Annual Report
2024
2
Harvested volume 2024
Expected harvested volume 2025
28 813
30 000
12 000
10 000
32 000
25 717
12 499
10 674
OUR VISION
ROOTED IN NATURE
FARMING THE OCEAN
FOR A BETTER FUTURE
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.
OUR VALUES
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 and completed
the harvest of the first generation of fish in 2024.
GRIEG SEAFOOD SALES
We have our own integrated sales organization, with sales presence in
Norway, Canada and the USA.
For more information on the Group structure, refer to Note 1 in the Group Accounts.
3
01
02
03
Content
OUR VALUE CHAIN
5
HISTORY AND FUTURE
6
BOARD OF DIRECTORS
7
CEO LETTER
8
KEY FINANCIAL FIGURES
10
GRIEG SEAFOOD GROUP ACCOUNTS
83
GRIEG SEAFOOD ASA ACCOUNTS
121
AUDITOR’S REPORT
136
AUDITOR’S SUSTAINABILITY REPORT
140
ALTERNATIVE PERFORMANCE MEASURES
142
OUR
FOUNDATION
STATEMENTS
FROM THE BOARD
FINANCIAL
STATEMENTS
BOARD OF DIRECTORS’ REPORT
12
Key Takeaways 2024
13
FINANCIAL REVIEW AND SEGMENTS
14
Segment Review
15
Financial Performance Group Financial Review
20
Financial Performance Grieg Seafood ASA
24
Risk Management
25
Events After the Reporting Date
27
Outlook
28
Going Concern
28
SUSTAINABILITY STATEMENT
29
GENERAL INFORMATION
30
ENVIRONMENTAL INFORMATION
40
EU Taxonomy
40
Climate Change
46
Biodiversity and Ecosystems
54
SOCIAL INFORMATION
59
Own Workforce
59
Affected Communities
63
Consumers and End-users
65
GOVERNANCE INFORMATION
68
Business Conduct
68
STATEMENT FROM THE BOARD OF DIRECTORS AND THE CEO
71
CORPORATE GOVERNANCE
72
01
OUR VALUE CHAIN
5
HISTORY AND FUTURE
6
BOARD OF DIRECTORS
7
CEO LETTER
8
KEY FINANCIAL FIGURES
10
5
Our value chain
INPUT
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.
BREEDING
1 300 000
HEALTHY MEALS
PER DAY*
*Based on our harvest volume in 2024, with 68% edible
yield from live weight, and servings of 125 grams.
OUR
BRANDS
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.
FRESHWATER
FARMING
POST-SMOLT
SEAWATER
FARMING
HARVESTING
SALES AND
DISTRIBUTION
VALUE ADDED
PROCESSING
RETAIL / HORECA
In Rogaland, we have
a broodstock operation
where we breed for
specific traits, such as
strong health or resistance
to sea lice and diseases.
In all of our regions, we
have land based RAS
freshwater facilities, where
the eggs are hatched and
the salmon spend at least
the first year.
As part of our post-smolt
strategy, we keep the
salmon longer on land
in all regions to shorten
the time in seawater,
reducing risk of biological
challenges. In Rogaland,
the average size of the
smolt transferred to the
sea in 2014 was 90 grams,
and we aim to increase
this to 1 kg in 2025.
The salmon live and grow
in the sea until they reach a
harvestable size of 4–5 kg.
We have harvesting
plants in Rogaland and
Finnmark. We use a
harvesting vessel in BC
and perform primary
processing at a local plant.
In Newfoundland, we have
established cooperation
with a local plant.
We have our own
global sales and market
organization with local
offices in the countries
we farm salmon and
in selected markets, to
support growth and the
downstream strategy.
We have a small share of VAP
in Norway and BC. We will
form closer partnerships in
the market and establish our
own VAP facility in Norway,
and increase the value of our
salmon through VAP.
Our salmon is found in retail
stores or on the menu at
restaurants or hotels. Currently,
we have the HoReCa brand
Skuna Bay in Canada.
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
6
Grieg Seafood
Future
Industry
History and future
5000 B.C.E
First fish farms reported in China.
1850
The first wild salmon hatcheries
established in Norwegian salmon rivers.
1969
The brothers Ove and Sivert Grøntvedt
transfer the first salmon smolt to sea
pens at the island Hitra in Norway.
1970S
Commercial salmon farming of chinook,
coho and sockeye is established around
Sechelt in British Columbia.
1973
The Norwegian parliament adopts
a licensing system for the country's
growing aquaculture industry, with the
aim of strengthening local communities
along the coast. Since then, salmon
farms have contributed jobs and
revenues to small, coastal communities.
1990S
Fish vaccines are introduced. As a
result, the salmon farming industry
has significantly reduced its use of
antibiotics.
1992
Grieg Seafood Salmon (trading company)
and Bioinvest (salmon farming investor)
are established.
1998
Grieg Seafood Rogaland is established.
2000S
The Norwegian government launches
the “green license” scheme, with stricter
environmental standards. Grieg Seafood
currently has eight green licenses.
2001
Grieg Seafood acquires Scandic Marine
Ltd. in British Columbia and establishes
Grieg Seafood BC.
2006
Grieg Seafood merges with the Volden
Group and establishes Grieg Seafood
Finnmark.
2007
Grieg Seafood is listed on Oslo Stock
Exchange.
Grieg Seafood acquires Hjaltland Ltd in
Shetland, the beginning of Grieg Seafood
Shetland.
Grieg Seafood starts implementing RAS
technology in Rogaland.
2010
Together with Bremnes Seashore, Grieg
Seafood establishes the sales company
Ocean Quality
2013
The Norwegian government and the
industry develop the standard NS9415
to ensure fish farms are technically
safe and prevent the escape of farmed
salmon.
2020
Grieg Seafood acquires Grieg
Newfoundland in Eastern Canada, and
establishes Grieg Seafood Newfoundland.
Grieg Seafood establishes its own sales
and market organization, and the Ocean
Quality partnership is dissolved.
2021
Grieg Seafood disposes Grieg Seafood
Shetland to focus operations on the
regions with most growth potential,
Norway and Canada.
2023
Grieg Seafood harvest its first salmon ever
in Newfoundland.
2024
Successful stocking of first smolt at Årdal
Aqua post-smolt facility.
2030
Grieg Seafood aims to reduce our
greenhouse gas emissions with 42%.
s
s
s
2050
Grieg Seafood aims to reduce our
greenhouse gas emissions with 100%.
7
Our executive management team is responsible for
overseeing the Group’s day-to-day operations and
working to realize our vision, values and targets.
Nina Willumsen Grieg was appointed interim CEO 30
March 2025.
Magnus Johannesen, who previously served as interim
CFO, has transitioned into the role of permanent CFO as
of 5 March 2025
Find the presentation of our management team here.
Board of
Directors
Born
1986
Education
Finance and strategy from University of Edinburgh and Hong
Kong University.
Background
Hafeld Grieg has 12 years of business development and finance
experience and worked 7 years in the banking sector before
joining Grieg Maritime in 2017 as Head of Finance. He has for
the last years been Head of Grieg Edge, a subsidiary of Grieg
Maritime Group, established in 2020. Grieg Edge’s strategy
is to identify and develop new business opportunities related
to energy transition and the green shift within the maritime
segment.
Born
1956
Education
Master of Science in Marine Microbiology from the University of
Bergen.
Background
Solberg has extensive experience from executive positions in the
salmon farming industry in Norway and internationally. She was
previously the CEO of Mowi Norway, the COO Farming of Mowi
ASA and COO Farming of Mowi´s Canadian, Irish, Scottich and
Faroese business.
Born
1957
Education
MSc in Marine systems Design from the Norwegian University
of Science and Technology (NTNU). MBA in Finance and
Management from INSEAD.
Background
Per Grieg has been actively involved in Grieg Seafood ASA since
its foundation in 1992 and has played a major role in building
up the Grieg Seafood Group. He has established numerous
companies within different business sectors and has held several
directorships.
Born
1981
Education
Cand. Jur. From the University of Bergen.
Background
Remøy has 19 years of experience as a laywer, including five
years as a corporate lawyer in the seafood companies Hordafor
and Pelagia.
NICOLAI HAFELD GRIEG
BOARD MEMBER
MARIT SOLBERG
BOARD MEMBER
PER GRIEG
BOARD MEMBER
(Chair of the Board until 30 of March 2025)
SILJE REMØY
BOARD MEMBER
Our Board of Directors will provide
leadership to the company and deliver
shareholder value over the long term.
PAAL ESPEN JOHNSEN
CHAIR OF THE BOARD
(from 30 of March 2025)
Born
1971
Education
Finance from the Norwegian School of Economics (NHH).
Background
Johnsen has an extensive background in investment activities
and portfolio management in industrial companies, including
businesses in the seafood and maritime sector. In addition, he
has considerable experience from various boards, both as chair
and member. He has previously held the position as Investment
Director at Akastor, which is a part of the Aker Group.
As of 30 March 2025, Chair of the Board is Paal Espen Johnsen.
Board member: Per Grieg.
Find the presentation of our Board of Directors here.
GROUP EXECUTIVE
MANAGEMENT TEAM
8
Grieg Seafood enters 2025 with renewed momentum and a sharpened
strategic focus. While 2024 was marked by operational and biological
challenges across several regions, it was also a year in which we laid
the foundation for long-term resilience and profitable growth. I am
proud of the way the organization is responding to the uncertainty in
North America, our financial transition, and organizational changes. I am
confident that the transformation agenda now underway is the right path
forward.
CEO LETTER
Dear Shareholder
OPERATIONAL AND BIOLOGICAL DEVELOPMENTS
Our original harvest estimate for 2024 was 85,000 tonnes. Due to reduced growth at sea—primarily driven by biological challenges in
Finnmark—actual harvest volumes ended a 77 704 tonnes GWT. Despite these setbacks, market demand for farmed salmon remained
robust in both the retail and HoReCa sectors, supported by a continued consumer focus on healthy and sustainable protein.
FIGURE 1.1
HARVEST VOLUME (1 000 TONNES GWT)
The average NQSALMON price reached NOK 91.9 per kg in 2024. Our average realized price was NOK 79.1 per kg, slightly below the
NOK 82.7 per kg achieved in 2023, reflecting lower average harvest weights. A higher share of superior quality fish helped support price
realization. However, farming cost increased significantly to NOK 77.2 per kg, up from NOK 70.2 per kg the previous year, largely due to
biomass write-downs and elevated costs in Canada and Finnmark.
As a result, the Group delivered an operational EBIT of NOK 8 million in 2024, or NOK 0.1 per kg, down from NOK 780 million and NOK
10.8 per kg in 2023. These results are clearly not satisfactory and highlight the need for decisive corrective measures. many of which are
already in progress. We will turn every stone to get back on track.
FIGURE 1.2
ROCE AND OPERATIONAL EBIT/KG
9
FIGURE 1.4
SUPERIOR SHARE OF SALMON
In Finnmark, we faced a combination of biological setbacks
including the remaining fish affected by Spironucleus
salmonicida (Spiro) from 2022, winter ulcers, and a significant
jellyfish incident in Q4. These challenges negatively impacted
survival and harvest weights. However, underlying operational
performance remains sound, and corrective measures are
underway. A 3,000-tonne post-smolt facility is under construction,
with the first smolt expected to enter in Q1 2026. Our target
outcome is to achieve similar positive results from post-smolt as
seen in Rogaland.
In Newfoundland, we recorded strong survival rates (94% in
seawater) and good biological results in both freshwater and
seawater operations. However, elevated farming cost persisted
and will be a key focus area going forward.
In British Columbia, seawater production showed signs of
improvement. Nevertheless, lingering effects from prior
environmental issues and political uncertainty continue to
affect long-term planning. While we continue our constructive
dialogue with the Canadian Government, we maintain a cautious
strategic approach in this region until further regulatory clarity
is achieved.
TRANSFORMATION AND STRATEGIC FOCUS
To address the challenges and secure a more robust financial
foundation, we have launched a comprehensive transformation
program. Our priority is to reallocate resources from Canada to
our Norwegian assets. Despite reducing investments in Canada,
we are not jeopardizing our future opportunities in Canada.
We have also intensified efforts to improve cost efficiency. The
cost improvement program launched in 2023 is progressing, with
NOK 150 million in targeted fixed cost reductions to be realized
by the end of 2025. Additional savings are being explored through
2027. We are implementing the Rogaland operating model across
regions, increasing treatment capacity, and advancing our post-
smolt strategy to build biological resilience.
Financially, we took decisive action to improve our balance sheet.
The successful issuance of a NOK 2 billion hybrid bond in early
2025 significantly enhanced our financial flexibility. We are also
exploring asset-light models such as sale and leasebacks to
support our strategic objectives.
We are repositioning our value chain to capture more value
from the market. Most of our sales are currently fresh, head-on
gutted salmon, but with the construction of a new 12,000-tonnes
processing facility at Oslo Airport, we will expand our value-
added capabilities from Q4 2025, delivering products directly to
global markets.
PRIORITIES GOING FORWARD
We begin 2025 with improved biology in Norway, high biomass
levels, and a clear set of priorities. Our top operational focus is
restoring profitability in Finnmark, aiming to mirror the strong
Rogaland
Finnmark
British Columbia
Newfoundland
Target (93%)
2020
2021
2022
2023
2024
40%
60%
80%
100%
REGIONAL HIGHLIGHTS
Grieg Seafood operates in four farming regions: Rogaland and Finnmark in Norway, as well as Newfoundland and British Columbia in
Canada. Each region faced unique challenges and opportunities in 2024, reflecting both local biological conditions and broader strategic
developments. While Rogaland delivered consistently strong results, other regions experienced varying degrees of operational pressure,
prompting targeted improvement initiatives.
FIGURE 1.3
SURVIVAL RATE AT SEA
Rogaland
Finnmark
British Columbia
Newfoundland
Target (95%)
2020
2021
2022
2023
2024
80%
90%
100%
Survival rate calculated as a rolling twelve month survival rate.
performance of Rogaland. As we continue to execute on our
transformation agenda, we plan to intensify and dedicate our focus
to financially driven initiatives. These are as follows:
• Advance our post-smolt strategy across the Group, with
Rogaland continuing to refine and capture the proven benefits,
and Finnmark completing its new post-smolt facility.
• Stabilize our biological performance in Norway by reallocating
capital expenditure from Canada, allowing for proactive
maintenance and increased capacity to manage biological
challenges, and ensure a more efficient operation at lower
production cost.
• Maintain strategic position in Canada, while adapting to a
transitional period with increased political uncertainty, During
the transition, cost control will be a priority, ensuring operations
can continue at lower volumes without accumulating significant
financial losses.
• Expand our value-added processing (VAP) capacity by 12,000
tonnes in Q4 2025 to capture greater value from harvested
volumes. Once completed, leverage downstream capacity to
boost overall profitability and diversity market exposure through
closer customer partnerships and improved product mix.
We begin 2025 with improved biology in Norway, high biomass
levels, and a clear set of priorities. Our top operational focus is
restoring profitability in our Group, while ensuring sustainable
fish farming remains at the forefront of everything we do. As we
continue our efforts to improve, we also acknowledge that we
have not delivered value creation in line with our shareholders'
expectations. My leadership team and I remain fully committed
to delivering long-term value for our shareholders, employees,
customers, and the local communities in which we operate.
As part of this commitment, we are currently assessing strategic
opportunities in our Canadian operations. While we believe in the
long-term potential of British Columbia, we recognize that it may
be challenging to unlock this potential on our own.
Therefore, we are still actively exploring the possibility of entering
into a partnership in Canada—one that can strengthen our position
in the region, improve biological performance, and provide the
scale and local insight needed to succeed in a complex and
evolving regulatory environment. All possibilities remain on the
table as we evaluate how best to secure the future of our Canadian
business and create value for all stakeholders and communities,
in which we keep all possibilities open and assess the available
options for our company.
Sincerely
NINA WILLUMSEN GRIEG
CEO (Interim)
In Rogaland, we continued to deliver strong biological and financial performance. The post-smolt strategy, where we keep the fish longer
on land and reduce their time in the ocean farms, has been pioneered in this region since 2019 and has truly started to deliver noticeable,
positive impacts on our operations. Despite challenging biological conditions in the area, we see significant improvements in survival, fish
health, welfare, feed efficiency, and sea lice control. For Grieg Seafood, post-smolt is a cornerstone of our efforts to increase profitability
but also to reduce our impact on wild salmon and the environment. With these results, Rogaland has become the operational benchmark
for the rest of the company.
