arrangement for sales transactions
entered into by the Norwegian sales organization.
The book value of financial assets represents the maximum credit exposure. For further information about loss allowance, please refer to
Note 22.
MAXIMUM CREDIT RISK EXPOSURE NOK 1 000
Trade receivables
Cash and cash equivalents
Total
III) LIQUIDITY RISK
NOTE
22
20
2022
64 283
642 719
707 002
2021
50 443
928 342
978 785
The Group adopts a prudent approach to liquidity risk management, which includes maintaining sufficient cash and marketable
securities, securing funding through sufficient credit facilities and maintaining the ability to close market positions when considered
appropriate.
Due to the dynamic underlying nature of the business, the Group aims to secure flexibility through available credit lines. The Group
maintains a sustainability-linked financing agreement through a syndicate comprising DNB and Nordea. The agreement is on aggregate
NOK 3 200 billion, and consists of two term loans of NOK 750 million and EUR 75 million, a revolving credit facility of NOK 1 500 million
and an overdraft facility of NOK 200 million. As at year-end 2022, both the revolving credit facility and the overdraft facility is unutilized.
The outstanding debt on the two term loans amounts to NOK 1 474 million, of which NOK 128 million is installments due the next 12
months from the reporting date.
Management monitors the Group's liquidity reserve, which comprises a bond and loan facility (see Note 12), cash and cash equivalents
(Note 20), and short-term money market investments (Note 21), based on expected cash flows. This is generally carried out at Group level
in cooperation with the operating companies. Available financing could be impacted by the proposed Norwegian resource rent tax regime,
as - all else equal - less cash will be available to service debt and provide a return on investment for shareholders.
PART 03 – OUR FINANCIAL RESULTS
92
Management and the Board seek to maintain a high equity ratio (50% at 31 December 2022), to be well positioned to meet financial and
operational challenges. The Group factors in the expected outcome, as well as different scenarios relating to, the resource rent tax
proposed by the Norwegian government (see political risk above) in the Group's liquidity projections and forecasts.
31.12.2021
NOK 1 000
Green bond loan installments
< 3 M
—
3 M
- 1 Y
—
Y 2
—
At year-end 2022, the Group had undrawn credit facilities of NOK 1 700 million (2021: NOK 885 million), in addition to cash reserves of
NOK 643 million (2021: NOK 928 million). In 2022, a cash surplus of approximately NOK 1 000 million has been placed in money market
funds. In total, the Group’s free liquidity, calculated as the sum of bank deposits, undrawn credit facilities and the short-term investment
in money market funds, stood at NOK 3 356 billion at 31 December 2022 (2021: NOK 1 813 million).
As at 31 December 2022, the equity ratio was 50% (2021: 52%), while the equity ratio (ex. the effect of IFRS 16), which is measured
according to covenants, was 52% (2021: 54%). The Group is continuously monitoring the liquidity levels. Cash flow forecasts for all
farming regions, sales and the Group are performed regularly, and simulation/stress testing of the liquidity risk is carried out.
The following table shows a breakdown of the Group’s non-derivative financial liabilities (including estimated interest payment), classified
by maturity structure. The amounts in the table are undiscounted contractual cash flows (however for lease liabilities the undiscounted
cash flows are according to the estimated lease component of the contract, and the total undiscounted amount equals the principal and
the interests) . Note 12 shows the payment profile for the Group’s non-current liabilities.
31.12.2022
NOK 1 000
Green bond loan installments
< 3 M
—
3 M
- 1 Y
—
Y 2
Y 3
— 1 423 500
Green bond loan interest - floating
23 070
72 094
95 951
47 713
Y4
—
—
Y 5
> 5 YRS
TOTAL
—
—
— 1 423 500
— 238 829
Non-current syndicated term-loan installments
64 106
64 106
128 211
128 211
128 211
961 584
— 1 474 429
Syndicated loan interest - floating
10 860
31 273
38 412
34 470
30 638
7 007
— 152 661
Other non-current liabilities
4 829
12 609
14 471
12 615
12 860
13 770
61 285
132 439
Green bond loan interest - floating
15 840
49 500
65 700
65 880
32 760
Non-current syndicated term-loan installments
24 972
24 972
374 580
Syndicated loan interest - floating
2 248
8 283
2 619
Non-current syndicated credit facility
Interest non-current syndicated credit facility
Other non-current liabilities
—
2 330
4 873
— 440 000
9 361
3 076
—
11 773
12 310
Interest on other non-current liabilities
912
2 396
3 037
2 541
Y 3
Y4
Y 5
> 5 YRS
TOTAL
— 1 500 000
—
—
—
—
—
—
—
—
9 200
2 049
—
—
—
—
—
—
— 1 500 000
— 229 680
— 424 524
—
13 150
— 440 000
—
14 767
8 114
54 353
100 622
2 816
15 288
29 040
Lease liabilities (prior IAS 17 finance leases)
18 502
54 415
67 410
57 199
43 909
39 525
79 535
360 496
Interest on lease liabilities (prior IAS 17 finance leases)
2 523
6 831
7 420
5 752
4 357
3 178
3 596
33 658
Lease liabilities (prior IAS 17 operational leases)
22 140
82 632
81 209
80 980
51 033
37 084
40 255
395 332
Interest on lease liabilities (prior IAS 17 operational leases)
3 453
9 209
9 298
6 030
3 621
2 084
4 127
37 823
Trade payables
Other current liabilities
Total liabilities
523 196
36 603
—
—
—
—
—
—
—
—
—
—
— 523 196
—
36 603
657 593
247 600 1 066 123
230 692 1 646 928
92 801
197 153 4 138 891
KEY FOR TABLE
M = Months Y = Year
YRS = Years
FAIR VALUE ESTIMATION
See Note 14 for information on classes of financial instruments measured at fair value, in addition to information on the fair value
hierarchy. The information below describes valuation techniques for fair value estimation used by Grieg Seafood, including leases and the
Interest on other non-current liabilities
961
2 720
3 161
2 671
3 004
2 765
9 257
24 539
fair value adjustment of biological assets.
Lease liabilities (prior IAS 17 finance leases)
24 606
68 702
79 970
65 520
59 691
52 892
105 684
457 065
Interest on lease liabilities (prior IAS 17 finance leases)
3 982
10 910
12 291
10 017
8 092
6 274
8 885
60 451
Lease liabilities (prior IAS 17 operational leases)
46 854
118 836
146 350
73 925
67 558
44 220
31 302
529 046
(I) FINANCIAL DERIVATIVE INSTRUMENTS
The fair value of quoted financial assets classified as financial assets at fair value through OCI is determined by reference to published
price quotations in an active market. The fair value of financial instruments that are not traded in an active market is determined
Interest on lease liabilities (prior IAS 17 operational leases)
5 059
12 137
12 586
7 369
4 657
2 356
936
45 100
using valuation techniques (see Note 2). The Group uses different methods and makes assumptions based on market conditions at
Trade payables
Other current liabilities
Total liabilities
717 498
76 585
—
—
—
—
—
—
—
—
—
—
— 717 498
—
76 585
978 411
393 387
531 404 1 806 012
314 711 1 090 869
217 349 5 332 143
each reporting date. The fair value of forward currency contracts is determined using the forward exchange rate at the end of the
reporting period. The fair value of interest rate swaps is determined by the present value of future cash flows. The fair value of options is
determined using option pricing models. For all the above-mentioned derivatives, the fair value is confirmed by the financial institution
with which the Group has entered into the contracts. The fair value of financial salmon price contracts is determined using forward prices
KEY FOR TABLE
M = Months Y = Year
YRS = Years
from Fish Pool.
(II) TRADE RECEIVABLES, OTHER RECEIVABLES AND TRADE PAYABLES
The nominal value less write-downs for realized losses on trade receivables and trade payables is assumed to correspond to the fair
value of these items, as they are short term and entered into on “normal” terms and conditions.
(III) CASH AND CASH EQUIVALENTS
The carrying amount of cash and cash equivalents is approximately equal to fair value, since these instruments have a short term to
maturity.
(IV) BANK AND BOND LOANS
The carrying amount of bank loans is assessed to be approximately equal to fair value because the floating interest rate is adjusted to
reflect current conditions. The fair value of the bond loan is disclosed in Note 12.
(V) LEASES
The fair value of financial assets and liabilities recognized at their carrying amount is calculated as the present value of estimated cash
flows discounted by the interest rate that applies to corresponding liabilities and assets at the end of the reporting period. This applies to
lease liabilities, see Note 13.
PART 03 – OUR FINANCIAL RESULTS
93
(VI) BIOLOGICAL INVENTORIES
farmed and wild salmon, improve transparency on how the government assesses and responds to new scientific information, provide
Fish in the sea is measured at estimated fair value. Consequently, the value of biological inventories is likely to vary more than the value
greater opportunities for collaborative planning and decision-making with First Nations partners and advance innovation and attracting
of inventories based on cost. The estimated fair value varies for a number of reasons, including volatility in the price of Atlantic salmon,
investment to support the adoption of alternative production technologies in British Columbia. Stakeholders, including industry and First
factors relating to production, changes in harvesting schedules and changes in the composition of inventories. Grieg Seafood considers
Nations, are participating in the process, which is expected to be concluded during 2023. Grieg Seafood supports the transition, and it
three components to be key parameters for valuation: price, estimated harvest biomass volume and the applied monthly discount
aligns with the Group’s technological investments to improve biological control, such as post-smolt and barrier systems. The possibility
rate. The monthly discount rate is applied to expected future cash flows to account for risk, the time value of money and the cost of
of introducing different types of licenses to advance improvements are discussed as a part of the transition strategy. It is expected that
contributory assets. The following table is a sensitivity analysis, showing the change in the fair value of the biological assets, and hence
regular licenses will be incorporated into the strategy. Grieg Seafood is committed to working with the government and Indigenous
the Group’s profit before tax, in the event of changes in these parameters.
communities to find a viable path forward.
SENSITIVITY ANALYSIS OF BIOMASS - EFFECT ON PRE-TAX PROFIT NOK 1 000
Change in discount rate +1%
Change in discount rate -1%
Changes in sales price +1 NOK/kg
Changes in sales price -1 NOK/kg
Changes in sales price +5 NOK/kg
Changes in sales price -5 NOK/kg
Changes in biomass volume +1% kg
Changes in biomass volume -1% kg
2022
2021
-175 527
-130 357
207 074
69 555
-68 073
357 629
158 916
62 677
-59 093
316 740
-325 903
-289 634
54 202
-53 427
37 936
-35 376
NO T E 4 A C C OUN T I NG E S T IM AT E S AND JUDGMEN T S
ACCOUNTING ESTIMATES AND ASSUMPTIONS
Management is required to make estimates and assumptions concerning the future, which affect the reported amounts for assets and
liabilities, as well as income and expenses for the accounting year in accordance with IFRS. Estimates and underlying assumptions are
In addition, farm tenures in BC are renewed by the province on a regular basis. From 2022, farm tenures that are not accepted by
the First Nation that is the rights-holder of the territory where the farm is located will not be renewed. Grieg Seafood supports the
implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into BC regulations, and we are
engaging in the ongoing process of reconciliation between the government, First Nations and industries. In 2022, the Coalition of First
Nations for Finfish Stewardship was launched, highlighting the positive role that the salmon farming industry can play as part of the
reconciliation process. Grieg Seafood recognizes the First Nations as an additional level of government where we operate, and we
are working to ensure that our production takes place under agreements with the rights-holders of the territories where it is located.
The vast majority of Grieg Seafood’s production are under long-term agreements with the First Nations in those areas, and we are
pursuing agreements with more First Nations. The current agreements we have with First Nations last until 2037-2045. Even though
the agreements cannot be said to be everlasting, the Group has nevertheless classified the licenses as having indefinite lives, based
on the lack of sufficient relevant factors to change the principle at this point. Work on the transition plan has not been completed, and
based on the experience we have with the work so far, it is not considered reasonable to change estimates regarding the economic life
of the aquaculture licenses in BC. Given that it is desirable for both First Nations partners and the Group to have close and good working
relationships, and that they want the Group to operate in the area, the Group’s best estimate is that the licenses will still be classified as
having indefinite lives. This will be continuously assessed. If the situation changes and the Group agrees not to use the option to extend
the duration of the agreement, the estimate of the remaining depreciation period must be re-evaluated. For further information, please
see Note 10.
continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed
Grieg Seafood Newfoundland has 13 approved farming licenses. The licenses are granted for terms of six years. To renew the licenses,
to be probable under the present circumstances. The final outcomes may deviate from these estimates. Changes in accounting estimates
licensees must follow the Provincial Aquaculture Policy and Procedures Manual. As long as licenses follow and comply with the
are recognized in the period in which the estimates are changed. The Group is involved in claims and complaints related to the sale of
requirements, the license will be renewed. For this reason, the licenses are classified as having indefinite lives and, as such, are not
goods on a continuous basis. As of year-end there were no material ongoing issues concerning claims and complaints related to the sale
amortized.
of goods, besides what’s referred to in Note 28 and Note 31.
ESTIMATED IMPAIRMENT OF GOODWILL, LICENSES AND PROPERTY, PLANT AND EQUIPMENT
The Group tests whether goodwill and licenses have suffered any impairment on an annual basis, in accordance with the accounting
policy stated in Note 2. The recoverable amounts of cash-generating units are generally determined on the basis of value-in-use
calculations. These calculations require the use of estimates of future cash flows from the cash-generating unit, and the application of a
Grieg Seafood Newfoundland has the exclusive long-term right to farm salmon in the Placentia Bay area. The fair value of the right to
operate exclusively is amortized over the duration of the agreement.
BIOLOGICAL ASSETS
The Group’s biological assets comprise smolt and fish in the sea. Biological assets are measured at fair values less costs to sell. The
discount rate to calculate the present value of future cash flows. Expectations of future cash flows will vary over time. Changes in market
measurement unit is the individual fish. However, for practical reasons, cash flows and estimates are carried out per locality. The fair
conditions and expected cash flows can result in losses due to future value decreases. The value of long-term growth in demand, changes
value model assessed by the Group calculates the net present value of expected cash flow. Valuation is based on a variety of premises,
in market competition, the strength of the production stage in the value chain and thus also expectations of the long-term profit margin
many of which are non-observable. The premises are divided into the following four categories:
are also of significance. The different parameters could variously affect the value of the licenses over time. Any changes in these critical
1. Sales price
assumptions will result in related write-downs, or the reversal of write-downs of the value of licenses in accordance with the accounting
2. Estimated remaining production cost
policies described in Note 2. Please also refer to Note 10 for further comments on tests relating to value impairment.
3. Volume
4. Discount rate
CLASSIFICATION OF LICENSES
A significant judgment is whether a license should be amortized over its definite life, or whether it is deemed to have an indefinite life and
For mature fish (ready for harvesting) on the reporting date, uncertainty mainly involves realized prices and volume. For immature fish
(not ready for harvesting), the level of uncertainty is higher. Price, volume and discount rate are the main uncertainty factors. However,
tested for impairment only. All licenses where the Group has no other contractual restrictions relating to the use of the licenses have
uncertainty is also related to biological transformation and mortality prior to the harvest date for the fish.
indefinite lives and, as such, are not amortized. Also, licenses granted with a finite useful life, but where the license holder can renew the
licenses without incurring considerable expenses are assessed as having indefinite lives. However, the Group’s licenses in each country
are subject to certain requirements and the Group risks penalties, sanctions or even license revocation if the Group fails to comply with
license requirements or related regulations. Local governments may, moreover, change the way licenses are renewed.
In British Columbia (BC), licenses are renewed by the federal Department of Fisheries and Oceans (DFO) on a regular basis, with different
length. In June 2022, all licenses were renewed for two years. The Canadian Government has launched a new strategy for salmon farming
in BC, to transition the sector from traditional open-net pen practices into an improved industry (it does not specify what the industry
should transition to). The process was launched 29 June 2022, with the following objectives: Minimize or eliminate interactions between
Sales price
Salmon sales prices are volatile. The sales price is based on forward prices and/or the most relevant pricing information available for
the period in which the fish is expected to be mature (ready for harvesting). Changes in price assumptions have the greatest impact on
the fair-value estimate. The market price constitutes the basis for calculating fair value for both mature and immature fish. The forward
prices for superior Norwegian salmon weighing 3-6 kg gutted weight from Fish Pool are applied. For fish ready for harvest, the forward
price for the following month is applied. For fish not ready for harvest, the forward price for the month when the fish is expected to be
harvested is applied. The price is adjusted for export margin and clearing costs. This accounts for both fish ready for harvest and not.
PART 03 – OUR FINANCIAL RESULTS
94
Estimating remaining production cost
The planned point of harvesting is assumed to be when the fish reaches a live round weight of 4.60 kg, however, there may be uncertainty
regarding the estimated growth rate. For immature fish, the fair value is adjusted by the estimated remaining cost necessary to grow
the fish to optimal harvest weight. Forecast production costs include provisions for estimated feed prices, the cost of lice treatments and
other costs to prevent biological accidents. Here, estimations are affected by uncertainty regarding the number of lice treatments to be
carried out, the sea temperature and other conditions affecting growth and costs.
Volume
Estimated harvest volume is based on the estimated number of fish on the reporting date, less estimated future mortality multiplied by
optimal harvest weight (4.60 kg round weight). Actual harvest volume may differ from the estimated volume due to changes in biological
conditions or due to special events, such as a mass mortality. The estimated number of fish is based on the number of smolt transferred
to the sea, and mortality is a given percentage of the fish in the sea. The normal estimated harvest weight is assessed to be the live round
weight of fish that results in a gutted weight of 4.0 kg. If there are any specific conditions at the reporting date resulting in the fish being
harvested before they reach optimal weight, the estimated harvest weight is adjusted. Mortality during the period from the reporting date
to the date when the fish reach harvest weight is estimated to be 1% of the number of opening balance of fish per month in the forecast
period.
Discount rate
The sales revenue and remaining expenses are allocated to the same period in which the fish is harvested. The cash flows from
all localities where the Group has fish in the sea will then be distributed over the entire period it takes to farm the fish in the sea.
With the current size of the smolt released and the frequency of the smolt transfers, this period may be from 12 to 18 months. The
estimated future cash flow is discounted by a monthly rate, which is 5.0% for Rogaland and Finnmark, and 3.5% for British Columbia
and Newfoundland as of 31 December 2022. The discount rate considers both risk adjustment (risk related to volume, cost and price),
compensation for the value of the licenses (hypothetical rent) and time value (tying up capital). The reason for differentiating the discount
rate at the regional level is the different prerequisites for biological production, which also requires a differentiation of the recognized
synthetic license rent. The risk adjustment shall reflect the price discount a hypothetical buyer would demand as compensation for the
risk assumed by investing in live fish rather than a different object. The longer it takes to reach harvest date, the higher the risk that
something may occur that will affect the cash flow. Three significant factors could have an impact on the cash flow: volume, costs and
price. The one thing all three factors have in common is that the sample space is asymmetrical.
Due to limited access to licenses for the farming of fish, the license value is currently considered to be very high. For a hypothetical buyer
of live fish to take over and continue to farm the fish, the buyer needs a license, locality and other permits required for such production.
However, in a hypothetical market for the purchase and sale of live fish, one must assume that this would be possible. In that scenario, a
hypothetical buyer would claim a significant discount to allocate a sufficient share of the returns to the buyer's own licenses. It is difficult
to create a model that would allow a hypothetical annual lease cost to be derived from prices for sold licenses as the curve in the model
would be based on projections of future profit performance in the industry.
A discount must be made for the time value of the tied-up capital linked to the share of the present value of the cash flow allocated to the
biomass. The buyer who is investing in live fish rather than some other type of object, would claim compensation for the alternative cost.
The production cycle for salmon in the sea currently takes up to 18 months. The cash flow will therefore extend over a similar period.
Assuming a constant sales price throughout the period, the cash flow would decrease for each month, as costs are incurred to farm the
fish to harvest weight. The cost increases for every month the fish are in the sea. As such, the effect of deferred cash flow is lower than
would be the case if the cash flow had been constant. This component is, however, deemed important due to the substantial value the
stock of fish represents. Please refer to Note 2 and Note 9 for further information on the estimation and calculation of fish values.
Significant assumptions sensitivity
The estimate of fair value of the biomass will always be based on uncertain assumptions, even though the Group has built up expertise in
assessing these factors. There are three key parameters for valuation: average price, estimated biomass volume and monthly discount
rate. Please refer to Note 3 for a sensitivity analysis of these factors.
NO T E 5 CLIM AT E-R EL AT ED R ISK
IMPACT ON FINANCIAL REPORTING AND ESTIMATES AS AT 31 DECEMBER 2022
As at 31 December 2022, there has been no material impact identified on financial reporting judgments and estimates. The Group
recognizes the ever-changing risks related to climate change and will regularly assess these risks against judgments and estimates
made in the preparation of the Group’s financial statements.
CLIMATE-RELATED RISK
The effects of climate change, such as extreme weather events, fluctuating temperatures in seawater and a decline in biodiversity,
could have a significant financial impact in the decades ahead. Knowledge of the possible financial consequences of global warming,
biodiversity loss, or even ecosystem collapse, and the integration of climate risk and nature risk as a separate risk category, are an
essential part of Grieg Seafood’s risk management strategy. Grieg Seafood aims to increase its understanding of climate and nature-
related risks, in order to find solutions to reduce adverse impacts.
Grieg Seafood has mapped its climate-related risks, which the Group reports in accordance with the recommendations of the Task Force
on Climate-related Financial Disclosures (TCFD). Grieg Seafood has also prepared a climate-related scenario analysis, assessing the
impact of transitional risks and physical risks. These risks and opportunities are included in the Group’s risk assessment as part of Grieg
Seafood’s regular forecast process. The results from the TCFD scenario analysis are summarized below.
Overall, Grieg Seafood expects the impacts of climate-related risks to be moderate in the short term, with no quantifiable impact as per
year-end 2022, but these impacts could become more severe in the medium to long term. Any significant physical change is likely to
interfere with the Group’s current business model or damage the Group’s facility infrastructure, both of which could be costly. Similarly,
the transitional risks related to increased climate-change regulation or significant changes in consumer preferences could affect the
Group’s bottom line and access to capital. On the other hand, the Group sees Grieg Seafood as being uniquely placed to mitigate these
risks and take advantage of climate-related opportunities.
CLIMATE-RELATED SCENARIO ANALYSIS
The scenario analysis helps Grieg Seafood to understand the potential impact of climate change on the Group’s core business in the
future, and is used to stress-test the Group’s strategical and financial planning. Grieg Seafood has performed a thorough assessment of
the impact on the Group’s salmon production of 2C and 4C of global warming. Grieg Seafood aims to meet the Paris Agreement criteria
to keep global warming below 2C, compared to pre-industrial levels. The Group is currently increasing its production volume, and the
assessments for 2030 and 2050 are based on our 2026 business strategy and the targeted production volumes.
2C of global warming
In this scenario, Grieg Seafood assumes that the Paris Agreement targets will be met. The Group assumes production of 2026 target
volumes until 2030. How the Group’s production will change towards 2050 is difficult to predict, but many initiatives and forecasts look
towards the ocean and aquaculture to provide more food for the future. With 2C of global warming, Grieg Seafood’s business is well
positioned to seize opportunities for sustainable growth.
Main impacts from the scenario:
–
–
–
–
–
Higher risk from transitional risks
Carbon taxing
Initiatives to reduce deforestation increase cost of raw feed materials
Increased cost of procured aquaculture equipment
Policies and legislation that restrict production
4C of global warming
In this scenario, Grieg Seafood sees the need to differentiate our products to prove their value with respect to sustainability. This comes
with an increased cost and risk of lower earnings potential. Meeting the Group’s Paris Agreement targets may adversely impact Grieg
Seafood’s margins compared to our competitors, and the Group must base its business viability on specific customer groups.
Main impacts from the scenario:
–
–
–
Temperature increases and daily temperature variations may increase events that are stressful for the salmon
More frequent extreme weather events increase the personnel risk (HSE) associated with operating exposed sites
More droughts and floods reduce the production of land-based feed ingredients, which increases feed cost
PART 03 – OUR FINANCIAL RESULTS
95
MANAGING PHYSICAL RISKS AND OPPORTUNITIES
NO T E 6 DIS C ON T INUED OP ER AT I ONS
Assessing the impact of increased seawater temperature
The analysis shows that Grieg Seafood expects increased risks and costs related to global warming. 4C is a vastly greater threat than
2C. However, the risks associated with global warming indicate a shift towards the necessity of alternating sites, increasing post-smolt
The decision to divest Shetland was made in 2020, and the income and expenses from the Shetland activity has been presented as
In December 2021, Shetland was sold to Scottish Sea Farms Ltd, and deconsolidated from the Grieg Seafood Group in December 2021.
discontinued operations of the Grieg Seafood Group (as well as the Shetland assets being classified as assets held for sale as from 2020
production on land and investing in heavy equipment at those sites which are exposed to harsh weather. This is in line with the Group’s
until the sale in 2021). For more information, see the 2021 Annual Report of Grieg Seafood.
current strategy, where large concrete production vessels, and overlay protected work boats have been introduced to our fleet recent
years. Together with increased personnel training, education and specialization, communication investments and Grieg Seafood’s focus
The discontinued operations was defined by Grieg Seafood as the farming and sales operations in Shetland. The discontinued operation in
on improving its smolt facilities, we believe that Grieg Seafood is prepared to meet the challenges it will face in the future. The issue of
Shetland included the prior reporting segment of Shetland UK and the UK sales operations.
lice and their implications for the Group’s future production is associated with high levels of uncertainty and varies between regions.
The future effects of increased seawater temperature on lice levels in the Group’s regions, cannot be predicted without performing a
The enterprise value of the transaction with Scottish Sea Farms Ltd. was set to GBP 164 million, assuming a normalized net working
comprehensive analysis. This is a topic Grieg Seafood will further pursue in the future.
Reducing carbon emission
In 2022, Grieg Seafood developed a Climate Action Plan, which describes the measures and investments needed to reach the Group’s
capital and adjusted for net debt. On the closing date of the transaction, in December 2021, Grieg Seafood received a preliminary
purchase price for the Shetland assets of NOK 2 087 million. In addition, Scottish Sea Farms Ltd settled a GBP intercompany long-term
loan granted by Grieg Seafood ASA ("Seller’s debt"). The preliminary purchase price has been calculated pursuant to a pre-closing
statement, which was prepared in good faith and set out the net debt and net working capital of the Shetland assets. The actual net debt
climate targets (reducing our carbon emissions by 35% towards 2030, and 100% in 2050, with 2018 as a baseline year). This plan stresses
and net working capital will be calculated in accordance with prevailing accounting principles and set out in a closing statement.
the importance of both operational measures, which affect Scope 1 and 2, and supply chain measures in Scope 3. Grieg Seafood needs
to reduce its operations’ fossil fuel consumption, purchase renewable electricity and set supplier requirements to be able to reduce its
At year-end last year, 31 December 2021, the calculation of the gain/loss from sale of the Shetland assets was based on the preliminary
absolute emissions. The Group needs to invest in the electrification of sites and boats, choose fish feed that has a lower emission factor
purchase price. The preliminary gain after income tax resulting from the sale of the Shetland assets is NOK 424 million. The preliminary
and reduce emissions from transportation. Fish feed is our largest single source of GHG emissions (Scope 3). We are committed to
gain was calculated by deducting Grieg Seafood Group's book value of the Shetland assets on the closing date and transaction costs from
continually challenging our fish feed suppliers on the carbon emission from their production of the fish feed. The Group’s largest direct
the sum of the preliminary purchase and the settlement of the Seller’s debt. In addition, the gain/loss calculation included recycling of
source of emissions is from the fuel that powers our boats, including well-boats, vehicles, and on-site electricity generators.
accumulated OCI of NOK 106 million before tax and NOK 83 million after tax, whereas the tax expense of NOK 23 million related to the tax
position on the Seller’s debt.
As the Climate Action Plan is staged in 2030 and 2050 targets, the Group’s current efforts are focused on actionable measures to meet
the 2030 target. Actionable measures to meet the 2050 target will be set when we are closer to the calender year of 2030.
According to the sales purchase agreement, the closing statement and the calculation of the final purchase price was to be performed
We are working closely with our fish feed suppliers and focus on sustainable fish feed ingredients. In addition, the Group expects that new
technology will enable it to reduce its carbon emissions from freight transport.
subsequent to the closing date of the transaction.