10
PART 01
Continental Europe
2024
UK
North America
Asia
Key financial figures
FIGURE 1.5
SALES REVENUE BY MARKET
KEY FIGURES NOK MILLION
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Operational
Harvested volume (tonnes GWT)
77 704
72 015
84 697
75 601
71 142
71 700
74 623
62 598
64 727
65 398
Revenues (NOK/kg) 1
79.1
82.7
75.8
55.7
52.8
56.9
58.3
58.3
59.1
42.2
Farming cost (NOK/kg) 1
77.2
70.2
52.7
47.2
47.0
40.5
43.1
43.4
39.7
37.7
Other costs incl. ownership and
headquarters costs/kg (NOK) 1
1.8
1.7
2.5
2.7
2.5
1.3
0.5
0.4
1.4
3.8
Operational EBIT/kg 1
0.1
10.8
20.5
5.9
3.3
15.0
14.7
14.5
18.0
0.7
Financial
Sales revenues
7 381
7 020
7 164
4 599
4 384
4 756
7 500
7 017
6 545
4 609
Operational EBITDA 1
659
1 334
2 191
818
602
1 384
1 334
1 106
1 342
261
Operational EBIT 1
8
780
1 739
442
233
1 077
1 099
904
1 168
48
EBIT (Earnings before interests
and taxes)
-2 380
981
1 498
941
-57
822
1 355
813
1 683
81
Profit/loss for the year
-2 451
560
1 154
604
-316
599
997
601
1 222
4
Cash flow from operations
451
-302
1 584
601
412
1 193
820
709
953
367
Capital structure
NIBD according to covenants
requirement 1
5 641
3 873
1 739
1 869
3 679
1 939
1 690
1 284
906
1 569
NIBD/Harvest (NOK) 1,2
72.6
53.8
20.5
24.7
42.4
23.4
22.6
20.5
14.0
24.0
Equity %
31%
49%
50%
52%
41%
46%
48%
47%
47%
38%
Gross investments 1,3
1 386
880
679
570
979
667
733
553
255
322
Profitability
Return on Capital Employed
(ROCE) 1
-0.4%
7%
23%
6%
3%
19%
22%
24%
33%
1%
Dividend per share (NOK)
1.75
4.5
3.0
0.0
0.0
4.0
4.0
4.0
1.5
0.5
Earnings per share (NOK)
-21.9
5.0
10.3
10.7
-4.8
5.6
8.8
5.0
10.7
-0.1
Total market value (Oslo Stock
Exchange)
7 039
7 748
8 917
9 427
9 643
15 666
11 423
8 068
9 123
3 462
2023
Ex. Shetland. The Shetland assets was sold 15 December 2021. Figures up to and including 2018 include Shetland, while 2019 and after 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).
02
STATEMENTS
FROM THE BOARD
BOARD OF DIRECTORS’ REPORT
12
Highlights
13
FINANCIAL REVIEW AND SEGMENTS
14
Segment Review
15
Financial Performance Group Financial Review
20
Financial Performance Grieg Seafood ASA
24
Risk Management
25
Events after the Reporting Date
27
Outlook
28
Going Concern
28
SUSTAINABILITY STATEMENT
29
GENERAL INFORMATION
30
ENVIRONMENTAL INFORMATION
40
EU Taxonomy
40
Climate Change
46
Biodiversity and Ecosystems
54
SOCIAL INFORMATION
59
Own Workforce
59
Affected Communities
63
Consumers and End-users
65
GOVERNANCE INFORMATION
68
Business Conduct
68
STATEMENT FROM THE BOARD OF DIRECTORS AND THE CEO
71
CORPORATE GOVERNANCE
72
PART 01
PART 02
Board of directors report
Corporate Governance
PART 03
12
Board of Directors’ Report
02
STATEMENTS
FROM THE BOARD
13
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
• Harvested volume of 28 813 tonnes
• Reported an operational EBIT/kg of NOK 21.4
• Transferred smolt to sea with an average weight of 670 grams
• Achieved strong biological performance throughout the year, with record-high
production volume in sea
• Eliminated the use of antibiotics by ensuring robust fish health through vaccine
administration and other preventive measures
• Reduced sea lice treatments in Rogaland, with 57% of harvested fish groups requiring
no treatments due to post-smolt strategies and other preventive measures
• Advanced the development of the Årdal Aqua post-smolt facility according to plan,
successfully stocking the first smolt during the autumn
• Harvested volume of 25 717 tonnes
• Reported operational EBIT/kg of NOK -0.7, negatively impacted by biological challenges
through the year
• Rebuilt biomass at the end of the year despite biological challenges related to winter
ulcers, string jellyfish, and the historical impact of Spironucleus Salmonicida (Spiro).
Biomass entering 2025 free of Spiro
• Progressed with the construction of a 3 000-tonnes capacity post-smolt facility in
Adamselv, Finnmark, according to plan
• Harvested volume of 12 499 tonnes
• Reported operational EBIT/kg of NOK -22.1 due to an event of historically low dissolved
oxygen level and algae bloom leading to significant biomass loss
• Impacted seawater production from environmental challenges, with a survival rate of
85%
• Continued political uncertainty and we maintained a cautious approach to new
investments, in line with new allocation strategy, while also continuing to respect the
UNDRIP1
• Harvested volume of 10 674 tonnes
• Completed the harvest of the first generation of fish successfully. Commenced harvest
of the second generation this autumn
• Achieved superior share of 97% and average harvest weight at 4.4 kg
• Continued good seawater production with 12-months survival rate of 94%, driven by
favorable biological conditions and high-quality smolt
• Further CAPEX investments have been put on hold following a revised investment plan,
with total CAPEX reduced by NOK 550–650 million due to the successful demobilization
of the current construction site after the balance sheet date.
Key takeaways 2024
• Harvested a total volume of 77 704 tonnes
• Reported an operational EBIT of NOK 8 million, with Operational EBIT/kg of NOK 0.1
• Experienced strong salmon market conditions throughout the year, with peak prices
observed during the second quarter
• Faced negative financial impacts from biological events in Finnmark and British
Columbia (BC), as well as high cost levels in Newfoundland (NFL)
• Progressed as planned with the secondary processing facility at Oslo Airport
Gardermoen, which will have a capacity of at least 12 000 tonnes
FIGURE 2.1
HARVEST VOLUME 2024
Rogaland
Finnmark
British Columbia
Newfoundland
FIGURE 2.2
SALES REVENUE 2024
FIGURE 2.3
OPERATIONAL EBIT 2024
• Extended the improvement program by two years to 2027, continuing efforts to identify
initiatives upon prioritization and repositioning and cost improvements
• Recognized a NOK -1.80 billion impairment on Canadian assets due to political
uncertainties and challenging operating conditions, and reassessing the investment
timeline
• Initiated measures to increase financial flexibility, including a sale-leaseback of smolt/
post-smolt facility in Finnmark and a NOK 2.0 billion hybrid bond accompanied by
reallocation of capital expenditures to our Norwegian assets
GROUP
37%
33%
16%
14%
40%
30%
16%
15%
616
-18
-276
-173
1 UN Declaration on the Rights of Indigenous People
14
BOARD OF DIRECTORS REPORT
Financial review
and segments
Segment Review
15
Financial Performance Group Financial Review
20
Financial Performance Grieg Seafood ASA
24
Risk Management
25
Events after the Reporting Date
27
Outlook
28
Going Concern
28
15
Segment review
A summary for the farming regions
in Rogaland, Finnmark, British
Columbia, Newfoundland and the sales
organization follows below.
ROGALAND
KPI SCOREBOARD
OPERATIONAL AND FINANCIAL REVIEW
Grieg Seafood Rogaland harvested a volume of 28 813 tonnes
in 2024, an increase of 11% compared to the 25 980 tonnes
harvested in 2023. Sales revenues amounted to NOK 2 432
million, compared to NOK 2 305 million in 2023. The increase
was mainly driven by the higher harvest volume. In 2024, the
price achievement came to NOK 84.4 per kg, down NOK 4.3 per
kg from NOK 88.7 per kg in 2023. Higher average harvest weights
were offset by somewhat back-end loaded harvest during the
year when the market prices were lower in addition to quality
downgrades. The share of superior quality fish decreased slightly
from 79% in 2023 to 77% in 2024.
The freshwater production has been good in 2024. During the
year, more than seven million smolt were transferred to the sea.
The average weight of the smolt increased from 460 grams in
2023 to 670 grams in 2024, on track to reach the target of 1 100
grams in 2026.
Overall, the underlying seawater production was good during the
year, despite some challenges with winter ulcers during the first
half of the year and gill disease during the second half of 2024.
The total seawater production for the year was all-time high for
Rogaland, and the standing biomass in sea was at maximum
allowable biomass (MAB) limit at year-end. The 12-month rolling
survival rate for 2024 decreased slightly from 94% in 2023 to
92% in 2024.
The farming cost ended at NOK 63.0 per kg in 2024, up NOK 2.6
per kg from NOK 60.4 per kg in 2023. The increase is mainly
attributable to inflation in feed prices and other input factors,
which the industry experienced in 2022. The cost of some of the
generation harvested in H1 2023 was not fully impacted by the
general cost increase, as was the case for the generations
FIGURE 2.4
ROGALAND OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
The colors indicate
● Within target
● On track to meet our target
● Unsatisfactory result
KPI
TARGET
STATUS
2024
2023
2022
2021
2020
Harvest volume (tonnes GWT)
28 000 tonnes in 2024
●
28 813
25 980
28 387
26 670
23 043
Sales revenue per kg (NOK)
Contract share of 20-50%
●
84.4
88.7
74.8
53.7
54.8
Farming cost per kg (NOK)
Cost leader
●
63.0
60.4
48.2
44.6
42.1
Operational EBIT per kg (NOK)
n/a
21.4
28.3
26.6
9.1
12.7
ASC certification (# of sites)
All sites (9 eligible) by 2024
●
7
6
5
0
0
Survival rate at sea
95% by 2024
●
92%
94%
92%
92%
90%
Cost of reduced survival (NOK million)
n/a
69.6
56.6
33.6
30.8
63.7
Escape incidents (# of fish)
Zero escape incidents
●
0
0
0
0
0
High quality product
93%
●
77%
79%
84%
81%
85%
n/a: Data not available or applicable.
harvested in H1 2024. Cost recognized as abnormal mortality
in the income statement, increased to NOK 69.6 million in 2024
(NOK 2.4 per kg), compared to NOK 56.6 million in 2023 (NOK 2.2
per kg).
Operational EBIT for the year ended at NOK 616 million,
compared to NOK 736 million in 2023. This corresponds to NOK
21.4 per kg in 2024, down NOK 6.9 per kg from NOK 28.3 per kg
in 2023.
16
OPERATIONAL AND FINANCIAL REVIEW
Grieg Seafood Finnmark harvested a volume of 25 717 tonnes
in 2024, an increase of 2% compared to 25 170 tonnes in 2023.
Sales revenues amounted to NOK 1 844 million, a decrease of 5%
compared to NOK 1 947 million in 2023. The price achievement
came to NOK 71.7 per kg in 2024, down NOK 5.6 per kg from
NOK 77.3 per kg in 2023. The price achieved was depressed by
lower average harvest weights and timing of harvest with the
largest share of the volume coming in the second half of the year,
when the market prices were lower. The superior quality share
improved significantly from 58% in 2023 to 78% in 2024.
Freshwater production, both at Finnmark’s own facility at
Adamselv and at the jointly-owned facility, Nordnorsk Smolt
AS, has been good this year. A total of 11.4 million smolt, with
an average weight of 230 grams, were transferred to the sea in
2024. Unfortunately, there was an escape incident this year of
approximately 1 000 smolt during delivery from the freshwater
facility to a well boat. Measures were immediately taken to stop
the outflow.
Seawater production has been challenging this year. Biological
performance in seawater during the first half of the year was
affected by historical exposure of Spironucleus Salmonicida
(Spiro), string jellyfish and low seawater temperatures. This
led to early harvesting and culling of fish with sickness signs to
protect fish welfare. The fish that were exposed to Spiro were
completely harvested in July. During the autumn, there was
another string jellyfish attack at one of the sites, Vinnalandet,
which led to advanced harvesting and thus lower average
harvest weights. As a result of the biological challenges, the
12-month survival rate decreased from 92% in 2023 to 90% in
2024. Nevertheless, the fish performed well at the other sites,
and Finnmark was able to re-build the biomass at the end of the
year.
The farming cost ended at NOK 72.4 per kg in 2024, up NOK 8.0
per kg from NOK 64.4 per kg in 2023. The increase is mainly
caused by reduced survival, culling and early harvest of fish
impacted by Spiro and string jellyfish. The cost of reduced
survival (cost recognized as abnormal mortality in the income
statement) amounted to NOK 144.4 million in 2024 (NOK 5.6 per
kg) and NOK 95.5 million in 2023 (NOK 3.8 per kg). The string
jellyfish event at Vinnalandet caused an increase in cost of NOK
75 million.
As a result of the biological challenges, the operational EBIT for
2024 ended at NOK -18 million, compared to NOK 327 million in
2023, which corresponds to NOK -0.7 per kg in 2024, down NOK
13.7 per kg from NOK 13.0 per kg in 2023.
FINNMARK
KPI SCOREBOARD
The colors indicate
● Within target
● On track to meet our target
● Unsatisfactory result
KPI
TARGET
STATUS
2024
2023
2022
2021
2020
Harvest volume (tonnes GWT)
34 000 tonnes in 2024
●
25 717
25 170
36 024
34 484
26 919
Sales revenue per kg (NOK)
Contract share of 20-50%
●
71.7
77.3
73.0
50.9
48.8
Farming cost per kg (NOK)
Cost leader
●
72.4
64.4
47.3
43.7
44.1
Operational EBIT per kg (NOK)
n/a
-0.7
13.0
25.7
7.3
4.7
ASC certification (# of sites)
All sites (17 eligible) by 2024
●
15
17
17
18
15
Survival rate at sea
95% by 2024
●
90%
92%
91%
95%
92%
Cost of reduced survival (NOK million)
n/a
144.4
95.5
100.6
53.1
37.5
Escape incidents (# of fish)
Zero escape incidents
●
1 (1 000)
0
1 (2 878)
1 (4 352)
0
High quality product
93%
●
78%
58%
86%
82%
69%
n/a: Data not available or applicable.
FIGURE 2.5
FINNMARK OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
17
OPERATIONAL AND FINANCIAL REVIEW
Grieg Seafood British Columbia (BC) harvested 12 499 tonnes in
2024, 29% lower than in 2023 (17 682 tonnes).
Sales revenues for the year amounted to NOK 964 million, a
decrease of 34% compared to NOK 1 468 million in 2023. The price
achievement came to NOK 77.2 per kg in 2024, down NOK 5.8 per
kg compared to NOK 83.0 per kg in 2023. The price achievement
was negatively impacted advanced harvesting in the summer with
consequently low average harvest weights during a period with
lower market prices. The share of superior quality fish fell from
90% in 2023 to 88% in 2024.
The freshwater production has overall been good this year,
however, there was one incident in the beginning of the year
related to human error causing reduced survival of the fish. A
cleaning agent was mistaken for a water conditioner and added
to the water supply for alevins, resulting in elevated mortality.
Measures were immediately taken to mitigate the risk of having
such errors happening again. This included changes to the storing
and labelling of all medicines, disinfectants and cleaning agents
as well as updating of SOPs and additional training for everyone
involved in administering these agents. Seawater production
was adversely affected by environmental conditions in particular
during the spring/summer of 2024. In addition to seasonal
challenges related to sea lice, there were events of low dissolved
oxygen and following algae blooms which led to increased
mortality rates, reduced growth and advanced harvesting. As a
consequence, the 12-month survival rate dropped from 91% in
2023 to 85% in 2024.
Due to the environmental challenges, the farming cost
increased from CAD 11.2 per kg (NOK 88.4) in 2023 to CAD 12.7
per kg (NOK 99.3) in 2024. The cost of reduced survival (cost
recognized as abnormal mortality in the income statement) was
NOK 162.9 million in 2024 (NOK 13.0 or CAD 1.4 per kg), compared
to NOK 142.7 million in 2023 (NOK 8.1 or CAD 0.7 per kg).
Operational EBIT for the year ended at NOK -276 million,
compared to NOK -94 million in 2023, which corresponds to NOK
-22.1 per kg in 2024, down NOK 16.8 per kg from NOK -5.3 per kg
in 2023.
The political uncertainty has continued for BC. The Government
of Canada announced 19 June 2024 a policy statement
concerning a ban on open net-pen salmon aquaculture in
British Columbia coastal waters by 30 June 2029. The draft plan
outlines a framework for developing the final transition plan,
which is expected in 2025. Due to the prolonged uncertainty in
British Columbia, with highly uncertain and lacking regulatory
conditions, there has been an impairment of the seawater
licenses and goodwill. For more information see Note 15 to the
Group Accounts. Also due to the uncertainty, all investments in
BC have been put on hold and focus is now on optimizing our
current operations in the region.
BRITISH COLUMBIA
KPI SCOREBOARD
The colors indicate
● Within target
● On track to meet our target
● Unsatisfactory result
KPI
TARGET
STATUS
2024
2023
2022
2021
2020
Harvest volume (tonnes GWT)
15 000 tonnes in 2024
●
12 499
17 682
20 286
14 448
21 181
Sales revenue per kg (NOK)
n/a
77.2
83.0
82.1
70.8
55.7
Farming cost per kg (CAD)
Cost leader
●
12.7
11.2
9.1
8.8
8.0
Operational EBIT per kg (NOK)
n/a
-22.1
-5.3
13.3
10.4
-0.4
ASC certification (# of sites)
All sites (10 eligible) by 2024
●
10
11
7
12
11
Survival rate at sea
95% by 2024
●
85%
91%
91%
92%
90%
Cost of reduced survival (NOK million)
n/a
162.9
142.7
90.7
17.6
66.1
Escape incidents (# of fish)
Zero escape incidents
●
0
2 (301)
0
2 (4)
0
High quality product
93%
●
88%
90%
85%
87%
86%
n/a: Data not available or applicable.
FIGURE 2.6
BRITISH COLUMBIA OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
18
OPERATIONAL AND FINANCIAL REVIEW
Grieg Seafood Newfoundland is a greenfield project acquired
in 2020. In 2024, harvesting of the first generation of fish was
successfully completed and harvesting of the second generation
of fish commenced. The harvest volume came to 10 674 tonnes,
compared to 3 184 tonnes in 2023. Sales revenues amounted
to NOK 909.6 million up from NOK 235.7 million in 2023. The
realized price increased from NOK 74.0 per kg in 2023 to NOK
85.2 per kg in 2024. The price achievement was supported by a
favorable superior share of 97% (stable from 2023) in addition to
timing of harvest when the market prices were higher.
Production at the freshwater facility has been good during
the year. Seawater production has been strong this year. The
fish have performed well biologically, with a 12-month rolling
survival rate at 94% and good growth, and the company has not
experienced any significant sea lice or other biological issues
during the year.
The farming cost came to CAD 12.9 per kg (NOK 101.4) in 2024,
an increase from CAD 12.1 per kg (NOK 95.9) in 2023. The
farming cost is high due to the low harvest volume and to still
being in a development phase with low capacity utilization. The
increase compared to 2023 is related to change in accounting
principles when the capacity utilization increased. In 2023, a
portion of the production cost was expensed directly to the
income statement, which totaled NOK 76.4 million (NOK 24.0
per kg), due to the low capacity utilization. However, in 2024,
everything has been accounted for as inventory (biological assets
excluding fair value adjustment) in the balance sheet, and hence
bringing the farming cost up as we harvest from that generation.
Operational EBIT for 2024 totaled NOK -173.2 million, compared
to NOK -146.1 million in 2023.
The process in Newfoundland targeting partners and buyers
has not yet yielded acceptable terms. This has caused Grieg
Seafood to revisit it’s operations in Newfoundland, including a
review of the timeline for investments. Meanwhile, Grieg Seafood
recognizes that the Newfoundland operations has not reached it's
full potential. Therefore, the outlook has been revisited and an
impairment of intangible and tangible assets has been conducted
in this regard. See Note 15 to the Group Accounts for more
information.
NEWFOUNDLAND
KPI SCOREBOARD
The colors indicate
● Within target
● On track to meet our target
● Unsatisfactory result
KPI
TARGET
STATUS
2024
2023
Harvest volume (tonnes GWT)
8 000 tonnes in 2024
●
10 674
3 184
Sales revenue per kg (NOK)
n/a
85.2
74.0
Farming cost per kg (CAD)
Cost leader
●
12.9
12.1
Operational EBIT (NOK million)
n/a
-173.2
-146.1
Survival rate at sea
95% by 2024
●
94%
95%
Cost of reduced survival (NOK million)
n/a
8.8
0.0
Escape incidents (# of fish)
Zero escape incidents
●
0
0
High quality product
93%
●
97%
97%
n/a: Data not available or not applicable. Seawater production started mid-year 2022 in Newfoundland.
19
SALES & MARKET
Grieg Seafood is on a track to leverage on its fully-integrated global sales organization. Doing so, we aim to optimize harvest planning
and market timing through close collaboration between farming and sales. The downstream strategy is based on partnerships, value-
added processing and brand positioning. While sales currently consist mainly of fresh, head-on gutted salmon, the Group has a long-term
ambition of increasing the Value Added Processing (VAP) share to 25% of the harvested volume. To this end, the Group aims to establish
processing partners close to key markets and customers in the EU and the USA.
Today, the Group has the successful Skuna Bay brand in the USA, and aims to develop other B2B brands going forward. In 2024, the
Group commenced construction of a secondary processing facility at Oslo airport Gardermoen. The facility will have a capacity of 12
000 tonnes HOG in phase 1, and allows for better utilization of the production grade fish from Rogaland and Finnmark. 5% of the global
harvested volume in 2024 was sold as VAP.
The Group’s main product, fresh whole gutted Atlantic salmon, is traded largely as a commodity, and the prices achieved largely reflect a
general market price. The prices achieved will, to some extent, deviate from the spot market price, based on quality, sales contracts and
the ability to place the salmon effectively in the market. Price achievement is measured relative to the relevant observed market price or
reference price. There are several reference prices for salmon. In Norway, Fish Pool provides historic price information, as well as future
salmon derivative prices FCA Oslo as part of the Sitagri Salmon Index (SISALMONI)2. In the USA, Urner Barry provides reference 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.
The Group’s primary market is Continental Europe. Sales to Continental Europe comprised 52% of sales revenue in 2024 (or 57% of
volume sold), down from 53% of the sales revenue in 2023 (56% of volume sold). North America was the second largest market, and
totaled 31% of sales revenue in 2024 (or 30% of volume sold), stable from 2023 (31% of volume sold). Sales to Asia accounted for 12%
of the sales revenue in 2024 (or 9% of the volume), compared to 11% in 2023 (7% 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.
2 SISALMONI replaced Nasdaq Salmon Index (NQSALMON) from 13 August 2024
20
FINANCIAL PERFORMANCE
SALES REVENUE AND HARVESTED VOLUME
The Group harvested 77 704 tonnes GWT in 2024, up 8%
compared to 72 015 in 2023. The Norwegian regions contributed
70% (71%) of the harvested volume, while the Canadian regions
contributed 30% (29%).
The Group's price realization for the year was NOK 79.1 per
kg (NOK 82.7 per kg) on aggregate for its farming regions. By
comparison, the average NQSALMON NOK/kg price for 2024
was NOK 91.9 per kg (92.3). The Group’s price realization was
positively affected by an increase in the share of superior quality
fish, dampened by lower average harvest weights compared to
2023.
The sensitivity analysis illustrates the impact changes in sales
revenue/kg have on Operational EBIT/kg.
PROFIT AND LOSS
FIGURE 2.7
SENSITIVITY ANALYSIS SALES REVENUE/KG
Sales revenue/kg
opEBIT/kg impact
Actual for 2024
79.1
+/- 2.5 %
81.1 / 77.2
2.0
+/- 5.0 %
83.1 / 75.2
4.0
+/- 7.5 %
85.1 / 73.2
5.9
+/- 10.0 %
87.1 / 71.2
7.9
+/- 12.5 %
89.0 / 69.3
9.9
The calculation is performed bottom-up, based on separate calculations for the four farming
regions, by analyzing incremental percentage changes in sales revenue, all other factors
remaining unchanged.
Total sales revenue for the year came to NOK 7 381 million,
up NOK 362 million from NOK 7 020 million in 2023. The sales
revenue from the Group’s farming regions totaled NOK 6 150
million in 2024, up NOK 194 million from NOK 5 956 million in
2023 (see Note 5 to the Group Accounts). The increase in sales
revenue is due to the higher harvest volume in 2024 compared
to 2023.
The difference between the total sales revenue for the Group of
NOK 7 381 million and sales revenue from farming regions of
NOK 6 150 million is attributable to the Elim/Other effect (see
Note 5 to the Group Accounts), which includes the gross uplift on
sales revenue for the Group generated by the sales organization.
Group financial
review
The consolidated financial statements have been prepared in
accordance with IFRS® Accounting Standards as adopted by the EU.
21
FIGURE 2.9
FARMING COST
In recent years, the industry has faced challenges with respect
to sea lice. This has caused an increase in costs directly related
to treatments and increased investments in equipment and
technologies. This development has had a noticeable impact
on the relative allocation of cost factors, as well as the total
cost level in the industry. In terms of cost per kg, however, the
loss of harvested volumes has had a larger impact than the
direct cost increases. Although the industry experienced feed
prices increase by up to 40% from 2021 to 2022, this was not
fully captured in the expensed farming cost until 2023 and the
beginning of 2024 when the fish impacted by the price increase
was harvested.
Feed cost
Admin
Deprecitation
Smolt
Salaries
Other
The sensitivity analysis illustrates the impact changes in
farming cost/kg have on the Operational EBIT/kg, expressed as
percentage changes in the 2024 financials.
FIGURE 2.8
SENSITIVITY ANALYSIS FARMING COST/KG
Farming cost/kg
opEBIT/kg impact
Actual for 2024
77.2
-/+ 2.5 %
75.3 / 79.2
1.6
-/+ 5.0 %
73.4 / 81.1
3.2
-/+ 7.5 %
71.4 / 83.0
4.8
-/+ 10.0 %
69.6 / 85.0
6.3
-/+ 12.5 %
67.6 / 86.9
7.9
The calculation is performed bottom-up, based on separate calculations for the farming
regions, by analyzing incremental percentage changes in farming cost, all other factors
remaining unchanged.
In addition to purchase prices for inputs to production,
profitability is also influenced by how quickly the salmon grow
and how efficiently feed is converted into weight gain (feed
conversion rate). Water temperatures, biological conditions,
farming practices and fish survival are key drivers for salmon
growth. Higher seawater temperatures increase growth, but
also increase biological risks in the form of diseases, sea lice
and algae blooms. This may in turn result in lost feeding days,
lower growth and reduced survival. Through the introduction of
improved sensor technology, use of advanced imaging analysis
and other technologies, the Group is continuously improving the
ability to make informed decisions about feeding and protective
measures.
Strong and healthy fish, combined with high feed quality and
good feeding practices are key to achieving a low production cost.
Farming performance is measured through the economic feed
conversion rate, or eFCR, and relative growth indices (achieved
growth compared to own and feed supplier expectations). Feed
accounted for 38% of the total cost per kg harvested fish in
2024, relatively stable from 39% in 2023. At the same time, the
economic feed conversion rate (eFCR) increased from 1.39 in
2023 to 1.44 in 2024. The eFCR measures how much fish feed is
used to produce one kilogram of live salmon (net of mortality).
The main difference between eFCR and bFCR (biological feed
conversion rate) is that bFCR does not adjust the production
figure for mortality.
Salmon growth, survival rates and the economic feed conversion
rate (eFCR), are strongly linked to fish health, disease and sea
lice. Treatments, fasting and reduced appetite negatively impact
growth, reduce our harvested volumes and increase the cost
per kg of harvested fish. In short, an efficient feed conversion is
crucial to being cost competitive.
FIGURE 2.10
ECONOMIC FEED CONVERSION RATE
Rogaland
Finnmark
British Columbia
Newfoundland
Grieg Seafood Group
2020
2021
2022
2023
2024
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
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 the farming cost. In addition, costs related to harvesting and
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 5 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
to harvest weight, is about three years, whereas the production
cycle after smoltification is about 12-24 months. Working capital
requirement is, per generation, generally progressive throughout
the production cycle. Due to the long production cycle for Atlantic
salmon with a harvest weight of about 4-5 kg, the expensed
farming cost through the income statement at the point of
harvest reflects all costs for all past periods (if not previously
expensed as abnormal mortality).
Production cost capitalized to inventory (biological assets
excluding fair value adjustment) comprises feed as well as
health, treatment and fish welfare-related expenses. In addition,
the production cost capitalized to inventory includes salary,
depreciation of fixed assets and administration costs that
are allocated to production. Feed cost comprises the largest
individual part of the production cost. For further information
about biological assets, see Note 19 of the Group Accounts.
22
The Group's farming cost for 2024 ended at NOK 77.2 per kg (NOK
70.2 per kg). The rise in farming cost is driven by multiple factors
such as write-down of biomass and higher cost of fish harvested
related to environmental challenges in BC with a farming cost
ending at CAD 12.7 per kg (CAD 11.2 per kg) for the year. In
addition, a larger share of the harvest volume was coming from
Newfoundland, which has a high cost level in general as it is
still being in a development phase with low capacity utilization.
Lastly, the farming cost was impacted by an elevated cost in
Finnmark, driven by adverse effects of Spironucleus salmonicida
(Spiro), winter ulcers and string jelly fish attacks. In total, the
Norwegian farming regions contributed to 61% (63%) of the
farming cost, with an increase of NOK 5.1 per kg in cost, from
NOK 62.3 per kg in 2023 to NOK 67.5 per kg in 2024. Canada had
a farming cost of CAD 12.8 per kg, up CAD 1.5 per kg compared to
CAD 11.3 per kg in 2023.
The salmon farming industry might be volatile, due to both
biological and market conditions. The following sensitivity
analysis illustrates the impact changes in eFCR has on the
Operational EBIT/kg, calculated as percentage changes on the
2024 financials.
SHARE OF PROFIT FROM ASSOCIATES
The share of profit from associated companies included in
Operational EBIT ended at NOK 1 million for 2024 (NOK -7 million),
see Note 5 and Note 16 to the Group Accounts
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 3 525 million, up NOK 777 million compared to NOK
2 748 million in 2023. Salaries and personnel expenses ended
the year at NOK 792 million, an increase of NOK 67 million from
NOK 726 million in 2023. See the Group Accounts Note 5 for more
information. Other operating expenses ended at NOK 2 458 million,
up NOK 222 million compared to NOK 2 236 million in 2023.
EBIT
FIGURE 2.12
KEY FIGURES
Harvest volume GWT tonnes
Operational EBIT/kg (NOK)
Operational EBIT (NOK million)
2024
2023
2024
2023
2024
2023
Rogaland
28 813
25 980
21.4
28.3
616
736
Finnmark
25 717
25 170
-0.7
13.0
-18
327
British Columbia
12 499
17 682
-22.1
-5.3
-276
-94
Newfoundland
10 674
3 184
-16.2
-45.9
-173
-146
Elim/Other
—
—
n/a
n/a
-140
-43
Grieg Seafood Group
77 704
72 015
0.1
10.8
8
780
Source: Group Accounts, Note 5
FIGURE 2.13
GRIEG SEAFOOD GROUP OPERATIONAL EBIT/KG
YEAR-OVER-YEAR
Source: Group Accounts, Note 5.
PRODUCTION FEE AND FAIR VALUE ADJUSTMENT OF
BIOLOGICAL ASSETS
The production fee, calculated at NOK 0.935 per kg (gutted
weight) for volume harvested by the Norwegian regions, came
to NOK 50 million in 2024 (NOK 35 million), while the fair value
adjustment of biological assets impacted the Group negatively
by NOK 534 million in 2024, down NOK 752 million from NOK
218 million in 2023. The change in fair value estimate is due to
a combination of changes in standing biomass in sea per region
and the timing of scheduled harvesting profile of that fish as at
31 December 2024 compared to 31 December 2023, in addition
to assumptions made concerning the market price of Atlantic
salmon and the price discount of non-superior graded fish. For
further information, refer to Note 19 of the Group Accounts.
OPERATIONAL EBIT
Operational EBIT (see Note 5 to the Group Accounts and
Alternative Performance Measures for more information) in
2024 ended at NOK 8 million (NOK 780 million), equivalent to
NOK 0.1 per kg (NOK 10.8 per kg). The decrease was mainly
driven by loss in three of the four farming regions. BC related to
environmental challenges, NFL was driven by a high cost level,
and lastly, Finnmark was impacted by Spiro, string jellyfish and
winter ulcers.
WRITE-DOWN OF NON-CURRENT TANGIBLE AND
INTANGIBLE ASSETS
The operations in Canada have not reached their full potential.
The changes in operational, industrial, economic and regulatory
conditions have caused the Group to cautiously revisit it’s future
plans. This includes changes in both assumptions and estimates.
Grieg Seafood has thus recognized impairment losses totaling
NOK 1 803 million related to the Canadian assets, of which NOK
1 066 million relates to goodwill and licenses, and the remaining
NOK 737 million relates to property, plant, and equipment. incl.
rights-of-use-assets. See Note 15 to the Group Accounts for
further information regarding impairment losses.