FINAL PURCHASE PRICE
In February 2023, the closing statement and the calculation of the final purchase price has been finalized. Grieg Seafood had, as at year-
The transitioning to equipment that enables the Group to reduce its fossil fuel consumption, in order to meet the Group’s 2030 Climate
end 2021, estimated approximately NOK 7.5 million in receivables on Scottish Sea Farms Ltd. The estimate was also included in the gain/
Action Plan target, is an important part of Grieg Seafood’s Climate Action Plan for the 2030 carbon emission target. The transitioning of
loss calculation of 2021. In February 2023, there was no material deviation between the estimated receivable on Scottish Sea Farms Ltd.
operating equipment will be carried out gradually through replacement investments, in addition to investments targeting growth. Before
at 31 December 2022, and the actual received payment of the final part of the transaction settlement for the sale of Shetland.
making any investments, the Group evaluates their potential carbon emissions and environmental impact. This is an integrated part of
Grieg Seafood’s CapEx process. As at 31 December 2022, the Group’s action plan for reducing carbon emissions has not had any material
impact on our accounting estimates for the useful life of property, plant and equipment, or materially impacted the Group’s value-in-use
calculations. This is due to the gradual replacement of equipment which generally has a useful life shorter than the timeframes for the
Group’s climate action targets.
PART 03 – OUR FINANCIAL RESULTS
PROFIT (LOSS) FROM DISCONTINUED OPERATIONS
TOTAL (NOK 1 000)
Operating income
Operating expenses
Operational EBIT
Production fee
Fair value adjustment of biological assets
EBIT (Earnings before interest and taxes)
Net financial items
Impairment loss recognized on the remeasurement to fair value less cost to sell
Profit before tax from discontinued operations
Income tax expense
Profit for the period from discontinued operations
Gain on the sale of the subsidiary after income tax
Net profit for the period from discontinued operations
TOTAL
2022
2021
—
—
—
—
—
—
—
—
—
—
—
—
—
951 334
-775 822
175 512
-5 219
75 697
245 990
1 902
—
247 893
-71 280
176 613
423 678
600 291
96
GAIN ON THE SALE OF THE SUBSIDIARY AFTER INCOME TAX
(NOK 1 000)
Sale/purchase price
Transaction costs
Recycling of accumulated OCI
Total consideration
Book value
Gain on the sale of the subsidiary after income tax
The recycled accumulated OCI in the gain/loss calculation consists of:
Currency effect on investment in subsidiaries
Currency effects on loans to subsidiaries
Other gains and losses
Tax effects
Reserve of disposal group classified as held for sale
CASH FLOWS FROM DISCONTINUED OPERATIONS
(NOK 1 000)
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
Total
Cash discontinued operations cash and cash equivalents - other changes
Net change in cash and cash equivalents from discontinued operations
TOTAL
2022
2021
—
—
—
—
—
—
—
—
—
—
—
2 087 494
-26 950
83 139
2 143 683
1 720 004
423 678
3 261
103 223
-636
-22 709
83 139
TOTAL
2022
2021
—
—
—
—
—
—
145 228
2 041 801
-145 836
2 041 193
-842
2 040 350
NO T E 7 INV E S T MEN T IN A S S OCI AT E S
Associates that are closely related to the Group's operations and included in the Group’s value chain are classified on a separate line in
EBIT when the relevant associates operate in the same position in the value chain as the Group. All investments in associates in 2022 and
2021 are closely related. See Note 8 regarding the associated companies included in the segment information.
agreement with Årdal Aqua AS. The share capital from Omfar AS and the post-smolt agreement were consequently recognized as income
with a dilution gain of NOK 22.6 million. In 2021, the dilution of NOK 6.7 million was not recognized as a gain, but set aside as a liability
until certain milestones which the project depends on had been reached. The milestones were approved in 2022 and the dilution gain of
NOK 6.7 million was recognized together with the dilution gain of NOK 15.8 million for 2022, a total of NOK 22.6 million. The total gain
has been presented as a separate item below Operational EBIT in the Group’s segment reporting (see Note 8). The share of profit from
associates in the income statement is presented at the gross amount. In October 2022, there was a capital increase of NOK 150 million
in Årdal Aqua AS, of which Grieg Seafood Rogaland AS contributed NOK 90 million. After the capital increase, Grieg Seafood Rogaland
AS increased its shareholding to 44.44%. In addition, Grieg Seafood Rogaland AS has provided an interest-bearing loan of NOK 6 million
to Årdal Aqua AS. Construction of Årdal Aqua AS’s land-based farming and post-smolt facility has started. Production is expected to
commence in 2024, with a capacity of 4 500 tonnes.
In January 2022, Grieg Seafood Rogaland AS invested NOK 7.6 million to acquire an ownership interest of 50% in Nextseafood AS.
Nextseafood AS is co-owned with Havbrukskompaniet AS, and aims to explore and realize the closed-containment system known as
FishGLOBE V6. FishGLOBE AS was awarded two development licenses (1 560 tonnes MAB) in 2019. As at year-end 2022, Grieg Seafood
Rogaland AS has provided a long-term, interest-free loan to FishGLOBE AS, an affiliated company of Nextseafood AS, in the amount of
NOK 8.6 million.
INVESTMENT IN ASSOCIATES
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Nextseafood AS
Total
AT 31.12.2022
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Nextseafood AS
Total ownership
EQUITY INTEREST
AT 31.12.2022
BOOK VALUE AT
01.01.2022
NOK 1 000
PROFIT/LOSS 2022
NOK 1 000
CHANGES IN THE
PERIOD, INCL.
REPAID CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2022
NOK 1 000
50.00%
33.33%
44.44%
50.00%
47 710
48 087
8 878
—
104 675
-8 658
7 864
21 915
-26
21 096
—
—
83 254
7 600
90 854
39 053
55 951
114 047
7 574
216 624
TIME OF
INVESTMENT
EQUITY INTEREST
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
01.07.2019
01.06.2017
15.01.2020
31.01.2022
50.00%
33.33%
44.44%
50.00%
17 022
14 600
17 634
—
49 257
5 958
4 674
—
—
10 632
11 064
9 926
17 634
—
38 625
The share issue and shareholder agreement relating to Nordnorsk Smolt AS were signed on 30 June 2019. Excess value relating to the
investment has been allocated to hatcheries under construction, based on provisional accounting figures from Nordnorsk Smolt AS on
The Group owns, through Grieg Seafood Finnmark AS, a 50% interest in Nordnorsk Smolt AS, together with SalMar ASA (50%). Nordnorsk
the acquisition date. The value added is amortized from the date of acquisition.
Smolt AS is located in Troms and Finnmark County in Northern Norway. The annual production is approximately 900 tonnes of smolt per
year. There is currently no production of smolt at Nordnorsk Smolt AS due to an ongoing redesign of the facility, which is scheduled for
The share issue and shareholder agreement relating to Tytlandsvik Aqua AS were signed on 1 June 2017. Excess value relating to the
completion in Q2 2023. In December 2021, a capital increase was carried out, whereby both owners invested NOK 12.5 million each. At
investment has been allocated to hatcheries under construction, based on provisional accounting figures from Tytlandsvik Aqua AS as at
31 December 2022, Grieg Seafood Finnmark AS provided a long-term loan to Nordnorsk Smolt AS of NOK 2.3 million (NOK 2.1 million at
31 December 2018. The fair value adjustment is amortized from the time the facility was completed and commissioned.
December 2021), which is included in other non-current receivables. The accrued interest is recognized under current receivables.
The excess value relating to the Årdal Aqua AS investment has been allocated to hatcheries under construction. The facility is expected to
The Group owns, through Grieg Seafood Rogaland AS, a 33.33% interest in Tytlandsvik Aqua AS, together with Bremnes Seashore AS
be completed in 2024, and depreciation of the excess value will start when its completed.
(33.33%) and Vest Havbruk AS (33.33%). Tytlandsvik Aqua AS is located in Ryfylke in Rogaland, Norway. Through Tytlandsvik Aqua AS, the
partners secure increased and improved access to post-smolt fish, with an annual production capacity of 4 500 tonnes, 50% of which falls
to Grieg Seafood Rogaland.
Through Grieg Seafood Rogaland AS, the Group owns a 44.44% interest in Årdal Aqua AS, together with Vest Havbruk AS and Omfar AS.
Omfar AS was brought in as a co-owner of the company through two private placement share issues. The other two shareholders were
diluted first from 50% to 37.04% and then to 33.33% ownership. At the same time, Grieg Seafood Rogaland AS entered into a post-smolt
Tytlandsvik Aqua AS, Nordnorsk Smolt, Årdal Aqua AS and Nextseafood AS have the same financial year as the Group. The following table
displays provisional financial information at 31 December 2022 (100%).
PART 03 – OUR FINANCIAL RESULTS
97
AT 31.12.2022 NOK 1 000
TOTAL ASSETS TOTAL LIABILITIES
TOTAL EQUITY OPERATING INCOME PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Nextseafood AS
91 295
623 770
220 614
15 149
36 227
485 682
3 665
—
55 068
138 088
216 949
15 149
195
322 999
—
—
-13 911
34 631
-1 449
-45
INVESTMENT IN ASSOCIATES
EQUITY INTEREST
AT 31.12.2021
BOOK VALUE AT
01.01.2021
NOK 1 000
PROFIT/LOSS 2021
NOK 1 000
CHANGES IN THE
PERIOD, REPAID
CAPITAL NOK 1 000
BOOK VALUE AT
31.12.2021
NOK 1 000
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Total
AT 31.12.2021
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Total ownership
50.00%
33.33%
37.04%
41 264
43 158
—
84 421
-6 053
4 929
-363
-1 486
12 500
—
9 241
21 741
47 711
48 087
8 878
104 675
TIME OF
INVESTMENT
EQUITY INTEREST
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
01.07.2019
01.06.2017
15.01.2020
50.00%
33.33%
37.04%
17 022
14 600
2 188
33 811
4 256
3 214
—
7 470
12 766
11 386
2 188
26 341
AT 31.12.2021 NOK 1 000
TOTAL ASSETS TOTAL LIABILITIES
TOTAL EQUITY OPERATING INCOME PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
93 076
518 466
25 972
24 097
408 353
7 624
68 979
110 113
18 348
57 636
216 387
50
-11 169
24 802
-979
NO T E 8 SEGME N T I NF OR M AT I ON AND R E V ENUE FR OM C ON T R A C T S W I T H
CU S T OM ER S
SEGMENT INFORMATION
The operating segments are identified on the basis of the reports which Group management uses to assess performance and profitability
at a strategic level. Group management assesses business activities from a geographical perspective, based on the location of assets.
The Group has one production segment: Production of farmed salmon. Earnings from the sales companies in the Group are reported per
producer. Geographically, management assesses the results of production in Rogaland – Norway, Finnmark – Norway, British Columbia
– Canada, and Newfoundland – Canada. Group management evaluates the results from the segments based on Operational EBIT.
The operating segments are divided geographically by country or region, based on the reporting applied by Group management when
assessing performance and profitability at a strategic level.
The method by which Operational EBIT is calculated excludes the effect of non-recurring costs, such as restructuring costs, legal
costs on acquisition and impairment of goodwill and intangible assets, when impairment is attributable to an isolated event which is
not expected to recur. Furthermore, the measurement method for Operational EBIT includes, but is not reported per region, the effect
of share-based payments, as well as unrealized gains and losses on financial instruments. These gains/losses and costs are reported
in the "Elim/Other" column in the segment information. Costs or gains which relate to prior years and not to the current operation of
Grieg Seafood, are not included as Operational EBIT, as such costs are not considered meaningful for the comparability of the Group's
results from one period to another. See Alternative Performance Measures for more information. Elim/Other items comprise, in addition
to intercompany eliminations, the profit/loss from activities conducted by the parent company or other Group companies not geared to
production. In the segment reporting, sales revenue at the regional level includes revenue from the sale of Atlantic salmon. At the
PART 03 – OUR FINANCIAL RESULTS
regional level, other income includes the sale of byproducts (such as ensilage), as well as income from the sale of smolt, fry and roe.
At the Group level, such income is reclassified to sales revenue in the "Elim/Other"column in the Group's segment information. Other
income also includes, at both the regional and Group level, rental income and income from overcapacity of operational assets. Other
gains/losses, such as gains/losses from the sale of fixed assets and other equipment, are included in the line “other gains/losses” in
the segment information. Associated companies that are closely related to the Group's operations and included in the Group’s value
chain, for example when the relevant associates operate in the same position in the value chain as the Group, are included in the Group's
operational EBITDA and Operational EBIT. Otherwise, the profit from associates is excluded and presented as share of profit from
associates (non-operational) in the Group’s segment information.
RECONCILIATION OF OPERATIONAL EBIT WITH EBIT IN THE INCOME STATEMENT NOK 1 000
2022
2021
Sales revenues
Other income
Other gains/losses
Share of profit from associates (operational)
Raw materials and consumables used
Salaries and personnel expenses
Other operating expenses
Operational EBITDA
Depreciation property, plant and equipment
Amortization licenses and other intangible assets
Operational EBIT
Share of profit from associates (non-operational)
Production fee
Fair value adjustment of biological assets
Write-down of non-current assets (non-operational)
Litigation and legal claims
Decommissioning costs
7 163 956
4 598 585
31 490
13 393
-1 463
70 745
-6 752
-1 486
-2 233 655
-1 738 267
-695 577
-577 434
-2 087 310
-1 527 347
2 190 834
-434 641
-16 706
1 739 486
22 558
-26 350
83 412
-140 074
-157 065
-24 382
818 044
-368 482
-7 192
442 370
—
-24 463
523 036
—
—
—
EBIT (Earnings before interest and taxes)
1 497 586
940 944
2022
GEOGRAPHICAL SEGMENTS
NOK 1 000
Sales revenues
Other income
Other gains/losses
Share of profit from associates
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG SEAFOOD
GROUP
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
2 123 671
2 629 226
1 665 105
81 137
-1 954
7 195
18 619
11 965
-8 658
8 649
-4 475
—
—
321
—
—
745 954
-77 237
7 858
—
7 163 956
31 490
13 393
-1 463
Operating costs before depreciation and amortization
-1 356 928
-1 579 017
-1 279 079
-40 576
-760 943
-5 016 543
Operational EBITDA
853 121
1 072 136
390 200
-40 254
-84 368
2 190 834
Depreciation, amortization and reversals
-98 536
-145 997
-119 789
-74 474
Operational EBIT
754 585
926 139
270 411
-114 728
Harvest volume (tonnes GWT)
28 387
36 024
20 286
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs incl. ownership and headquarters costs/
kg (NOK)
Operational EBIT/kg (NOK)
Total assets
Total liabilities
74.8
48.2
—
26.6
73.0
47.3
—
25.7
82.1
68.8
—
13.3
—
—
—
—
2 920 718
3 422 148
1 913 438
3 116 131
1 502 930
12 875 365
1 236 330
1 610 495
692 878
2 735 606
114 349
6 389 657
98
-12 552
-96 920
—
—
—
—
-451 347
1 739 486
84 697
75.8
52.7
2.5
20.5
2021
GEOGRAPHICAL SEGMENTS
NOK 1 000
Sales revenues
Other income
Other gains/losses
Share of profit from associates
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG SEAFOOD
GROUP
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
1 430 949
1 756 292
1 023 474
76 640
48 868
140
4 567
-52
-6 053
9 114
-6 839
—
—
569
—
—
387 870
-64 445
—
—
4 598 585
70 745
-6 752
-1 486
Operating costs before depreciation and amortization
-1 167 414
-1 405 878
-781 973
-93 388
-394 395
-3 843 048
Operational EBITDA
344 882
393 176
243 776
-92 819
-70 970
Depreciation, amortization and reversals
-102 865
-142 640
-93 541
-24 039
Operational EBIT
242 017
250 537
150 235
-116 858
Harvest volume (tonnes GWT)
26 670
34 484
14 448
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs incl. ownership and headquarters costs/
kg (NOK)
Operational EBIT/kg (NOK)
Total assets
Total liabilities
53.7
44.6
—
9.1
50.9
43.7
—
7.3
70.8
60.4
—
10.4
—
—
—
—
2 181 546
3 076 166
2 057 524
2 487 713
911 299
10 714 248
1 088 328
1 502 171
1 018 999
1 948 082
-406 634
5 150 946
-12 590
-83 561
—
—
—
—
818 044
-375 674
442 370
75 601
55.7
47.2
2.7
5.9
SALES REVENUES FROM CONTRACTS
WITH CUSTOMERS, BY GEOGRAPHICAL
MARKET
NOK 1 000
NORWAY*
CANADA*
TOTAL
2022
2021
2022
2021
2022
2022%
2021
2021%
Continental Europe
4 152 843
2 968 604
4 152 843
58%
2 968 604
UK
USA
Canada
Asia
Other markets
Total
—
—
—
—
247 295
114 887
247 295
181 659
85 953
1 323 551
831 003
1 505 210
87 722
22 778
466 935
284 238
554 657
584 914
277 836
67 028
7 274
651 943
52 008
6 011
—
—
52 008
3%
21%
8%
9%
1%
114 887
916 957
307 016
285 111
6 011
65%
2%
20%
7%
6%
—%
5 306 441
3 476 069
1 857 515
1 122 516
7 163 956
100%
4 598 585
100%
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations.
Grieg Seafood did not have any sales to Russia in 2022 or in 2021.
SALES REVENUES FROM CONTRACTS WITH CUSTOMERS, BY DISTRIBUTED
PRODUCTS
NOK 1 000
Fresh whole fish
Fresh processed fish
Frozen processed fish
Other products and services
Total
NORWAY*
CANADA*
TOTAL
2022
2021
2022
2021
2022
2021
5 149 017
3 429 432
1 805 633
955 179
6 954 650
4 384 611
57 142
53 373
287
—
46 909
46 351
51 588
166 380
108 729
166 666
10
284
508
449
53 383
508
47 193
46 800
5 306 441
3 476 069
1 857 515
1 122 516
7 163 956
4 598 585
Sales revenue/kg reported in the segment information is equal to the sum of sales revenues from the regions divided by the related harvest volume. Group sales revenue
is calculated based on the Group’s farming operations, excluding sales revenue from Group companies not geared to production.
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations.
Farming cost/kg reported in the segment information encompasses all costs directly related to the production and harvest of salmon, divided by the related harvest
volume. Thus, at the regional level, farming cost equals operational costs. Other income is included in the farming cost metric as representing cost reduction activities.
Group farming cost is calculated based on the Group’s farming operations, excluding ownership costs and costs from Group companies not geared to production.
Other costs incl. ownership and headquarters costs/kg reported in the segment information include all costs and revenue not directly related to the production and
harvest of salmon, such as costs deriving from activities conducted by the parent company and other Group companies not geared to production, divided by the Group's
harvest volume. In addition, until the first harvest in Newfoundland is carried out, net costs attributable to the Newfoundland region are included as other costs/kg.
Operational EBIT/kg reported in the segment information is equal to Operational EBIT divided by the related harvest volume.
See Alternative Performance Measures for more information on the non-IFRS measures relating to sales revenue/kg, farming cost/kg, other costs incl. ownership and
headquarters costs/kg and Operational EBIT/kg.
SALES REVENUES FROM CONTRACTS WITH CUSTOMERS
The Group's revenues mainly comprise revenues from the sale of whole fresh Atlantic salmon, in addition to processed Atlantic salmon.
The Group’s revenue stream also comprises some ensilage (byproduct from the harvesting of Atlantic salmon), in addition to sales of
smolt and and third-party harvesting if the Group has overcapacity at its facilities.
Sales revenues are recognized at the point in time when control of the fish has been transferred to the customer. This will normally be
upon delivery. In 2022, the sale of fresh whole Atlantic salmon totaled 97% (2021: 95%) of the Group's sales revenues (excluding other
products), while processed fish accounted for 2% (2021: 4%).
PART 03 – OUR FINANCIAL RESULTS
NO T E 9 BIOL OGIC AL A S SE T S AND O T HER I NV EN T OR I E S
Biological assets at 01.01.
Currency translation differences
Increase due to production
Decrease due to abnormal mortality/loss
Decrease due to sales
Fair value adjustment at 01.01.
Fair value adjustment at 31.12.
Biological assets at 31.12.
TONNES
NOK 1 000
2022
59 121
N/A
93 134
-3 455
2021
2022
2021
52 619
3 449 412
2 545 903
N/A
36 945
22 840
99 590
-5 534
4 348 288
3 428 102
-224 924
-117 450
-98 186
-87 553
-3 743 033
-3 053 236
N/A
N/A
N/A
N/A
-970 480
-347 227
1 149 591
970 480
50 614
59 121
4 045 800
3 449 412
RECOGNIZED FAIR VALUE ADJUSTMENT
Change in fair value adjustment of biological assets1
Change in physical delivery contracts relating to fair value adjustment of biological assets2
Change in fair value of financial derivatives from salmon (Fish Pool contracts)3
Total recognition of fair value adjustment of biological assets
Recognized value adjustments of biological assets include:
1 Fair value adjustments of biological assets
2 Fair value (liability) change in loss-making contracts
3 Change in unrealized gains/losses from financial purchases/sales contracts (derivatives) from fish at Fish Pool
2022
129 331
-1 610
-44 309
83 412
2021
619 439
—
-96 403
523 036
99
In accordance with IAS 41, biological assets are measured at fair value, unless the fair value cannot be measured reliably.
Broodstock (classified as inventory and not biological assets) and smolt are measured at cost less impairment losses. Fair value of
biological assets is calculated on a discounted cash flow-based present value model, which does not rely on historical cost.
Provisions allocated to future physical delivery contracts that require fair value adjustments are recognized as other current liabilities in
the balance sheet. The contracts are calculated based on the same forward prices used for the fair value calculation of biological assets.
Changes in the value of salmon-related financial derivatives are recognized in the balance sheet under derivatives and other financial
Abnormal mortality - write-down
Cost related to abnormal mortality will be immediately recognized in profit or loss, and presented as "decrease due to abnormal
mortality/loss" in the table for opening-to-closing balance reconciliation as disclosed above. Normal mortality is classified as part of the
production cost. The classification of mortality only affects the note presentation, and not the fair value calculation.
In Rogaland, the main causes of abnormal mortality at sea in 2022 were sea lice treatment, pancreas disease (PD), winter ulcers and
cardiomyopathy syndrome (CMS). In Finnmark, Spironucleus salmonicida (Spiro) and winter ulcers were the main causes. In BC, algae/
instruments. Financial derivatives are calculated at market value. See Note 3 for further information.
low oxygen levels, SRS and lice treatment were the main causes for the abnormal mortality.
For further information on accounting policies for biological assets, please refer to Note 2 and Note 4.
BASIS FOR VALUES
Weighted price per kg GWT
Source
NORWAY
BRITISH
COLUMBIA
NEWFOUNDLAND
Spiro was detected in some fish in certain pens in Finnmark. This led to the early harvesting and culling of fish showing signs of ill health
in order to protect fish welfare. Spiro in Finnmark is also the main reason the average size of the fish recorded under abnormal mortality
is lower in 2022 compared to 2021. Newfoundland did not have abnormal mortality at its sea farms in 2022. We incurred costs related
to both mortality and abnormal mortality at our freshwater facilities in Finnmark and BC. Lower quality roe significantly impacted BC’s
NOK 84.06
CAD 12.83
CAD 11.66
freshwater production, leading to reduced survival recognized as abnormal mortality.
Fish Pool
Fish Pool
Fish Pool
Forward prices from Fish Pool are adjusted for expected quality reductions and stated before logistics expenses.
The standard deduction for quality reduction is applied. Forward prices are weighted in relation to the intended harvesting period.
The price for British Columbia and Newfoundland is based on the forward price in Norway, adjusted for historical differences in price
levels between Norway and Canada. Forward exchange rates are used to translate prices into CAD in relation to the harvesting period.
The estimated future cash flow is discounted by a monthly rate, which is assessed individually for each region. The discount rate reflects
a combination of the cost of capital for the biological assets, risk adjustment (the risk related to volume, cost and price of the biological
assets) and a synthetic license rent. The discount rate is differentiated to take account of each region’s different prerequisites for
biological production, which also results in a differentiation of the recognized synthetic license rent. See the table below for the applied
discount rates per region, and see Note 4 for more information.
DISCOUNT RATE PER REGION
Rogaland
Finnmark
British Columbia
Newfoundland*
*Newfoundland fish stocked at sea for the first time in 2022.
2022
5.0%
5.0%
3.5%
3.5%
2021
5.0%
5.0%
3.5%
N/A
STATUS OF BIOLOGICAL ASSETS
2022
Biological assets on land *
Immature fish at sea, round weight < 4.60 kg
Mature fish at sea, round weight > 4.60 kg
Total
2021
Biological assets on land *
Immature fish at sea, round weight < 4.60 kg
Mature fish at sea, round weight > 4.60 kg
Total
* Smolt production
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
ACCRUED COST
OF PRODUCTION
NOK 1 000
FAIR VALUE
ADJUSTMENT
NOK 1 000
BOOK VALUE
NOK 1 000
17 680
26 562
1 648
45 890
28 522
28 266
1 292
58 080
547
41 614
8 453
50 614
539
51 944
6 638
59 121
181 569
2 370 985
343 655
—
181 569
934 708
214 883
3 305 693
558 537
2 896 209
1 149 591
4 045 800
164 959
2 080 957
233 018
—
164 959
873 626
96 854
2 954 583
329 872
2 478 934
970 480
3 449 412
In 2021, the main causes of abnormal mortality were pancreas disease and sea lice treatment in Rogaland, winter ulcers and a chlorine
accident at the harvesting plant in Finnmark, and low oxygen levels in BC.
ABNORMAL MORTALITY - WRITE-DOWN
2022
Biological assets on land
Immature fish in sea, round weight < 4.60 kg
Mature fish in sea, round weight > 4.60 kg
Total
2021
Biological assets on land
Immature fish in sea, round weight < 4.60 kg
Mature fish in sea, round weight > 4.60 kg
Total
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
AVERAGE
SIZE KG
ACCRUED COST
OF PRODUCTION
NOK 1 000
3 116
2 290
85
5 491
1 176
957
515
2 648
47
2 994
414
3 455
186
2 678
2 670
5 534
0.02
1.31
4.89
0.63
0.16
2.80
5.18
2.09
11 034
154 694
16 983
182 710
18 565
44 098
54 787
117 450
The abnormal mortality in 2022 includes the culling of fish in Finnmark due to Spiro. The write-down in 2022 was significantly impacted by lower quality roe in BC (see
the opening-to-closing balance reconciliation at the start of this note). Roe is not included in this table. In 2022, the write-down due to lower quality roe in BC came to
NOK 42 million, bringing total write-down for 2022 to NOK 225 million.
OTHER INVENTORIES NOK 1 000
Raw materials (feed) at cost price
Roe
Other (goods in transit, frozen fish, supplementary products)
Total inventories
Impairment of inventories recognized at year-end
COST OF RAW MATERIALS AND CONSUMABLES PURCHASED NOK 1 000
Inventories at 01.01. (inverted number)
Raw materials and consumables purchased
Inventories at 31.12.
Total
2022
105 585
41 219
93 368
240 172
507
2022
-128 299
-2 345 528
240 172
2021
67 355
3 000
57 944
128 299
20 020
2021
-78 001
-1 788 565
128 299
-2 233 655
-1 738 267
PART 03 – OUR FINANCIAL RESULTS
100
NO T E 10 IN TANGIBL E A S S E T S
2022 NOK 1 000
Book value at 01.01.
Currency translation differences
31 023
Reclassifications1
Additions
Amortization
Impairment2
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
GOODWILL
660 071
1 522 227
14 092
-4 439
124 845
7 380
-11 103
—
36 828
1 483
-20 687
2 669
-5 603
TOTAL
2 233 218
78 627
—
10 048
-16 706
—
-135 693
50 560
-104 159
—
—
-135 693
—
-130 752
—
—
—
—
—
-89 603
691 094
691 094
1 332 936
130 775
14 689
2 169 493
780 697
1 463 687
173 274
-42 499
—
61 944
2 479 602
-47 255
-89 754
—
-220 355
1 332 936
130 775
14 689
2 169 493
See Note 2 for information on the useful economic life of assets, and Note 12 for information on assets pledged as security for financial liabilities.
1The reclassification primarily concerns licenses in Newfoundland that has been considered as having finite economic life and subject to amortization. In addition, the
reclassification lite item relate to other intangible assets reclassified to indefinite licenses following formal approval of license application in Newfoundland.
2For information concerning he impairment of aquaculture licenses in 2022 see Note 28.
2021 NOK 1 000
Book value at 01.01.
FISH FARMING
LICENSES –
INDEFINITE
LIVES
GOODWILL
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS*
TOTAL
638 019
1 493 419
15 034
38 015
2 184 486
Currency translation differences
22 053
28 767
Additions
Amortization
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
—
—
41
—
660 071
1 522 227
749 674
1 522 227
—
-89 603
660 071
—
—
1 522 227
524
—
-1 466
14 092
44 397
-30 305
—
14 092
747
3 792
-5 726
36 828
52 090
3 833
-7 192
2 233 218
78 506
2 394 804
-41 678
—
-71 983
-89 603
36 828
2 233 218
See Note 2 for information on the useful economic life of assets, and Note 12 for information on assets pledged as security for financial liabilities.
LICENSES
The tables below provide an overview of the Group’s licenses. See Note 2 for further information on licenses.