EBIT
EBIT (Earnings before interests and taxes) ended at negative
NOK 2 380 million in 2024, down NOK 3 361 million from NOK 981
million in 2023.
NET FINANCIAL ITEMS, TAXES AND NET PROFIT
FOR THE YEAR
NET FINANCIAL ITEMS
Net financial items came to NOK -300 million in 2024, down
TAXES AND NET PROFIT FOR THE YEAR
Profit before tax in 2024 totaled NOK -2 680 million, a decrease of
NOK 3 524 million from NOK 844 million in 2023. The tax income
for 2024 came to NOK 229 million, compared to a tax expense of
NOK 284 million in 2023. Net profit in 2024 came to negative NOK
2 451 million, down NOK 3 010 million from NOK 560 million in
2023.
FINANCIAL POSITION
As at 31 December 2024, the book value of the Group's assets
totaled NOK 12 955 million, down NOK -709 million from NOK
13 663 million as at 31 December 2023. The reduction is mainly
due to impairment of Canadian assets, totalling NOK 1 803
million. See Note 15 to the Group Accounts for more information.
The Group's goodwill, licenses, other intangible assets, and
property plant and equipment including right-of-use assets
totaled NOK 6 582 million as at 31 December 2024, down NOK
744 million from NOK 7 326 million as at 31 December 2023.
Measured relative to total assets, these assets contributed 51%
of the balance sheet as at 31 December 2024, compared to 54%
as at 31 December 2023. Positive contribution to the value of the
assets was mainly the Group’s gross investment of NOK 1 386
million as well as NOK depreciating versus CAD, increasing the
book value of the Group’s Canadian assets when translating to
NOK. However, due to the impairment of NOK 1 803 million, the
Group ended with a net reduction in it’s assets.
Biological assets measured at cost totaled NOK 4 202 million
as at 31 December 2024, up NOK 466 million from NOK 3 736
million as at 31 December 2023. A significant contribution to
the increase in biological assets are driven by Finnmark, which
managed to re-build biomass close to MAB limit (maximum
allowable biomass) at the end of 2024. Measured relative to total
assets, the accumulated capitalized cost of inventory contributed
32% of the balance sheet as at 31 December 2024, compared to
27% as at 31 December 2023. Grieg Seafood’s biological assets
are primarily fish at sea, which represented 94% of the book
value of biological assets, excluding fair value adjustment, as at
31 December 2024. The comparable figure for 31 December 2023
was 93%. By weight, biological assets totaled 61 947 tonnes at
year-end 2024, up 3 766 tonnes from 58 181 tonnes at year-end
2023. Biological assets stocked at sea accounted for 99% of this
amount at year-end 2024 (99% as at year-end 2023). The average
live weight of the fish on aggregate (on land and at sea) was 1.2
kg as at 31 December 2024, compared to 1.0 kg at year-end 2023.
The cash balance at the end of the year was NOK 203 million,
down NOK 13 million from NOK 216 million as at 31 December
FIGURE 2.11
SENSITIVITY ANALYSIS ECONOMIC FEED CONVERSION
RATIO (EFCR)
eFCR
opEBIT/kg impact
Actual for 2024
1.44
-/+ 2.5 %
1.41 / 1.48
0.7
-/+ 5.0 %
1.37 / 1.52
1.5
-/+ 7.5 %
1.34 / 1.55
2.2
-/+ 10.0 %
1.30 / 1.59
2.9
-/+ 12.5 %
1.26 / 1.62
3.7
The calculation is performed bottom-up based on separate calculations for the farming
regions, by analyzing incremental percentage changes in eFCR, all other factors remaining
unchanged.
The difference between Operational EBIT and the EBIT line
item presented in the income statement for 2024 relates to the
non-operational share of profit from associates, the production
fee on the volume harvested in Norway, fair value adjustment
of the Group’s biological assets, impairment of tangible and
intangible non-current assets, litigation and legal claims,
and decommissioning costs, as explained in the following. A
reconciliation between Operational EBIT and the EBIT presented
in the income statement is provided in Note 5 of the Group
Accounts.
NOK 163 million from NOK -137 million in 2023. Compared to
2023, the debt service cost in 2024 was higher, in terms of both
higher interest rates and margins. Average market interest rates
increased compared to 2023, which impact our borrowing costs
through the floating rate component of the term-loans’ and bond
loan’s interest rate.
23
2023. In addition, The undrawn revolving credit facility and
overdraft facility was NOK 820 million as at 31 December 2024,
compared to NOK 887 million as at 31 December 2023. Current
assets (excluding fair value adjustment of biological assets)
over current liabilities measured 1.6 as at 31 December 2024,
compared to 3.1 as at 31 December 2023. Total equity as at
31 December 2024 came to NOK 4 052 million, down NOK 2 617
million from NOK 6 669 million as at 31 December 2023. The
equity ratio as at 31 December 2024 was 31% compared to 49%
as at 31 December 2023. The drop in equity ratio is primarily due
to the recognized impairment of Canadian assets.
The Group entered into a NOK 750 million bridge term loan
facility with the syndicated lenders during the end of 2024,
bringing the total syndicated financial arrangement to an
aggregate of NOK 4 950 million in senior secured sustainability-
linked loans and credit facilities. The debt structure comprises
term loans in NOK, incl. the bridge loan, in the aggregate of
NOK 2 000 million (outstanding NOK 1 823 million), an EUR 75
million term loan (outstanding EUR 59 million), two revolving
credit facilities at a total of NOK 2 000 million (NOK 620 million
undrawn) and a NOK 200 million overdraft facility (NOK
200 million undrawn). As at 31 December 2024, net interest-
bearing liabilities (NIBD) excluding the effect of IFRS 16 totaled
NOK 5 641 million, up NOK 1 768 million from NOK 3 873 million
as at 31 December 2023. The increase in NIBD excluding the
effect of IFRS 16 is due to negative contribution to the Group EBIT
in three of the four farming regions in addition to a high level
of gross investments following the post-smolt initiatives. Cash
outflow related to dividend payout amounted to NOK 196 million.
In total, NIBD excluding the effect of IFRS 16 divided by the last
twelve months’ actual harvest volume (tonnes GWT) equalled
NOK 72.6 per kg as at year-end 2024, compared to NOK 53.8 at
year-end 2023. In comparison, at year-end 2023, NIBD including
the effects of IFRS 16 was NOK 6 559 million, up NOK 1 680
million from NOK 4 879 million as at 31 December 2023, which
equals 51% of the Group’s assets as at 31 December 2024,
compared to 36% as at 31 December 2023. Besides the causes
of changes in NIBD excluding IFRS 16 as mentioned above, the
changes in NIBD incl. the effects of IFRS 16 is driven by lease
additions incl. the effect of changes in lease agreements not
included in gross investments, and cash outflow related to the
operational leases.
FIGURE 2.14
EQUITY RATIO AND NIBD/HARVEST
NIBD/harvest calculated as NIBD according to covenant divided by last 12 months harvested volume. Equity ratio incl. Hybrid bond and NIBD/Harvest incl. Hybrid bond show the effect the
Hybrid bond would have on the figures per 31 December 2024.
Equity ratio
NIBD/Harvest
2020
2021
2022
2023
2024
20%
30%
40%
50%
60%
10
20
30
40
50
60
70
80
CASH FLOW
The net cash flow from operating activities for 2024 totaled NOK 451 million (NOK -302 million). The increase in net cash from operational
activities is primarily due to lower amount of taxes paid and change in working capital.
For 2024, the net cash flow from investing activities totaled NOK -1 229 million (NOK 256 million), of which investments in non-current
tangible and intangible assets totaled NOK 1 210 million (NOK 792 million). The majority of the investments is related to the post-smolt
expansion in Finnmark and Newfoundland, in addition to regular maintenance. Furthermore, net investments of NOK 30 million (NOK 23
million) have been made in associated companies, of which NOK 41.5 million relates to a share issue in Årdal Aqua AS and negative NOK
7.6 million relates to exit of investment in NextSeafood AS.
The net cash flow from financing activities for 2024 was NOK 761 million (NOK -387 million). In 2024, a dividend of NOK 196 million (NOK
1.75 per share) was paid. Towards the end of the year, the Group entered into a bridge term loan of NOK 750 million. See Note 27 for
more information.
The net change in cash and cash equivalents for the 2024 was NOK -18 million (NOK -434 million), and as at 31 December 2024, the Group
had a cash balance of NOK 203 million, down NOK 13 million from NOK 216 million as at 31 December 2023.
FIGURE 2.15
GROSS INVESTMENTS, HARVEST VOLUME TONNES GWT AND GROSS INVESTMENTS/KG
NOK/kg
2020
2021
2022
2023
2024
0
4
8
12
16
20
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. The increased level in 2020 is largely attributable
to capital investments in the freshwater facility in Newfoundland. The freshwater facility in Newfoundland was completed in 2021. The increase from 2022 is mainly related to investments in post-
smolt initiatives in Adamselv and Newfoundland, as well as ramp-up of sea site equipment i Newfoundland.
The Group was in compliance with its financial covenants as
at 31 December 2024. As at 31 December 2024, the equity
ratio according to covenant was 34%, compared to 53% as
at 31 December 2023. As at 31 December 2024, 78% of gross
interest-bearing liabilities (see Note 27 to the Group Accounts)
were green or sustainability-linked, compared to 70% as at
31 December 2023.
Grieg Seafood has an ambition to create shareholder value and
deliver competitive returns relative to comparable investment
alternatives. The Board of Directors maintains that, as an
average over time, dividends should correspond to 30-40% of
the Group’s net profit after tax, adjusted for the effect of the
fair value of biological assets (limited to 50% by Green Bond
agreement). In 2024, the General Meeting of Grieg Seafood
ASA approved a dividend distribution of NOK 1.75 (NOK 4.5
per share), which was according to the Board of Directors
proposal as communicated in the Annual Report of 2023. Due
to insufficient liquidity and a weak equity position, the company
is not in a position to distribute dividends for the financial year
2024.
24
Grieg Seafood
ASA
PROFIT FOR THE YEAR
The parent company’s financial statements have been prepared
in accordance with Norwegian accounting principles (NGAAP).
Grieg Seafood ASA is the holding company of the farming and
sales operations in the Grieg Seafood Group. In addition, the
company is the employer of Group management as well as
centralized functions of the Group.
Total operating income for the year ended at NOK 271 million in
2024, up NOK 13 million compared to NOK 258 million in 2023.
Salaries and personnel expenses totaled NOK 95 million in 2024,
up NOK 10 million compared to NOK 85 million in 2023. The
increase in salary costs are primarily due to higher payments
related to the synthetic option scheme and other personnel costs.
In 2024, the company recorded a short-term sick leave rate of
0.72% and a long-term sick leave rate of 3.31%, resulting in a
total annual sick leave rate 4.02%.
Depreciation and amortization of non-current tangible and
intangible assets ended at NOK 3 million, stable from 2023.
Other operating expenses totaled NOK 2 359 million in 2024, a
significant increase of NOK 2 274 million from NOK 85 million
in 2023. The main cause of the increase is impairment of the
Canadian subsidiaries’ assets, totaling NOK 2 220 million. See the
note 2 to Grieg Accounts and Group Accounts Note 15 for more
information.
The parent company recorded a loss of NOK 2 185 million in
2024, compared to an operating profit of NOK 85 million in 2023.
Net financial items ended at NOK 1 875 million in 2024, down
NOK 1 750 million from NOK 126 million in 2023. The reduction
is primarily related to write-down of shares in Grieg Seafood
Newfoundland AS, totaling NOK 981 million. Interest expenses
from external financing increased in 2024. This is due to a higher
total amount of interest-bearing liabilities, in addition to a higher
level of market rates, which increase our borrowing costs
through the floating rate component of the term-loans’ and bond
loan’s interest rate.
Loss before tax for Grieg Seafood ASA totaled NOK 310 million
in 2024, down NOK 521 million from a profit of NOK 211 million
in 2023. Estimated taxation ended with a tax income of NOK 279
million in 2024, compared to a tax expense of NOK 52 million in
2023, bringing net loss for the year to NOK -31 million, down NOK
190 million from a profit of NOK 159 million in 2023.
BALANCE SHEET
Total assets amounted to NOK 10 436 million at the end of 2024,
up NOK 2 853 million from NOK 7 584 million the year before. The
change in the book value of assets is primarily related to write-
down of shares in Grieg Seafood Newfoundland AS, partly offset
by increased deferred tax assets and the increase The book value
of investments in subsidiaries came to NOK 1 772 million, which
is down NOK 251 million compared to NOK 2 023 million in 2023.
Long-term loans to subsidiaries amounted to NOK 817 million,
up NOK 7 million from NOK 810 million due to changes in foreign
exchange rates, as the principal (in CAD) is unchanged.
Total equity at the end of 2024 amounted to NOK 2 956 million,
down NOK 25 million compared to NOK 2 981 million in 2023.
During the year, a dividend of NOK 1.75 per share, or NOK 196
million in total, was distributed to shareholders (the dividend
accrual was recognized in the equity as at year-end 2023).
At year-end, Grieg Seafood ASA had an equity ratio of 28%,
significantly down from 39% the year before.
The company has a syndicated financial arrangement in
an aggregate of NOK 4 950 million, with senior secured
sustainability-linked loans and credit facilities. The debt structure
compromises term loans in NOK, incl. a bridge loan of NOK 750
million entered into in Q4 2024, at a total amount of NOK 2 000
million, a EUR 75 million term loan, two revolving credit facilities
totaling NOK 2 000 million and a NOK 200 million overdraft
facility. At the end of the year, NOK 820 million of the revolving
credit facility and the overdraft facility was available for
utilization. The total amount outstanding on the syndicated debt
was NOK 3 903 million as at 31 December 2024 (excl. amortized
loan costs). The company also has a green bond issue of NOK
1 389 million (excl. amortized loan costs), which matures in June
2025.
CASH FLOW
Grieg Seafood ASA’s net cash flow from operations in 2024
totaled NOK 3 239 million, compared to NOK 218 million in 2023.
The difference in net cash flow from operations between 2024
and 2023 is primarily due to a reduction in paid taxes of NOK 242
million.
Cash flow from investing activities came to NOK -4 833 million
(NOK -812 million in 2023). The difference from 2023 to 2024
is primarily due to changes in loans and contributions to/from
group companies.
Net cash flow from financing activities came to NOK 1 656 million,
compared to NOK 97 million in 2023. The change in net cash
flow from financing activities from 2023 to 2024 is primarily due
to an increase in gross interest-bearing debt and somewhat
suppressed by lower dividend of NOK 1.75 per share being
distributed during the year compared to NOK 4.5 per share in
2023. Additionally, debt service costs increased during the year,
primarily due to generally higher market rates which increase
the floating rate component of the interest rate in our term-loan
facilities and bond loan.
As at 31 December 2024, available cash totaled NOK 88 million,
compared to NOK 27 million as at 31 December 2023.
FINANCIAL PERFORMANCE
25
FINANCIAL RESULTS AND ALLOCATIONS
– GRIEG SEAFOOD ASA
RISK MANAGEMENT
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 year-end was NOK 5 003 million,
of which the fair value adjustment was NOK 801 million. The
book value of live fish exclusive fair value at year-end 2024
was NOK 4 202 million, or 32% 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.
The freshwater production has been good across all regions
during the year. There was, however, one incident of reduced
survival in the beginning of the year in British Columbia (BC),
caused by human error. Measures were taken to prevent such
errors from happening again. Refer to the segment section about
BC above for further information.
Overall, the underlying seawater production was good during the
year in Rogaland, despite some challenges with winter ulcers
during the first half of the year and gill disease during the second
half of 2024. Winter ulcers has been addressed by vaccinating all
fish groups with an additional vaccine against the disease, and
gill-related health challenges are approached by several
strategies including feed, analytical projects and optimizing
freshwater treatment.
Finnmark has had a challenging year, with the seawater
performance being affected by historical exposure of the parasite
Spironucleus Salmonicida (Spiro), string jellyfish event and
winter ulcers. Due to measures taken and improved seawater
production towards the end of the year, Finnmark managed to
re-build the biomass going into 2025. Among the measures are
preventive investments in sea lice skirts and increased well
boat capacity. There have been no new incidents of Spiro in the
freshwater facility during the year.
Seawater production in BC was adversely affected by
environmental conditions especially during spring/summer of
2024, with sea lice pressure, events of low dissolved oxygen
levels and algae blooms. However, due to successful efforts in
treatments, aeration and barrier systems, the region has been
able to maintain the sea lice level stable and to reduce the impact
from low oxygen events.
Newfoundland has had a good and stable production throughout
the year, and has not experienced any significant sea lice or other
biological issues thus far.
Sick leave in 2024 totaled 3.29% for BC, NFL had 3.22%, and the
group overall had 4.86%. In Norway the average short term sick
leave was 1.62% and long term was 4.04%.
The feed industry is characterized by large global suppliers
operating under cost plus contracts, and feed prices are
accordingly linked to the global markets for fishmeal, vegetable
meal, animal proteins and fish/vegetable/animal oils, which
are the main ingredients in fish feed. Access to terrestrial feed
ingredients is stable, while access to marine feed ingredients
continues to be limited.
The risk of cyberattacks is relevant for the Group. Cyberattacks
may cause disruption to the ordinary course of operations, both
within the Group and at third parties, as well as damage and/
or incapacitate critical infrastructure necessary to operate
the Group’s freshwater and seawater sites. The outcome of
a cyberattack may adversely impact fish welfare at affected
sites, the Group’s reputation and financial performance. Grieg
Seafood are continuously working to strengthen its defense
towards cyberattacks and other malicious attempt to disrupt
our infrastructure. Cybersecurity is high on management’s
agenda, and is addressed through securing the digital systems
and infrastructure (incl. monitoring and analysis of all network
traffic in our infrastructure), as well as awareness and training,
strengthening the focus on securing remote access for
employees and vendors. Furthermore, the Group has procedures
in place for incident handling and strategic crisis management
should a cyber incident occur.
COMPLIANCE RISK
Grieg Seafood is committed to conducting its business ethically
and with integrity. The Group performs risk assessments on its
operations and value chain, and has implemented mitigating
measures and controls to prevent corruption and money
laundering activities. The Group did not experience any incidents
of corruption or money laundering activities in 2024. The Group
adheres to all relevant sanctions related to Russia and Belarus.
Grieg Seafood is also mindful of the evolving international trade
landscape and the associated risk of tariffs and trade barriers.
As a global exporter of Atlantic salmon, the Group is exposed to
regulatory and political developments that may impact market
access and cost structures, particularly in key markets such
as the United States, the United Kingdom, and Asia. Changes
to trade agreements, the imposition of new tariffs, or shifts in
import/export regulations could affect pricing competitiveness
and operational margins. Grieg Seafood actively monitors trade
developments and engages with relevant authorities
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 substantially enacted resource rent tax on salmon farming
in Norway is deemed a high political risk for our operations.
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.
See the Group’s risk overview here, and transparency act here. A
summary of some of these 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.
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 40, although this may be exceeded in periods
of growth investments. In 2024, the General Meeting of Grieg
Seafood ASA approved a dividend distribution of NOK 1.75 (NOK
4.5 per share), which was according to the Board of Directors
proposal as communicated in the Annual Report of 2023. Due
to insufficient liquidity and a weak equity position, the company
is not in a position to distribute dividends for the financial year
2024.
The parent company, Grieg Seafood ASA, recorded a loss after
tax of NOK -31 million for 2024, which the Board proposes that
the Annual General Meeting allocate as follows:
FIGURE 2.16
ALLOCATION OF PROFIT/LOSS FOR THE YEAR, GRIEG
SEAFOOD ASA
NOK MILLION
Transfer from retained equity
-31
Total allocated
-31
MARKET RISK
The global supply of Atlantic salmon in 2025 is expected to
increase compared to 2024 as a result of improved biological
performance in most salmon producing regions. So far in 2025,
this has been proven correct as seen in biomass data from the
Norwegian Fishery Department. With expectations of limited
supply growth in 2025, combined with an outlook for continuing
strong demand fueled by an increased focus on healthy food and
sustainably produced proteins.
Political risk regarding the introduction of tariff on goods
from Norway to USA could lead to a reduction of sales of
farmed salmon to the USA. The Group is constantly working
on optimizing harvest and distribution plans for all regions to
reduce the impacts of the tariffs. Sales to the USA accounted for
23% of the Group’s sales revenues in 2024. We see the potential
for a trade war escalating in countries we operate in.
The Group targets a contract share of 20-50% for its Norwegian
harvested volume. The estimated contract share for 2025 is 22%.
The Group does not have contracts in Canada.
The Group has its own internal sales and market organization,
including a value-added department. The Group has secured
value-added processing capacity in both Norway and Canada to
reduce the risk of low price achievement on production grade
fish. Processing capacity will be further strengthened in 2025,
when a new 12 000 tonnes capacity secondary processing facility
at Oslo airport Gardermoen is expected to open.
Continental Europe is the Group’s most important market, with
North America as the second largest market. The Group does not
sell salmon to Russia due to the ongoing war against Ukraine.
26
and industry organizations to promote open, rules-based trade
frameworks. The Group continuously evaluates its market
strategy and logistical setup to mitigate potential tariff-related
risks.
In February 2019, the European Commission launched an
investigation to explore potential anti-competitive behavior
in the market for spot sales of fresh, whole and gutted
Norwegian farmed Atlantic salmon. On 25 January 2024, Grieg
Seafood received a Statement of Objections from the European
Commission related to its investigation, where the European
Commission sets out its preliminary view in the matter. The
Statement of Objections in no way prejudices the final outcome
of the European Commission's proceedings. Grieg Seafood has
examined the Statement of Objections carefully and replied to
it. Grieg Seafood continues to fully cooperate with the European
Commission's investigation.
Three claims for damages have been filed in the UK against,
among others, Grieg Seafood ASA and Grieg Seafood UK Limited
arising from alleged unlawful cartel arrangements in relation
to the supply of farmed Atlantic salmon. Grieg Seafood rejects
that there is any basis for the alleged claims and considers
the complaint to be entirely unsubstantiated. In general, Grieg
Seafood denies any anti-competitive conduct and will follow up
all processes as it deems appropriate.
The three class-actions filed in Canada (none was certified as a
class-action) were settled, even though Grieg Seafood considers
the complaints to be entirely without merit, as the costs of
litigation in Canada can be substantial. The settlement agreement
was approved by the Federal Court in February 2024.
See more information in Note 10 of the Group Accounts.
POLITICAL RISK
NORWAY
On 10th of April the Norwegian Government released a white
paper on the Norwegian Aquaculture sector going forward
(Havbruksmeldingen). It outlined a direction to maximize the
value creation within the sector in a sustainable manner, with
purpose material adjustments to the regulatory aquaculture
framework. The primary message in the paper is an increased
focus on coexistence of the aquaculture sector with wild species,
especially wild salmon and the issue of sea lice. This comes both
with stricter regulations, but also incentives and possibilities
to increase production volumes for those farmers that manage
to keep lice levels under control. This is a proposal from the
government and will be reviewed by the various political parties.
The timing and form of any update to the regulatory framework is
unclear at this point.
CANADA
In BC, licenses are renewed by the federal Department of
Fisheries and Oceans (DFO) on a regular basis, with different
length. By 2025, the Canadian Federal Government aims to
have created a responsible plan to transition into better and
more sustainable practices in British Columbia, in order to
reduce interactions with wild salmon. The Government of
Canada announced 19 June 2024 a policy statement concerning
a ban on open net-pen salmon aquaculture in British Columbia
coastal waters by 30 June 2029. Since then, the Canadian
prime minister, Justin Trudeau, announced his resignation in
January 2025. Together with Trump’s victory in the US election,
the political uncertainty continues in this region. Mark Carney
was elected successor of Trudeau, in March 2025, and a federal
election will follow later this year. The transition process will be
delayed as a result of this. Due to the prolonged uncertainty in
British Columbia, with highly uncertain and lacking regulatory
conditions, there has been an impairment of the seawater
licenses and goodwill. See Note 15 to the Group accounts.
In 2024, the Canadian Department of Fisheries and Oceans
renewed all farming licenses for five years to allow for the
development of the plan. Grieg Seafood continues to work
collaboratively with their First Nation partners, government and
local communities on innovation and modernization towards a
sensible transition plan.
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. All of Grieg Seafood's
current production is operating under agreements with First
Nations. 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.
See Note 13 of the Group Accounts for more information.
FINANCIAL RISK
FINANCING RISK
The Group operates within an industry characterized by high
volatility, which entails financial risk. The Group’s business and
plans are capital intensive. To the extent that sufficient cash
is not generated from operations in the long term, additional
funding needs to be raised to pursue the Group’s growth
strategy 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
hedging is a matter of constant consideration, in combination
with operational measures. Management draws up rolling
liquidity forecasts, extending over five years. These forecasts
are based on assumptions for salmon prices and form the basis
for calculating liquidity requirements. This forecast also forms
the basis for the Group’s financing needs. Available financing
will be impacted by the Norwegian resource rent tax regime,
as - all else equal - less cash will be available to service debt,
finance investments and provide a return on investment for
shareholders.
The Group's debt structure comprises sustainability-linked
loans, including two term loans totalling NOK 1 250 million, a
bridge loan of NOK 750 million, an EUR 75 million term loan, two
revolving credit facilities totalling NOK 2 000 million and a NOK
200 million overdraft facility. See Note 27 of the Group Accounts
for more information. In addition, the Group has a senior
unsecured green bond issue with an outstanding amount of NOK
1 392 million, which matures in June 2025.
As at 31 December 2024, the Group had NOK 6 559 million in
net interest-bearing liabilities (NOK 5 641 million, excluding the
effect of IFRS 16), and an equity ratio of 31% compared to 49% as
at 31 December 2023. The equity ratio according to the financial
covenants was 32% compared to 53% as at 31 December 2023.
See Note 27 of the Group Accounts for more information. Cash
and cash equivalents at 31 December 2024 totaled NOK 203
million (NOK 216 million).
LIQUIDITY RISK
The Group has invested substantial amounts during the last few
years. This includes the acquisition of Grieg Newfoundland and
the build-up of biological assets in all regions. The Group utilizes
factoring agreements to finance its trade receivables in Norway.
The trade financier purchases credit-insured trade receivables
(maximum NOK 750 million of outstanding receivables) from the
Norwegian sales organization, transferring significant (95%) risk
and control to the credit insurer. The receivables purchased by
the trade financier are derecognized from the Group’s statement
of financial position.
CURRENCY RISK
The Group is primarily impacted by currency exposure to CAD,
USD and EUR. Part of the long-term intercompany loans to
subsidiaries in the Group are in the local currency and are
regarded as net investments, as there are no set plans for
their repayment. The currency effect of these net investments
is included in the Group's consolidated statement of other
comprehensive income (OCI). In addition, the sales organization
hedges foreign currency risk expose if required. 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.
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
Group's existing loans are at floating interest rates, but separate
fixed-rate contracts have been entered into to reduce interest
rate risk. Grieg Seafood’s policy is to have 20-50% of interest-
bearing debt hedged through interest rate swap agreements. A
given proportion shall be at floating rates, while consideration
will be given to entering and exiting hedging contracts for the
remainder.
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 Group has procedures to ensure that products
are sold only to customers with satisfactory creditworthiness.
The Group normally sells to new customers solely against
presentation of a letter of credit or against advance payment, and
credit insurance is used when deemed necessary.
Monitoring of the Group’s liquidity reserve is carried out at
group level in close collaboration with the operating regions.
Given the volatility experienced in parts of 2024, the Group has
maintained a strong focus on financial control and risk mitigation.
Management and the Board continue to prioritize maintaining a
solid financial foundation and have paid particular attention to
the Group’s equity ratio (31% at 31 December 2024), While this
level provides some resilience, it remains below our long-term
financial target. In light of the financial pressure experienced
during the year, several immediate measures have been initiated
to strengthen the balance sheet and improve financial flexibility.
Please refer to the section on subsequent events for further
details.
27
CLIMATE-RELATED RISKS
The effects of climate change can impact our short, medium,
and long-term business operations. Physical risks are extreme
weather, fluctuating seawater temperatures, decline in
biodiversity, and effects upon the raw materials we use in our
feed. There are also transitional risks such as induced policies
and legislation, changes in taxes may also have impact upon our
operations. These climate related risks are a part of the Group’s
risk assessment, and are part of our day-to-day operations.
Knowledge of the possible financial consequences of climate
change, biodiversity loss, or even ecosystem collapse, and the
integration of climate-related 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.
The Group has mapped its climate-related risks in accordance
with the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD). The Group 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 risk assessment as part of the
Group’s regular budgeting and forecast processes, and have
been implemented in our double materiality assessment.
Overall, the impacts of climate-related risks are expected to be
moderate in the short term, with no quantifiable impact as per
year-end 2024. However, these impacts could become more
severe in the medium to long term. Any significant physical
change can interfere with the Group’s current business model
or potentially damage 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, Grieg Seafood is continuously work to mitigate
these risks and take advantage of climate-related opportunities.
The Group’s Climate Action Plan describes the measures and
investments needed to reach the climate targets. This plan
stresses the importance of both operational measures that affect
Scope 1 and 2, and supply chain measures in Scope 3. The Group
needs to reduce operational fossil fuel consumption, purchase
renewable electricity and set supplier requirements to be able
to reduce its absolute emissions. The Group needs to continue
to invest in electrification of its sites and boats, buy fish feed
with lower emissions and reduce emissions from transportation.
The largest source of direct, Scope 1 greenhouse gas emissions
originates from fossil fuel used to power boats, well-boats,
vehicles, and feeding barges. Transitioning to equipment that
will enable reduction in fossil fuel consumption will be done
gradually through replacement investments, in addition to
investments targeting growth.
EVENTS AFTER THE REPORTING DATE
27 of February 2025 Grieg Seafood ASA has successfully
completed a new perpetual green hybrid bond issue of
NOK 2 000 million with first call date after 4 years and a coupon
of 3 months NIBOR + 575 bps. The issue amount is perpetual
with no fixed maturity date, and will have a step up in interest
in March 2029. Interest payments may be deferred at the
discretion of Grieg Seafood. Net proceeds from the bond issue
will be used for green projects as further defined by the Green
Bond Framework, including by way of refinancing existing debt
originally incurred to finance such green projects. Grieg Seafood
has performed a capital allocation of NOK 500 million towards
the bridge term loan facility. The hybrid bond will be accounted
for as equity in the balance sheet and constitute subordinated
obligations for the Company.
An application will be made for the bonds to be listed on Oslo
Stock Exchange.
The hybrid bond strengthens Grieg Seafood’s liquidity, equity and
financial flexibility to pursue its ambitions for further investments
and development of the Norwegian fish farming assets while
protecting the values and optionally in the Canadian assets base.
Grieg Seafood ASA has public memorandum for guidance on
accounting treatment of issued Hybrid bond. See the stock
exchange filings on Grieg Seafood’s webside.
The 30th of March 2025 Grieg Seafood ASA announces that
Andreas Kvame has agreed with the Board of Directors to step
down as CEO after 10 years in the position. The Board has
initiated the search process for a new CEO. Nina Willumsen
Grieg, Regional Director of Grieg Seafood Rogaland, has been
appointed interim CEO, with Andreas Kvame supporting the
CEO transition process. Nina Willumsen Grieg has worked in
Grieg Seafood for 10 years in various executive, strategic and
operational roles. During her four years of managing Rogaland,
the region has shown strong results both financially and
biologically.
In line with good corporate governance, Per Grieg steps down
as Chair of the Board of the Company and takes the position as a
regular Board Member. The Vice-Chair of the Board, Paal Espen
Johnsen, takes on the role as Chair of the Board until the next
General Meeting.
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 the Group,
likelihood and impact analyses under different emission
pathways and time horizons have been developed and will be
regularly revised.
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 has published 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. Grieg Seafood is committed to follow
the nature-related disclosures using the TNFD recommendations
as of the financial year 2024.
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, 81%
of the Group’s harvested volume in 2024 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-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 better
predict outcomes and implement mitigating actions early;
and experimenting with new farming technologies that create
barriers between the fish and the natural environment, such as
semi-closed sea-based systems, land-based farming and offshore
farming.
28
OUTLOOK
After a challenging year marked by biological setbacks, capital-
intensive post-smolt investments, and political uncertainty in
Canada, Grieg Seafood looks ahead to 2025 with a strengthened
foundation and a focus on opportunities. While global
uncertainties remain — such as geopolitical tensions, potential
trade barriers, high interest rates, and climate-related risks — we
are confident in the resilience of the salmon industry. Demand
for sustainable, high-quality protein continues to grow in key
markets, providing a strong foundation for long-term success.
By remaining agile and proactive, we will continue optimizing
operations, driving efficiencies, and advancing our commitment
to responsible and sustainable seafood production. With strategic
initiatives in place, we are well-positioned to navigate challenges
while seizing opportunities in the evolving global landscape
OWN OPERATIONS
The harvest volume for 2024 was lower than the initial guiding
because of environmental challenges in Finnmark and British
Columbia (BC) during the year. However, due to improved
production and measures taken, the biomass allowed to recover
in Finnmark, and the production stabilized and improved in BC
towards the end of the year. This is a good stepping stone for
reaching a harvest volume of 84 000 tonnes GWT in 2025. At the
time of issuing this report, the Group’s farming operations are
running as normal, and the biological production is stable and
strong in all regions. Grieg Seafood Finnmark had some issues
with Cardiomyopathy Syndrome (CMS) in some pens, which led
to culling of some fish. Additionally, there are indications of CMS
in some pens at one additional site. The Group continues to focus
on optimization of production, with emphasis on fish health and
welfare.