NORWAY
NORWAY LICENSE CATEGORY
TOTAL NUMBER
CAPACITY
TONNES
Seawater licenses
Green licenses 1
R&D permit
Broodstock
Smolt
Harvesting pens
Education 2
Total licenses in production
Visitor center for fish farming 3
Total
35
30 853
8
3
3
3
2
2
56
1
57
7 743
2 340
2 340
4 045
1 106
1 560
49 987
780
50 767
1 Of which four green licenses are converted.
2 Finnmark and Rogaland lease education licenses from the Troms and Finnmark and Rogaland County Councils, respectively.
3 Finnmark has a license for a visitor center for fish farming. The center is under construction, and expected to be completed in 2024. The license cannot be utilized
before the visitor center is constructed.
CANADA - BC
All owners of industrial open-net pens must be approved by the the Department of Fisheries and Oceans Canada (DFO), which has
regulated the industry since 2009. From 2022, farming companies need to obtain support from local First Nations in the area where the
company has its licenses, together with the DFO. Each local First Nation establishes its own protocol and procedures for engaging with
companies operating in its territory. Grieg Seafood BC is working with all the local First Nations in their areas of operations and has
engaged positively with all of them. The new regulation will contribute to a more sustainable future for local communities and workers.
See Note 4 for further information.
WEST COAST
OF VANCOUVER
ISLAND
EAST COAST OF
VANCOUVER
ISLAND TOTAL CAPACITY
Total
- Of which relates to Sechelt
38 500
0
17 500
11 000
56 000
11 000
The capacity in BC is merely theoretical capacity, as all locations cannot be utilized simultaneously. BC also has a license for broodstock and smolt.
In 2022, the licenses for Sechelt farming area has been written down (see the section for “Write-down of tangible and intangible non-current assets” below). Grieg
Seafood formally holds the licenses as at year-end 2022, however we have decommissioned our farming operations at the sites.
CANADA - NEWFOUNDLAND
Newfoundland currently holds 13 seawater licenses and one freshwater license, with the aim to develop additional licenses as the project
progresses. The regulations for salmon farming in Placentia Bay are based on the number of fish in the sea at any one site. Per license
there is a maximum of one million fish in the sea in the first generation, and a maximum of two million fish in the second generation. In
addition there are regulations related to fallowing and adherence to certain environmental indicators. See Note 4 for more information.
WRITE-DOWN OF TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS
In 2022, Grieg Seafood has recorded write-down of tangible and intangible non-current assets totalling NOK 140 million. The write-down
is related to reorganization of ownership structure of licenses, and decommissioning of farming operations.
In 2022, Grieg Seafood has reorganized the ownership of commercial aquaculture licenses in Norway, as the Group considered it
necessary to separate Norwegian commercial and non-commercial aquaculture licenses by legal entities to be able to correctly calculate
and report the resource rent tax proposed by the Norwegian government. As the licenses have been sold intra-group to the estimated fair
value, a write-down of NOK 47 million has been recorded in the income statement of Grieg Seafood for the part of book value exceeding
PART 03 – OUR FINANCIAL RESULTS
101
the estimated fair value, estimated as the fair value less cost of disposals (fair value hierarchy level 3) for one specific commercial
aquaculture license in our region Rogaland, Norway. The fair value has been estimated using a combination of valuation techniques,
incl. used available information in the market (action prices, stock prices) and discounted cash flow model for a standard commercial
aquaculture license.
Grieg Seafood has in 2022 discontinued production in the shíshálh (Sechelt) farming area in British Columbia (BC), which negatively
impacted the income statement with a write down of commercial aquaculture licenses by NOK 88 million (recoverable amount of NOK 0
million), in addition to the write-down of related seawater production equipment and -assets by NOK 4 million, in total NOK 93 million. At
year-end 2022, all fish in the Sechelt farming area has been harvested.
WRITE-DOWN ON TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS NOK 1 000
Commercial aquaculture licenses in Rogaland, Norway
Commercial aquaculture licenses in British Columbia, Canada
Non-current tangible assets in British Columbia, Canada
Total write-down
- Of which total write-down of intangible non-current assets
NOTE
11
2022
47 242
88 451
4 382
140 074
135 693
2021
—
—
—
—
—
IMPAIRMENT TESTING OF GOODWILL AND LICENSES
As at year-end 2022, except for the write-down of non-current tangible and intangible assets for the specific events as disclosed above,
no impairments of goodwill or licenses were recognized in 2022.
Goodwill and licenses with indefinite economic lives are subject to an annual impairment test. Tests are performed more frequently
where indications of impairment exist. Licenses with finite useful lives are tested for impairment only if there are indications of a decline
in value. The estimated value in use (VIU) is used as a basis for calculating the recoverable amount, except for Grieg Newfoundland where
the fair value less cost of disposal (FVLCD) has been used as basis for recoverable amount. Grieg Newfoundland was acquired in 2020
and reported as a segment as from 2021. During 2022, the first transfer of smolt to sea was successfully completed. The first harvest is
expected to commence late 2023.
CASH-GENERATING UNIT NOK 1 000
Rogaland
Finnmark
British Columbia (BC)
Newfoundland
Total value
LOCATION
Norway
Norway
Canada
Canada
20 463
—
10 441
660 190
691 094
206 394
397 218
88 999
771 099
TOTAL
226 857
397 218
99 441
1 431 289
BOOK VALUE OF
RELATED
GOODWILL
BOOK VALUE
OF LICENSES
ASSUMPTIONS USED FOR ESTIMATING RECOVERABLE AMOUNT
ROGALAND
FINNMARK
BC
NEWFOUNDLAND
Budget period
Increase in revenues in budget period
3 years
5%
3 years
14%
3 years
76%
13 years
NA
Operational EBITDA margin 1)
29% -34%
34% - 39%
28% - 34%
0% -36%
Operational EBITDA margin in terminal period
Harvest growth – tonnes 2)
Required rate of return before tax 3)
Required rate of return after tax 3)
Growth rate 4)
30%
2%
11%
8.2%
1%
39%
8%
11%
8.2%
1%
33%
54%
11%
8.3%
1%
36%
NA
14.2%
10.0%
1%
The budget period/explicit period is three years for Rogaland, Finnmark and BC. Impairment tests are initially based on the Group’s
rolling four-year projections, which are also used in connection with the Group's liquidity planning. Future price levels are estimated
by using Fish Pool forward prices as a basis, adjusted for other considerations such as quality reductions and shipping costs. To test
the Newfoundland operation for impairment, we estimated the FVLCD using a period of 13 years to reflect production at full capacity
in the terminal year. Although production will increase at a slow pace in the first few years, it will pick up speed once the facilities are
completed and more smolt are transferred to the sea. We target a harvest volume of 15 000 tonnes in 2026, which we aim to increase to
45 000 tonnes in 2035.
The notes for the table “Assumptions used for estimating recoverable amount” (above) are presented below:
1. Budgeted Operational EBITDA margin: The margin remains more stable for the Norwegian regions, and is assumed to increase for our
overseas regions during the budget period. Increase in harvest volume is assumed in all regions towards 2025.
2. The growth rate for the harvest volume in the budget period (nominal growth rate) is measured against the 2022 volume. A
corresponding increase in output is assumed over time.
3. Weighted required return on capital employed before and after tax. Cash flow forecasts are thus estimated after tax. In the calculation,
the return on capital employed is also after tax.
4. Weighted average growth rate used to extrapolate cash flows beyond the budget period. In the years after 2025, the annual
reinvestment is assumed to be equal to annual depreciation.
OPERATIONAL EBITDA MARGIN IN THE BUDGET AND TERMINAL PERIOD
The budgeted Operational EBITDA margin is based on past performance, expected cost of production and expected market developments.
An increase in gutted weight output is assumed towards 2025 (2035 for Grieg Newfoundland). The increased harvest volume assumes
an increase in utilization of existing production capacity and licenses, reflecting the Group's post-smolt strategy and operational
improvements. We expect further growth to come from better utilization of our seawater licenses by moving more growth to land
through our post-smolt program. We have come far with our post-smolt strategy in Rogaland, and will increase post-smolt capacity
also in Finnmark and BC. The expansion of the smolt facility in BC was completed in 2022. Better utilization of our seawater licenses
by improving biosecurity, fish health, welfare and survival rates, is also expected to secure on-growth and harvest volumes. Flexibility
1 463 710
2 154 804
is a requirement to achieve better utilization of our capacity, and we are continuously looking for opportunities to secure access to new
locations.
Goodwill arises on the acquisition of the subsidiaries and is measured on the basis of a group of cash-generating units that are expected
to benefit from the synergy effects in the overall segment. Annual impairment tests are carried out on goodwill and licenses. The
recoverable amount is calculated on the basis of value-in-use, except for Grieg Newfoundland where the calculation is based on fair value
less cost of disposal (FVLCD). These calculations use after tax cash flow projections based on financial budgets from the respective cash-
generating units over a three-year period. Cash flows beyond the three-year period are extrapolated using the estimated growth rates
stated below. The estimated growth rate corresponds to expected inflation. For Newfoundland, the period is 13 years based on the first
harvest expected in 2023. During the first few years, the cash flow will be negative due to low production and harvest volume, in addition
to capital allocated to building of biomass and growth investments.
The assumptions in the terminal year are based on the budget, adjusted for inflation. The applied discount rates are after tax and reflect
specific risks relating to the relevant operating segments.
SENSITIVITY ANALYSIS
The assessment of fair value less cost of disposal and value-in-use is sensitive to changes in the assumptions made, the most important
of which are the discount rate and Operational EBIT/kg. A sensitivity analysis has been carried out based on these assumptions for
all groups of cost-generating units. An isolated increase in the discount rate by two percentage points would result in an estimated
impairment for the Newfoundland operations of NOK 225 million, while a reduction of NOK 6 in Operational EBIT/kg for the entire budget
period and terminal would entail an estimated impairment for Newfoundland of NOK 79 million. The other cost-generating units are not
sensitive to equivalent changes in the same assumptions.
See Alternative Performance Measures for more information on Operational EBIT, Operational EBIT/kg and Operational EBITDA.
PART 03 – OUR FINANCIAL RESULTS
102
2021 NOK 1 000
Book value at 01.01.
Currency translation differences
Reclassification
Grants received
Additions
Disposals
Depreciation
Book value at 31.12
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
1 182 595
25 126
-132 195
-88 910
220 066
40
-37 436
1 169 285
1 436 555
-267 270
—
1 169 285
107 839
893 039
-16 908
112 098
—
187 024
-8 812
-101 422
1 065 018
510 212
447 308
3 033 154
34 232
2 798
—
89 446
-6 613
-100 574
529 502
4 830
47 280
17 299
—
—
-88 910
303 638
800 175
-5 201
-20 587
-129 050
-368 482
638 824
3 402 629
1 786 948
1 281 384
1 153 100
5 657 987
-721 930
-751 882
-514 276
-2 255 358
—
—
—
—
1 065 018
529 502
638 824
3 402 629
—
—
—
107 839
NO T E 11 P R OP ER T Y, P L A N T AND EQUIP MEN T INCL. R IGH T- OF-U SE-
A S SE T S
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
1 169 285
1 065 018
529 502
638 824
3 402 629
15 431
21 046
775
393 178
-5 889
8 944
-747
—
180 331
-3 160
17 390
15 501
70 762
—
24
76 464
256 922
936 879
-2 803
-12 121
-108 632
-106 867
-177 416
-434 641
-113
-4 065
603 938
-204
-4 382
748 238
4 035 590
Book value at 31.12.
1 302 600
1 380 814
2022 NOK 1 000
Book value at 01.01.
Currency translation differences
Reclassification
Grants received and other deductions to historic cost1
Additions2
Disposals
Depreciation
Impairment3
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
Of which book value of non-depreciable property
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 13)
28 997
-35 799
75 664
106 449
-269
-41 726
—
1 611 916
-309 317
—
1 302 600
113 016
2 178 260
1 439 973
1 320 913
6 551 062
Of which book value of non-depreciable property
-797 339
-832 197
-572 483
-2 511 335
RIGHT-OF-USE ASSETS
-107
1 380 814
—
-3 838
603 938
—
-192
-4 137
748 238
4 035 590
—
113 016
Book value at 31.12 of right-of-use assets (see
separate specification in Note 13)
67 927
242 934
87 743
437 294
835 898
See Note 2 for information on useful economic lifetime of assets, and Note 12 for information on assets pledged as security for financial liabilities.
See Note 13 for specification of the Group's right-of-use assets and further information on its leases.
66 622
292 209
72 302
547 010
978 143
See Note 2 for information on useful economic lifetime of assets, and Note 12 for information on assets pledged as security for financial liabilities.
See Note 13 for specification of the Group's right-of-use assets and further information on its leases.
1Grants received and other deductions to historic cost, of which NOK -86 million relates to the reversal of Investment Tax Credit (ITC) carried over from 31 December
2021 in Newfoundland (see Note 23) and NOK 9 million relates to government grants received in 2022 in Newfoundland.
2The Group leases vessels which are capitalized on the balance sheet as right-of-use assets. Some of these vessels are utilized in the development of the Newfoundland
region.
3Impairment in 2022 is related to the Sechelt farming area in British Columbia, Canada. See Note 10 and 28 for more information.
PART 03 – OUR FINANCIAL RESULTS
103
NO T E 12 B OR R O W ING S
Grieg Seafood ASA has a syndicated loan provided by DNB and Nordea. The syndicated financing from secured lenders of Grieg Seafood
consists of an aggregate of NOK 3 200 million in five-year senior secured sustainability-linked loans and credit facilities. The debt
structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
200 million overdraft facility. As at year-end 2022, both the revolving credit facility and the overdraft facility is unutilized. The outstanding
debt on the two term loans amounts to NOK 1 474 million, of which NOK 128 million is installments due the next 12 months from the
reporting date. The financing carries floating interest rates, calculated as the relevant three month IBOR plus the applicable margin per
interest period. The financial covenant of the facility is a minimum equity-ratio requirement of 31%, measured excl. the effect of IFRS 16.
In addition to the senior secured facility, the Group also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025. The
outstanding amount of the bond loan was NOK 1 424 million at the end of 2022. The bond carries a coupon rate of three months NIBOR +
3.4% p.a. The bond's financial covenant is an equity ratio requirement of minimum 30%, measured consistent with the Group’s equity-
ratio financial covenants as defined in its syndicated loan agreement with secured lenders.
Grieg Seafood ASA was in compliance with its financial covenant at 31 December 2022. At 31 December 2022, the Group had an equity
ratio of 50% (2021: 52%) while the equity ratio according to financial covenant was 52%, compared to 54% at 31 December 2021.
In addition to bank- and bond loan, the Group's financing consists of lease agreements with credit institutions, in addition to the effect of
IFRS 16 by capitalizing leases on the balance sheet (operational leases according to IFRS in force prior to 1 January 2019).
Total unutilized credit facilities of the Group amount to NOK 1 700 million as at 31 December 2022 (2021: NOK 885 million).
2022
2021
1 423 500
1 346 218
—
318 198
335 452
94 144
1 500 000
374 580
440 000
287 578
290 219
96 091
NON-CURRENT LIABILITIES NOK 1 000
NON-CURRENT LIABILITIES (INTEREST BEARING)
Green bond
Non-current syndicated loan
Non-current credit facility
Non-current lease liabilities (prior IAS 17 finance leases)
Non-current lease liabilities (prior IAS 17 operational leases)
Other non-current liabilities
Total
Amortization effect of loans
Total non-current liabilities
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
Current portion of borrowings
Current portion lease liabilities (prior IAS 17 finance leases)
Current portion lease liabilities (prior IAS 17 operational leases)
Total current liabilities (interest-bearing)
NET INTEREST-BEARING LIABILITIES NOK 1 000
Total non-current interest-bearing liabilities (see above)*
Total current interest-bearing liabilities (see above)
Gross interest-bearing liabilities
Cash and cash equivalents
Investments in money market funds
Loans to associates
Net interest-bearing liabilities
Lease liabilities (prior IAS 17 operational leases)**
Net interest-bearing liabilities ex. the effect of IFRS 16
2022
3 517 512
368 878
3 886 390
642 719
1 012 848
8 300
2 222 522
-483 946
1 738 576
2021
2 988 468
232 507
3 220 974
928 342
—
2 111
2 290 520
-395 332
1 895 188
*Green bond and non-current borrowings including syndicated term loan and revolving facility as presented above, are presented excluding amortized effect of loans.
**Leasing liabilities that would, according to the IFRS in force prior to 1 January 2019, be classified as operational leases, are excluded from the net interest-bearing
liabilities according to the covenant calculation.
PAYMENT PROFILE NON-CURRENT LIABILITIES 31.12.2022
NOK 1 000
2023
2024
2025
2026
2027
LATER
TOTAL
Green bond
—
— 1 423 500
—
—
— 1 423 500
Non-current syndicated term-loan
128 211
128 211
128 211
128 211
961 584
— 1 474 429
Lease liabilities (prior IAS 17 finance leases)
78 416
67 679
55 503
51 599
46 618
96 799
396 614
Lease liabilities (prior IAS 17 operational leases)
148 494
133 764
66 556
62 901
41 864
30 366
483 946
Other non-current liabilities*
13 757
11 310
9 944
9 856
11 004
52 029
107 900
Total
368 878
340 965
1 683 714
252 568
1 061 071
179 194
3 886 390
*NOK 107.8 million attributable to various loans provided by government agencies in Canada concerning the development of the Newfoundland region. These loans are
recognized at present value, with a calculated interest charged to the income statement until maturity.
PAYMENT PROFILE NON-CURRENT LIABILITIES 31.12.2021
NOK 1 000
2022
2023
2024
2025
2026
LATER
TOTAL
Green bond
Non-current syndicated term-loan
Non-current syndicated revolving credit facility
—
—
— 1 500 000
49 944
374 580
—
440 000
—
—
—
—
—
—
—
— 1 500 000
—
—
424 524
440 000
3 517 512
2 988 468
Lease liabilities (prior IAS 17 finance leases)
72 918
67 410
57 199
43 909
39 525
79 535
360 496
-25 053
3 492 459
2022
141 968
78 416
148 494
368 878
-29 671
2 958 797
2021
54 475
72 918
105 114
232 507
Lease liabilities (prior IAS 17 operational leases)
104 772
81 209
80 980
51 033
37 084
40 255
395 332
Other non-current liabilities*
4 873
11 773
12 310
9 200
8 114
54 353
100 622
Total
232 507
974 972
150 489
1 604 141
84 723
174 142
3 220 974
*NOK 98.6 million attributable to various loans provided by government agencies in Canada concerning the development of the Newfoundland region. These loans are
recognized at present value, with a calculated interest charged to the income statement until maturity.
NOK 1 000
Liabilities secured by mortgages/charges on assets*
*See the comment below the table for assets pledged as security.
2022
2021
1 899 364
1 248 889
ASSETS PLEDGED AS SECURITY NOK 1 000
2022
2021
Licenses
Property, plant and equipment *
Trade receivables
Inventories and biological assets excl. fair value of biological assets
Total assets pledged as security
1 463 709
3 562 816
259 137
3 136 381
8 422 043
1 536 319
3 017 023
151 793
2 607 231
7 312 366
*Book value of liabilities secured by mortgage/charges on assets, and the property, plant and equipment does not include the book value of the effect of IFRS 16
(compared to the IFRS in force prior to 1 January 2019) on right-of-use and lease liability.
Pledges also include shares in subsidiaries. The book value of these shares in the consolidated financial statements is NOK 0.
PART 03 – OUR FINANCIAL RESULTS
104
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
Green bond
Non-current syndicated term-loan
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Other non-current and current liabilities
Amortization effect of loans
Total
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
Green bond
Non-current syndicated term-loan
Non-current syndicated revolving credit facility
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Other non-current and current liabilities
Amortization effect of loans
Total
AVERAGE INTEREST RATE ON BANK- AND BOND LOAN
Average interest rate (NOK)
Average interest rate (EUR)
31.12.2022
NOK
1 423 500
1 423 500
EUR
—
1 474 429
718 750
755 679
396 614
396 087
483 946
140 042
107 900
—
-25 053
-25 053
—
—
—
—
CAD
—
—
527
343 904
107 900
—
3 861 337
2 653 326
755 679
452 331
31.12.2021
NOK
1 500 000
1 500 000
EUR
—
424 524
—
424 524
440 000
440 000
360 496
357 942
395 332
170 846
100 622
—
-29 671
-29 671
—
—
—
—
—
CAD
—
—
—
2 554
224 487
100 622
—
3 191 303
2 439 117
424 524
327 662
2022
4.61%
1.77%
2021
3.76%
3.50%
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
BOOK VALUE
FAIR VALUE
BOOK VALUE AND FAIR VALUE OF BORROWINGS NOK 1 000
2022
2021
2022
2021
Green bond
1 423 500
1 500 000
1 414 532
1 500 000
Borrowings (non-current syndicated loan and credit facility, incl.
current part of the non-current liability)
Total
1 474 429
2 897 929
864 524
1 474 429
864 524
2 364 524
2 888 961
2 364 524
Book values in the table above are excluding the amortization effect of loan cost.
The book value of borrowings (excluding the green bond) closely approximates to the fair value.
Our green bond is listed on Oslo Børs (Euronext). Our green bond is listed on Oslo Børs (Euronext). Market price of the bond was 99.37% of par value at year-end 2022
(2021: 100%).
CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES NOK 1 000
LEASE LIABILITY
BORROWINGS
TOTAL
LIABILITIES ARISING FROM FINANCING ACTIVITIES
At 01.01.2021
Cash movements:
Revolving credit facility (net draw-down/repayment)
Draw-down other non-current loan
Repayment non-current syndicated term-loan (NOK and EUR)
Repayment other non-current loan
Repayment lease liability (prior IAS 17 finance leases)
Repayment lease liability (prior IAS 17 operational leases)
Loan costs
Total cash movements
Non-cash movements:
Draw-down lease liability (prior IAS 17 finance leases)
Draw-down lease liability (prior IAS 17 operational leases)
Non-cash movements (ex. foreign currency adjustments)
Foreign currency adjustments
Loan costs
Total non-cash movements
At 31.12.2021
At 01.01.2022
Cash movements:
Revolving credit facility (net draw-down/repayment)
Draw-down non-current syndicated term-loan (NOK and EUR)
Repayment non-current syndicated term-loan (NOK and EUR)
Repayment other non-current loan
Repayment lease liability (prior IAS 17 finance leases)
Repayment lease liability (prior IAS 17 operational leases)
Loan costs
Total cash movements
Non-cash movements:
Draw-down lease liability (prior IAS 17 finance leases)
Draw-down lease liability (prior IAS 17 operational leases)
Non-cash movements (ex. foreign currency adjustments)
Foreign currency adjustments
Loan costs
Total non-cash movements
At 31.12.2022
684 839
3 480 613
4 165 454
—
—
—
—
-77 662
-107 263
-556 222
-556 222
39 147
39 147
-526 602
-526 602
-1 050
—
—
-1 050
-77 662
-107 263
-3 895
—
-3 895
-184 925
-1 048 623
-1 233 548
4 804
249 437
-4 058
5 730
—
255 914
—
—
—
-13 508
16 992
3 484
4 804
249 437
-4 058
-7 778
16 992
259 398
755 828
2 435 474
3 191 303
755 828
2 435 474
3 191 303
—
—
—
—
-78 879
-146 589
—
-225 468
114 926
140 975
83 397
10 902
—
350 200
-440 000
-440 000
1 463 423
1 463 423
-469 288
-469 288
-52 857
—
—
-11 854
489 423
—
—
-21 177
60 584
16 471
55 879
-52 857
-78 879
-146 589
-11 854
263 956
114 926
140 975
62 220
71 486
16 471
406 079
880 560
2 980 777
3 861 338
PART 03 – OUR FINANCIAL RESULTS
105
NO T E 13 LE A SE S
THE GROUP AS A LESSEE
The Group has several lease arrangements; various offices, equipment and vehicles. Contracts are engaged both with credit institutions,
RIGHT-OF-USE ASSETS 2022
NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
for leases that would be classified as finance leases according to IFRS in force prior to 1 January 2019, as well as capitalized leases due
Cancellation of lease and other changes
to the effect of IFRS 16. Well-boats and workboats charted in time charters with a duration of more than one year contributes significantly
to the effect of IFRS 16.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-
lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do
not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be
used as security for borrowing purposes. The leases are recognized in the respective Group companies in local currencies, and translated
to the Group’s presentation currency at the balance sheet date.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s
incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Group
reassesses the incremental borrowing rates applicable for new lease agreements annually. The applied incremental borrowing rates for
new leases as from 2022 ranged from 4.7% - 4.8% for buildings and properties, and 3.9% - 4.2% for other assets. The applied rates for
new leases as from 2021 ranged from 3.9% - 4.2% for buildings and properties, and 3.6% - 3.7% for other assets.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the
Depreciation
Book value at 31.12.
RIGHT-OF-USE ASSETS 2021
NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
Cancellation of lease and other changes
Depreciation
Book value at 31.12.
LEASE LIABILITY
SUMMARY OF THE LEASE LIABILITIES NOK 1 000
Lease liabilities at 01.01.
New leases recognized during the year
lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is
Cash payments for the principal portion of the lease liability
reassessed and adjusted against the right-of-use asset.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the
Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
The Group leases smaller office equipment, such as coffee machines with contract terms of 1-3 years. The Group has elected to apply
the practical expedient of low-value assets for some of these leases. Leases that have a present value as new lower than USD 5 000, are
Currency exchange differences
Cancellation of lease and other changes
Total lease liabilities at 31.12.
considered low value leases. The Group has also applied the practical expedient for short-term leases. Short term is defined as a lease
MATURITY ANALYSIS - LEASE LIABILITIES NOK 1 000
term of 12 month or less at the commencement date. For low-value leases and short-term leases, the Group does not recognize lease
liabilities or right-of-use assets. These leases are recognized as operating expenses over the life of the contract.
Some of the Group's agreements have extension options which may by exercised during the last period of the lease term. The Group
assesses at the commencement whether it is reasonably certain to exercise the renewal right. The Group's potential future lease
payments not included in the lease liabilities related to extension options is NOK 267 million (NOK 134 million at 31 December 2021).
SPECIFICATION OF RIGHT-OF-USE ASSETS
The Group's right-of-use assets are included in the financial statement line item "Property, plant and equipment incl. right-of-use-
Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total undiscounted liabilities at 31.12
assets" in the statement of financial position. These leased assets include both assets that would be treated as financial leases according
Lease liabilities included in the statement of financial position at 31.12
to the IFRS in force prior to 1 January 2019, as well as operational leases ("the effect of IFRS 16").
Current portion
Non-current portion
PART 03 – OUR FINANCIAL RESULTS
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
67 927
1 760
10 036
-1 399
-11 703
66 622
242 934
26
69 549
-743
-19 556
292 209
87 743
43
8 058
-7 792
-15 749
72 302
437 294
13 220
251 807
-14 915
-140 396
547 010
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
77 659
260 832
105 232
69
1 219
-17
-11 003
67 927
52
1 095
-2 014
-17 032
242 934
38
3 709
-4 592
-16 644
87 743
297 732
8 299
247 959
-20 308
-96 388
437 294
TOTAL
835 898
15 048
339 450
-24 849
-187 404
978 143
TOTAL
741 454
8 458
253 983
-26 931
-141 067
835 898
2021
684 839
254 242
-184 925
5 730
-4 058
755 828
2022
755 828
255 901
-225 468
10 902
83 397
880 560
2022
FORMER IAS 17
FINANCIAL LEASE
FORMER IAS 17
OPERATIONAL LEASE
TOTAL LEASE
LIABILITY
93 308
79 970
65 520
59 691
52 892
105 684
457 065
396 614
78 416
318 198
165 690
146 648
73 925
67 558
44 220
31 302
529 344
483 946
148 494
335 452
258 998
226 618
139 445
127 249
97 112
136 986
986 408
880 560
226 910
653 650
106
MATURITY ANALYSIS - LEASE LIABILITIES NOK 1 000
2021
FORMER IAS 17
FINANCIAL LEASE
FORMER IAS 17
OPERATIONAL LEASE
TOTAL LEASE
LIABILITY
NO T E 14 CL A S SIFIC AT ION OF FIN ANCI AL INS T R UM EN T S
FINANCIAL INSTRUMENTS AT 31.12.2022 NOK 1 000
FVPL 1 AMORTIZED COST
FVOCI 2
TOTAL
Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total undiscounted liabilities at 31.12
Lease liabilities included in the statement of financial position at 31.12
Current portion
Non-current portion
AMOUNTS RECOGNIZED IN PROFIT OR LOSS NOK 1 000
Interest on lease liabilities
Foreign currency effect
Depreciation right-of-use assets
Income from subleasing of right-of-use assets
Expenses relating to short-term leases
Expenses relating to leases of low-value assets, excl. short-term leases of low-value assets
Total
NOK 1 000
Total cash outflow for leases
82 272
74 830
62 951
48 266
42 703
83 131
394 153
360 496
72 918
287 578
117 435
90 507
87 010
54 654
39 168
44 382
433 155
395 332
105 114
290 219
2022
-33 613
3 746
-187 404
31 261
-40 530
-1
-226 543
2022
-259 081
199 706
165 337
149 961
102 920
81 871
127 513
827 309
755 828
178 032
577 797
2021
-22 709
-5 112
-141 067
14 591
-5 446
-8
-159 752
2021
-207 634
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Investment in money market fund4
Derivatives5
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Share-based payments6
Derivatives5
Trade payables
Other current liabilities
Total financial liabilities
—
—
—
1 012 848
37 988
—
1 050 836
—
—
—
6 510
64 928
—
—
16 900
259 137
8 863
—
—
642 719
927 618
2 980 777
396 614
483 946
—
—
717 498
76 585
71 439
4 655 420
271
—
—
—
—
—
17 171
259 137
8 863
1 012 848
37 988
642 719
271
1 978 725
—
—
—
—
—
—
—
—
2 980 777
396 614
483 946
6 510
64 928
717 498
76 585
4 726 859
FINANCIAL INSTRUMENTS AT 31.12.2021 NOK 1 000
FVPL 1 AMORTIZED COST
FVOCI 2
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Derivatives5
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Share-based payments6
Derivatives5
Trade payables
Other current liabilities
Total financial liabilities
—
—
—
37 592
—
2 111
151 793
12 592
—
928 342
271
—
—
—
—
2 382
151 793
12 592
37 592
928 342
37 592
1 094 837
271
1 132 700
—
—
—
9 792
22 350
—
—
2 435 475
360 496
395 332
—
—
523 196
36 603
32 142
3 751 102
—
—
—
—
—
—
—
—
2 435 475
360 496
395 332
9 792
22 350
523 196
36 603
3 783 244
1 FVPL: Fair value through profit or loss.
2 FVOCI: Fair value through other comprehensive income.
3 Investments in non-listed shares (equity instruments). Measured at level 3.
4 Investments in money market funds. Measured at level 2. See Note 3 for specification.
5 Forward currency contracts, interest rate swap and financial salmon price contracts. Measured at level 2. See Note 3 for specification.