During 2024, the Group has continued its work on the
improvement program that was launched in 2023. Several
initiatives upon prioritization and repositioning, cost
improvements, and procurement have been identified. The
Group has acted upon these initiatives and will continue to do
so going forward. Currently, Grieg Seafood is defining a revised
structure for the ongoing program and has decided to prolong its
timeline until 2027. Emphasizing the importance of the initiatives
and how they are viewed throughout the organization without
compromising the quality of the operations is key.
With regards to growth and operational improvement, Grieg
Seafood expects the continued focus on post-smolt to reduce
operational expenditures and costs related to mortality, disease
outbreaks, sea lice treatments and fish handling. The experience
with post-smolt in Rogaland indicates that less time in the sea
reduces both the risk of and impact from biological challenges
such as sea lice, winter ulcers and ISA. In October this year, the
post-smolt facility, Årdal Aqua AS, commenced production of the
first batch of fish, which will be transferred to sea during spring
of 2025. Production will gradually ramp up in 2025, securing
Rogaland increased capacity of post-smolt. Based on the results
from Rogaland, the Board approved a 3,000 tonnes post-smolt
unit in Finnmark in 2023. The construction is on schedule going
into 2025 and the first post-smolt from the facility is expected to
be transferred to sea in 2026.
In line with our aspiration to expand downstream, the secondary-
processing facility at Gardermoen, Oslo, is progressing as
planned. We expect the facility to be operational in H2 2025,
with ramp up of staff, team and production preparations already
starting in first half of 2025. The ongoing strategic priorities are
managed in accordance with the Group’s focus on sustainable
fish farming. Grieg Seafood always aim to ensure that
sustainability is in the core of its decision making.
Grieg Seafood will maintain a cautious approach in BC given
the persisting political uncertainty and has paused growth
investments in Newfoundland (NFL), and by such creating
optionality on the investment profile while protecting asset
values.
The operational and biological challenges Grieg Seafood has
experienced, have negatively affected earnings and cash flow, at
the same time as the Group is running capital intensive post-
smolt programs. In combination, this has put strains on the
Group’s liquidity position and financial flexibility. Acknowledging
the need for action, a transformation program was launched in
Q4 2024, to lay the financial and organizational foundation for
profitable and sustainable growth going forward. This includes
reallocating resources towards the Norwegian assets base, while
maintaining its position in Canada, efforts to secure financial
strength, and sharpening of the operational initiatives that the
Group is running. This requires a solid balance sheet and strong
financial fundament, and in Q1 2025 the Group successfully
issued a NOK 2.0 billion hybrid bond loan that will add to equity
and strengthen financial flexibility. The majority will be allocated
to repayment of the Green bond, which is due in June 2025.
Furthermore, there are progressive dialogues for a potential
sale-leaseback of the smolt /post-smolt facilities in Finnmark,
which will further strengthen the Group’s liquidity position. While
these initiatives will provide growth capital, there is still a need
to continue the work to improve operational stability and ensure
cost efficiency with rigorous financial discipline.
MARKET EXPECTATIONS, CHALLENGES AND
POSSIBILITIES
The outlook for the salmon farming sector remains promising.
Demand for high-quality, sustainably sourced protein continues
to grow worldwide, driven by increasing consumer awareness of
health and environmental considerations.
The global supply of Atlantic salmon in 2025 is expected to
increase compared to 2024 and is estimated to grow at levels not
seen the recent years. The outlook for continuing strong demand
is fueled by an increased focus on healthy food and sustainably
produced proteins, and we expect a sustained robust market.
The current Fish Pool forward price reflects this, with a price
around EUR 7,30 per kg for the full year 2025. We expect average
prices within this range and expect less seasonality in 2025 than
in 2024. Forward Prices at Fish Pool currently differ EUR 1 per
kg between H1 2025 and H2 2025, while the difference between
H1 2024 and H2 2024 was above EUR 3 per kg. This is supported
by global harvest estimates that indicate a more even supply
between H1 2025 and H2 2025 compared to 2024.
The current estimated fixed price contract share of our
Norwegian harvest volume is 26% for the full year 2025.
Currently, 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.
FINANCIAL POSITION
As at 31 December 2024, Grieg Seafood had a cash balance
of NOK 203 million and NOK 820 million of undrawn credit
facilities. Grieg Seafood is in the process of strengthening its
financial flexibility and liquidity position through a transformation
program, launched in Q4 2024.
GOING CONCERN
The Board is of the opinion that the financial statements give a
true and fair presentation of the Group’s assets and liabilities,
financial position and financial results. Based on the above
presentation of the Group’s results and financial position, and
in accordance with the Norwegian Accounting Act, the Board
confirms that the annual financial statements have been prepared
on a going concern basis, and that the requirements for so doing
have been met.
Grieg Seafood ASA has conducted a thorough evaluation of its
financial position and liquidity in connection with the preparation
of the 2024 annual financial statements. Based on financial data
per 31 December 2024 and subsequent financial initiatives, the
assessment considers the company’s revenue development,
profitability, debt structure, and strategic financial initiatives
Total revenue for 2024 increased to NOK 7 381 million from
NOK 7 020 million in 2023, mainly driven by higher harvest
volumes. However, operational EBIT declined significantly from
NOK 780 million in 2023 to NOK 8 million in 2024, primarily due
to increased production costs in Finnmark and challenging cost
conditions in Newfoundland, Canada. Despite this, the company
maintained sufficient liquidity, with approximately NOK 1 billion
in available resources at year-end, including NOK 203 million
in cash. While loan covenants remained intact, the company
identified the need to strengthen its financial position and
initiated several strategic measures.
To enhance financial stability, Grieg Seafood successfully
secured a hybrid bond, commenced a sale-leaseback process,
and pursued refinancing efforts. Additionally, the company
is evaluating structural initiatives. Without these measures,
there was a risk of a technical covenant breach; however, as
of 31 December 2024, corrective actions have mitigated this
concern for the financial year 2025 and onwards.
Given the company’s financial flexibility, asset base, and strategic
initiatives, the Board and management conclude that there are
no material uncertainties related to going concern. Grieg Seafood
remains well-positioned to meet its financial obligations and
sustain its operations in the foreseeable future.
29
BOARD OF DIRECTORS REPORT
Sustainability Statement
Disclosure requirement
Page
GENERAL INFORMATION
30
Basis for preparation
BP-1, BP-2
30
Governance
GOV-1, GOV-2, GOV-3, GOV-4, GOV-5
31
Strategy, business model and value chain
SBM-1
33
Stakeholder engagement
SBM-2
35
Material impacts, risks and opportunities
SBM-3
35
Double materiality assessment
IRO-1
36
Disclosure requirements covered by the sustainability
statement
IRO-2
38
ENVIRONMENTAL INFORMATION
40
EU Taxonomy
40
Background and scope
40
Eligible and aligned economic activities
41
Minimum safeguards
42
Turnover
43
CapEx
44
OpEx
45
Climate change
46
Material impacts, risks and opportunities
SBM-3
46
Policies
E1-2, MDR-P
47
Transition plan
E1-1
48
Actions
E1-3, MDR-A
50
Greenhouse gas inventory
E1-4, E1-6, MDR-M, MDR-T
51
Notes on climate change
52
Biodiversity and ecosystems
54
Material impacts, risks and opportunities
SBM-3
54
Policies
E4-2, MDR-P
56
Actions
E4-1, E4-3, MDR-A
57
Metrics and targets
E4-4, E4-5, MDR-M, MDR-T
57
Notes on biodiversity and ecosystems
58
Disclosure requirement
Page
SOCIAL INFORMATION
59
Own workforce
59
Material impacts, risks and opportunities
SBM-3
59
Policies
S1-1, MDR-P
60
Engagement
S1-2
60
Remediation
S1-3
60
Actions
S1-4, MDR-A
61
Metrics and targets
S1-5, S1-6, S1-9, S1-14, S1-16,
MDR-M, MDR-T
61
Notes on own workforce
62
Affected communities
63
Material impacts, risks and opportunities
SBM-3
63
Policies
S3-1, MDR-P
64
Engagement
S3-2
64
Remediation
S3-3
64
Actions
S3-4, MDR-A
64
Metrics and targets
S3-5, MDR-M, MDR-T
64
Consumers and end-users
65
Material impacts, risks and opportunities
SBM-3
65
Policies
S4-1, MDR-P
66
Engagement
S4-2
66
Remediation
S4-3
66
Actions
S4-4, MDR-A
66
Metrics and targets
S4-5, MDR-M, MDR-T
67
Notes on consumers and end-users
67
GOVERNANCE INFORMATION
68
Business conduct
68
Material impacts, risks and opportunities
SBM-3
68
Policies
G1-1, MDR-P
69
Actions
MDR-A
69
Metrics and targets
MDR-M, MDR-T
70
Notes on business conduct
70
30
General information
Basis for preparation
GENERAL BASIS FOR PREPARATION
The sustainability statement is consolidated based on the same
scope as the financial statements and includes all entities
controlled by Grieg Seafood ASA. This excludes associated
companies and joint ventures of which we lack control.
The sustainability statement covers our identified material
impacts, risks and opportunities as of the financial year ended
31 December 2024, based on our double materiality assessment.
This report includes information about both our own operations
and value chain.
DISCLOSURES STEMMING FROM OTHER
LEGISLATION
As a non-financial company, Grieg Seafood ASA is in scope of the
Taxonomy Regulation (EU) 2020/852 and the Delegated
INFORMATION INCORPORATED BY REFERENCE
Acts to disclose information on the proportion of the company's
revenue (turnover), capital expenditure (CapEx), and operating
expenses (OpEx) associated with assets or processes related
to environmentally sustainable economic activities. The EU
Taxonomy disclosure is found in corresponding section under
chapter Climate change.
Information on the basis of preparation and accuracy of
estimates, sources of estimation and outcome uncertainty,
changes in the preparation and presentation, including reason for
changes, of sustainability information, and reporting errors and
associated corrections, is provided in connection with the metrics
for each material topic.
References to other EU legislation as defined by ESRS 2 Appendix
B, is available on pages 38-39.
SUSTAINABILITY STATEMENT
ESRS STANDARD
DISCLOSURE REQUIREMENT AND DATAPOINT
SECTION AND PAGE NUMBER
ESRS 2
BP-2 § 10 (a)
Note 1 to chapter Climate change, p. 52
BP-2 § 10 (b)
BP-2 § 10 (c)
BP-2 § 10 (d)
BP-2 § 11 (a)
BP-2 § 11 (b)
GOV-1 § 22 (a)
Corporate Governance Principles, p. 78
SBM-3 § 48 (b)
Material impacts, risks and opportunities, p. 46 (Climate change), p. 54 (Biodiversity and
ecosystems), p. 59 (Own workforce), p. 63 (Affected communities), p. 65 (Consumers and
end-users), p. 68 (Business conduct)
SBM-3 § 48 (c)
SBM-3 § 48 (d)
SBM-3 § 48 (f)
31
54
Governance
BOARD AND MANAGEMENT TEAM
40%
60%
GROUP MANAGEMENT
As at 31 December 2024, the end of the reporting period,
the Group management team consists of total nine
executive members; the Chief Executive Officer (Andreas
Kvame), Chief Financial Officer (Atle Harald Sandtorv),
two Chief Operational Officers (Alexander Knudsen and
Grant Cumming), the Chief Commercial Officer (Erik
Holvik), in addition to the supporting functions lead by
Chief Technology Officer (Knut Utheim), the Chief Human
Resource Officer (Kathleen O. Mathisen), the Chief
Communication Officer (Kristina Furnes), and the Chief
Strategy Officer (Nina Stangeland).
Nina Willumsen Grieg was appointed interim CEO 30
March 2025. Magnus Johannesen has transitioned into
the permanent role of CFO as of 5 March 2025.
Finally, the Audit Committee has a particular responsibility for
overseeing the financial and sustainability reporting process,
the audit process, the company's system of risk management,
internal controls, including compliance with relevant laws and
regulations.
Members of the Board and management team have been
informed about the material impacts, risks and opportunities,
presented in section Material impacts, risks and opportunities, in
connection with the double materiality analysis and the process
of preparing the sustainability statement. Although there is
no systematic process for how the Board and management
team are informed explicitly of all material impacts, risks and
opportunities, including the implementation of due diligence
and the results and effectiveness of policies, actions, metrics
and targets, they are informed through other established
processes. For example, the CEO’s monthly and quarterly reports
to the Board, covering biological and financial key performance
indicators, and the Audit Committee’s quarterly meetings
addressing risk management, including climate- and nature-
related risks. Similarly, the Board, management team and, when
applicable, the Audit Committee implicitly consider the groups
identified sustainability matters when overseeing the strategy,
decisions on major transactions, and its risk management
process. This is particularly the case for certain financially
material sustainability matters, such as fish health and welfare.
Both the executive team and the Board have members whose
qualifications and experiences are valuable for Grieg Seafood. This
includes experience from sectors such as aquaculture (including salmon
farming), finance, and oil and gas, as well as backgrounds in business
administration, finance, law, human resources, and public relations. All
board and executive team members are Norwegian, with the exception of
our COO of farming in Canada, and most have experience from companies
with global presence.
33%
51
The Board and management team possesses direct
sustainability-related expertise that can be utilized in the
management of its material impacts, risks and opportunities.
This includes experience from or expertise related to sustainable
fish farming, employee health and safety, and fish health and
welfare, as well as experience from the oil and gas industry,
where sustainability risks have been of paramount importance
for decades. The CEO is also responsible for ensuring that the
competence required to address the Group’s sustainability
matters is present in the management team and across the
organization. As such, the Board and management team can also
leverage the expertise of various workers in the organization,
such as the Global Sustainability Advisor or QA Managers.
ROLES AND RESPONSIBILITIES RELATED TO
SUSTAINABILITY MATTERS
The roles and responsibilities related to the governance of
our material sustainability matters is implicitly set out in the
instructions for the Board and the executive management,
adopted April 2007 and last updated March 2024.
The Board of Directors reviews and approves the Group’s
material sustainability matters, including the management
of its impacts, risks and opportunities. The Board monitors
progress towards and compliance against the relevant policies
and targets, through reports and metrics (as described in the
respective topical chapters), as well as through dialogue with the
CEO, whom acts as the main point of communication between the
Board and the Group’s operations.
Management of the Group’s overall operation and resources,
including material sustainability matters, is delegated to the
CEO. The CEO is accountable for the performance towards
material sustainability matters, including the establishing and
approving of all group policies and targets that in part concern
the group’s material impacts, risks and opportunities. Authority
over and responsibility for specific sustainability matters is
subsequently delegated to the executive management team,
from where the authority and responsibility cascades throughout
the Group. Conversely, reporting on progress towards material
sustainability matters moves up the organization, for example
through the quarterly business review meetings or through
monitoring of data, information or metrics.
WOMEN
AVERAGE AGE
INDEPENDENTS
WOMEN
AVERAGE AGE
GENERAL INFORMATION
BOARD OF DIRECTORS
As at 31 December 2024, the end of the reporting period
the Board of Directors consists of five members, Paal
E. Johnsen, Per Grieg, Nicolai H. Grieg, Marit Solberg,
and Silje Remøy, none of which are part of the executive
management team. The board represents the shareholders
and no other stakeholders are represented.
32
OVERVIEW OF DUE DILIGENCE ELEMENTS IN THE SUSTAINABILITY STATEMENT
CORE ELEMENTS OF DUE DILIGENCE
EXPLANATION
SECTION AND PAGE NUMBER IN THE
SUSTAINABILITY STATEMENT
Embedding due diligence in governance, strategy
and business model
How the Board and the Group management team
oversee the identification and management of
material negative impacts on people and the
environment
Roles and responsibilities related to sustainability
matters, p. 31
To what extent the Group’s material negative impacts,
and related risks and opportunities, defined with
input from the due diligence process, are integrated
in incentive schemes for Group management
Remuneration, p. 32
How the Group’s material negative impacts, and
related risks and opportunities, defined with input
from the due diligence process, are connected to the
business model and strategy
Material impacts, risks and opportunities (Climate
change), p. 46
Material impacts, risks and opportunities
(Biodiversity and ecosystems), p. 54
Material impacts, risks and opportunities (Own
workforce), p. 59
Material impacts, risks and opportunities (Affected
communities), p. 63
Material impacts, risks and opportunities
(Consumers and end-users), p. 65
Engaging with affected stakeholders in all key steps
of the due diligence
What the process for engaging with affected
stakeholders looks like regarding the identification
and management of the Group’s actual and potential
negative impacts on people and the environment
Stakeholder engagement, p. 35
Double materiality assessment, p. 36
Engagement (Own workforce), p. 60
Engagement (Affected communities), p. 64
Engagement (Consumers and end-users), p. 66
Identifying and assessing adverse negative impacts
on people and the environment
How the process for identifying material negative
impacts looks like, informed by the ongoing due
diligence process
Double materiality assessment, p. 36
Overview of the Group’s material impacts, and
related risks and opportunities, corresponding to
high impact areas in the ongoing due diligence
process
Material impacts, risks and opportunities, p. 35
Taking action to address those adverse negative
impacts
Description of actions taken to address and remediate
identified material negative impacts on people and
the environment
Transition plan, Actions (Climate change), pp. 48-50
Actions (Biodiversity and ecosystems), p. 57
Remediation, Actions (Own workforce), pp. 60-61
Remediation, Actions (Affected communities), p. 64
Remediation, Actions (Consumers and end-users),
p. 66
Tracking and communicating effectiveness of these
efforts
Description of targets set to manage identified
material negative impacts on people and the
environment and progress to achieve those targets
Greenhouse gas inventory (Climate change), p. 51
Metrics and targets (Biodiversity and ecosystems),
p. 57
Metrics and targets (Own workforce), p. 61
Metrics and targets (Affected communities), p. 64
Metrics and targets (Consumers and end-users),
p. 67
REMUNERATION
DUE DILIGENCE
General schemes offered to the Group executive management
team for the allocation of variable benefits includes bonus
schemes and option programs and are determined by the Board
according to the guidelines approved of the Annual General
Meeting (AGM). The salary agreed to the members of the Group’s
executive management team in 2024 consisted of a fixed and
a variable element. The variable component is linked to both
financial and non-financial factors, whereas half the variable
component is tied to personal and/or team specific targets.
Some members have remuneration dependent on sustainability-
related parameters, although none are related to GHG emission
reduction targets.
In line with the guidelines approved by the AGM, remuneration to
members of the Board is fixed and not performance-related.
For the reporting year 2024, we did not have an overarching
due diligence process in place that fully conforms with the UN
Guiding Principles on Business and Human Rights and the OECD
Guidelines for Multinational Enterprises. However, to the extent
these international instruments overlap with the Norwegian
Transparency Act, we do have corresponding due diligence
elements integrated in different parts of our organization and
internal processes.
These due diligence elements particularly informed our
identification of potential material negative impacts on people
and the environment, and related risks and opportunities, in our
double materiality assessment. The table below explains how
and where parts of our due diligence process are integrated in
this sustainability statement.
33
Strategy, business model and value chain
Grieg Seafood farms Atlantic salmon (Salmo Salar) in
Rogaland and Finnmark in Norway, and in British Columbia
and Newfoundland in Canada. We have an integrated sales
organization, with offices in Norway, Canada and the USA, selling
Atlantic salmon produced by us and others. Our customers
are mostly wholesalers, producers and retailers in Continental
Europe, North America, Asia, and the UK. All significant revenues
stem from our operations in agriculture and farming, primarily
from the sale of Atlantic salmon but also from the sale of
byproducts, smolt, fry, and roe.
NUMBER OF EMPLOYEES
300
FINNMARK
187
ROGALAND
147
BRITISH COLUMBIA
106
NEWFOUNDLAND
86
BERGEN
826
Currently, our position in the value chain is that of a producer
and raw material supplier, using inputs such as roe, feed,
electricity and labor to farm salmon, primarily head-on gutted
salmon, and selling our product to producers, wholesalers
and retailers. We secure inputs by purchasing them in the
marketplace (e.g., labor markets, commodity markets and
markets for finished goods) but we are also a licensed producer
of eggs. We plan on increasing the value of our products through
a stronger presence in the downstream market for processed
salmon products, 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.
Today, only about 2% of the world’s food is obtained from the
sea. While there are limits to the amount of wild fish that can be
caught in order to prevent overfishing, aquaculture can
RISK MANAGEMENT AND INTERNAL CONTROLS
The Group has developed a Sustainability Reporting Manual,
Quarterly Sustainability Reporting Principles and Guidelines,
and a GHG Accounting Manual. These outline the various roles
and responsibilities and the methodology for collecting and
calculating the sustainability information used in Grieg Seafood’s
sustainability reporting. These will be updated in accordance
with the reporting process required by the ESRS.
Beyond these manuals, we have various controls and
procedures related to the management of our sustainability
matters, including continuous collection of data related to our
sustainability matters.
With regards to our sustainability reporting, the Board nominates
some of its members to the Audit Committee to provide counsel
and advice or to handle tasks on the Board's agenda and the ESG
controller performs some quality controls. The Audit Committee
members have a particular responsibility for overseeing the
reporting process, the audit process, the company's system of
risk management, internal controls and compliance with laws
and regulations.
See our topical chapters for more detailed descriptions of
controls and procedures related to material sustainability
matters.
TOTAL
contribute to securing food production for a growing population
globally. Farmed Atlantic salmon has a low feed conversion
ratio and a high edible yield compared to other animal proteins.
In addition, farmed salmon is a high-nutrient dense food with
proven health benefits. As demand for salmon has historically
been robust and increasing, due to increasing consumer
interest in healthy and more sustainable food, we expect that
our business model is well-positioned to create value for our
stakeholders.
Our sustainability-related goals linked to our products concern
sustainable feed, low emissions transport, reducing operational
GHG emissions, reducing farming impacts on local biodiversity
and ecosystems, and improving fish health and welfare.
Concerning geographical areas, we have a specific focus on
creating a positive impact in British Columbia and Finnmark,
where we farm on territory that belongs to or has significance
for Indigenous peoples. We do not have separate goals relating
to customer categories, beyond ensuring high levels of food
safety. Likewise, we do not have separate sustainability-related
goals with regards to relationships with stakeholders. For more
details about our goals, including policies, actions, targets, and
performance, see the respective sections in this report.
Although sustainability is the foundation of all areas of our
strategy, we have not linked our strategy directly to the identified
sustainability matters.
34
Truck/airplane
Truck/airplane
Live fish carriers
Truck/airplane
OUR VALUE CHAIN
BREEDING
Broodstock facility
FRESHWATER
FARMING (HATCHERY)
RAS Freshwater facility
POST-SMOLT
RAS Freshwater facility
SEAWATER
FARMING
Site
HARVESTING
Harvesting plant/vessel
SALES AND
DISTRIBUTION
VALUE ADDED
PROCESSING
(EXTERNAL & INTERNAL)
Processing plant
Eggs
Smolt
Post smolt
Fish
Fish
(internal /
external)
Fish
(internal /
external)
Fish
(internal /
external)
Fish
(internal /
external)
HUMAN CAPITAL
TECHNOLOGICAL CAPITAL
FINANCIAL CAPITAL
POLITICAL/SOCIAL CAPITAL
Broodstock fish
Smolt
Truck/airplane
Truck/airplane
PRODUCTION RELATED EQUIPMENT
END-
CONSUMER
RETAIL
WHOLESALE
Pollution
Water and marine resources
Resource use and circular economy
Workers in the value chain
35
Stakeholder engagement
Material impacts, risks and opportunities
Grieg Seafood has multiple stakeholders, that both impact and
are impacted by our business. Our most important stakeholder
groups are:
• Affected stakeholders: customers/consumers, employees, local
communities, suppliers, nature (silent stakeholder)
• Users of sustainability statements: shareholders, investors,
asset managers, analysts, public authorities/regulators, NGOs,
suppliers, employees (trade union/ representatives)
Each stakeholder group can be further divided into sub-
groups, for example different local communities, employees, or
regulators in Norway or Canada.
We effectively map and monitor stakeholders’ expectations
continuously through both formal and informal engagements.
Company representatives are involved in dialogues with
customers, employees, neighbors, authorities, suppliers,
and various other stakeholder groups. In addition to that,
we capture opinions and ideas from being an active partner
in local communities, through participation in industry and
scientific conferences and joint-industry projects, and from
actively listening to stakeholders expressing their views about
our industry in media, social media and on various arenas.
These engagements are both directly with stakeholders and
through their representatives. Administrative, management, and
supervisory bodies can be involved in these engagements and
may consequently be informed directly about views and interests
of affected stakeholders. Additionally, views and interests are
communicated through both formal and informal channels,
This section present an overview of Grieg Seafood’s material
impacts on people and the environment, and the sustainability
related risks and opportunities for Grieg Seafood, resulting from
our double materiality assessment. The material matters covers
both our own operations and upstream and downstream value
chain. For clarity, no material IROs were identified further out in
the value chain than those included here. Read about our process
to identify material matters in the next section.
This is the first materiality assessment conducted in accordance
with the CSRD and ESRS and therefore there are no changes in
the result from previous period to be reported.
GRIEG SEAFOOD’S POSITIVE AND NEGATIVE IMPACTS
SUSTAINABILITY RELATED RISKS AND OPPORTUNITIES FOR GRIEG SEAFOOD
All material impacts, risks and opportunities have been mapped
to their relevant topical ESRS standard and are covered by
corresponding disclosure requirements in each topical standard
or through entity specific disclosures. A number of IROs are
covered by additional disclosures specific to Grieg Seafood.
Our material IROs are presented for each material ESRS topic in
table below. More information about the nature of our impacts,
risks and opportunities, and how we monitor and respond to
these, are reported in the topical chapters under “Environmental
information”, “Social information” and “Governance information”.
A.
Actual negative impact from GHG emissions in our supply
chain
B.
Actual negative impact from GHG emissions from
transportation to market
C.
Actual negative impact from production of inputs to fish feed
on land areas
D.
Actual negative impact on native species from fish escapes
E.
Actual negative impact on wild birds from aquaculture pens
F.
Actual negative impact on crustaceans and wild life from sea
lice treatments
* Covered by additional entity-specific disclosure.
Above table shows where our material impacts, risks and opportunities occur, and encompasses relevant parts of our value chain only.
For a full view of our value chain, see previous section Strategy, business model and value chain.
such as regular meetings or reports. These engagement are
conducted both regularly (monthly, quarterly or yearly) and ad
hoc.
On a general basis, the purpose of these engagements is to
better understand which topics are material to our stakeholders
and consequently enable the company to adapt to the evolving
market expectations. Input from stakeholders is used when
developing policies, processes, and strategies. For example,
when developing policies on health and safety, the initial
drafts are distributed to representatives across our regions
for feedback in an iterative process, to ensure that the policy
is aligned with relevant stakeholders’ interests and views.
Similarly, our engagement with WWF has resulted in a new
ESG methodology for assessing raw materials in fish feed and
adoption of ASC certification, which are promoted by WWF. We
also have agreements in place with indigenous peoples, which
govern how we conduct our business in British Columbia.
However, we do not have a systematic approach or process for
ensuring that the interest, views and rights of stakeholders,
including own workforce, local communities, and consumers and
end-users, inform our strategy and business model.
Input from relevant stakeholders, or their representatives,
was also, directly or indirectly, utilized in our double
materiality assessment. An example of this is our engagement
with interest organizations such as Compassion for World
Farming, Dyrevernsalliansen, Havforskningsinstituttet and
Veterinærinstituttet, which have informed our assessment of our
impact on fish welfare.
A.
Potential negative impact of health and safety incidents
B.
Actual positive impact of securing an inclusive working
environment
C.
Potential negative impact of incidents of discrimination and
harassment
D.
Actual positive impact on Indigenous Peoples in BC and
Finnmark
E.
Potential negative impact from food safety hazards
F.
Actual negative impact on fish health
G.
Actual negative impact on fish welfare
1.
Physical acute climate-related risk
2.
Physical chronic climate-related risk
3.
Regulatory risk related to sea lice control
1.
Opportunity related to lower-impact farming methods
2.
Financial risk related to fish health
3.
Financial risk related to fish survival rate
Topic
UPSTREAM VALUE CHAIN
OUR OWN OPERATIONS
DOWNSTREAM VALUE CHAIN
Supply chain including fish
feed production
Smolt production
Farming
VAP
Distribution of fish
Consumption of fish
Climate change
A, 1, 2
1, 2
B
Biodiversity and ecosystems
C*
D*, E, F
Own workforce
G, H, I
Affected communities
J
Consumers and end-users
K*
Business conduct
M*
L*, M*, 3*, 4*, 5*, 6
Own workforce
Affected communities
Consumers and end-users
Climate change
Biodiversity and ecosystems
Business conduct
IMPACTS
RISK AND OPPORTUNITIES
Not material
Material
Material
36
3 The definitions of protected areas and areas of high biodiversity value (HCVA), in
accordance with ASC Salmon Standard v1.4 and criterion 2.4, are:
• Protected area: “A clearly defined geographical space, recognized, dedicated and
managed through legal or other effective
• High Conservation Value Areas (HCVA): Natural habitats where conservation values
are considered to be of outstanding significance or critical importance.
means, to achieve the long-term conservation of nature with associated ecosystem
services and cultural values.”
4 The Taskforce on Nature-related Financial Disclosures (TNFD) has published this risk
management and financial disclosure framework on nature-related risks that supports
organizations to report and act on both their impacts and dependencies on nature.
Grieg Seafood is a Member of the TNFD.
Double materiality
assessment
In 2024, we updated our process and
methodology for determining materiality
to conform with the CSRD and the ESRS.
This meant that material impacts, risks and
opportunities (IROs) were assessed based on
the principle of double materiality.
Methodologies and assumptions
The ESRS methodology required a renewed assessment of
impacts, risks and opportunities, with new scoring methodology
and broadened emphasis on upstream and downstream value
chain, including direct and indirect business relationships.
The DMA process examined the upstream value chain across all
regions, from direct (processed) inputs to our own operations, to
raw materials, including those used by actors across our value
chain. Likewise, our consideration of our downstream value chain
spanned from transportation to consumer markets all the way
to end-users consumption of our sold salmon. Nevertheless, our
most significant financial and resource streams were reflected in
the identification of IROs, as this is were material IROs are likely
to emerge. This was because we saw that the scope of impacts,
and the financial effects of risks and opportunities, are orders
of magnitude that decreases as we move up or down the value
chain.
The materiality assessment of IROs followed the predefined
assessment criteria and time horizons set out in ESRS 1.
Short-term time horizon corresponds to 0-1 years, medium-
term to 1-5 years, and long-term to more than 5 years. To
evaluate IROs, a materiality assessment tool was used, which
considers the severity and likelihood of impacts and the
magnitude and likelihood of risks and opportunities. Scoring of
severity, magnitude, and likelihood and consequent thresholds,
was established in alignment with our existing financial risk
framework. Each IRO was scored over each of the defined
time horizons. The outcome of material IROs was based on a
combination of the quantifiable valuation and a subsequent
qualitative assessment.
Impact materiality assessment
Following the value chain mapping, relevant activities and
business relationships were reviewed in light of our negative
and positive impacts on the environment and people, for the
reporting year. This includes both actual impacts and potential
impacts.
The identification of impacts built on previous materiality
assessment under the GRI Universal Standards, including
GRI 13 Sector Standard for agriculture, aquaculture and
fishing sectors. Affected stakeholders were involved for the
purpose of identifying topics that are important to them,
and their views were brought into the assessment through
relevant representatives, as described in section Stakeholder
engagement. Additionally, individuals representing sector- and
sustainability-related expertise were consulted, for example
environmental interest organizations.
The materiality assessment was informed by our due diligence
process, drawing on the OECD Guidelines for Multinational
Enterprises, by the means they overlap with the Norwegian
Transparency Act. This helped the identification and prioritization
of negative impacts in geographical areas with heightened risk.
In particular, highlighted risks for breaches of human rights in
the fish feed supply chain.
To prioritize impacts for reporting based on their significance,
we used the materiality assessment procedure described
earlier, with severity being a function of scale and scope, and
in the case of negative impacts, the irremediability of the
impact was considered. In situations where there is a potential
negative impact on human rights, the severity of the impact was
considered more important than the likelihood of it occurring.
Topic-specific considerations in the identification of
impacts
The process to identify and assess environmental impacts was
informed by a number of additional input parameters;
With regards to actual and potential climate impacts, our
GHG emission data were used to screen activities in our own
operations and across the value chain that contribute to climate
change, and determine the size of negative climate-related
impacts. This meant that all activities within our GHG emission
organizational boundary, categorized into Scope 1, 2 and 3
emissions, were screened based on their actual magnitude. For
potential impacts over the medium- and long-term time horizon,
our emission reduction targets and climate transition plan,
including decarbonization levers, were utilized to identify and
assess the severity and likelihood. For reference, we report on
our transition plan and gross GHG emissions in chapter Climate
change. In the identification and assessment of other climate-
related impacts, such as land-use change, we primarily relied
on stakeholder dialogue, supplier engagement and scientific
research.