6 Synthetic option scheme. Measured at level 3. See Note 17 for more information.
The purpose of the derivatives is to reduce the Group´s exposure to changes in floating interest rates and exchange rates. See Notes 2 and 3 for further details.
PART 03 – OUR FINANCIAL RESULTS
107
CREDITWORTHINESS OF FINANCIAL ASSETS
Credit risk attaching to financial instruments that have not matured or have not been written down is shown in accordance with the
internal classification of historical information on breaches of credit covenants. Further information about credit risk is provided in Note
3.
TRADE RECEIVABLES NOK 1 000
COUNTERPARTIES WITH NO EXTERNAL CREDIT RATING
Group 1
Group 2
Group 3
Total trade receivables
BANK DEPOSITS NOK 1 000
AAA
AA
A
Total bank deposits
2022
2021
742
251 123
7 272
259 137
2022
—
12 996
100 854
37 943
151 793
2021
—
642 719
928 342
—
—
642 719
928 342
TAX PAYABLE BOOK IN FINANCIAL STATEMENT CURRENT LIABILITIES NOK 1 000
Tax payable in Norway
Tax payable aboard
Total tax payable in the statement of financial position
CHANGE IN BOOK VALUE OF DEFERRED TAX NOK 1 000
Balance sheet value at 01.01.
Currency conversion
Tax effect of OCI transactions (see Note 3)
Change in deferred tax recognized in income in period
Changes to income in the period
Net deferred tax liability at balance sheet date
2022
286 586
66 605
353 191
2022
1 069 743
30 467
5 454
-27 453
-37 111
2021
87 739
903
88 641
2021
879 665
17 592
7 089
-17 043
182 440
1 041 101
1 069 743
The nominal tax rate in Norway is 22%. The nominal tax rate for 2022 in Canada was 27% in British Columbia (BC) and 30% in
Newfoundland.
TOTAL DEFERRED TAX ASSETS/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION NOK 1 000
2022
—
2021
59
-1 041 101
-1 069 802
-1 041 101
-1 069 743
Group 1 - new customers/related parties (less than 6 months).
Group 2 - existing customers/related parties (more than 6 months) with no history of credit covenant breaches.
Group 3 - existing customers/related parties (more than 6 months) with a history of one or more credit covenant breaches. All amounts
due have been paid in full following the breaches.
Deferred tax assets
Deferred tax liabilities
Net deferred tax
NO T E 15 TA XE S
INCOME TAXES FOR THE YEAR IN THE INCOME STATEMENT NOK 1 000
Norway
Aboard
Tax on profits
Norway
Aboard
Changes in deferred tax
Total income taxes related to profit for the year
TAX RECONCILIATION BETWEEN NOMINAL AND EFFECTIVE TAX RATES NOK 1 000
Profit before tax
Taxes calculated at nominal tax rate
Withholding tax
Non-taxable income/loss from associated companies
Effect of adjustment of income tax from previous years
Effect of recognition of previously non-recognized tax assets
Effect of non-recognition of losses and tax assets
Other permanent differences
Other effects not listed above
Total income tax expense
Weighted average tax rate
PART 03 – OUR FINANCIAL RESULTS
2022
263 084
59 422
322 506
116 873
-145 516
-28 643
293 863
2022
1 447 642
286 185
6 085
-4 641
-27 453
-4 187
37 189
24 714
-24 029
293 863
20.3%
2021
99 682
-15 777
83 905
57 973
107 424
165 397
249 301
2021
853 678
226 472
7 049
327
-18 428
696
11 026
4 741
17 418
249 301
29.2%
The following tables provide a breakdown of deferred tax. The tax effects of taxable and deductible temporary differences are shown
separately. The Norwegian and Canadian parts of the Group each have a net deferred tax position. Deferred tax assets linked to tax losses
are offset against deferred tax liabilities in the tax jurisdictions where acceptable.
SPECIFICATION OF DEFERRED TAX AND BASIS FOR DEFERRED TAX/DEFERRED TAX ASSETS NOK 1 000
Non-current assets
Current assets
Debt (lease, other liabilities)
Other effect (government grant/ investment tax credit)
Tax losses carried forward
Total temporary differences
TAX LOSS CARRIED FORWARD ARE DIVIDED AMONG THE FOLLOWING JURISDICTIONS NOK 1 000
Tax losses carried forward in Norway
Tax losses carried forward in Canada
Tax losses carried forward in USA
Total
2022
572 722
617 349
1 493
—
-150 461
2021
539 668
609 378
-15 790
-4 350
-59 162
1 041 101
1 069 743
2022
—
-150 461
—
-150 461
2021
—
-59 162
—
-59 162
PROPOSED RESOURCE RENT TAX IN NORWAY
On 28 September 2022, and modified 28 March 2023, the Norwegian government proposed the introduction of a resource rent tax on the
farming of salmon and trout in Norway at an effective tax rate of 35% with effect from 1 January 2023. The proposal must be approved
by the Norwegian parliament before it can be incorporated into Norwegian tax law. As the resource rent taxation is a proposal by the
Norwegian government, and was not incorporated into Norwegian tax law as at 31 December 2022, there has been no impact on the
Group's tax estimates recognized in the statement of financial position and income statement as at 31 December 2022.
108
NO T E 16 S A L AR IE S A ND P ER S ONNEL E XP ENSE S
REMUNERATION PAID TO BOARD MEMBERS IN 2022 NOK 1 000
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Salaries
Social security costs
Share options granted to directors and key employees, incl. social security costs (Note 17)
Pension costs
Other personnel costs
Total
Average number of employees
2022
533 629
38 635
30 399
29 069
63 844
2021
451 530
25 616
7 924
26 146
66 218
695 577
577 434
718
703
Share savings program
Grieg Seafood established a share savings program for its employees in 2018, which has continued throughout 2022. Each year has its
own set of terms and conditions concerning how much each employee can invest in the program that year. In addition, each year has
it’s set of terms for the lock-up period. The saved amount is deducted from the monthly net salary and used to purchase Grieg Seafood
shares on behalf of the employees. The purchase will be made from transfer of Grieg Seafood's treasury shares or bought in the market.
The purchase price and the number of shares acquired by the company will be reported in accordance with the applicable regulations.
At 31 December 2022, loan to employees related to the share savings program equals NOK 4.9 million (2021: NOK 2.7 million). The total
shares sold to employees was 96 150 in 2022 (2021: 38 513).
Management remuneration
The guidelines for management remuneration are available on Grieg Seafood ASA’s website.
The remuneration to the Group Executive Operational Management Team is disclosed below. In addition to the executive operational
management team (Chief Executive Officer, the Chief Financial Officer, the Group’s Chief Operating Officers, and the Chief Commercial
Officer), the Group Management include the support functions of the Chief Technology Officer (CTO), the Chief Human Resource Officer
(CHRO) and the Global Communication Manager.
REMUNERATION PAID TO GROUP EXECUTIVE
OPERATIONAL MANAGEMENT TEAM 2022 NOK 1 000
SALARY
BONUS
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada until June
2022)**
Erik Holvik (Chief Commercial Officer)
3 644
2 349
2 066
1 802
2 247
1 007
612
321
-26
483
Total remuneration
12 109
2 397
RETAINED
BONUS , NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
—
—
—
—
—
—
4 540
3 202
2 917
2 917
3 070
16 644
OTHER
REMUNERATION*
TOTAL
2 954
12 144
120
332
47
123
6 282
5 637
4 740
5 923
3 576
34 726
*The CEO has in 2022 received a one-time payment in arrears for pension benefits.
**Grant Cumming was appointed as COO Farming Canada in Q1 2023.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 17.
Per Grieg jr.1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik (from 9 of June 2022)
Total remuneration including social security costs
1 Payment for work performed on the Remuneration Committee of NOK 25 673 is included in the remuneration paid to Per Grieg jr. and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 68 460.
The amounts include social security costs.
REMUNERATION PAID TO GROUP EXECUTIVE
OPERATIONAL MANAGEMENT TEAM IN 2021 NOK 1 000
SALARY
BONUS
RETAINED
BONUS, NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada)
Erik Holvik (Chief Commercial Officer)
Total remuneration
3 165
2 280
2 116
1 772
1 996
11 328
—
—
75
—
161
236
540
313
203
244
350
1 650
—
—
—
—
—
—
250
115
113
—
115
593
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 17.
The 2021 table has been represented to include only the Group Executive Operational Management Team.
REMUNERATION PAID TO BOARD MEMBERS IN 2021 NOK 1 000
Per Grieg jr.1
Tore Holand2
Sirine M. Fodstad (until 13 of August 2021)1
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg (from 4 of November 2021)
Total remuneration including social security costs
1 Payment of NOK 22 820 for service on the Remuneration Committee is included in the remuneration paid to Per Grieg Jr. and Marianne Ribe, while Sirine Fodstad
received NOK 15 213 for the same.
2 Payment of NOK 57 050 for service on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik.
The amounts include social security costs.
TOTAL
516
401
328
372
308
183
2 107
TOTAL
3 956
2 707
2 507
2 016
2 621
13 807
TOTAL
479
371
205
308
342
—
1 706
PART 03 – OUR FINANCIAL RESULTS
109
NO T E 17 SH A R E-B A S ED PAY MEN T S
The company has issued options to the executive management team and regional directors. The options’ strike price is the stock market
price on the date of issue, rising by 0.5% per month until the exercise date. Since 2009, an option scheme with settlement in cash has
been established for the management and regional directors. The most recent allocation was in 2020, totalling 1 890 000 options. The
final exercise date is 31 May 2024. The options have a term of two years, where 50% is vested each year.
Employees taken on after the initial allocation of options are allocated options on taking up employment.
2017 - 11
2020 - 12
2020 - 12
Total
2021 - 05
2023 - 05
2024 - 05
—
88.99
88.99
106.28
83.82
83.82
ALLOCATION:
YEAR - MONTH
EXPIRY DATE: YEAR -
MONTH
STRIKE PRICE NOK PER
SHARE AT 31.12.2022
STRIKE PRICE NOK PER
SHARE AT 31.12.2021
The Black & Scholes option pricing model is used to calculate the market value. A brokerage firm is used to perform the calculations
and the measurement is according to level 3 of the fair value hierarchy (see Note 2 and Note 3). The table below shows the movement in
outstanding options in 2022 and 2021.
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
OPTIONS
2022
—
64 898
710 118
775 016
2022
775 016
78.96
2021
800 000
945 000
945 000
2 690 000
2021
2 690 000
80.16
OVERVIEW 2022
(TOTAL CASH-SETTLED OPTIONS)
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group Communication Manager)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada until June 2022)
Erik Holvik (CCO)
Others
Total
OUTSTANDING
OPTIONS AT
31.12.2021
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2022
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
—
—
—
—
—
—
—
—
—
—
310 236
189 201
181 698
150 989
60 738
183 168
183 168
104 212
416 863
1 780 273
—
—
—
—
—
—
86 832
—
47 877
134 709
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
135 260
775 016
OVERVIEW 2021
(TOTAL CASH-SETTLED OPTIONS)
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (COO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group Communication Manager)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada)
Erik Holvik (CCO)
Others
Total
OUTSTANDING
OPTIONS AT
31.12.2020
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2021
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
700 000
2 790 000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
100 000
100 000
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2022
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2022
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2022
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2022
AMOUNTS IN NOK 1 000
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
1 880
15 802
—
244
-240
-177
-158
—
2 541
2 202
1 883
1 210
-157
1 773
-193
1 917
—
1 408
909
840
600
511
847
847
881
-847
-274
2 921
-1 451
7
4
4
4
-7
-4
-4
-4
1 917
3 070
9 628
1 999
999
999
999
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1 652
669
663
442
354
654
—
606
1 469
—
—
—
—
—
11
-11
2 998
9 792
-3 282
34 137
6 887
6 510
2022
Former employees with expired
options**
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group
Communication Manager)
Alexander Knudsen (COO Farming
Norway)
Roy Tore Rikardsen (COO Farming
Canada until June 2022)
Erik Holvik (CCO)
Other options allocated in 2020
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Other options allocated in 2017
Total
* Amounts exclude social security costs.
** The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in
cash.
PART 03 – OUR FINANCIAL RESULTS
110
AMOUNTS IN NOK 1 000
NO T E 18 SH AR E C AP I TAL AND SH AR EHOLDER I NF OR M AT I ON
2021
Former employees with expired
options**
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group
Communication Manager)
Alexander Knudsen (COO Farming
Europe)
Roy Tore Rikardsen (COO Farming
North America)
Erik Holvik (CCO)
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (COO)
Kathleen O. Mathisen (CHRO)
Other options allocated in 2020
Other options allocated in 2017
Total
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2021
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2021
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2021
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2021
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
78.96
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
2.26
2.79
2.79
2.38
7.04
2.35
—
1 480
1 078
989
720
604
999
999
1 042
906
557
557
475
3 519
1 880
15 802
—
56
41
37
27
23
38
38
39
467
316
296
247
132
1 085
2 842
—
1 352
868
803
573
488
810
810
842
-460
-313
-293
-243
2 788
-1 074
6 951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
1 408
909
840
600
511
847
847
881
7
4
4
4
2 921
11
9 792
* Amounts exclude social security costs.
** The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in
cash.
ACCRUED COSTS RELATED TO CASH OPTIONS NOK 1 000
Change in provisions
Exercised options during the year
Total costs excl. social security costs
Social security costs
Total costs incl. social security costs
2022
-3 282
34 137
30 855
-456
30 399
2021
CLASSIFICATION IN FINANCIAL STATEMENTS
6 951
Other provisions for liabilities
— Salaries and personnel expense / cash
6 951
973
Public taxes payable
7 924
Salaries and personnel expense
Cost relating to cash-based remuneration in 2022 totaled NOK 30 399 thousands. This is recognized in the income statement as a
personnel cost. Social security contributions are provided for on an ongoing basis based on the fair value of the options.
As at 31 December 2022, outstanding options with the right to cash settlement were stated at NOK 6 510 thousands excl. social security
costs, of which NOK 589 thousands were classified as current liabilities. The book value of long-term liabilities including social security
cost was NOK 6 756 thousands.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments.
In order to estimate volatility, management has applied historical volatility for comparable listed companies.
2022
58.29%
3.12%
1.11
2021
36.44%
1.13%
1.39
As at 31 December 2022, the company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2022
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
Holdings of treasury shares
Total excl treasury shares
4.00
4.00
4.00
453 788
-5 407
448 381
113 447 042
-1 351 811
112 095 231
Treasury shares
In 2011, Grieg Seafood ASA purchased 1 250 000 treasury shares at NOK 14.40 per share. As from 2018, the treasury shares have been
sold to employees for the share savings program. In 2022, 96 150 shares were sold to employees through the share savings program at
an average price of NOK 71.0958. In December 2022, Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76
per share of which 314 980 have been settled within year-end. As at 31 December 2022, the company has 1 351 811 treasury shares.
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Morgan Stanley & Co. Int. Plc. (Nominee)
Clearstream Banking S.A. (Nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (Nominee)
Gåsø Næringsutvikling AS
Kvasshøgdi AS
Ferd AS
State Street Bank and Trust Comp (Nominee)
DZ Privatbank S.A. (Nominee)
J.P. Morgan SE (Nominee)
Danske Invest Norge Vekst
Six Sis AG (Nominee)
J.P. Morgan SE (Nominee)
DNB Bank ASA (Broker)
Total 20 largest shareholders
Total others
Total number of shares
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
56 914 355
50.17%
5 110 982
2 939 985
1 923 197
1 717 439
1 692 877
1 470 346
1 376 622
1 351 811
1 136 470
1 116 323
996 772
924 407
724 407
698 518
687 236
540 000
534 229
526 442
482 561
4.51%
2.59%
1.70%
1.51%
1.49%
1.30%
1.21%
1.19%
1.00%
0.98%
0.88%
0.81%
0.64%
0.62%
0.61%
0.48%
0.47%
0.46%
0.43%
82 864 979
30 582 063
73.04%
26.96%
113 447 042
100.00%
PART 03 – OUR FINANCIAL RESULTS
111
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
State Street Bank and Trust Comp (nominee)
Clearstream Banking S.A. (nominee)
BNP Paribas Securities Services (nominee)
Ferd AS
Six Sis AG (nominee)
CACEIS Bank Spain SA (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (nominee)
Kvasshøgdi AS
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Pictet & Cie (Europe) S.A. (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Other shareholders
Total shares
NO. OF SHARES
SHAREHOLDING
31.12.2021
31.12.2021
56 914 355
50.17%
5 312 207
4 917 957
2 428 197
1 867 464
1 711 386
1 634 500
1 456 453
1 380 743
1 212 652
1 164 795
1 132 981
1 035 915
996 772
916 000
883 362
862 797
755 004
646 320
561 000
4.68%
4.34%
2.14%
1.65%
1.51%
1.44%
1.28%
1.22%
1.07%
1.03%
1.00%
0.91%
0.88%
0.81%
0.78%
0.76%
0.67%
0.57%
0.49%
87 790 860
25 656 182
77.38%
22.62%
113 447 042
100.00%
SHARES CONTROLLED BY BOARD MEMBERS AND GROUP
MANAGEMENT
BOARD OF DIRECTORS
Per Grieg Jr.
Tore Holand (Skippergata 24 AS, and privately)
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg (board member from 4 November 2021) *
Ragnhild Janbu Fresvik (board member from 9 June 2022)
GROUP MANAGEMENT
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Alexander Knudsen (COO Farming Norway)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Global Communications Manager)
Erik Holvik (CCO)
THE SHARES OWNED BY THE FOLLOWING COMPANIES ARE
CONTROLLED BY PER GRIEG JR. AND FAMILY
Grieg Aqua AS
Ystholmen Felles AS
Kvasshøgdi AS
Per Grieg Jr. privately
Thomas Willumsen Grieg
Total shares
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
31.12.2021
31.12.2021
57 926 127
2 000
—
—
—
—
40 513
25 556
24 855
23 513
15 074
4 711
8 831
51.06%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.01%
0.00%
0.01%
60 356 985
2 000
—
—
—
—
39 809
24 852
24 151
22 809
12 380
644
644
53.20%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.01%
0.00%
0.00%
56 914 355
50.17%
56 914 355
50.17%
—
996 772
15 000
—
—%
0.88%
0.01%
—%
2 428 197
996 772
15 000
2 661
2.14%
0.88%
0.01%
0.00%
57 926 127
51.06%
60 356 985
53.20%
*Nicolai Hafeld Grieg owns, indirectly, 1.87% (2021: 1.87%) of Grieg Seafood ASA through his ownership in Grieg Maturitas AS, the parent company of Grieg Aqua AS.
PART 03 – OUR FINANCIAL RESULTS
112
NO T E 19 E AR N ING S P E R S H A R E AND DI V IDEND P ER SH AR E
NO T E 20 C A SH AND C A S H EQUI VALEN T S
CALCULATION OF EARNINGS PER SHARE
Profit / loss after tax continued operations (majority share)
Profit / loss discontinued operations (majority share)
Profit / loss after tax (majority share)
Number of shares at 01.01
Effect of treasury shares (Note 18)
Repurchased shares
Sale of treasury shares to employees
Number of outstanding shares at 31.12.
Effect of share repurchased
Effect of shares sold to employees
Weighted average number of outstanding shares at 31.12.
Diluted average number of outstanding shares at 31.12.
Earnings per share (NOK)
Continued operations
Discontinued operations
Earnings per share - Total
Diluted earnings per share (NOK)
Continued operations
Discontinued operations
Earnings per share - Total
DIVIDENDS
Proposed dividend per share (NOK)*
Distributed dividend to owners during the year per share (NOK)
2022
1 153 779
—
2021
604 377
600 291
CASH AND CASH EQUIVALENTS NOK 1 000
Restricted deposits incl. employee tax deductions*
Other cash and bank deposits
1 153 779
1 204 668
Total
2022
1 000
641 719
642 719
2021
25 067
903 274
928 342
113 447 042
113 447 042
-1 132 981
-1 171 494
-314 980
96 150
—
38 513
112 095 231
112 314 061
307 473
-92 989
—
-33 870
112 309 715
112 280 191
112 309 715
112 280 191
10.3
0.0
10.3
10.3
0.0
10.3
2022
4.5
3.0
5.4
5.3
10.7
5.4
5.3
10.7
2021
3.0
0.0
*The change in the line item "restricted deposits incl. employee tax deductions" 2022 compared to 2021 is due to bank guarantee covering the employee tax deductions in
2022 (and going forward), compared to 2021 where the employee tax deductions were held on a tax deduction bank account.
The Group's currency and interest rate exposure is described in Note 3.
See Note 3 and Note 12 for information on the Group’s available credit facilities.
NO T E 21 INV E S T MEN T IN MONE Y M AR K E T FUNDS
INVESTMENT IN MONEY MARKET FUNDS NOK 1 000
NOTE
Investment in money market funds
Unrealized gain/loss
Total investment in money market funds
2022
1 000 224
12 624
1 012 848
Unrealized fair value gains (losses) recognized in the income statement
26
12 624
2021
—
—
—
—
In 2022, the Group has temporarily placed surplus liquidity funds in money market funds. The Group does not invest directly in bonds or
securities, but through units in established money market funds. At year-end, the Group had investments placed in a portfolio of three
Norwegian money market funds. All three funds in the investment portfolio are money market funds that invest in bonds and securities
with short time to maturity in the Norwegian market.
*Proposed dividend per share (NOK) is proposed by the Board of Directors, and - as per the date of this Annual Report - not yet approved by the Annual General Meeting
of Grieg Seafood.
PART 03 – OUR FINANCIAL RESULTS
113
NO T E 22 T R ADE R E CE I VA BL E S
TRADE RECEIVABLES NOK 1 000
Gross amount of trade receivables
Trade receivables deducted*
Loss allowance
Trade receivables at 31.12.
*Trade receivables bought by the factoring company.
RECOGNIZED LOSSES NOK 1 000
Change in loss allowance
Confirmed losses in the year
Total recognized losses on receivables
2022
690 226
-416 053
-15 036
259 137
2022
71
33
104
2021
479 228
-312 469
-14 965
151 793
2021
1 427
—
1 427
Losses on receivables are classified as other operating expenses in the income statement.
In the Group's expected credit loss (ECL) calculation model, customers are categorized as high or low risk, depending on their country of
origin, and as credit insured or unsecured. The group of unsecured receivables also consists of some receivables that have other types of
security. The risk of loss is therefore considered low and no loss allowance is calculated for these receivables. The risk evaluation
is based on our own experience and input from credit insurance companies. A loss allowance is calculated as a percentage of the aging
distribution (days past due). The Group also makes manual accruals if significant information implies that there is a higher risk of losses.
Around 5% credit risk also remains for the factored trade receivables. The aging analysis given below is therefore based on the total
NOK 1 000
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 DAYS
OVERDUE
31-60
DAYS
OVERDUE
61-90
DAYS
OVERDUE
> 90 DAYS
OVERDUE
> 1 YEAR
TOTAL
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2021
Regular/normal
risk countries
High risk
countries
Total
TR Credit
insured
425 546
52
289 555
126 792
4 344
5 238
TR Unsecured
50 334
50 334
17 596
16 599
302
-1 131
TR Credit
insured
TR Unsecured
3 291
56
—
56
1 431
1 872
—
—
—
4
—
—
479 228
50 443
308 582
145 264
4 650
4 106
-382
1 018
-12
52
676
—
425 546
15 951
50 334
—
—
3 291
56
15 951
479 228
LOSS ALLOWANCE 31.12.2021
TR Credit
insured
TR Unsecured
TR Credit
insured
TR Unsecured
Regular/normal
risk countries
High risk
countries
Total
—
—
—
—
—
52
50 334
—
56
50 443
—
—
—
—
—
11
304
—
—
316
4
93
—
—
98
11
31
—
57
1 029
1 100
12 333
14 859
—
—
48
—
—
—
49
—
1 040
1 179
12 333
14 965
NO T E 23 O T HER NON- CUR R EN T R E CEI VA BLE S
receivables rather than total receivables less the factored receivables. For more information about credit risk, refer to Note 3.
OTHER NON-CURRENT RECEIVABLES NOK 1 000
NOK 1 000
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 DAYS
OVERDUE
31-60
DAYS
OVERDUE
61-90
DAYS
OVERDUE
> 90 DAYS
OVERDUE
> 1 YEAR
TOTAL
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2022
Regular/normal
risk countries
High risk
countries
Total
TR Credit
insured
615 863
—
486 463
121 035
6 332
TR Unsecured
59 939
61 444
33 057
1 550
10 898
TR Credit
insured
11 583
—
TR Unsecured
2 841
2 839
5 399
2 839
5 732
2
474
—
381
601
—
—
1 616
36
615 863
60
13 773
59 939
-22
—
—
—
11 583
2 841
690 226
64 283
527 757
128 319
17 704
982
1 655
13 809
690 226
LOSS ALLOWANCE 31.12.2022
TR Credit
insured
TR Unsecured
TR Credit
insured
TR Unsecured
Regular/normal
risk countries
High risk
countries
Total
—
—
—
—
—
—
271
61 444
—
2 839
64 283
8
3
2
283
8
—
16
—
25
316
—
12
—
328
79
—
—
—
79
512
36
1 223
—
—
—
13 773
13 780
—
—
31
2
512
13 809
15 036
Investment tax credit*
Loan to associated company
Investments in shares
Other non-current receivables
Total
NOTE
11
7
14
2022
—
16 900
271
764
17 935
2021
81 575
2 111
271
6 940
90 897
*Investment tax credit, related to the freshwater facility in Newfoundland, has been derecognized from the statement of financial position as at 31 December 2022 as
Newfoundland is in a net deferred tax position. Investment tax credits are deferred and offset against future tax liability. The derecognition has been carried out as
a balance sheet entry, by reversing the credit entry to the acquisition cost of the property, plant and equipment booked as at 31 December 2021 and by reversing the
non-current receivable related to the investment tax credit booked as at 31 December 2021, see Note 11. The investment tax credit was in 2021 booked in line with a
government grant, as a direct decrease in property, plant and equipment.
NO T E 24 O T HER CUR R EN T R E CEI VA BLE S
OTHER CURRENT RECEIVABLES NOK 1 000
VAT receivable
Prepaid expenses
Other current receivables
Total
2022
87 431
44 113
25 515
2021
57 594
43 490
46 247
157 060
147 332
PART 03 – OUR FINANCIAL RESULTS
114
NO T E 25 R E L AT ED PAR T IE S
NO T E 26 FIN ANCI AL I NC OME AND FIN ANC I AL E XP ENSE S
2022 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
2021 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
—
—
33 742
168 353
202 095
—
16 650
16 650
-1 906
-40 879
-42 785
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
9 698
9 698
37 389
153 086
190 475
—
2 111
2 111
-15 915
-23 615
-39 530
The Grieg Seafood Group carries out, in the normal course of business, transactions with companies controlled by Grieg Maturitas II AS,
which is the parent company of Grieg Aqua AS, the majority owner of Grieg Seafood ASA. The ultimate parent company of Grieg Seafood
ASA is Grieg Maturitas AS, the parent company of Grieg Maturitas II AS. These transactions relate to:
• ICT-related services and other functions such as catering, reception, etc., are provided by Grieg Group Resources AS on an arm’s
length basis.
• Grieg Seafood ASA rents its offices from Grieg Gaarden AS on an arm’s length basis. The office rental agreement runs for a period of
ten years.
• Grieg Seafood ASA purchases services from Grieg Investor AS.
FINANCIAL ITEMS NOK 1 000
FINANCIAL INCOME
Other interest income
Realized gain/loss on cross currency interest rate swap incl. option
Unrealized gain (loss) on investment in money market fund
Net change in fair value of derivatives
Net currency gains
Other financial income
Total financial income
FINANCIAL EXPENSE
Interest expense on external borrowings and leases *
Amortized establishment cost
Other interest expenses
Other financial expenses
Total
Net financial items
2022
2021
11 893
35 740
12 624
21 453
38 205
1 693
—
—
—
28 370
96 709
154
121 609
125 233
151 410
16 471
—
3 672
171 553
-49 944
189 390
16 476
1 768
4 865
212 499
-87 266
• The regions purchased cleaner fish from Rensefiskgruppen AS including subsidiaries, a company owned by Grieg Kapital AS.
*Interest expenses on bank borrowings and leases includes recognized gains/losses from realized interest rate swaps of NOK 5 million in 2022 (2021: NOK 7 million).
Furthermore, the Group is also purchases goods and services from associated companies, including companies affiliated with the Group
through managerial positions in Grieg Seafood and the related party. These transactions relate to:
• Purchase of smolt from the associated company Tytlandsvik Aqua AS, which is owned 33.33% by Grieg Seafood Rogaland AS.
• Purchase of smolt from the associated company Nordnorsk Smolt AS, which is owned 50.00% by Grieg Seafood Finnmark AS.
• Interest-bearing loan provided to Årdal Aqua AS, which is owned 44.44% by Grieg Seafood Rogaland AS.
• Interest-bearing loan provided to Nordnorsk Smolt AS, which is owned 50.00% by Grieg Seafood Finnmark AS.
• Non-interest bearing loan provided to an affiliated company of NextSeafood AS, which is owned 50.00% by Grieg Seafood Rogaland AS.
• Fuel is purchased from Eidsvaag AS, which is affiliated with Grieg Seafood through a board member of Grieg Seafood being the Chair
of Board of Directors of the affiliated company.
• Algae monitoring services are purchased from Blue Planet AS, which is affiliated with Grieg Seafood through Grieg Seafood COO
Norway being the Chair of the Board of Directors of the affiliated company.
The parent company provides a range of services to its subsidiaries. The services include administrative services and services relating
to the provision of parent company non-current loans and current credit facilities to subsidiaries. Interest is charged on an arm's length
basis. In addition, Grieg Seafood ASA engages in hedge contracts on behalf of subsidiaries. The arrangement is intended to reduce these
companies' exposure to salmon prices. Agreements with the subsidiaries are priced on the basis of a "back-to-back" arrangement.
The Board and Group Management are related parties. See Note 17 on share-based options and Note 18 on shares controlled by
members of the Board and Group Management.
All transactions, including both the sale and purchase of goods and services, are made on an arm’s length basis.
NO T E 27 O T HER OP ER AT ING E XP ENS E S
OTHER OPERATING EXPENSES NOK 1 000
Transportation costs
Maintenance costs
Electricity and fuel
Lease expenses1
Outsourced services and audit fees
Insurance
IT expenses
Marketing costs
Other operating expenses2
Other production-related costs1,3
Total other operating expenses
2022
497 679
327 031
177 902
60 490
107 318
66 512
77 298
6 642
119 311
647 128
2021
265 639
295 270
113 778
24 555
94 100
54 223
59 437
2 942
64 397
553 005
2 087 310
1 527 347
1Includes lease expenses and lease-related expenses, including the effect of IFRS 16.
2Includes equipment, telephony/postage, office supplies, fees, travel costs and the like.
3Production-related costs comprise harvesting costs including expenses for well-boat services, packaging material, diving services, vaccination, delousing, oxygen, and
analyses and the like.
PART 03 – OUR FINANCIAL RESULTS
115
BREAKDOWN OF TOTAL AUDITOR'S FEES NOK 1 000
2022
2021
NO T E 29 O T HER C UR R EN T LI A BILI T IE S
AUDITOR'S FEES
Group auditor
Other auditors
OTHER CERTIFICATION SERVICES
Group auditor
Other auditors
TAX ADVICE
Group auditor
Other auditors
OTHER SERVICES
Group auditor
Other auditors
Total Group auditor
Total other auditors
Total auditor's fees
3 049
1 128
783
—
764
124
26
—
4 622
1 252
5 873
4 132
500
752
—
883
—
86
206
5 852
706
6 558
OTHER CURRENT LIABILITIES NOK 1 000
Accrued expenses1
Production fee (Norway)2
Realized gain/loss on fixed-price contracts3
Other current liabilities4
Other current liabilities
2022
150 241
7 987
30 930
99 135
2021
133 385
24 463
12 530
42 044
288 293
212 422
1 Accrued expenses relate to other operating expenses, including accrued purchases, transportation costs, bonuses/discounts for buyers, accrued salaries, and
insurance.
2 Production fee charged by NOK 0.405/kg (NOK 0.400/kg in 2021) of harvested volume (gutted weight) in Rogaland and Finnmark in Norway. For 2021, the production
fee was payable in 2022 as 2021 was the first year harvested volume in Norway was charged with a fixed production fee. As from 2022, the production fee is settled
throughout the year. The production fee is presented on a separate financial statement line item in the income statement ("Production fee").
3 See Note 3.
4 Includes NOK 25 million related to repurchased bonds. The repurchase was finalized in 2022 but settled in cash in 2023. In addition, NOK 28 million related to litigation
and claims is accrued at year-end 2022, see Note 28.
NO T E 30 NE W A C C OUN T ING S TAND AR DS , AM ENDMEN T S AN D
IN T ER P R E TAT I ONS
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURE OF NEW STANDARDS
The audit fee specification for 2022 include fees from Advokatfirmaet PricewaterhouseCoopers AS of NOK 26 thousands (2021: NOK 38 thousands).
In 2021, the figures are disclosed for the Group's continued operations (see Note 6), thus do not include Shetland.
A) NEW AND AMENDED STANDARDS, AND INTERPRETATIONS - ADOPTED IN 2022
NO T E 28 LI T IG AT ION AN D L EG AL CL AIMS, AND DE C OMMIS SIONING
C O S T S
LITIGATION AND LEGAL CLAIMS
Grieg Seafood had also been sued by indirect purchasers in the USA. In 2022, a settlement offer from the indirect purchaser plaintiffs
was accepted. In February 2023, the settlement was finally approved by the court of Southern District of Florida. The settlement does not
involve any admission of liability or wrongdoing. Costs incurred and provisions for expected costs related to the lawsuits in North America
in total of NOK 157 million have been expensed in 2022, of which NOK 129 million were used at year end. The remaining NOK 28 million
are accrued as other current liability in the Statement of Financial Position. The total amount of NOK 157 million for the year is reported
on the financial statement line item "Litigation and legal claims". See also Note 31.
DECOMMISSIONING COSTS
Grieg Seafood has in 2022 discontinued production in the shíshálh (Sechelt) farming area of British Columbia. At year-end, all fish from
the farming area of Sechelt has been harvested. The Group is required to decommission the sites and at year-end the Group has accrued
a total of NOK 24 million of clean-up costs. The costs are reported on the financial statement line item "Decommissioning costs". See
also Note 10.
The accounting policies adopted are consistent with those of the previous financial year, except for the amendments to IFRS which
have been implemented by the Group during the current financial year. Below we have listed the amendments in IFRS which have been
applicable for the Group’s 2022 financial statements, as well as the effect of the amendments.
In the section below new and amended standards and interpretations that have been implemented for the first time in 2022 are stated (no
new IFRS standards implemented in 2022). This section is however not a complete summary of changes in IFRS, and merely a summary
of changes that are relevant for Grieg Seafood.
Amendments to IAS 37 - Onerous Contracts, Costs of Fulfilling a Contract
A onerous contract is a contract under which the unavoidable cost of meeting the obligations under the contract costs exceed the
economic benefits expected to be received under that contract. The amendments clarify that for the purpose of assessing whether a
contract is onerous, the cost of fulfilling the contract includes both the incremental of fulfilling that contract and an allocation of other
costs that relate directly to fulfilling contract activities. The effect of the adoption has not had any effects for the 2022 financial statement
compared with prior year’s accounting policies.
Annual Improvements 2018-2020 Cycle Issued May 2020, effective from 1 January 2022
IFRS 9 Financial Instruments - Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees an entity includes when assessing whether the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability. In 2022, Grieg Seafood refinanced its syndicated arrangement
with secured lenders. The amendment in IFRS 9 has had no effect on the Group’s financial statement in 2022 compared with prior year’s
accounting policies.
IAS 41 Agriculture - Taxation in fair value measurements
The amendment, which removed the requirement in IAS 41.22 to exclude cash flows for taxation when measuring the fair value of
biological assets has had no effect on the Group’s financial statement in 2022 compared with prior year’s accounting policies as the
Group’s methodology for fair value measurement of biological assets at sea is unaffected by the change.
PART 03 – OUR FINANCIAL RESULTS
116
B) NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS - NOT YET ADOPTED
NO T E 31 C ON T INGEN T LI A BI LI T IE S
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory
for 31 December 2022 reporting periods and have not been early adopted by the Group. This section is not a complete summary of all
changes in IFRS not yet adopted as at 31 December 2022. The Group’s intention is to adopt the relevant new and amended standards and
interpretations when they become effective, subject to EU approval, before the consolidated financial statements are issued. Generally,
the Group does not aim to early-adopt, if available, changes to IFRS.
This section does provide a summary of the most relevant new standards, amendments and interpretations for Grieg Seafood, that are
not yet adopted. These are:
–
–
Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future
reporting periods and on foreseeable future transactions as to the Group’s financial position and -results. Both of the amendments listed
above are effective as from 1 January 2023, and both will have an impact on the note disclosures of the Group in 2023 and beyond. For
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the Norwegian
salmon industry. Grieg Seafood is one of the companies under investigation. At date, no decision has been made by the European
Commission. Grieg Seafood is not aware of any anti-competitive behavior within the Group, neither in Norway, nor the EU, or Canada.
Grieg Seafood rejects that there is any basis for the claims and considers the complaints to be entirely unsubstantiated. See also Note 28.
NO T E 32 E V EN T S AF T ER T HE R EP OR T ING D AT E
more information concerning these two amendments in IFRS, see the sections below.
There has not been any significant events after the balance sheet date of 31 December 2022.
Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies
The IASB amended IAS 1 to require entities to disclose their material rather than their significant accounting policies. The amendments
define what is ‘material accounting policy information’ and explain how to identify when accounting policy information is material.
They further clarify that immaterial accounting policy information does not need to be disclosed. If it is disclosed, it should not obscure
material accounting information. The amendments are effective for annual periods beginning on or after 1 January 2023, but earlier
application is permitted as long as this fact is disclosed. The Group has not early-adopted the amendment. It is not expected that the
amendments will materially impact the substance of the disclosed accounting policies of Grieg Seafood in 2023 compared with prior
years.
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
The amendments to IAS 12 Income Taxes narrow the scope of the initial recognition exemption of IAS 12.15 and IAS 12.24 and specifically
require companies to recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and
deductible temporary differences. The most relevant part of the amendment for Grieg Seafood is leases. The Group has leases capitalized
in the balance sheet through the effect of IFRS 16, and leases which would be classified as finance leases, according to the IFRS in
force prior to 1 January 2019. Deferred tax is as at 31 December 2022 recognized for leases according to the net approach. Because of
the amendment to IAS 12, Grieg Seafood will be required to recognize both a deferred tax asset and deferred tax liability on the initial
recognition of a lease. While these qualify for offsetting in the statement of financial position, the notes to the financial statements need
to disclose the gross amounts.
The amendments are effective for annual periods beginning on or after 1 January 2023. The amendment is applied by the modified
retrospective approach, meaning the beginning of the earliest comparative period presented (for 2023, that is 1.1.2022). Thus, Grieg
Seafood does not expect that the amendment to IAS 12 will impact the statement of financial position of the Group, but the change
will impact the granularity of the note disclosure to the consolidated financial statement, with impact to the 2022 comparable note
disclosures in the 2023 financial statements.
OTHER STANDARDS, AMENDMENTS AND INTERPRETATIONS
No other new standards, amendments and interpretations, not yet adopted at 31 December 2022, are expected to have a material impact
on the Group’s consolidated financial statement.
PART 03 – OUR FINANCIAL RESULTS
117
GRIEG SEAFOOD
ASA ACCOUNTS
A S A A C C OUN T S
119
Income statement
120
121
121
Statement of financial position
Statement of changes in equity
Cash flow statement
NO T E S
122
NOTE 1
Accounting policies
123
123
123
124
125
125
126
126
126
127
127
129
130
131
131
131
NOTE 2
Related parties
NOTE 3
Operating income
NOTE 4
Salaries, personnel and other operating expenses
NOTE 5
Financial income and financial expenses
NOTE 6
Taxes
NOTE 7
Software, and property, plant and equipment
NOTE 8
Investments in subsidiaries
NOTE 9
Other current receivables
NOTE 10
Short-term investments and derivatives
NOTE 11
Bank deposits
NOTE 12
Share capital and shareholder information
NOTE 13
Net interest-bearing liabilities and pledges
NOTE 14
Share-based payments
NOTE 15
Other current receivables
NOTE 16
Guarantees
NOTE 17
Events after the reporting date
PART 03 – OUR FINANCIAL RESULTS
118
INC OME S TAT E ME N T
GRIEG SEAFOOD ASA NOK 1 000
Other operating income
Total operating income
Salaries and personnel expenses
Depreciation and amortization
Other operating expenses
Total operating expenses
Operating profit (loss)
Financial income
Financial expenses
Net financial items
Profit before tax
Income tax expense
Net profit for the year
APPROPRIATION OF PROFIT FOR THE YEAR
Proposed dividend
Transferred to other equity
Total appropriations
NOTE
2/3
4/14
7
2/4
2/5
2/5
6
2022
288 015
288 015
-118 348
-6 984
-199 548
-324 879
2021
98 328
98 328
-71 533
-6 773
-97 123
-175 429
-36 865
-77 101
1 269 129
-216 521
1 052 608
1 015 743
-221 666
794 077
504 120
289 957
794 077
752 632
-186 932
565 700
488 599
-81 257
407 342
336 942
70 400
407 342
PART 03 – OUR FINANCIAL RESULTS
119
S TAT EME N T OF F IN A NCI AL P O SI T ION
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2022
31.12.2021
ASSETS
Deferred tax assets
Software
Property, plant and equipment
Investments in subsidiaries
Loan to Group companies
Investment in shares
Total non-current assets
Trade receivables from Group companies
Other receivables from Group companies
Other current receivables
Short-term investments and financial instruments
Bank deposits
Total current assets
Total assets
6
7
7/13
8/13
2/13
2/13
2/13
2/9
10
11
14 192
8 357
1 207
—
10 737
2 571
1 903 409
1 903 409
797 907
169
787 096
169
2 725 241
2 703 982
180 989
178
2 715 580
2 149 163
18 281
1 013 415
524 823
9 134
21 744
792 875
4 453 087
2 973 094
7 178 328
5 677 076
GRIEG SEAFOOD ASA NOK 1 000
EQUITY AND LIABILITIES
Share capital
Treasury shares
Other paid-in equity
Contingent consideration (acquisition of Grieg Newfoundland AS)
Other retained earnings
Total equity
Deferred tax
Share-based payments
Total provisions
Green bond loan
Non-current loan
Total non-current liabilities
Current portion of non-current loan
Share-based payments
Trade payables
Trade payables to Group companies
Current liabilities to Group companies
Tax payable
Public duties payable
Financial instruments
Accrued dividend
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
NOTE
31.12.2022
31.12.2021
12
12
6
14
13
13
13
14
2
2
2
6
10
2/15
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
—
6 756
6 756
1 408 523
1 336 142
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
10 151
11 115
21 267
1 476 376
808 533
2 744 665
2 284 909
128 211
672
5 432
8 526
412 125
243 039
9 586
—
504 120
104 414
1 416 125
49 944
51
24 709
—
102 111
76 686
4 628
751
336 942
31 148
626 970
4 167 547
2 933 146
7 178 328
5 677 076
PER GRIEG JR.
CHAIR
TORE HOLAND
VICE CHAIR
KATRINE TROVIK
BOARD MEMBER
MARIANNE RIBE
BOARD MEMBER
NICOLAI HAFELD GRIEG
BOARD MEMBER
RAGNHILD JANBU FRESVIK
BOARD MEMBER
PART 03 – OUR FINANCIAL RESULTS
120
ANDREAS KVAME
CEO
S TAT EME N T OF C H A NGE S I N EQUI T Y
C A SH FL O W S TAT EMEN T
GRIEG SEAFOOD ASA NOK 1 000
Equity at 01.01.2021
Profit for the year 2021
Sale of treasury shares to employees
Accrued dividend at year-end 2021*
SHARE
CAPITAL
TREASURY
SHARES
OTHER PAID-
IN EQUITY
CONTINGENT
CONS.**
OTHER
EQUITY
TOTAL EQUITY
453 788
-4 686
226 067
701 535
1 293 215
2 669 919
—
—
—
154
—
401
—
—
407 342
407 342
3 055
3 610
-336 942
-336 942
Equity at 31.12.2021
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
Equity at Equity at 01.01.2022
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
Profit for the year 2022
Sale of treasury shares to employees
Purchase of treasury shares
Accrued dividend at year-end 2022*
—
—
—
—
—
385
-1 260
—
—
1 009
—
—
—
—
—
—
794 077
794 077
5 501
6 895
-28 739
-29 999
-504 120
-504 120
Equity at 31.12.2022
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
*Accrued dividend is allocated as at 31 December and not yet authorized by the Annual General Meeting (AGM). The accrued dividend for year-end 2022 is estimated at
NOK 4.5 per share. The dividend is to be paid out to shareholders in 2023, provided that the dividend is authorized by the AGM.
** Contingent consideration related to the acquisition of Grieg Seafood Newfoundland AS.
PART 03 – OUR FINANCIAL RESULTS
GRIEG SEAFOOD ASA NOK 1 000
Profit before tax
Recognized, not paid Group contributions
Taxes paid
Gain/loss sale of subsidiary
Depreciation and amortization
Change in trade receivables
Change in trade payables
Change in other accruals
Items classified as investing or financing activities
Currency translation differences
Net cash flow from operating activities
Dividend income
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds sale of subsidiary
Payments/proceeds, loans to/from Group companies
Group contribution from subsidiaries
Investment in money market funds
Net cash flow from investing activities
Revolving credit facility (net draw-down/repayment)
Proceeds of long-term interest bearing debt
Repayment of long-term interest-bearing debt
Change in loans to/from Group companies
Interest paid
Paid dividends
Repurchase of own shares
Sale of treasury shares to employees
Net cash flow from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 01.01.
Cash and cash equivalents at 31.12.
CASH AND CASH EQUIVALENTS AT 31.12. CONSISTS OF:
Restricted deposits
Other bank deposits
UNUTILIZED CREDIT FACILITIES AT 31.12:
Unutilized credit facilities at the year-end
NOTE
6
5
7
5
7
5
10
13
13
13
11
2022
1 015 742
-995 291
-79 658
—
6 984
-180 811
-10 751
40 515
119 249
44 961
-39 061
10
-659
-2 581
—
121 030
307 845
-1 000 224
2021
488 599
-307 845
-6 560
-142 683
6 773
4 129
-27 455
65 451
142 168
-75 221
147 357
10
-1 555
-1 892
601 433
913 306
99 710
—
-574 579
1 611 012
-440 000
1 463 423
-520 788
310 014
-108 349
-336 942
-24 400
2 631
-557 126
—
-523 346
99 117
-171 459
—
—
3 610
345 588
-1 149 203
-268 052
792 875
524 823
1 000
523 823
609 165
183 710
792 875
2 564
790 312
1 700 000
885 000
121
NO T E 1 A C C OUN T I NG P OL ICI E S
The annual financial statements have been prepared in
accordance with the Norwegian Accounting Act and generally
accepted accounting principles in Norway.
All amounts are stated in NOK thousand, unless otherwise
indicated.
USE OF ESTIMATES
Management has used estimates and assumptions that have
affected assets, liabilities, revenues, expenses and information
on potential liabilities in accordance with generally accepted
accounting principles in Norway.
REVENUE RECOGNITION
Revenue from the sale of goods is recognized at the time
of delivery. Revenue from the sale of services is recognized
when the services are performed. The share of sales revenue
associated with future service is recognized in the statement of
financial position as accrued sales revenues and is transferred to
income at the time of execution.
CLASSIFICATION AND VALUATION OF
BALANCE SHEET ITEMS
Assets intended for long-term ownership or use are classified as
non-current assets. Assets related to the normal operating cycle
are classified as current assets. Receivables are classified as
current assets if they are expected to be repaid within 12 months
of the transaction date. Similar criteria are applied to liabilities.
Current assets are valued at the lower of cost and fair value.
Current liabilities are recognized in the balance sheet at nominal
value. Non-current assets are valued at historical cost. Property,
plant and equipment whose value will deteriorate is depreciated
on a straight-line basis over the asset’s estimated useful life.
Non-current assets are written down to fair value where this is
required by accounting rules. Nominal amounts are discounted if
the interest rate element is material.
INTANGIBLE ASSETS
Expenditure on intangible assets is recognized in the statement
of financial position to the extent that a future economic
benefit can be identified as deriving from the development
of an identifiable intangible asset and cost can be measured
reliably. Otherwise, the cost is expensed as it arises. Capitalized
development costs are amortized over their useful life.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is recognized in the statement of
financial position and depreciated on a straight-line basis over its
estimated useful life, providing the asset has an expected useful
life of more than 3 years and a cost price of more than NOK 15
000. Maintenance costs are recognized in the income statement
as operating expenses as they arise, while improvements and
contributions materially exceed retained earnings received from
charged based on the pension premium paid.
additions are added to the acquisition cost of the asset and
depreciated at the same rate as the asset. The distinction
between maintenance and improvements is made based on the
asset’s relative condition on the original purchase date.
SUBSIDIARIES
Subsidiaries are recognized at cost in the financial statement
of Grieg Seafood ASA (parent). Group contributions paid to
subsidiaries, net of tax, are recognized as an increase in the
cost of the shares. Dividends and group contributions from
subsidiaries to Grieg Seafood ASA are recognized in the same
year in the Company’s financial statement as when recognized
in the subsidiary’s financial statements. If dividends/group
the investment in the subsidiary after acquisition, the excess
amount is regarded as a reimbursement of invested capital
and is deducted from the recognized cost of investment in the
subsidiary in the statement of financial position of Grieg Seafood
ASA. Dividends and group contributions received are recognized
in the income statement as other financial income.
Contingent consideration is included in costs on the acquisition
date of a subsidiary. The likelihood of payment and time value
of money are considered when estimating the fair value of the
contingent consideration on the acquisition date.
IMPAIRMENT OF NON-CURRENT ASSETS
Impairment tests are performed upon indication that the carrying
amount of a non-current asset exceeds its estimated fair value.
The test is performed at the lowest level of non-current assets
at which independent cash flows can be identified. If the carrying
amount is higher than both the fair value less costs to sell and
the value in use (net present value of future use/ownership), the
asset is written down to the higher of fair value less costs to sell
and the value in use. Previous impairment charges are reversed
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, bank deposits
and other short-term highly liquid investments with original
DERIVATIVES
FORWARD CURRENCY CONTRACTS
Realized gains (losses) on forward currency contracts are
maturities of three months or less. The overdraft facility is
recognized in the income statement as a financial income
included in current borrowings in the statement of financial
(financial cost). The fair value of a forward currency contract is
position.
PENSIONS
The company’s pension schemes meet the requirements of
the Norwegian Mandatory Occupational Pensions Act. The
measured in its contracted currency and translated to NOK using
the foreign exchange currency rate at the reporting date.
INTEREST RATE SWAPS
Interest rate swap contracts are measured according to the
Company operates a defined contribution pensions scheme for
lowest of its acquisition cost and fair value at the reporting date.
its employees. The pension premium is paid through operations
and is expensed on an ongoing basis. Social security costs are
GROUP ACCOUNT SCHEME – DEPOSITS
AND LOANS
Grieg Seafood ASA operates as an internal bank for its
TAXES
The tax expense in the income statement consists of both tax
payable for the accounting period and changes in deferred tax.
Deferred tax is calculated at the relevant rate on temporary
differences between the value of assets and liabilities for
tax purposes and any allowable loss to be carried forward at
subsidiaries. Grieg Seafood ASA borrows funds from financial
year-end in the financial statements. Temporary differences,
institutions and then lends these funds to its subsidiaries. The
both positive and negative, are offset within the same period.
Company has set up a multi-currency group account (cash
Deferred tax assets are recognized in the statement of financial
pool) scheme in which Grieg Seafood ASA is the legal account
position when it is more likely than not that the tax assets will
holder. Deposits and loans from the subsidiaries which are part
be utilized. Deferred tax assets and deferred tax liabilities are
of the group account scheme are recognized as intercompany
presented net in the statement of financial position. Tax on group
transactions. All subsidiaries that are part of the scheme (not all
contributions is recognized as an increase in the purchase price
subsidiaries of the Group are part of the group account scheme)
of shares in other companies. Taxes payable and deferred taxes
are jointly and severally liable to the financial institutions for the
are recognized directly in equity to the extent that they relate
entire amount of the commitment under the scheme.
to equity transactions (offset against tax payable if the group
FOREIGN CURRENCY
The Company’s functional and presentational currency is the
Norwegian Krone (NOK). Monetary items in a foreign currency
are translated into NOK using the exchange rate applicable on
contribution affects tax payable and offset against deferred taxes
if the group contribution affects deferred taxes).
CASH FLOW STATEMENT
The cash flow statement has been prepared according to the
the reporting date. Non-monetary items that are measured
indirect method. Cash and cash equivalents include cash, bank
at their historical price expressed in a foreign currency are
deposits and other short-term highly liquid investments which
in a later period if the prerequisites for impairment are no longer
translated into NOK using the exchange rate applicable on the
entail no appreciable exchange rate risk, and which mature
present (except for impairment of goodwill).
transaction date. Non-monetary items that are measured at
within three months of the purchase date.
TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognized in the statement of
their fair value expressed in a foreign currency are translated at
the exchange rate applicable on the reporting date. Changes to
exchange rates are recognized in the income statement as they
financial position at nominal value after a provision for bad debts.
occur during the accounting period.
The provision for bad debts is estimated based on an individual
assessment of each material receivable.
CURRENT INVESTMENTS
Current investments (shares and investments which are
considered current assets) are carried at the lower of acquisition
cost and fair value at the reporting date. Dividends and other
distributions received are recognized as other financial income.
Investments in money market funds are measured at fair value
in the Company’s statement of financial position. Unrealized
gains (losses) are presented as financial income (-expense) in the
income statement.
SHARE-BASED PAYMENTS
The Company operates a share-based remuneration scheme for
the Group management of the Grieg Seafood Group, which all
are employees of Grieg Seafood ASA. The share-based option
scheme is a synthetic option scheme with settlement in cash.
Each member of the scheme is, in addition, obliged to purchase
shares relative to their annual salary. The company’s estimated
liability is recognized as a current or non-current liability based
on the estimated settlement date. The cost for the year is
recognized in the income statement.
PART 03 – OUR FINANCIAL RESULTS
122
NO T E 2 R EL AT ED PAR T IE S
NO T E 4 S AL AR IE S, P ER S ONNEL AND O T HER OP ER AT I NG E XP EN S E S
2022
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON-
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
Total related
parties – Group
companies
Total related
parties –
Shareholders
287 954
-2 185
1 109 243
-2 958
797 907
180 989
2 715 580
-8 526
-412 125
—
-12 409
—
—
—
—
—
-5 500
—
Total
287 954
-14 594
1 109 243
-2 958
797 907
180 989
2 715 580
-14 026
-412 125
2021
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON-
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
Total related
parties – Group
companies
Total related
parties –
Shareholders
98 328
-411
501 779
-45
787 096
178
2 149 163
—
-102 111
—
-13 247
—
Total
98 328
-13 658
501 779
—
-45
—
787 096
—
178
—
2 149 163
-127
-126
—
-102 111
The company carries out, in the normal course of business, transactions with companies controlled by Grieg Maturitas II AS, which is
the parent company of Grieg Aqua AS, the majority owner of Grieg Seafood ASA. The ultimate parent company of Grieg Seafood ASA is
Grieg Maturitas AS, the parent company of Grieg Maturitas II AS. Grieg Maturitas II AS is headquartered in C. Sundts gate 17/19, Bergen,
Norway. Consolidated financial statements, in which Grieg Seafood ASA is included may be obtained from the parent company.
The transactions with Grieg Maturitas II AS and subsidiaries relate to ICT-related services and other functions such as catering,
reception, etc., are provided by Grieg Group Resources AS on an arm’s length basis. In addition, Grieg Seafood ASA rents its offices
from Grieg Gaarden AS on an arm’s length basis. The office rental agreement runs for a period of ten years. Lastly, Grieg Seafood ASA
purchases services from Grieg Investor AS.
Grieg Seafood ASA provides a range of services to the subsidiaries of the Grieg Seafood Group. The services include administrative
services and services relating to the provision of parent company non-current loans and current credit facilities to subsidiaries. Interest
is charged on an arm's length basis.
Grieg Seafood ASA enters into hedging contracts on behalf of Grieg Seafood Rogaland AS and Grieg Seafood Finnmark AS. The
arrangement is intended to reduce these companies’ exposure to salmon prices. The agreements with the subsidiaries are priced on the
basis of a “back-to-back” arrangement.
NO T E 3 OP E R AT ING I NC OME
OPERATING INCOME NOK 1 000
Administrative services – Group companies (Note 2)
Administrative services - external*
Royalty fee - Group companies (Note 2)**
Other operating income
Total operating income
2022
141 622
—
146 332
61
288 015
2021
82 430
15 898
—
—
98 328
* Administrative services to Grieg Seafood Shetland UK Ltd is presented as external income as the shares in the company was sold on 15 of December 2021.
** A royalty fee model has been established in the Grieg Seafood Group as from 2022.
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Wages and salaries
Social security costs
Share options for directors and key personnel (Note 14)
Pension costs – defined contribution scheme
Other personnel costs
Total
Average number of employees
2022
68 263
13 122
30 399
2 523
4 041
118 348
39
2021
51 087
6 779
7 924
2 221
3 523
71 533
36
Pension scheme
The Company has a pension scheme covering all employees at 31 December 2022. The pension scheme is funded and managed through
an insurance company.
Share savings plan
Grieg Seafood established a share savings program for its employees in 2018, which has continued throughout 2022. Each year has its
own set of terms and conditions concerning how much each employee can invest in the program that year. In addition, each year has
it’s set of terms for the lock-up period. The saved amount is deducted from the monthly net salary and used to purchase Grieg Seafood
shares on behalf of the employees. The purchase will be made from transfer of Grieg Seafood's treasury shares or bought in the market.
The purchase price and the number of shares acquired by the company will be reported in accordance with the applicable regulations.
At 31 December 2022, loan to employees related to the share savings program equals NOK 4.9 million (2021: NOK 2.7 million). The total
shares sold to employees was 96 150 in 2022 (2021: 38 513).
Management remuneration
The guidelines for management remuneration are available on Grieg Seafood ASA’s website.
The remuneration to the Group Executive Operational Management Team is disclosed below. In addition to the executive operational
management team (Chief Executive Officer, the Chief Financial Officer, the Group’s Chief Operating Officers, and the Chief Commercial
Officer), the Group Management include the support functions of the Chief Technology Officer (CTO), the Chief Human Resource Officer
(CHRO) and the Global Communication Manager.
REMUNERATION PAID TO GROUP EXECUTIVE
OPERATIONAL MANAGEMENT TEAM IN 2022 NOK 1 000
SALARY
BONUS
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada until June
2022)**
Erik Holvik (Chief Commercial Officer)
3 644
2 349
2 066
1 802
2 247
1 007
612
321
-26
483
Total remuneration
12 109
2 397
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUN-
ERATION*
2 954
120
332
47
123
TOTAL
12 144
6 282
5 637
4 740
5 923
4 540
3 202
2 917
2 917
3 070
16 644
3 576
34 726
—
—
—
—
—
—
*The CEO has in 2022 received a one-time payment in arrears for pension benefits.
**Grant Cumming was appointed as COO Farming Canada in Q1 2023.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
PART 03 – OUR FINANCIAL RESULTS
123
REMUNERATION PAID TO BOARD MEMBERS IN 2022 NOK 1 000
Per Grieg Jr.1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik (from 9 June 2022)
Total remuneration
TOTAL
516
401
328
372
308
183
2 108
1The amounts include social security costs. Payment for work performed on the Remuneration Committee of NOK 25 673 is included in the remuneration paid to Per
Grieg jr. and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 68 460.
The amounts include social security costs.
Commission. Grieg Seafood is not aware of any anti-competitive behavior within the Group, neither in Norway, nor the EU, or Canada.
Grieg Seafood rejects that there is any basis for the claims and considers the complaints to be entirely unsubstantiated.
Grieg Seafood had also been sued by indirect purchasers in the USA. In 2022, a settlement offer from the indirect purchaser plaintiffs
was accepted. In February 2023, the settlement was finally approved by the court of Southern District of Florida. The settlement does
not involve any admission of liability or wrongdoing. Costs incurred and provisions for expected costs related to the lawsuits in North
America have been expensed in the Grieg Seafood Group in 2022, and allocated towards the relevant entities of which a portion has been
allocated to Grieg Seafood ASA. The costs are reported as “other operating expenses” in Grieg Seafood ASA. See also Note 28 of the
Group Accounts.
NO T E 5 FIN ANCI AL I NC OME AND FIN ANC I AL E XP ENSE S
REMUNERATION PAID TO GROUP EXECUTIVE
OPERATIONAL MANAGEMENT TEAM IN 2021 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
BENEFITS
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada)
Erik Holvik (Chief Commercial Officer)
Total remuneration
3 165
2 280
2 116
1 772
1 996
11 329
—
—
75
—
161
236
540
313
203
244
350
1 650
—
—
—
—
—
—
250
115
113
—
115
593
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
The 2021 table has been represented to include only the Group Executive Operational Management Team.
REMUNERATION PAID TO BOARD MEMBERS IN 2021 NOK 1 000
Per Grieg jr.1
Tore Holand2
Sirine M. Fodstad (until 13 August 2021)1
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg (from 4 November 2021)
Total remuneration
TOTAL
3 956
2 707
2 507
2 016
2 621
13 807
TOTAL
479
371
205
308
342
—
1 705
1Payment of NOK 22 820 for service on the Remuneration Committee is included in the remuneration paid to Per Grieg Jr. and Marianne Ribe, while Sirine Fodstad
received NOK 15 213 for the same.
2Payment of NOK 57 050 for service on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik.
The amounts include social security costs.
BREAKDOWN OF AUDITOR'S FEES NOK 1 000
Statutory audit
Other certification services
Tax advisory fee
Other services
Total
2022
1 063
783
—
26
2021
1 991
730
38
41
1 872
2 800
FINANCIAL ITEMS NOK 1 000
FINANCIAL INCOME
Interest income from Group companies
Gain/loss sale of subsidiary *
Other interest finance income
Realized gain/loss on cross currency interest rate swap incl. option
Unrealized gain (loss) on investment in money market fund
Other financial income
Group contributions from subsidiaries
Dividend
Unrealized value changes, derivatives (Note 8)
Unrealized currency change, non-current EUR term loan
Realized currency change, non-current EUR term loan
Unrealized currency change, non-current loans from Group companies
Net realized currency gains
Net unrealized currency gains
Total
FINANCIAL EXPENSE
Financial expense
Loan interest expenses
Interest expense to Group companies
Other interest expenses
Realized value changes, derivatives
Unrealized currency change, non-current EUR term loan
Other financial expenses
Net realized currency losses
Total
Net financial items
2022
2021
103 141
7 924
8 378
35 740
12 624
1 668
171 650
142 683
10 606
—
—
—
995 290
307 845
10
751
—
2 624
10 811
317
89 849
1 269 129
10
29 281
23 990
—
22 284
735
43 548
752 632
130 239
172 015
2 958
188
21 178
58 396
3 562
—
216 521
1 052 608
45
2 291
7 494
—
3 048
2 039
186 932
565 700
The audit fee specification for 2022 from the company’s auditor include fees from Advokatfirmaet PricewaterhouseCoopers AS (tax-related assistance) of NOK 26
thousands (NOK 38 thousands). In addition, the company has expensed NOK 93 thousands in 2022 related to tax advise and other certification services from other audit
firms than the company’s selected auditor.
Other operating expenses
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the Norwegian
salmon industry. Grieg Seafood is one of the companies under investigation. At date, no decision has been made by the European
*Sale of Grieg Seafood Shetland Ltd
On 29 June 2021, Grieg Seafood ASA entered into an agreement with Scottish Sea Farms Ltd for the disposal of all shares in Grieg
Seafood Hjaltland UK Ltd, the holding company of Grieg Seafood ASA's Shetland business. The transaction was closed on 15 December
2021. The gain for Grieg Seafood ASA is recognized at NOK 151 million, in total, of which NOK 143 million recognized as a preliminary gain
in 2021, and NOK 7.6 million recognized in 2022 in relation to the closing of the settlement. For more information, see also Note 6 to the
Group Accounts for 2022.
PART 03 – OUR FINANCIAL RESULTS
124
NO T E 6 TA XE S
BASIS FOR TAX PAYABLE NOK 1 000
Profit before tax
Dividends recognized in profit or loss
Net other permanent differences
Other permanent differences from gain of sales of share
Unrealized of adjustments of investment in money funds
Change in financial derivatives
Change in temporary differences
Group contribution received/provided
Taxable income/loss
Group contribution received
Loss carry forward
Basis for tax expense for the year
22% (22%) tax payable
2022
1 015 743
-10
-1 118
-7 924
-12 624
20 426
90 227
-995 290
109 431
995 290
—
1 104 721
243 039
2021
488 599
-10
-5 109
-142 680
—
-29 281
76 489
-307 845
80 163
307 845
-39 433
348 575
76 686
PART 03 – OUR FINANCIAL RESULTS
BREAKDOWN OF DEFERRED TAX BASIS NOK 1 000
CHANGE
2022
2021
TEMPORARY DIFFERENCES
Non-current assets
Profit and loss account
Provisions for liabilities
Cash-based options
Non-current debt/amortized cost
Revaluation account non-current liabilities
Discount bond loan
Net temporary differences
Financial instruments
Basis for deferred tax in balance sheet
Deferred tax assets/deferred tax liabilities in the balance sheet
BREAKDOWN OF TAX CHARGE
Tax payable
Change in deferred tax, 22% (22%)
Change in payable tax from last year
Tax effect of foreign tax not credited Norwegian tax
Tax expense in income statement
RECONCILIATION OF TAX EXPENSE
Profit before tax
Estimated tax 22% (22%)
Tax expense in income statement
Difference
THE DIFFERENCE CONSISTS OF THE FOLLOWING:
22% of permanent differences
Tax effect of foreign tax not credited Norwegian tax
Change in tax/deferred tax due to change of tax rate
Total reconciled difference
-3 360
-101
-69 310
3 738
-4 618
-20 413
3 838
-90 227
-20 426
-110 653
-24 343
-3 692
407
-69 310
-7 428
25 053
—
-9 539
-64 510
—
-64 510
-14 192
243 039
-24 343
—
2 971
221 666
1 015 743
-223 464
221 666
-1 797
-4 769
2 971
—
-1 797
-332
508
—
-11 166
29 671
20 413
-13 377
25 718
20 426
46 144
10 151
76 686
-1 711
39
6 242
81 257
488 599
-107 492
81 257
-26 235
-32 516
6 242
38
-26 235
NO T E 7 S OF T WAR E, AND P R OP ER T Y, P L AN T AND EQUIP MEN T
2022 NOK 1 000
Book value at 01.01.
Additions
Amortization/depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization/depreciation
Book value at 31.12.
Economic life (amortization/depreciation schedule)
SOFTWARE
OTHER
EQUIPMENT
10 737
2 581
-4 961
8 357
2 571
659
-2 023
1 207
54 879
20 173
-46 522
-18 965
8 357
1 207
3 - 10 years
3–5 years
125
2021 NOK 1 000
Book value at 01.01.
Additions
Amortization/depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization/depreciation
Book value at 31.12.
Economic life (amortization/depreciation schedule)
SOFTWARE
OTHER
EQUIPMENT
14 504
1 892
-5 659
10 737
2 131
1 555
-1 114
2 571
52 298
19 514
-41 561
-16 942
10 737
2 571
3 - 10 years
3–5 years
The company has operating lease agreements, which are not recognized in the statement of financial position:
2022
ASSETS
Buildings
Other equipment
Total lease amount charged
DURATION
Until 2028
3-5 years
OPERATING LEASE
EXPENSE
4 385
207
4 592
NO T E 8 INV E S T MEN T S I N SUB SIDI AR IE S
SUBSIDIARY
Grieg Seafood Rogaland AS
Grieg Seafood Canada AS
Grieg Seafood Finnmark AS
Grieg Seafood Sales AS*
Grieg Seafood Newfoundland AS
Total
REGISTERED
OFFICE
COUNTRY
REGISTERED
OFFICE
LOCATION
OWNERSHIP/
VOTING
SHARE
EQUITY AT
31.12.2022
NOK 1 000
PROFIT/
LOSS 2022
NOK 1 000
BOOK VALUE
NOK 1 000
Norway
Bergen
Norway
Bergen
Norway
Alta
Norway
Bergen
Norway
Bergen
100 %
100 %
100 %
100 %
99 %
880 534
227 343
1 008 310
139 117
129 590
405 589
-56
559 425
142 334
223 497
297 112
400 481
1 000
19 671
981 319
2 384 894
1 126 962
1 903 409
*Grieg Seafood Sales AS changed its legal name from Grieg Seafood Norway AS on the 14 March 2023.
Equity and profit/loss are based on provisional financial statements, which have been prepared in accordance with local accounting standards.
NO T E 9 O T HE R CUR R EN T R E CEI VA BLE S
OTHER CURRENT RECEIVABLES NOK 1 000
Prepaid expenses
VAT *
Estimated remaining purchase price for the sale of Shetland
Other current receivables
Tax refund as a part of Corona tax measures
Total other current receivables
*Grieg Seafood ASA is the parent company in jointly registered VAT for the Norwegian entities of the Grieg Seafood Group.
2022
7 539
2 934
7 624
184
—
2021
7 489
1 616
—
—
28
18 281
9 134
NO T E 10 SHOR T-T ER M INV E S T M EN T S AND DER I VAT I V E S
SHORT-TERM INVESTMENTS AND FINANCIAL INSTRUMENTS NOK 1 000
Investment in money market funds including unrealized gain*
Financial derivative instruments
Other financial assets
Total
2022
1 012 848
—
566
1 013 415
2021
—
21 178
566
21 744
*In 2022, the company has temporarily placed surplus liquidity funds in money market funds. The company does not invest directly in bonds or securities, but through
units in established money market funds. At year-end, the company had investments placed in a portfolio of three Norwegian money market funds. All three funds in the
investment portfolio are money market funds that invest in bonds and securities with short time to maturity in the Norwegian market.
FINANCIAL DERIVATIVE INSTRUMENTS
FAIR VALUE
BOOK VALUE
FAIR VALUE
BOOK VALUE
2022
2021
Interest rate options1
Cross currency interest rate swap1,2
Interest rate swap contracts3
Financial derivative instruments classified as current assets
Interest rate swap contracts3,4
Financial derivative instruments classified as current liabilities
—
—
35 238
35 238
—
—
—
—
—
—
—
—
233
21 178
14 587
35 998
-751
-751
—
21 178
—
21 178
-751
-751
1The cross currency interest-rate swap contract has been settled in 2022. The realized gain on the cross currency interest rate swap incl. option was NOK 36 million, see
Note 5.
2Financial instruments booked at fair value in according to accounting act § 5-8.
3See specification below.
4The interest rate swap contract classified as current liabilities in 2021 included accrued interests of NOK 162 thousands.
SPECIFICATION ON INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
MARKET VALUE
NOK 1 000
31.12.2022
MARKET VALUE
NOK 1 000
31.12.2021
Fixed rate paid - floating rate received
NOK 200 million
1.61
Nibor 3 months
28.08.2023
Fixed rate paid - floating rate received
NOK 200 million
1.35
Nibor 3 months
04.03.2024
Fixed rate paid - floating rate received
NOK 200 million
1.07
Nibor 3 months
05.07.2024
Fixed rate paid - floating rate received
NOK 200 million
0.71
Nibor 3 months
18.12.2024
Fixed rate paid - floating rate received
NOK 200 million
0.72
Nibor 3 months
18.12.2024
2 670
5 018
7 627
9 963
9 961
-590
874
2 628
5 561
5 524
Total
35 238
13 997
CHANGES IN FINANCIAL INSTRUMENTS RECOGNIZED AS FINANCIAL ITEMS NOK 1 000
Unrealized gain/loss on interest rate swaps
Unrealized gain/loss on foreign currency contracts
Unrealized gain/loss on money market funds
Net unrealized gain/(loss) on financial instruments
Realized gain/loss on cross currency interest rate swap incl option
Realized value change, derivatives
Net realized gain/(loss) on financial instruments
2022
751
—
12 624
13 375
35 740
-21 178
14 562
2021
14 887
14 394
—
29 281
—
-7 494
-7 494
The company is exposed to a number of financial risks; market risk (including foreign exchange risk, interest rate risk and price risk),
credit risk and liquidity risk. The company’s overall risk management program focuses on the volatility of the financial markets and
seeks to minimize potential adverse effects on the company’s financial performance. The company uses financial derivatives to reduce
certain risks. The Board has established written principles for the management of foreign exchange risk, interest rate risk and use of the
company´s financial instruments.
PART 03 – OUR FINANCIAL RESULTS
126
NO T E 11 B A NK DE P O SI T S
BANK DEPOSITS NOK 1 000
Restricted deposits relating to employees' tax deductions
Other bank deposits
Total
2022
1 000
523 823
524 823
2021
2 564
790 312
792 875
The change in the line item "restricted deposits incl. employee tax deductions" 2022 compared to 2021 is due to bank guarantee covering
the employee tax deductions in 2022 (and going forward), compared to 2021 where the employee tax deductions were held on a tax
deduction bank account. Grieg Seafood ASA has a guarantee relating to employees’ tax deductions on total NOK 6 million at the end of
2022.
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Morgan Stanley & Co. Int. Plc. (Nominee)
Clearstream Banking S.A. (Nominee)
Grieg Seafood ASA
The company has an overdraft facility of NOK 200 million. Available credit on the overdraft facility was NOK 200 million at year-end 2022
JPMorgan Chase Bank, N.A., London (Nominee)
(2021: NOK 100 million). In addition, the company has a revolving credit facility of which NOK 1 500 million was undrawn at year-end 2022
(2021: NOK 785 million). See Note 13 for more information.
NO T E 12 SH A R E C A P I TA L AN D SH AR EHOLDER INF OR M AT ION
As at 31 December 2022, the company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2022
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
Holdings of treasury shares
Total excl treasury shares
4.00
4.00
4.00
453 788
-5 407
448 381
113 447 042
-1 351 811
112 095 231
Treasury shares
In 2011, Grieg Seafood ASA purchased 1 250 000 treasury shares at NOK 14.40 per share. As from 2018, the treasury shares have been
sold to employees for the share savings program. In 2022, 96 150 shares were sold to employees through the share savings program at
an average price of NOK 71.0958. In December 2022, Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76
per share of which 314 980 have been settled within year-end. As at 31 December 2022, the company has 1 351 811 treasury shares.
Gåsø Næringsutvikling AS
Kvasshøgdi AS
Ferd AS
State Street Bank and Trust Comp (Nominee)
DZ Privatbank S.A. (Nominee)
J.P. Morgan SE (Nominee)
Danske Invest Norge Vekst
Six Sis AG (Nominee)
J.P. Morgan SE (Nominee)
DNB Bank ASA (Broker)
Total 20 largest shareholders
Total others
Total number of shares
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
56 914 355
50.17%
5 110 982
2 939 985
1 923 197
1 717 439
1 692 877
1 470 346
1 376 622
1 351 811
1 136 470
1 116 323
996 772
924 407
724 407
698 518
687 236
540 000
534 229
526 442
482 561
4.51%
2.59%
1.70%
1.51%
1.49%
1.30%
1.21%
1.19%
1.00%
0.98%
0.88%
0.81%
0.64%
0.62%
0.61%
0.48%
0.47%
0.46%
0.43%
82 864 979
30 582 063
73.04%
26.96%
113 447 042
100.00%
PART 03 – OUR FINANCIAL RESULTS
127
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
State Street Bank and Trust Comp (nominee)
Clearstream Banking S.A. (nominee)
BNP Paribas Securities Services (nominee)
Ferd AS
Six Sis AG (nominee)
CACEIS Bank Spain SA (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (nominee)
Kvasshøgdi AS
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Pictet & Cie (Europe) S.A. (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Other shareholders
Total shares
NO. OF SHARES
SHAREHOLDING
31.12.2021
31.12.2021
56 914 355
50.17%
5 312 207
4 917 957
2 428 197
1 867 464
1 711 386
1 634 500
1 456 453
1 380 743
1 212 652
1 164 795
1 132 981
1 035 915
996 772
916 000
883 362
862 797
755 004
646 320
561 000
4.68%
4.34%
2.14%
1.65%
1.51%
1.44%
1.28%
1.22%
1.07%
1.03%
1.00%
0.91%
0.88%
0.81%
0.78%
0.76%
0.67%
0.57%
0.49%
87 790 860
25 656 182
77.38%
22.62%
113 447 042
100.00%
SHARES CONTROLLED BY BOARD MEMBERS AND GROUP
MANAGEMENT
BOARD OF DIRECTORS
Per Grieg Jr.
Tore Holand (Skippergata 24 AS, and privately)
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg (board member from 4 November 2021) *
Ragnhild Janbu Fresvik (board member from 9 June 2022)
GROUP MANAGEMENT
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Alexander Knudsen (COO Farming Norway)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Global Communications Manager)
Erik Holvik (CCO)
THE SHARES OWNED BY THE FOLLOWING COMPANIES ARE
CONTROLLED BY PER GRIEG JR. AND FAMILY
Grieg Aqua AS
Ystholmen Felles AS
Kvasshøgdi AS
Per Grieg Jr. privately
Thomas Willumsen Grieg
Total shares
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
31.12.2021
31.12.2021
57 926 127
2 000
—
—
—
—
40 513
25 556
24 855
23 513
15 074
4 711
8 831
51.06%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.01%
0.00%
0.01%
60 356 985
2 000
—
—
—
—
39 809
24 852
24 151
22 809
12 380
644
644
53.20%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.01%
0.00%
0.00%
56 914 355
50.17%
56 914 355
50.17%
—
996 772
15 000
—
—%
0.88%
0.01%
—%
2 428 197
996 772
15 000
2 661
2.14%
0.88%
0.01%
0.00%
57 926 127
51.06%
60 356 985
53.20%
*Nicolai Hafeld Grieg owns, indirectly, 1.87% of Grieg Seafood ASA through his ownership in Grieg Maturitas AS, the parent company of Grieg Aqua AS.
PART 03 – OUR FINANCIAL RESULTS
128
NO T E 13 NE T IN T ER E S T-B E A R ING LI A BILI T IE S AND P LEDGE S
Grieg Seafood ASA has a syndicated loan provided by DNB and Nordea. The syndicated financing from secured lenders of Grieg Seafood
consists of an aggregate of NOK 3 200 million in five-year senior secured sustainability-linked loans and credit facilities. The debt
structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
200 million overdraft facility. The financing carries floating interest rates, calculated as the relevant three month IBOR plus the applicable
margin per interest period. The financial covenant of the facility is a minimum equity-ratio requirement of 31%, measured excl. the effect
of IFRS 16.
In addition to the senior secured facility, the Group also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025. The
bond carries a coupon rate of three months NIBOR + 3.4% p.a. The bond's financial covenant is an equity ratio requirement of minimum
30%, measured consistent with the Group’s equity-ratio financial covenants as defined in its syndicated loan agreement with secured
lenders.
LIABILITIES SECURED BY MORTGAGE NOK 1 000
BOOK VALUE OF LIABILITIES SECURED BY MORTGAGE
Liabilities to credit institutions
Total liabilities
BOOK VALUE OF ASSETS PLEDGED AS SECURITY
Shares in subsidiaries
Property, plant and equipment
Trade receivables
Loans to subsidiaries*
Total assets pledged as security
2022
2021
1 474 429
1 474 429
864 524
864 524
1 903 409
922 090
1 207
180 989
2 420 009
4 505 613
2 571
178
1 137 778
2 062 617
Grieg Seafood ASA was in compliance with its financial covenant at 31 December 2022. At 31 December 2022, the Group had an equity
ratio of 50% (2021: 52%) while the equity ratio according to financial covenant was 52%, compared to 54% at 31 December 2021.
*The subsidiaries and the parent company have a joint and several liability against the credit institutions. See the consolidated financial statements Note 12 for further
information about liabilities secured by mortgage.
Total unutilized credit facilities of Grieg Seafood ASA was NOK 1 700 million as at 31 December 2022 (2021: NOK 885 million).
NON-CURRENT LIABILITIES NOK 1 000
NON-CURRENT LIABILITIES (INTEREST BEARING)
Green bond
Non-current syndicated loan
Non-current revolving credit facility
Total
Amortization effect of loans
Total non-current liabilities
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
Current portion of non-current borrowing
Total
NET INTEREST-BEARING LIABILITIES NOK 1 000
Gross interest-bearing liabilities
Unrestricted bank deposits
Investments in money market funds
Loans to subsidiaries
Net interest-bearing liabilities
2022
2021
1 423 500
1 346 218
—
1 500 000
374 580
440 000
2 769 718
2 314 580
-25 053
-29 671
2 744 665
2 284 909
2022
128 211
128 211
2021
49 944
49 944
2022
2021
2 897 929
2 364 524
523 823
1 012 848
2 420 009
790 312
—
2 612 972
-1 058 750
-1 038 760
TYPE OF LIABILITY NOK 1 000
CURRENCY
2022
2021
INTEREST
RATE
MATURITY
CURRENT
PART
NON-
CURRENT
PART
CURRENT
PART
Green bond
Syndicated non-current loan
Syndicated non-current loan
Syndicated loan revolving credit
Total
NOK
NOK
EUR
NOK
Floating
06/2025
—
1 423 500
Floating
03/2027
Floating
03/2027
Floating
02/2023
62 500
65 711
—
656 250
689 968
—
—
—
49 944
—
NON-
CURRENT
PART
1 500 000
—
374 580
440 000
CURRENCY EXPOSURE ON LOANS TO CREDIT INSTITUTIONS
NOK 1 000
Green bond
Syndicated non-current loan (NOK term loan)
Syndicated non-current loan (EUR term loan)
Total
CURRENCY EXPOSURE ON LOANS TO CREDIT INSTITUTIONS
NOK 1 000
Green bond
Syndicated non-current loan (EUR term loan)
Syndicated loan revolving credit facility (non-current) (NOK)
Total
128 211
2 769 718
49 944
2 314 580
31.12.2022
NOK
1 423 500
1 423 500
718 750
718 750
EUR
—
755 679
—
755 679
2 897 929
2 142 250
755 679
31.12.2021
NOK
1 500 000
1 500 000
EUR
—
424 524
—
424 524
440 000
440 000
—
2 364 524
1 940 000
424 524
2022
4.61%
1.77%
2021
3.76%
3.50%
MATURITY PROFILE - NON-CURRENT LIABILITIES NOK 1 000
2023
2024
2025
2026
2027
LATER
TOTAL
AVERAGE INTEREST RATE ON BANK AND BOND LOAN
Green Bond
—
— 1 423 500
—
— 1 423 500
Syndicated debt - NOK and EUR term loans
128 211
128 211
128 211
128 211
961 584
— 1 474 429
Average interest rate (NOK)
Average interest rate (EUR)
Total
128 211
128 211
1 551 711
128 211
961 584
— 2 897 929
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
Figures included in the maturity profile table are nominal figures. Amortized cost is not included.
PART 03 – OUR FINANCIAL RESULTS
129
NO T E 14 SH A R E-B A S ED PAY MEN T S
The company has issued options to the management group and regional directors. The options’ strike price is the stock market price
on the date of issue, rising by 0.5% per month until the exercise date. Since 2009, an option scheme with settlement in cash has been
established for the management and regional directors. The most recent allocation was in 2020, totalling 1 890 000 options. The final
exercise date is 31 May 2024. The options have a term of two years, where 50% is vested each year.
Employees taken on after the initial allocation of options are allocated options on taking up employment.
The Black & Scholes option pricing model is used to calculate the market value. A brokerage firm is used to perform the calculations. The
table below shows the movement in outstanding options in 2022 and 2021.
OVERVIEW 2022
(TOTAL OPTIONS)
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group Communication Manager)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada until June 2022)
Erik Holvik (CCO)
Others
Total
OVERVIEW 2021
(TOTAL OPTIONS)
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (COO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group Communication Manager)
Alexander Knudsen (COO Farming Norway)
Roy Tore Rikardsen (COO Farming Canada)
Erik Holvik (CCO)
Others
Total
OUTSTANDING
OPTIONS AT
31.12.2021
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2022
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
—
—
—
—
—
—
—
—
—
—
310 236
189 201
181 698
150 989
60 738
183 168
183 168
104 212
416 863
1 780 273
—
—
—
—
—
—
86 832
—
47 877
134 709
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
135 260
775 016
OUTSTANDING
OPTIONS AT
31.12.2020
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2021
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
700 000
2 790 000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
100 000
100 000
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
ALLOCATION:
YEAR - MONTH
EXPIRY DATE:
YEAR - MONTH
STRIKE PRICE NOK
PER SHARE AT 31.12.2022
STRIKE PRICE NOK
PER SHARE AT 31.12.2021
2017 - 11
2020 - 12
2020 - 12
Total
2021 - 05
2023 - 05
2024 - 05
0.00
88.99
88.99
106.28
83.82
83.82
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
OPTIONS
2022
—
64 898
710 118
775 016
2021
800 000
945 000
945 000
2 690 000
2022
2021
775 016
2 690 000
78.96
80.16
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2022
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2022
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2022
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2022
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
—
244
-240
-177
-158
—
2 541
2 202
1 883
1 210
-157
1 773
-193
1 917
—
1 408
909
840
600
511
847
847
881
-847
-274
2 921
-1 451
7
4
4
4
-7
-4
-4
-4
1 917
3 070
9 628
1 999
999
999
999
2 998
34 137
1 880
15 802
11
-11
9 792
-3 282
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1 652
669
663
442
354
654
—
606
1 469
—
—
—
—
—
6 887
6 510
2022
Former employees with
expired options**
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group
Communication Manager)
Alexander Knudsen (COO
Farming Norway)
Roy Tore Rikardsen (COO
Farming Canada until June
2022)
Erik Holvik (CCO)
Other options allocated in 2020
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Other options allocated in 2017
Total
*Amounts exclude social security costs.
**The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
PART 03 – OUR FINANCIAL RESULTS
130
NO T E 15 O T HER C UR R EN T LI A BILI T IE S
OTHER CURRENT LIABILITIES NOK 1 000
Accrued interest
Other accrued expenses1
Other current liabilities2
Total other current liabilities
2022
1 977
43 710
58 728
104 414
2021
4 312
26 813
23
31 148
1Includes a liability related to a realized loss on fixed-price contracts of NOK 31 million (NOK 13 million). See also Note 2.
2Includes NOK 25 million related to repurchased bonds. The repurchase was finalized in 2022 but settled in cash in 2023. In addition, NOK 28 million related to litigation
and claims is accrued at year-end 2022, see Note 4 as well as Note 28 of the Group Accounts.
NO T E 16 GU AR AN T EE S
Grieg Seafood ASA acted as a guarantor for Grieg Seafood Sales North America Inc. and Grieg Seafood Sales UK in connection with sales
contracts with customers. The total guaranteed amounts are USD 3 000 000 and EUR 250 000.
Grieg Seafood ASA acted as a guarantor for Fiskehav SA. Total amount is NOK 7 million. The guarantee expires 9 September 2023.
NO T E 17 E V EN T S AF T ER T HE R EP OR T ING D AT E
There has not been any significant events after the balance sheet date of 31 December 2022.
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICEON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2021
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2021
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2021
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2021
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
1 880
15 802
—
56
41
37
27
23
38
38
39
132
467
316
296
247
1 085
2 842
—
1 352
868
803
573
488
810
810
842
2 788
-460
-313
-293
-243
-1 074
6 951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
1 408
909
840
600
511
847
847
881
2 921
7
4
4
4
11
9 792
2021
Former employees with
expired options**
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (CTO)
Kathleen O. Mathisen (CHRO)
Kristina Furnes (Group
Communication Manager)
Alexander Knudsen (COO
Farming Europe)
Roy Tore Rikardsen (COO
Farming North America)
Erik Holvik (CCO)
Other options allocated in 2020
Andreas Kvame (CEO)
Atle Harald Sandtorv (CFO)
Knut Utheim (COO)
Kathleen O. Mathisen (CHRO)
Other options allocated in 2017
Total
*Amounts exclude social security costs.
**The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
ACCRUED COSTS RELATED TO CASH OPTIONS NOK 1 000
Change in provisions
Exercised options during the year
Total cost excl. social security costs
Social security costs
Total cost incl. social security costs
2022
-3 282
34 137
30 855
-456
30 399
2021 CLASSIFICATION IN FINANCIAL STATEMENTS
6 951 Other provisions for liabilities
— Salaries and personnel expense / cash
6 951
973 Public taxes payable
7 924 Salaries and personnel expense
Cost relating to cash-based remuneration in 2022 totaled NOK 30 399 thousands. This is recognized in the income statement as a
personnel cost. Social security contributions are provided for on an ongoing basis based on the fair value of the options.
As at 31 December 2022, outstanding options with the right to cash settlement were stated at NOK 6 510 thousands excl. social security
costs, of which NOK 589 thousands were classified as current liabilities. A total of NOK 83 thousand related to social security is classified
as current liabilities, bringing the total amount of current liabilities related to the share-based payments to NOK 672 thousands.
Issued options are cancelled on termination of employment. The book value of long term liabilities incl. social security cost is NOK 6 756
thousands.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
2022
58.29%
3.12%
1.11
2021
36.44%
1.13%
1.39
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments. In order to estimate volatility,
management has applied historical volatility for comparable listed companies.
PART 03 – OUR FINANCIAL RESULTS
131
PART 03 – OUR FINANCIAL RESULTS
132
PWC
PART 03 – OUR FINANCIAL RESULTS
133
PWC
PART 03 – OUR FINANCIAL RESULTS
134
ALTERNATIVE PERFORMANCE
MEASURES
We believe that our financial statements only partially reflect the
and taxes) of the income statement. Operational EBITDA is a
underlying performance of our operations, and as such some
non-IFRS financial measure, calculated by adding depreciation
of the financial information presented in this Annual Report
and amortization of licenses and other intangible assets to
contains alternative performance measures (APM). The APMs
Operational EBIT.
represented are important key performance indicators for how
the management of Grieg Seafood monitors operational and
The litigation and legal claim costs resulting from prior years,
financial performance on regional and group level. Therefore,
costs incl. impairment resulting from phasing out production
we believe that the APMs disclosed provide additional, useful
at the shíshálh (Sechelt) farming area of British Columbia, the
information when analyzing Grieg Seafood and our business
write-down of commercial aquaculture licenses in Rogaland,
activity.
Norway, and dilution gain from a capital issue in Årdal Aqua
(which is not operational at date), are items which are considered
APMs are non-IFRS financial measures. These measures are
isolated events which are not expected to reoccur. As such,
not intended to substitute, or to be superior to, any measure of
Grieg Seafood do not consider these costs informative or the
IFRS. The APMs used by the Group have been defined by Grieg
comparability of the Group's results from one period to the
Seafood to supplement our financial reporting and the APMs
other. These costs are excluded as the Group believe such costs
could therefore deviate from, or otherwise not being directly
impacts the comparability of the operating performance of Grieg
comparable to, similar APMs disclosed by other companies.
Seafood, given the non-recurring nature of these costs.
AMENDED PRINCIPLES FOR OPERATIONAL
EBITDA AND OPERATIONAL EBIT SINCE
ANNUAL REPORT 2021
As from 2022, "EBIT before production fee and fair value
adjustment of biological assets" has been renamed "Operational
EBIT". As such, "EBIT/kg" has been renamed "Operational
EBIT/kg". In line with this, "EBIT after production fee and fair
value adjustment of biological assets" is renamed as "EBIT".
Furthermore, Operational EBITDA and Operational EBIT are from
2022 excluded from the income statement, as these APM's are
available in the Group's segment reporting.
Operational EBIT is a non-IFRS financial measure calculated
by adding production fee and fair value adjustment of biological
assets, and other non-operational items (incl. costs and
impairment of phasing out seawater production sites) to the
financial statement line item EBIT (earnings before interests
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
Operational EBIT
and operational
EBIT/kg (GWT)
Operational EBIT is calculated by adding production fee and fair
value adjustment of biological assets, in addition to isolated
non-operational events, such as costs (incl. impairment) of
closing down sites, legal claims- and litigation costs and other
non-operational items to the financial statement line item EBIT
(Earnings before interests and taxes) of the income statement.
Operational EBIT is reported in the Group's segment reporting
(see Note 8), where a reconciliation with EBIT of the income
statement is included.
The Operational EBIT/kg (GWT), or Operational EBIT/kg, metric
is the operational EBIT divided by harvested volume in kg
gutted weight equivalent. The metric is calculated per farming
region, for Norway and Canada, and for the Group as a whole.
Operational EBIT/kg equals sales revenue/kg subtracted by
farming cost/kg and other costs incl. headquarter costs/kg. The
metric is reported in the Group's segment information (see Note
8), and calculated using solely figures included in the segment
information. Operational EBIT (and operational EBIT/kg) is
defined by Grieg Seafood. The APM could therefore deviate, or
otherwise not being directly comparable with, similar measures
provided by other companies, as the calculation of Operational
EBIT and/or Operational EBIT/kg could be different.
Operational
EBIT%
Operational
EBITDA
Operational
EBITDA%
ROCE
Operating EBIT% is calculated by dividing operational EBIT by
sales revenue as reported in the segment reporting (see Note
8). Operating EBIT% is reported per region, in addition to Group
level of Grieg Seafood.
Operational EBITDA is calculated by adding depreciation (and
write-down) of property, plant and equipment, and amortization
of licenses and intangible assets to Operational EBIT.
Operational EBITDA is reported in the Group's segment reporting
(see Note 8), where a reconciliation with EBIT of the income
statement is included.
Operating EBITDA% is calculated by dividing Operational EBITDA
by sales revenue as reported in the segment reporting (see Note
8). Operating EBITDA% is reported per region, in addition to
Group level of Grieg Seafood.
Operational EBIT and Operational EBIT/kg is used by
management, analyst, investors and is generally considered
the industry-measure for profitability and is used to assess
our performance. Operational EBIT has been defined by Grieg
Seafood and exclude items as described. We exclude these
items from our Operational EBIT as we believe that these items
impact the usefulness and comparability of our operational-
and financial performance from one period to the other, as
these items have a non-operational or non-recurring nature.
Operational EBIT provides a more informative result as it does
not consider country-specific taxation on harvest and do not
include expected future (unrealized) gains or losses on fish not
yet sold. In addition, isolated events not expected to reoccur,
such as litigation and legal claim costs that arise from prior
years as well as costs (incl. impairment) and phasing out
seawater sites, are not considered relevant for the current
operation of the Group, are not useful information when
analyzing the current operation of Grieg Seafood.
Profit from associated companies that are closely related to
the Group's operations and included in the Group's value chain,
for when the relevant associated company operate in the same
position in the value chain as the Group, are included in the
Group's Operational EBIT. Otherwise, such share of profit is
excluded from the Operational EBIT of the Group.
Operational EBIT/kg is a relative metric which ensures
comparability between our farming regions and across time. The
metric captures operational profitability for the Group and each
farming region.
Operating EBIT% is used by management to assess operational
performance per region as well as for the Group.
Operational EBITDA provides a more informative result, as
it does not consider the items with non-operational and/
or non-recurring nature as described for Operational EBIT.
Furthermore, it excludes the impact accounting estimates of
depreciation and amortization has on our profitability.
Operating EBITDA% is used by management to assess
operational performance per region as well as for the Group.
Return on capital employed (ROCE) is calculated by comparing
Operational EBIT incl. production fee to capital employed. Capital
employed is calculated on annual and quarterly bases, both as a
quarter-to-date figure and a year-to-date figure. The quarter-
to-date figure is annualized. Capital employed is defined as total
equity excl. the equity component of the fair value adjustment of
biological assets, plus net interest-bearing liabilities according
to the NIBD calculation method 1, as described in the NIBD
section of this APM disclosure. Capital employed for the
reporting period is calculated as the average of the opening and
closing balances.
As the salmon farming industry is a capital-intensive line of
business, ROCE is an important metric to measure the Group’s
profitability relative to the investments made. ROCE is used by
management to measure the return on capital employed. ROCE
is not impacted by capital structure, that is whether the financing
is through equity or debt. The fair value adjustment of biological
assets is excluded from the calculation, both in Operational EBIT
and as part of capital employed, as this reflect estimated future
gains or losses on fish not yet sold and this is not considered
useful information by the Group when assessing whether
invested capital yields competitive return.
PART 03 – OUR FINANCIAL RESULTS
135
APM
Equity ratio
NIBD
NIBD/Harvest
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
Equity ratio is calculated in two ways: (i) Equity according to
the Statement of Financial Position divided by total equity and
liabilities according to the Statement of Financial Position, (ii)
Equity according to loan agreements is calculated by dividing
equity by total equity and liabilities, ex. the impact of IFRS 16.
The metric is reported as a key figure of the Group.
Equity ratio captures the financial solidity of the Group.
Furthermore, the equity-ratio according to calculation method
2 above is a covenant requirement for the Group.Equity-ratio
is, together with NIBD and NIBD/harvest, useful to assess the
financial robustness and -flexibility of the capital structure of the
Group.
NIBD includes all long-term and current debt to
NIBD includes all long-term and current debt to
Net interest-bearing debt (NIBD) comprises non-current and
current debt to financial institutions and other interest-bearing
liabilities, after deducting cash and cash equivalents. Amortized
loan costs are not included in NIBD. NIBD is calculated in three
ways:
1.
credit institutions and other interest-bearing liabilities, incl. the
effect of IFRS 16 compared to the IFRS in force prior to 1 January
2019. This NIBD metric is disclosed in Note 12 to the Group
Accounts. This NIBD metric is included in the ROCE calculation.
2.
credit institutions and other interest-bearing liabilities, but is
adjusted according to terms and conditions set out in the bank
loan agreement. This NIBD metric is disclosed in Note 12 to the
Group Accounts, and excludes the effect on NIBD of IFRS 16
compared to the IFRS in force prior to 1 January 2019, in addition
to other adjustments made according to the loan agreement.
3.
NIBD includes all long-term and current debt to
credit institutions and other interest-bearing liabilities but
excludes the effect of IFRS 16 compared to the IFRS in force
prior to 1 January 2019. This metric is calculated as NIBD
according to bullet 1 above, subtracted by the effect of IFRS 16
as included in the adjustment to the covenant relating to NIBD in
bullet 2 above.
The metric is reported as a key figure of the Group, and also
reported in Note 12 of the quarterly report. In 2022, the Group
has investments in money market funds. Maturity of the
investment is less than three months. The Group has deducted
the investment in money market funds in the NIBD calculation
as from 2022.
NIBD/harvest is calculated using NIBD according to methods
1-3 as described in the NIBD section of this APM disclosure. The
applicable NIBD/harvest indicates which NIBD metric is used in
the calculation. The NIBD/harvest is calculated in two ways:
1.
weight in the last 12 months
2.
gutted weight.
NIBD divided by actual harvest volume in kg gutted
NIBD divided by guided full-year harvest volume in kg
The metric is reported as a key figure of the Group.
Net interest-bearing liabilities is a measure of the Group’s net
debt and borrowing commitments, and, together with equity-
ratio and NIBD/harvest, useful to assess the financial robustness
and -flexibility of the capital structure of the Group.
NIBD/Harvest captures the leverage of the Group measured by
the harvest capacity and is utilized when optimizing the Group’s
leverage ratio. Actual harvest volume in the last 12 months
indicates the leverage ratio according to proven harvest capacity,
while guided harvest volume indicates the leverage ratio
according to business plans as the Group are targeting volume
growth in an annual basis.
NIBD/harvest is, together with equity-ratio and NIBD, useful
to assess the financial robustness and -flexibility of the capital
structure of the Group.
Gross investment
Sales revenue/kg
(GWT)
Farming cost/kg
(GWT)
Other costs incl.
ownership and
headquarter
costs/kg (GWT)
Gross investment is equal to the Group’s capital expenditures
(CAPEX) excluding the effect of IFRS 16 compared to the IFRS in
force prior to 1 January 2019. Thus, the gross investment figure
includes additions made on property, plant and equipment and
intangible assets owned by the Group, together with long-term
lease arrangements with credit institutions. The metric is
reported as a key figure of the Group.
The sales revenue/kg (GWT) metric is calculated as sales
revenue from farming operations divided by harvested volume in
kg gutted weight equivalent. The metric is calculated per farming
region, for Norway and Canada, and for the Group as a whole.
Sales revenue from farming operations equals the revenue
directly attributable to the sale of Atlantic salmon, including
the impact of fixed contracts, incl. the margin generated by the
sales department. The term "sales revenue from sale of Atlantic
salmon" is also used by the Group.
Group sales revenue from farming operations equals the sum
of the sales revenue from farming operations per farming
region according to the segment information. Sales revenue/
kg is reported in the Group's segment information (see Note
8), and calculated using solely figures included in the segment
information.
The farming cost/kg (GWT) metric is the sum of all costs directly
related to the production and harvest of salmon, divided by the
related harvest volume in kg gutted weight equivalent (GWT).
Thus, at the regional level, farming costs equal operational
costs. Other income is included in the farming cost metric
as cost-reduction activities. Therefore, farming cost can be
calculated as, using the segment information, sales revenue
from farming operations less operational EBIT, divided by
harvest volume. The metric is calculated per farming region, for
Norway and Canada, and for the Group as a whole.
Group farming cost equals the sum of the regions’ farming costs.
Farming cost/kg is reported in the Group's segment information
(see Note 8), and calculated using solely figures included in the
segment information.
The Other costs incl. ownership and headquarters costs/kg
(GWT) metric captures all costs and revenue not directly related
to the production and harvesting of salmon. This includes costs
deriving from activities conducted by the parent company and
other Group companies not related to production, divided by
the Group's harvest volume. In addition, until the first harvest
in Newfoundland is carried out, net costs attributable to the
Newfoundland region are included as other costs/kg. The metric
is calculated for the Group, and is reported in the Group's
segment information (see Note 8), and calculated using solely
figures included in the segment information.
The Group’s CAPEX monitoring shows that gross investments
are in line with the CAPEX monitoring of the Group. The
accounting impact of IFRS 16 (capitalized operational leases) is
excluded from gross investments, as such leases are not treated
as part of CAPEX.
Sales revenue from farming operation is calculated as the
directly attributable revenue from sale of Atlantic salmon, and is
in line with our segment reporting. For the Group, sales revenue
is adjusted for income from sale of bi-products (smolt, fry, roe,
ensilage) as such income are assessed as considered as cost
reduction activities for our farming operation.
Sales revenue/kg is a relative metric which ensures
comparability between our farming regions and across time.
The metric captures the price achievement- and -realization
generated by the Group and each farming region.
Farming cost/kg is a relative metric which ensures comparability
between our farming regions and across time. The metric
captures the cost level of the farming operations. As Atlantic
salmon is traded largely as a commodity, and the prices achieved
largely reflect a general market price, the farming cost/kg
captures the operational profitability for the Group and each
farming region.
Other costs incl. headquarters costs/kg is a relative metric which
ensures comparability when assessing the Group’s cost level
over time. The metric captures the costs of the Group which are
not deemed directly attributable to farming operations.
The net costs of Newfoundland is included in the other cost incl.
ownership and headquarter costs/kg until first harvest. This
because the farming cost is characterized by the expense of the
cumulated cost to inventory incl. direct cost of harvest at the
point of harvest. Until harvest, production costs are capitalized
as biological assets in the balance sheet. Therefore, to be
comparable with our other farming regions, it is not useful to
include Newfoundland as part of the farming cost of the Group,
until the region is at the point of first harvest.
PART 03 – OUR FINANCIAL RESULTS
136
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
Below, the APMs derived in absolute figures are disclosed and reconciled to the Income Statement, Statement of Financial Position and
Cash Flow Statement, respectively. The EBITDA and EBIT are disclosed on the Income Statement, and are thus indirectly reconciled on
that statement.
FIGURE 3.21
SALES REVENUE FARMING OPERATIONS, FARMING COST AND OPERATIONAL EBIT (NOK MILLION)
2022
Sales revenue farming operations
Elim/Other & Newfoundland - revenue
Sales revenue
Farming cost
Elim/Other & Newfoundland - cost
Source
Note 8
Note 8
Income Statement
Note 8
Note 8
Operating EBIT
Income Statement
Rogaland
Finnmark
British Columbia
Group
2 124
2 629
1 665
1 369
1 703
1 395
Operational EBIT farming operations
Note 8
755
926
270
2021
Sales revenue farming operations
Elim/Other & Newfoundland - revenue
Sales revenue
Farming cost
Elim/Other & Newfoundland - cost
Source
Note 8
Note 8
Income Statement
Note 8
Note 8
Operational EBIT
Income Statement
Rogaland
Finnmark
British Columbia
1 431
1 756
1 023
1 189
1 506
873
Operational EBIT farming operations
Note 8
242
251
150
Source
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Note 12
Statement of Financial Position
Statement of Financial Position
Note 12
2022
2 839
654
3 492
142
227
369
8
643
1 013
-25
2 223
FIGURE 3.22
NIBD ACCORDING TO METHOD 1 (NOK MILLION)
Borrowings
Lease liabilities
Non-current liabilities
Current portion of borrowings
Current portion of lease liabilities
Current liabilities
Loans to associates
Cash and cash equivalents
Investments in money market funds
Amortized loan costs
NIBD (method 1)
FIGURE 3.23
GROSS INVESTMENTS (NOK MILLION)
Property, plant and equipment
Intangible assets
Additions according to the Cash Flow Statement
Finance leases according to IFRS in force prior to 1 January 2019
Gross investments
PART 03 – OUR FINANCIAL RESULTS
6 418
746
7 164
4 467
958
1 739
1 951
Group
4 211
388
4 599
3 568
588
442
643
2021
2 381
578
2 959
54
178
233
2
928
0
-30
2 291
Source
2022
2021
Cash Flow Statement
Cash Flow Statement
562
3
564
115
679
561
4
565
5
570
137
GRI
REPORTING
Our integrated report covers our progress with respect to all of
our pillars and material topics. We believe that measuring and
integrating comparable, consistent and reliable environmental,
social, and governance parameters is fundamental to making
more informed decisions and to facilitating long-term
sustainable growth.
GLOBAL REPORTING INITIATIVE (GRI) INDEX
STAKEHOLDER DIALOGUE
AUDITOR’S SUSTAINABILITY REPORT
139
146
147
GLOBAL REPORTING
INITIATIVE INDEX
This report has been prepared in accordance with the GRI Standards
2021. We follow the GRI Standards to report our impacts on the
economy, environment and people, including human rights, allowing
for greater transparency and accountability. For more information on
our approach to corporate social responsibility and transparency, see
our website.
MANAGEMENT OF MATERIAL TOPICS
With our vision of farming the ocean for a better future, we
The list is reviewed by our Board of Directors. The materiality
review process resulted in changes from last period in terms
demonstrate our commitment to corporate responsibility
of mapping and terminology from the applied sector standard.
by operating profitably and sustainably in a manner that
Except from plastic pollution and profitable operations, all of the
conforms with fundamental ethical norms and respect for the
material topics listed in 2021 is covered also in 2022. The reason
individual, the environment and society as a whole. We apply the
for excluding profitable operations from the materiality list is
precautionary principle as our strategy for approaching issues
explained by the GRI terminology directing focus towards impact
of potential harm when scientific knowledge is lacking. We aim
on the economy, environment, and people, including impacts on
to collaborate and take part in research to develop and test
human rights. The exclusion of plastic pollution is explained
new solutions. In pursuit of our vision, we will face risks and
by the outcome of the detailed impact assessment and the
opportunities. Our risk management is clearly connected with a
comparison of impact level to the other material topics. We still
multitude of stakeholder expectations, and the topics we have
consider these topics as significant and cover our impact related
identified as material.
to these topics in our Annual Report 2022 and on our website.
The Board exercises oversight of strategic, operational and
financial matters, including the nature and extent of major risks.
EXTERNAL VERIFICATION
To ensure the quality of our report and the information (both
The Board and the CEO have delegated responsibility to the
quantitative and qualitative) provided, it is reviewed and verified
various business areas and functions, ensuring that operational
internally. To ensure high data quality and to enhance the
responsibility is an integral part for all management teams and
credibility of our sustainability reporting, it has been assured by
units and departments. We have implemented Group policies and
our independent auditor, PwC. Our GRI Index provides further
targets aligned with our pillars and 2026 strategy. Both monthly
information about the audit performed, where “A” refers to
key performance indicator (KPI) report, which is used both by
assurance that the disclosures are presented according to
operational management and the Board, and our published
the GRI Standards (2021). “B” refers to assurance that the
quarterly reports, are based on these policies and targets.
quantitative sustainability disclosures, referred to from the GRI
Deviations from targets are followed up and action plans are
Index, are calculated, estimated and reported in accordance with
implemented. We have a whistleblower channel, operated by EY,
the criteria defined in GRI or the GRI index. Reference is made to
available for our employees to report any unwanted behavior and
the auditor’s statement on sustainability reporting.
breaches of our Code of Conduct. We also provide a grievance
mechanism for local communities on our regional websites.
DETERMINING MATERIAL TOPICS
The materiality assessment is fundamental to our holistic and
REPORTING SCOPE AND BOUNDARY
The scope of our sustainability metrics provided in this report
includes the environmental, social, and governance performance
that has been deemed material to Grieg Seafood's operations for
integrated reporting. Together with our stakeholders, we have
the calendar year ended December 31, 2022. The metrics covers
identified our current and future positive and negative impact on
our global operations and includes all wholly-owned subsidiaries.
the environment, economy and people, including human rights.
It does not include any associated companies or joint ventures,
The topics listed under each pillar is identified as important to
as we do not have management control of these companies. As
our organization and our stakeholders, and is covered by group
such, all entities consolidated into the Grieg Seafood Group’s
policies. The highlighted topics represents the list of material
financial statement are included in our sustainability data. As
topics reported in line with the GRI standards. Find a combined
our Shetland operations was sold in December 2021, we have
overview of our pillars, targets and Group policies here.
excluded Shetland from our sustainability data in general to
REVIEWING MATERIAL TOPICS
The annual materiality review process is based on a revision
of existing material topics, in addition to an assessment of the
likely material topics proposed by the new sector standard, GRI
13: Agriculture, aquaculture and fishing sectors 2022. In 2022,
ensure comparable data. Newfoundland started its seawater
production in the middle of 2022, and as such, not all metrics are
available for a full year.
DATA QUALITY
We have implemented internal controls to ensure the accuracy
we completed a detailed impact assessment, where identified
and completeness of the data included in this report. Any
and assessed sustainability topics were reviewed in light of our
limitations or exclusions to our reporting are disclosed
negative and positive impact on the environment, economy and
throughout this report. The quantitative information provided
people. In order to be able to prioritize the impacts for reporting
based on their significance, a materiality assessment impact
rating tool was used, with severity and likelihood as key concepts.
Read more about the stakeholders whose views have informed
the process here. The revision resulted in the list of material
topics represented in bold under our pillars.
in this report, is mainly data we have retrieved from our
production-, logistics-, human resource- and financial systems.
Where data has been measured or estimated, this is indicated
in footnotes. If we use external data, the source is specified. Our
data is reported consistently, unless otherwise indicated. Any
restatement of historical data is disclosed.
PART 04 – GRI REPORTING
139
GRI CONTENT INDEX
The GRI content index refers to where information about each disclosure is presented in our 2022 Annual Report, 2022 Remuneration
Report or company website.
Statement
of use
Grieg Seafood has reported in accordance with the GRI Standards for the period 01.01.2022 to 12.31.2022
GRI 1 used
GRI 1: Foundation 2021
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
Applicable
GRI Sector
Standard
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
GRI 2: GENERAL DISCLOSURES 2021
THE ORGANIZATION AND ITS REPORTING PRACTICES
2-1
2-2
2-3
2-4
2-5
Organizational
details
Entities
included in the
organization’s
sustainability
reporting
Our greenhouse gas emissions are
reported in accordance with the Corporate
Accounting and Reporting Standard,
developed by the Greenhouse Gas Protocol
Initiative, using the operational approach.
Reporting period,
frequency and
contact point
In our integrated sustainability and financial
report, we report annually according to
the GRI Standards. Contact points: Chief
Sustainability Officer: Tor Eirik Homme,
tor.eirik.homme@griegseafood.com. Group
Communication Manager: Kristina Furnes,
kristina.furnes@griegseafood.com,Global
Finance Officer: Renete Kaarvik, renete.
kaarvik@griegseafood.com.
Part 03 - Our financial
results, Note 1 General
information
Part 02 - Our operational
results - GHG reporting
standard;
Part 03 - Our financial
results, Note 1 General
information
Part 03 - Our financial
results, Note 1 General
information
Restatements of
information
Restatement of information has been made
to the climate accounting 2022.
External
assurance
The Chief Sustainability Officer seeks
external assurance of sustainability
reporting according to GRI Standards,
climate accounting and sustainability
KPIs. Our sustainability reporting has been
assured by our independent auditor PwC.
Part 02 - Our operational
results, Our greenhouse
gas accounts
Part 04 - GRI reporting,
Auditor’s sustainability
report
ACTIVITIES AND WORKERS
2-6
Activities,
value chain and
other business
relationships
Feed was our main supply category in 2022,
comprising 39% of our cost. Other relevant
business relationship is our investment
associates
2-7
Employees
We do not have any non-guaranteed hours
employees
Part 01 - Our foundation,
Our value chain;
Part 03 - Our financial
results, Note 7 Investment
in associates
Part 02 - Our operational
results, People: The
workforce at year-end
2022
2-8
Workers who are
not employees
We define workers who are not employees
as contractors. Data reported on
contractors are compiled in headcount,
similarly to our employees
Part 02 - Our operational
results, People: The
workforce at year-end
2022
NO
NO
NO
NO
NO
NO
NO
NO
A
A
A
A
A
A
A
A
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
GOVERNANCE
2-9
2-10
2-11
2-12
2-13
2-14
Governance
structure and
composition
Nomination
and selection
of the highest
governance body
Chair of
the highest
governance body
Role of the
highest
governance body
in overseeing the
management of
impacts
Delegation of
responsibility
for managing
impacts
Role of the
highest
governance body
in sustainability
reporting
2-15
Conflicts of
interest
2-16
2-17
2-18
Communication
of critical
concerns
Collective
knowledge of
the highest
governance body
Evaluation of the
performance
of the highest
governance body
2-19
Remuneration
policies
The remuneration policy does not have
any stated principles on sign-on bonuses,
recruitment incentive payments or
clawbacks
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
Part 03 - Our financial
results, Corporate
governance principles:
8. Board of directors:
composition and
independence;
Webpage - Board of
Directors
Part 03 - Our financial
results, Corporate
governance principles: 7.
Nomination committee
Part 03 - Our financial
results, Corporate
governance principles:
8. Board of directors:
composition and
independence
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance principles:
9. The work of the Board
of directors: Conflict of
interest
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance principles:
9. The work of the Board
of Directors, Annual
assessment
Webpage - Executive
Remuneration policy
Part 03 - Our financial
results, Corporate
governance principles: 12.
Remuneration of executive
personnel
A
A
A
A
A
A
A
A
A
A
A
PART 04 – GRI REPORTING
140
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
MATERIAL TOPICS
DISCLOSURE
RESPONSE
LOCATION
OMISSION
91.3 % voted for the Remuneration report
2021
2-20
2-21
Process to
determine
remuneration
Annual total
compensation
ratio
STRATEGY, POLICIES AND PRACTICES
2-22
Statement on
sustainable
development
strategy
2-23
Policy
commitments
2-24
Embedding policy
commitments
2-25
2-26
2-27
2-28
Processes
to remediate
negative impacts
Mechanisms for
seeking advice
and raising
concerns
Compliance
with laws and
regulations
Membership
associations
STAKEHOLDER ENGAGEMENT
2-29
2-30
Approach to
stakeholder
engagement
Collective
bargaining
agreements
Grieg Seafood do not hold any significant
role in membership associations. However,
we are member of several industry
associations and engage in collaboration
and partnerships with researchers, peers,
companies in our value chain, NGOs and
other relevant actors
Unionized employees for Norway are
disclosed. Labor unions in Canada are
organized differently. Therefore, a group
average is not disclosed.
Part 02 - Our operational
results, People: Unionized
employees (%) at year end
2022
Remuneration Report -
Remuneration of executive
personnel: Fixed pay-
salary;
Governance: Review of the
Remuneration Report
Remuneration Report
-Comparative information
on the remuneration paid
in the last five years
Part 03 - Our financial
results, Board of
Directors report: Main
Achievements, Targets and
achievements
Part 03 - Our financial
results, Corporate
governance: Governance
structure; Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Governance
structure; Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Compliance
Webpage - Partnerships
and collaboration
Part 04 - GRI reporting,
Stakeholder dialogue
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
A
A
A
A
A
A
A
A
A
A
A
GRI 3: MATERIAL TOPICS
3-1
3-2
Process to
determine
material topics
List of material
topics
ANIMAL HEALTH AND WELFARE
3-3
Management of
material topics
Additional
sector
disclosures
Percentage
of production
volume certified
to third-party
animal health
and welfare
standards
We refer to ASC-certification as the
animal health and welfare standard. The
percentage is calculated as total budgeted
production volume from ASC certified
sites divided by total budgeted production
volume from ASC eligible sites. Sites and
production volume not included in the ASC-
certification-% calculation is not eligible for
ASC-certification due to inactive production
or first production cycle not yet completed.
Survival rate
at sea
Main causes for
reduced survival
in seawater
List of the main causes of reduced survival,
with loss stated in number and tonnes of
fish.
Use of antibiotics
Grieg
Seafood
Indicator
009
This Grieg Seafood indicator corresponds
to the GSI indicator "Antibiotic Use"
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in g)
per tonne of fish produced (LWE)".
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
A
A
NO
NO
Part 04 - GRI reporting,
Global reporting initiative
index: Determining
material topics, Reviewing
material topics
Part 1 - Our foundation,
Our 2026 Business
strategy, 4 Sustainability;
Part 04 - GRI reporting,
Global reporting initiative
index: Reviewing material
topics
Webpage - Fish health
and welfare, Cleaner fish
health and welfare;
Webpage - Group policies,
Fish welfare of salmon and
cleaner fish, Fish health of
salmon and cleaner fish;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Our certifications
Part 01 - Our foundation.
Our sustainability
scoreboard
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Main
causes of reduced survival
in seawater
Part 1 - Our foundation,
Our sustainability
scoreboard
NO
13.11.1
A
NO
13.11.2
A, B
NO
13.11.3
A, B
NO
A, B
NO
A, B
PART 04 – GRI REPORTING
141
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
BIODIVERSITY
3-3
Management of
material topics
Operational sites
owned, leased,
managed in,
or adjacent to,
protected areas
and areas of high
biodiversity value
outside protected
areas
Significant
impacts of
activities,
products and
services on
biodiversity
Habitats
protected or
restored
IUCN Red
List species
and national
conservation
list species
with habitats in
areas affected by
operations
Information on
species of aquatic
organisms,
juvenile seeds
stocks and
fishing products
in feed
Number of
escape incidents
and fish escaped
Sea lice levels
304-1
304-2
304-3
304-4
Additional
sector
disclosures
Grieg
Seafood
Indicator
003
Grieg
Seafood
Indicator
004
NO
13.3.1
A
NO
13.3.2
A, B
NO
13.3.3
A
NO
13.3.4
A
NO
13.3.5
A, B
NO
13.3.6
A, B
NO
NO
A, B
A, B
Webpage - Wild salmon,
Wildlife, White fish,
Crustaceans, Impact on
nature; Webpage - Group
policies, Protecting
biodiversity;
Part 01 - Our foundation,
Our sustainability
scoreboard;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg
Seafood Finnmark-,
Grieg Seafood BC-, Grieg
Seafood Newfoundland
- Protecting marine
ecosystems
Webpage - Wild salmon,
Wildlife, White fish,
Crustaceans, Impact on
nature
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Restored
ecosystem under farms;
Protecting marine
ecosystems
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland- Protecting
marine ecosystems
Webpage - Sustainable
marine ingredients;
Part 01 - Our foundation,
Our organization, Our
value chain;
Part 02 - Our operational
results, Sustainable feed
ingredients: Volume of
marine ingredients
Part 1 - Our foundation,
Our sustainability
scoreboard
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Sea lice levels
In each regional chapter we refer to the
IUCN Red List and the relevant national
conservation list online, filtered on the area
where we operate in order to see species
with habitats in these areas sorted by
extinction risk.
This Grieg Seafood indicator corresponds
to the GSI indicator "Fish escapes" which is
defined as "number of fish escape incidents
and number of fish escaped (after net
recapturing)".
This Grieg Seafood indicator corresponds
to the GSI indicator "Sea lice counts" which
is defined as "sea lice according to local
action levels set by the authorities".
Grieg
Seafood
Indicator
005
Environmental
status of our
sites
Grieg
Seafood
Indicator
006
Grieg
Seafood
Indicator
007
Grieg
Seafood
Indicator
008
Hydrogen
peroxide
treatments
Active
substances used
for treatments
Number of dead
birds and marine
mammals
FOOD SAFETY
3-3
Management of
material topics
416-1
416-2
Additional
sector
disclosures
Assessment of
the health and
safety impacts
of product
and service
categories
Incidents of
non-compliance
concerning
the health and
safety impacts
of products and
services
Percentage
of production
volume from
sites certified to
internationally
recognized food
safety standards
Number of
recalls issued
for food safety
reasons and the
total volume of
products recalled
Environmental status of our sites is a
result of benthic monitoring tests under
and around our sites according to local
regulations, as explained under the
presentation of the B-test results and
%-of sites that are restored in the regional
chapters we refer to.
This Grieg Seafood indicator equals the
GSI indicator "Use of hydrogen peroxide",
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in
kg) per tonne of fish produced (LWE)".
This Grieg Seafood indicator corresponds
to the GSI indicator "Sea lice treatments"
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in
gr) per tonne of fish produced (LWE)".
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark - Results of
B-test. Grieg Seafood
BC-, Grieg Seafood
Newfoundland - % of sites
that are restored
Part 1 - Our foundation,
Our sustainability
scoreboard
Part 1 - Our foundation,
Our sustainability
scoreboard
This Grieg Seafood indicator is based on the
GSI indicator "Wildlife interactions" which is
defined as "total number of lethal incidents
by species divided by total number of sites"
except that we report the total number of
lethal incidents per region.
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg
Seafood Finnmark-,
Grieg Seafood BC-, Grieg
Seafood Newfoundland
- Sustainability KPIs
NO
A, B
NO
NO
NO
A, B
A, B
A, B
As all of our products is appropriated
human consumption, the health and safety
impacts are constantly tested as a part of
our certification processes.
We refer to Global G.A.P and B.A.P as
internationally recognized food safety
standards. 100% of production volume in
Norway are Global G.A.P certified. 100%
of our production volume in BC are B.A.P
certified. Our Newfoundland region is under
establishment and is not yet delivering to
market
Webpage - Safe food;
Webpage - Group policies,
Food safety;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Our certifications
NO
13.10.1
A
NO
13.10.2
A
Part 02 - Our operational
results, Sales & market:
Our sales & market
development in 2022
NO
13.10.3
A, B
Part 02 - Our operational
results, Our certifications
NO
13.10.4
A, B
Part 02 - Our operational
results, Sales & market:
Our sales & market
development in 2022
NO
13.10.5
A, B
PART 04 – GRI REPORTING
142
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
EMISSIONS
3-3
Management of
material topics
305-1
Direct (Scope 1)
GHG emissions
Biogenic CO2 emissions (tCO2e) is not
relevant for our operations.
305-2
305-3
305-4
305-5
305-6
305-7
Energy indirect
(Scope 2) GHG
emissions
Other indirect
(Scope 3) GHG
emissions
GHG emissions
intensity
Reduction of GHG
emissions
Emissions of
ozone-depleting
substances (ODS)
Nitrogen oxides
(NOx), sulfur
oxides (SOx), and
other significant
air emissions
The group's market-based Scope 2 GHG
emissions amount to 11 613 tCO2e.
Biogenic CO2 emissions (tCO2e) is not
relevant for our operations.
Grieg Seafood does not have emissions
from ODS.
We do not have any significant air
emissions.
CLIMATE ADAPTATION AND RESILIENCE
3-3
Management of
material topics
No direct cost is taken in 2022 to manage
climate related risks or opportunities
201-2
Financial
implications and
other risks and
opportunities due
to climate change
FOOD SECURITY
3-3
Management of
material topics
Webpage - Reducing
carbon emission;
Webpage - Group polices,
Climate action;
Part 02 - Our operational
results, Climate action:
Climate action plan;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Climate action:
GHG emissions - Scope 1 &
Scope 2 emissions
Part 02 - Our operational
results, Climate action:
GHG emissions - Scope 1 &
Scope 2 emissions
Part 02 - Our operational
results, Climate action,
GHG emissions - Scope 3
Part 02 - Our operational
results, Climate action:
GHG reporting standard
Part 02 - Our operational
results, Climate action:
GHG emissions, GHG
reporting standard
TCFD-report;
Part 02 - Our operational
results: Reducing carbon
emission, Climate action
plan;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 03 - Our financial
results, Note 5 Climate-
related risk
NO
13.1.1
A
NO
13.1.2
A, B
NO
13.1.3
A, B
NO
13.1.4
A, B
NO
13.1.5
A, B
NO
13.1.6
A, B
NO
13.1.7
A, B
NO
13.1.8
A
NO
13.2.1
A
NO
13.2.2
A, B
Our commitment and lessons learned
related to food security and providing
healthy food with lower impact is explained
through our actions taken and targets
described in polices related to sustainable
feed and climate action
Webpage - Blue food in a
transformed food system;
Webpage - Group policies,
Sustainable feed, Climate
action;
Part 04 - GRI reporting,
Stakeholder dialogue
NO
13.9.1
A
NATURAL ECOSYSTEM CONVERSION
3-3
Management of
material topics
SUPPLY CHAIN TRACEABILITY
3-3
Management of
material topics
Additional
sector
disclosures
Level of
traceability
Improvements
projects related
to certification
ANTI-CORRUPTION
3-3
Management of
material topics
205-1
205-2
Operations
assessed for
risks related to
corruption
Communication
and training
about anti-
corruption
policies and
procedures
205-3
Confirmed
incidents of
corruption and
actions taken
Our Code of Conduct program involves
guidelines and procedures for anti-
corruption.
The disclosure requirements is met with
one minor exemption, a large share of our
suppliers in purchase value has signed
the Supplier Code of Conduct. We are
not able to provide the exact number and
percentage, nor break down by region.
We will work to systemize this data going
forward.
Webpage - Zero
deforestation and
conversion;
Webpage - Group polices,
Sustainable feed;
Part 04 - GRI reporting,
Stakeholder dialogue
Webpage - Continuous
improvement in our value
chain; Sustainable feed
ingredients; Sustainable
marine ingredients;
Zero deforestation and
conversion
Webpage- Group polices,
Sustainable feed;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Sustainable feed
ingredients: Traceability
Part 02 - Our operational
results, Sustainable feed
ingredients: Certifications
Webpage - Anti-corruption
policy;
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 03 - Our financial
results, Corporate
Governance: Responsible
business conduct
NO
13.4.1
A
NO
13.23.1
A
NO
12.23.2
NO
13.23.4
NO
13.26.1
A
A
A
NO
13.26.2
A, B
Part 02 - Our operational
results, People: Code of
conduct program
YES,
point c.
13.26.3
A, B
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
NO
13.26.4
A, B
PART 04 – GRI REPORTING
143
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
EMPLOYEE HEALTH AND SAFETY
3-3
Management of
material topics
403-1
403-2
403-3
403-4
403-5
Occupational
health and safety
management
system
Hazard
identification,
risk assessment,
and incident
investigation
Occupational
health services
Worker
participation,
consultation, and
communication
on occupational
health and safety
Worker training
on occupational
health and safety
403-6
Promotion of
worker health
403-7
403-8
Prevention and
mitigation of
occupational
health and
safety impacts
directly linked
by business
relationships
Workers
covered by an
occupational
health and safety
management
system
403-9
Work-related
injuries
Webpage - Health and
safety;
Part 02 - Operational
results, People: Health and
safety, Our results;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, People: Safety
indicators in 2022
NO
13.19.1
A
NO
13.19.2
Part 02 - Our operational
results, People: Safety
indicators in 2022
NO
13.19.3
Part 02 - Our operational
results, People: Safety
indicators in 2022
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Safety
indicators in 2022
NO
13.19.4
NO
13.19.5
NO
13.19.6
NO
13.19.7
NO
13.19.8
A
A
A
A
A
A
A
Part 02 - Our operational
results, People: Safety
indicators in 2022
NO
13.19.9
A, B
Part 02 - Our operational
results, People: Safety
indicators 2022
YES,
point b.
13.19.10
A, B
The disclosure requirements is met with
one minor exemption, workers covered
by this standard (workers who are not
employees but whose work and/or
workplace is controlled by the organization)
are not a material part of Grieg Seafood's
operations. Therefore, this part of the
standard is not relevant.
FORCED OR COMPULSORY LABOR
3-3
Management of
material topics
409-1
Operations and
suppliers at
significant risk
for incidents
of forced or
compulsory labor
CHILD LABOR
3-3
Management of
material topics
408-1
Operations and
suppliers at
significant risk
for incidents of
child labor
RIGHTS OF INDIGENOUS PEOPLE
3-3
Management of
material topics
411-1
Incidents of
violations
involving rights
of indigenous
peoples
Additional
sector
disclosure
Location of
operations
LOCAL COMMUNITIES
3-3
Management of
material topics
We report on our efforts in local
communities in all of the regional chapters.
Webpage - Human rights;
Group policies - Human
rights;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, People: Our
colleagues, Human rights
NO
13.16.1
A
NO
13.16.2
A
NO
13.17.1
A
NO
13.17.2
A
NO
13.14.1
A
NO
13.14.2
A, B
NO
13.14.3
A
NO
13.12.1
A
Webpage - Human rights;
Group policies - Human
rights;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, People: Our
colleagues, Human rights
Webpage - BC, Indigenous
people; Finnmark,
Aquaculture in Sami areas;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Local communities;
Part 03 - Our financial
results, Corporate social
responsibility: Corporate
governance
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Local communities
Part 01 - Our foundation,
Our sustainability
scoreboard;
Sustainable foundation:
Financial impact of
material topics;
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland;
Part 04 - GRI reporting,
Stakeholder dialogue
403-10
Work-related ill
health
We have no incidents of work-related ill
health
Part 02 - Our operational
results, People: Safety
indicators in 2022
NO
13.19.11
A, B
PART 04 – GRI REPORTING
144
DISCLOSURE
RESPONSE
LOCATION
OMISSION
GRI SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
NO
13.12.2
A
NO
13.12.3
A
NO
13.22.1
A
413-1
413-2
Operations with
local community
engagement,
impact
assessments,
and development
programs
Operations with
significant actual
and potential
negative
impacts on local
communities
ECONOMIC INCLUSION
3-3
Management of
material topics
201-1
203-1
Direct economic
value generated
and distributed
Infrastructure
investments
and services
supported
203-2
Significant
indirect economic
impacts
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Local
communities
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities
Part 01 - Our foundation,
Our sustainability
scoreboard;
Sustainable foundation:
Financial impact of
material topics;
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Local
communities;
Part 04 - GRI reporting,
Stakeholder dialogue
Part 2 - Our operational
results, Profitable
operations: Direct
economic value generated
and distributed
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities;
Webpage - UNSDG
Salmon farming has a range of significant
indirect economic impacts that can affect
local and regional economies in terms
of economic activity, such as purchasing
equipment and feed, as well as creating
employment opportunities. We describe
the significance of our indirect economic
impacts in the context of UNSDGs and zero
hunger.
TOPICS IN THE APPLICABLE GRI SECTOR STANDARD
DETERMINED AS NOT MATERIAL
TOPIC
EXPLANATION
GRI 13: AGRICULTURE, AQUACULTURE AND FISHING SECTORS 2022
Soil health
Pesticides use
Soil health is determined as not material as a result of the detailed impact assessment. The scope of impact is limited
to the countries where our feed suppliers source vegetable raw materials. Hence, the overall severity of the impacts is
assessed to be moderate.
Pesticides use is determined as not material as a result of the detailed impact assessment. The severity is assessed
as moderate as the use of pesticide in crop production is regulated and the scope is limited to tier-two suppliers. The
approach to sea lice control is discussed under animal health and welfare, as the use of delousing chemicals is defined
as medicine or disinfectant which is readily dissolvable, and not a pesticide.
Water and effluents
Water and effluents is determined as not material as a result of the detailed impact assessment. Grieg Seafood does
not operate in water scarce areas. The nutrient build-up from fish feces is likely, however the scope is limited to local
impact and restoration of sea beds allows remediation.
Waste
Waste is determined as not material as a result of the detailed impact assessment. In the comparison of impact level to
the other material topics, waste is considered to be significant.
Land and resource rights
Land and resource rights is determined as not material as a result of the detailed impact assessment. The possession
of farming licenses to operate ensures predictability and accountability of land and resource rights.
Non-discrimination and equal
opportunity
Non-discrimination and equal opportunities is determined as not material as a result of the detailed impact
assessment. The severity is high, however the likelihood is limited by human rights regulation.
Freedom of association and
collective bargaining
Freedom of association and collective bargaining is determined as not material as a result of the detailed impacts
assessment. Grieg Seafood ensures freedom of association and collective bargaining for its employees. The likelihood
is limited through regulations from ILO.
Employment practices
Employment practices is determined as not material as a result of the detailed impact assessment. The scope is limited
to our direct operations, whereas the severity is determined to moderate.
NO
13.22.2
A, B
Living income and living wage
Living income and living wage is determined as not material as a result of the detailed impact assessment, as the scale
is low and impacts concerning living income and wage is possible to counteract. Thus, the severity is determined to be
moderate.
NO
13.22.3
A, B
NO
13.22.4
A
Public policy
Public policy is determined as not material as a result of the detailed impact assessment, as the scale is low and the
impact is easy to counteract, the severity is determined to be moderate.
Anti-competitive behavior
Anti-competitive behavior is determined as not material, as a result of the detailed impact assessment, as there is no
documented indication of impact on the economy, environment and people.
PART 04 – GRI REPORTING
145
STAKEHOLDER DIALOGUE
Our value ‘Open’ guides our stakeholder dialogue. We aim to be open and
honest about our performance and challenges, make it easy for our stakeholders
to hold us accountable, and share how we work to improve.
Engaging and collaborating with our stakeholders helps us
understand and address our most material sustainability issues.
Our stakeholders span our five pillars and gaining their trust
is integral for our license to operate. Stakeholders are chosen
according to the impact they have on our business, and the
economic, environmental and social impact we have on the
stakeholders. Stakeholder dialogue is also key to be able to grasp
emerging opportunities for our business, and to understand and
mitigate risk.
We engage actively and continuously with our stakeholders,
and always maintain an open door for stakeholder feedback.
Stakeholders frequently contact us to discuss issues. We also
engage stakeholders proactively on matters where we believe
we can have significant impact, such as with feed suppliers. The
continuous dialogue with our stakeholders provides the basis
for the materiality matrix. Ultimately, our stakeholders help us
deliver healthy food and make positive impacts throughout our
value chain.
STAKEHOLDER
NATIONAL
AUTHORITIES /
REGULATORS
MATERIAL TOPIC
HOW WE ENGAGE ACTIONS
EXAMPLE
• All sustainability
Meetings, site
We have an open dialogue with
We are
challenges
visits, and
all official authorities where
committed to be a
• In particular
correspondence.
we operate, and collaborate on
constructive partner
balanced
regulation and
long-term local
value creation
all aspects. We welcome their
for the government
efforts to enforce regulations and
and Indigenous
engage in constructive dialogue.
communities in the
2025 transition process
in BC, and to find a path
forward that works for
all stakeholders.
LOCAL
AUTHORITIES /
COMMUNITIES
• All sustainability
Dialogue with
We recognize public concern
Through our website,
challenges
special interest
for the oceans, invite visitors
and in particular the
• In particular local
groups locally,
to our farms and participate
regional websites,
value creation,
open meetings,
in the public debate about
we aim to improve
indigenous
site visits, and
salmon farming. We try to find
transparency and
relationships
dialogue through
solutions to accommodate other
dialogue with our local
and co-existence
with other local
interests
mainstream
media and digital
channels.
communities.
local interests. In areas with
Indigenous populations, consent,
dialogue and relations with
Indigenous representatives are
especially important.
PART 04 – GRI REPORTING
STAKEHOLDER
STAKEHOLDER
MATERIAL TOPIC
HOW WE ENGAGE ACTIONS
EXAMPLE
• All sustainability
Correspondence,
We collaborate with and
Together with WWF
ORGANIZATIONS/ NON-
challenges
meetings, media
seek advice from actors
US, we have initiated
GOVERNMENTAL
ORGANIZATIONS
SHAREHOLDERS,
INVESTORS, ASSET
MANAGERS AND
ANALYSTS
and social media.
that constructively seek to
a project to evaluate
improve the industry. That
environmental, social
includes several environmental
and governance
organizations and research
risks in salmon feed
institutions.
ingredients in a holistic
manner.
• All sustainability
Quarterly
We make every effort to maintain
In 2022, we hosted a
challenges, and
presentations,
a continuous, open, and honest
Capital Market Day
how we utilize
roadshows,
dialogue about our strategy and
in Rogaland, which
opportunities and
meetings, frequent
results. We have also started
included visits to our
mitigate risk
dialogue, capital
engaging with relevant indexes
sites.
• In particular
market days, and
where we are rated, to make
We have actively
long-term
engagement with
sure they give Grieg Seafood an
engaged with ESG
performance and
relevant indexes.
accurate score.
returns, both
on financial and
sustainability-
related
parameters
raters, such as
Sustainalytics and
Coller FAIRR, to
understand their
assessments and also
to provide feedback
on how we work with
various topics.
CUSTOMERS
• All sustainability
Customer surveys,
We have frequent dialogues with
We have engaged in
challenges
frequent dialogue,
our customers. We supply them
Cerrado Manifesto
• In particular
audits, visits and
with material for dialogue with
Signatories of Support,
safe and healthy
trade fairs.
their own stakeholders, and
which aims to halt
food, including
certifications and
transparency
participate in initiatives where
deforestation in the
our customers are present.
Brazilian Cerrado.
Many of our customers
are also signatories to
the initiative.
EMPLOYEES
• Keeping our
Continuous dialogue
Frequent dialogue on all levels
We use Workplace on
employees safe
and meetings,
and initiatives for training,
a daily basis to inform
• Fish health
intranet, and
education, and development.
employees about
employee surveys.
We also engage in dialogue
developments, build
with trade unions and employee
culture, and cultivate
representatives. Focus on
engagement.
developing a culture in line with
our values.
and welfare,
and all other
sustainability
challenges
• Significant
topics include
embracing
diversity and
creating attractive
jobs
SUPPLIERS
• Responsible
Dialogue, meetings,
Ensuring that they comply with
We have quarterly
business conduct
• Local value
creation
conferences and
correspondence.
our Code of Conduct, and that we
have a common understanding
of ethics, sustainability and the
delivery of goods and services.
This particularly pertains to
our suppliers of fish feed and
staffing.
meetings with our feed
suppliers, where we
discuss issues and
developments.
146
PART 04 – GRI REPORTING
147
HISTORY AND FUTURE
5000 B.C.E
First fish farms reported in China.
1850
The first wild salmon hatcheries
1969
The brothers Ove and Sivert Grøntvedt
1970s
Commercial salmon farming of chinook,
1973
The Norwegian parliament adopts
1990s
Fish vaccines are introduced. As a
established in Norwegian salmon rivers.
transfer the first salmon smolt to sea
coho and sockeye is established around
a licensing system for the country's
result, the salmon farming industry
pens at the island Hitra in Norway.
Sechelt in British Columbia.
growing aquaculture industry, with the
has significantly reduced its use of
aim of strengthening local communities
antibiotics.
along the coast. Since then, salmon
farms have contributed jobs and
revenues to small, coastal communities.
2007
Grieg Seafood is listed on Oslo Stock
2006
Grieg Seafood merges with the Volden
2001
Grieg Seafood acquires Scandic Marine
2000s
The Norwegian government launches
1998
Grieg Seafood Rogaland is established.
Exchange.
Group and establishes Grieg Seafood
Ltd. in British Columbia and establishes
the “green license” scheme, with stricter
Grieg Seafood acquires Hjaltland Ltd in
Finnmark.
Grieg Seafood BC.
Shetland, the beginning of Grieg Seafood
Shetland.
Grieg Seafood starts implementing RAS
technology in Rogaland.
environmental standards. Grieg Seafood
currently has eight green licenses.
1992
Grieg Seafood Salmon (trading company)
and Bioinvest (salmon farming investor)
are established.
2010
Together with Bremnes Seashore, Grieg
2013
The Norwegian government and the
2020
Grieg Seafood acquires Grieg
2021
Grieg Seafood disposes Grieg Seafood
2026
Grieg Seafood aims to have achieved
2030
Grieg Seafood aims to have reduced total
Seafood establishes the sales company
industry develop the standard NS9415
Newfoundland in Eastern Canada, and
Shetland to focus operations on the
global growth with a harvest of 120 000-
carbon emissions by 35%.
Ocean Quality.
to ensure fish farms are technically
establishes Grieg Seafood Newfoundland.
regions with most growth potential,
135 000, be cost competitive and have a
safe and prevent the escape of farmed
Grieg Seafood establishes its own sales
Norway and Canada.
salmon.
and market organization, and the Ocean
Quality partnership is dissolved.
stronger market position, confirming our
position as a global protein producer.
Industry
Grieg Seafood
The future
2050
Grieg Seafood aims to have reduced total
carbon emissions by 100%.
PART 04 – GRI REPORTING
148
ANNUAL REPORT
2022