For actual and potential impacts on biodiversity and ecosystems
in own operations, we relied on mappings over our sites and
identified the interferences we have with nature using regional
environmental and social impact assessment for all of our farms.
These assessments include information about every operational
site owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas,
which are analyzed on an annual basis.3 These assessments are
The double materiality assessment (DMA) was led by the Global
Finance Officer (GFO) with a mandate from the Chief Financial
Officer (CFO). The GFO established a working group and a
review group, where the former carried out the assessment.
For 2024, the working group consisted of subject matter experts
in group functions for HR and HSE, sustainability (environment
and climate change), finance, fish health, quality, fish feed, sales
and communication. The working group utilized reported data
and obtained expertise from other relevant group functions
and regional representatives when deemed necessary to fill
information gaps. Building the assessment on broad involvement
and representation, including resources from risk management,
was considered to improve quality and credibility of the process.
The identification and assessment of impacts, risks and
opportunities took place in several workshops. In the first round,
Grieg Seafood’s actual and potential impacts on the environment
and people were examined. The second step focused on financial
materiality for sustainability-related risks and opportunities.
Details of these steps are described further down.
The DMA process and outcome were presented to Executive
Management for approval and to further ensure consistency
between our sustainability reporting and business strategy.
Subsequently, the process and outcome were presented to the
board and audit committee.
For the reporting year 2024, the materiality assessment was
not systematically integrated into the overall risk management
process. Consequently, the sustainability-related risks have not
explicitly been benchmarked relative to other types of risks. We
introduced a new risk management policy in October 2024, and
from the reporting year of 2025 it will be possible to harmonize
our risk and impact assessments into one overarching internal
process and methodology. Material and non-material business
opportunities identified in the DMA were assessed independently
from our strategy processes. However, the DMA outcome was
presented in a General Management Meeting, where Chief
Strategy Officer was participating, and strategy was discussed.
The last modification of the DMA was in November 2024. The
annual review of the DMA is planned to the spring, 2025. The
GFO is responsible for reviewing the DMA as a whole and
initiating renewed topic-specific assessments when required,
subject to potential organizational or external changes. At the
time of writing, there is no fixed policy for updating or renewing
the DMA as a whole.
37
also part of the ASC certification process, which includes criteria
to minimize environmental impact and preserve biodiversity.
The sites are stated with geographic location (region and fjord),
description of type of operation in total surface area, and the
reason for classification as area of high biodiversity value,
for example, whether it is located in a national salmon fjord.
Concluding from our assessment, we have two sites located
near or in biodiversity sensitive areas and the ecological status
of these sites has been assessed to be acceptable in accordance
with relevant regulation. See chapter on Material Impacts, Risks
and Opportunities under Biodiversity and Ecosystems for an
overview of all sites.
The identification and assessment of dependencies on
biodiversity and ecosystems and their services was done
integrated into the impact identification described above. In
particular, this identified strong dependencies on oxygen and
water quality in our farming activities.
For potential material impacts on biodiversity and ecosystems
in the upstream value chain, the certification schemes and risk
mapping of raw materials used in fish feed that we conduct
centrally were used as inputs to the DMA. For example, risks of
overfishing and deforestation linked to production of marine- and
land-based and raw materials are regularly documented and
tracked which helped the identification of high-impact areas in
our supply chains.
This assessment of potential impacts and dependencies
corresponds to the first two steps of the LEAP-approach4. We
have prior to our DMA process started to centralize this regional
data on group level using the LEAP approach. Additionally,
affected communities in Canada are consulted with regard to
our interference with nature and the effects our farming has
on biodiversity and ecosystems. This is regulated through our
agreements with each First Nation in Canada. Other affected
communities were not explicitly consulted.
The identification and assessment of impacts related to pollution,
water, and resource use, as defined in the ESRS, relied on above
mentioned assessments in the ways the themes overlap, as
well as available data from our regions. We have not performed
separate distinct screenings of our site locations, assets and
activities regarding these topics. With regards to business
conduct (animal welfare), no distinct criteria was used to identify
impacts.
FINANCIAL MATERIALITY ASSESSMENT
Following the impact assessment, we identified sustainability-
related risks and opportunities, based on the value chain
mapping, in addition to using the impacts identified in the
previous phase as input to find risks or opportunities connected
to the same activities and business relationships. The risk
analysis especially looked at resource dependency. This included
dependencies on natural, human and social capital in our own
operations and in activities across the value chain. The nature
of the financial effects on Grieg Seafood were categorized as
regulatory, technological, market-related, reputational, and
physical, including acute and chronic risks.
The risk and opportunity assessment followed the criteria
described earlier, with magnitude reflecting the size of the
potential financial effects. We integrated predefined criteria and
monetary thresholds in the assessment.
Topic-specific considerations in the identification of
risks and opportunities
The process to identify and assess risks and opportunities
related to environmental matters was informed by previously
conducted risk analyzes.
For climate change, we utilized our mapping of climate-related
risks and opportunities, conducted in accordance with the
recommendations of the Task Force on Climate-Related Financial
Disclosures (TCFD). This helped to identify physical risks,
transitional risks and opportunities related to climate change
for our sites, as well as in our value chain. The identification
built on our climate scenario analysis that considers likelihood
and impacts for different emission pathways and time horizons.
The analysis used two scenarios, including a scenario of “well
below 2 degrees global warming” (SSP1-RCP2.6) and a scenario
of “failing to deliver on the Paris Agreement” (SSP5/6-RCP4.5).
An emission pathway consistent with limiting climate change to
1.5°C was not analyzed. Time horizons were 2030 and 2050 and
not defined relative to our business strategy, capital allocation
plans or financial accounting.
The scenarios used, including the sources and time horizons
applied, were considered plausible seen to the range of scenarios
available. This rested on the assumption that global warming
will likely be kept below 3°C by 2100, and thus, omitted higher
emission scenarios for strategic purposes. The physical and
transitional drivers that were examined for each scenario were
selected based on their relevance for the aquaculture industry,
considering the nature of our business and value chain. In the
first scenario (SSP1-RCP2.6), this assumed increased climate
change mitigation policies and increased costs related to
high emission products, including fish feed and aquaculture
equipment, that Grieg Seafood procures. Additionally, it assumed
increased seawater temperature and water acidification. In the
second scenario (SSP5/6-RCP4.5), the analysis had stronger
emphasis on the physical effects of climate change, including
increases in temperature and extreme weather events. For
2024, there has not been any reported critical climate-related
assumptions in the financial statements that find correspondence
to the used climate scenarios. The ever-changing risks related
to climate change is nonetheless recognized and therefore
regularly assessed against judgements and estimates made in
the preparation of the Group’s financial statements.
Physical climate-related risks covered both acute and chronic
risks. To localize climate-related hazards we additionally relied
on a combination of location-based sensor data, such as sea
water temperature probes measuring sea water temperature at
different depths, and scientific articles. We did not use specific
geospatial coordinates.
Transitional climate-related risks and opportunities covered
changes in regulation, market, technology, and reputation
and were subject to analysis based on input from stakeholder
dialogues, especially our industry collaboration groups, and
publicly available research. The main identified transition events
were carbon taxes, shift in consumer preferences, technological
development in alternative fish-farming methods and proteins,
reputational risks related to our current business model, and
emerging opportunities in innovation and renewable energy
deployment in own operations. As such, the level of exposure
to these transition events for Grieg Seafood informed the
identification and assessment of associated financial risks
and opportunities in the DMA process. When doing this, the
predefined long-term time horizon was complemented by the
2030 and 2050 time horizons applied in the scenario analysis.
The conclusions from the scenario analysis suggested that no
significant assets or business activities are incompatible with
the analyzed future scenarios assuming a climate neutral society
in 2050. We refer to our climate transition plan in the chapter
on Climate change for related information. Last, the scenario
analysis entail projections about the future and is subject to a
high degree of uncertainty. The granularity of underlying data are
expected to improve over time.
For risks and opportunities deriving from environmental matters
other than climate change, we relied on the insights from the
impact materiality assessment as well as existing financial risk
mappings related to biological challenges on our sites. This
assessment considered transitional and physical risks. For risks
and opportunities related to biodiversity and ecosystems, this
corresponds to the third step of the LEAP-approach. With regards
to business conduct, no distinct criteria was used to identify risks
and opportunities.
38
Disclosure requirements
covered by the sustainability
statement
To define the information included in the sustainability statement,
we followed the flowchart laid out in Appendix E in ESRS 1. The
material impacts, risks and opportunities, as concluded in our
materiality assessment, were mapped up against a complete list
of all disclosures in ESRS. Immaterial topics, specified through
their respective disclosure requirements, were eliminated from
the list. To guide the mapping we draw on the EFRAG SR TEG
meeting paper from July 2024 ID 177 - Links between AR16 and
Disclosure requirements.
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regu-
lation reference
EU Climate Law
reference
Page number
ESRS 2 GOV-1 Board’s gender diversity § 21 (d)
x
x
31
ESRS 2 GOV-1 Percentage of board members who are
independent § 21 (e)
x
31
ESRS 2 GOV-4 Statement on due diligence § 30
x
32
ESRS 2 SBM-1 Involvement in activities related to fossil fuel
activities § 40 (d) i
x
x
x
Not material
ESRS 2 SBM-1 Involvement in activities related to chemical
production § 40 (d) ii
x
x
Not material
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons § 40 (d) iii
x
x
Not material
ESRS 2 SBM-1 Involvement in activities related to cultivation
and production of tobacco § 40 (d) iv
x
Not material
ESRS E1-1 Transition plan to reach climate neutrality by 2050
§ 14
x
48
ESRS E1-1 Undertakings excluded from Paris-aligned
Benchmarks § 16 (g)
x
x
49
ESRS E1-4 GHG emission reduction targets § 34
x
x
x
48
ESRS E1-5 Energy consumption from fossil sources
disaggregated by sources (only high climate impact sectors)
§ 38
x
Not material
ESRS E1-5 Energy consumption and mix § 37
x
Not material
ESRS E1-5 Energy intensity associated with activities in high
climate impact sectors § 40 to 43
x
Not material
ESRS E1-6 Gross scope 1, 2, 3 and Total GHG emissions § 44
x
x
x
51
ESRS E1-6 Gross GHG emissions intensity § 53 to 55
x
x
x
51
ESRS E1-7 GHG removals and carbon credits § 56
x
Not material
ESRS E1-9 Exposure of the benchmark portfolio to climate-
related physical risks § 66
x
Not material
ESRS E1-9 Disaggregation of monetary amounts by acute and
chronic physical risk § 66 (a);Location of significant assets at
material physical risk § 66 (c)
x
Not material
ESRS E1-9 Breakdown of the carrying value of its real estate
assets by energy-efficiency classes § 67 (c)
x
Not material
ESRS E1-9 Degree of exposure of the portfolio to climate-
related opportunities § 69
x
Not material
ESRS E2-4 Amount of each pollutant listed in Annex II of the
E-PRTR Regulation emitted to air, water and soil, § 28
x
Not material
ESRS E3-1 Water and marine resources § 9
x
Not material
ESRS E3-1 Dedicated policy § 13
x
Not material
ESRS E3-1 Sustainable oceans and seas § 14
x
Not material
ESRS E3-4 Total water recycled and reused § 28 (c)
x
Not material
ESRS E3-4 Total water consumption in m3 per net revenue on
own operations § 29
x
Not material
ESRS 2- SBM 3 - E4 § 16 (a)
x
55
ESRS 2- SBM 3 - E4 § 16 (b)
x
Not material
ESRS 2- SBM 3 - E4 § 16 (c)
x
54
ESRS E4-2 Sustainable land / agriculture practices or
policies § 24 (b)
x
56
ESRS E4-2 Sustainable oceans / seas practices or policies
§ 24 (c)
x
56
ESRS E4-2 Policies to address deforestation § 24 (d)
x
56
ESRS E5-5 Non-recycled waste § 37 (d)
x
Not material
LIST OF DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION
This naturally requires professional judgement about the
correspondence between a material IRO and a relevant
disclosure requirement or data point. The information in this
report is considered relevant due to its significance in relation
to an IRO and/or its ability to provide the reader with sufficient
relevant information for decision-making. These two principals
were also used to determine whether and what disclosures
specific to Grieg Seafood, not directly covered by a topical ESRS,
that were to be included. No quantitative thresholds were applied
in this process.
39
ESRS E5-5 Hazardous waste and radioactive waste § 39
x
Not material
ESRS 2- SBM3 - S1 Risk of incidents of forced labour § 14 (f)
x
59
ESRS 2- SBM3 - S1 Risk of incidents of child labour § 14 (g)
x
59
ESRS S1-1 Human rights policy commitments § 20
x
60
ESRS S1-1 Due diligence policies on issues addressed by the
fundamental ILO Conventions 1 to 8, § 21
x
60
ESRS S1-1 processes and measures for preventing trafficking
in human beings § 22
x
Not material
ESRS S1-1 workplace accident prevention policy or
management system § 23
x
60
ESRS S1-3 grievance/complaints handling mechanisms § 32
x
60
ESRS S1-14 Number of fatalities and number and rate of
work-related accidents § 88 (b) and (c)
x
x
62
ESRS S1-14 Number of days lost to injuries, accidents,
fatalities or illness § 88 (e)
x
62
ESRS S1-16 Unadjusted gender pay gap § 97 (a)
x
x
62
ESRS S1-16 Excessive CEO pay ratio § 97 (b)
x
62
ESRS S1-17 Incidents of discrimination § 103 (a)
x
Not material
ESRS S1-17 Nonrespect of UNGPs on Business and Human
Rights and OECD § 104 (a)
x
x
Not material
ESRS 2- SBM3 – S2 Significant risk of child labour or forced
labour in the value chain § 11 (b)
x
Not material
ESRS S2-1 Human rights policy commitments § 17
x
Not material
ESRS S2-1 Policies related to value chain workers § 18
x
Not material
ESRS S2-1 Nonrespect of UNGPs on Business and Human
Rights principles and OECD guidelines § 19
x
x
Not material
ESRS S2-1 Due diligence policies on issues addressed by the
fundamental ILO Conventions 1 to 8, § 19
x
Not material
ESRS S2-4 Human rights issues and incidents connected to
its upstream and downstream value chain § 36
x
Not material
ESRS S3-1 Human rights policy commitments § 16
x
64
ESRS S3-1 non-respect of UNGPs on Business and Human
Rights, ILO principles or and OECD guidelines § 17
x
x
64
ESRS S3-4 Human rights issues and incidents § 36
x
Not material
ESRS S4-1 Policies related to consumers and end-users § 1
x
66
ESRS S4-1 Non-respect of UNGPs on Business and Human
Rights and OECD guidelines § 17
x
x
66
ESRS S4-4 Human rights issues and incidents § 35
x
Not material
ESRS G1-1 United Nations Convention against Corruption §
10 (b)
x
Not material
ESRS G1-1 Protection of whistle-blowers § 10 (d)
x
Not material
ESRS G1-4 Fines for violation of anti-corruption and anti-
bribery laws § 24 (a)
x
x
Not material
ESRS G1-4 Standards of anti-corruption and anti- bribery §
24 (b)
x
Not material
Disclosure requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regu-
lation reference
EU Climate Law
reference
Page number
40
SUSTAINABILITY STATEMENT
Environmental
information
EU Taxonomy
BACKGROUND AND SCOPE
The EU taxonomy serves as a classification framework
that defines a set of economic activities considered to be
environmentally sustainable. Its primary goal is to facilitate
the expansion of investments in environmentally sustainable
practices, contributing to the achievement of the European
Union's 2030 climate and environmental goals and advancing
the objectives outlined in the European Green Deal.
Environmentally sustainable economic activities are described as those which “make a substantial contribution
to at least one of the EU’s climate and environmental objectives, while at the same time not significantly harming
any of these objectives and meeting minimum safeguards.”
As a non-financial company, Grieg Seafood ASA is in scope of the Taxonomy Regulation (EU) 2020/852
and the Delegated Acts to disclose information on the proportion of the company's revenue (Turnover),
capital expenditure (CapEx), and operating expenses (OpEx) associated with assets or processes related to
environmentally sustainable economic activities. The information is compiled on a Group consolidated level
displayed in Norwegian Kroner (NOK), consistent with the format used in the consolidated financial statements.
For the mandatory KPI’s under the EU Taxonomy, further information concerning reconciliation with the
consolidated financial statements of Grieg Seafood has been provided below.
41
ELIGIBLE AND ALIGNED ECONOMIC ACTIVITIES
Grieg Seafood has established that economic activities qualify as
eligible if they can be evaluated against the technical screening
criteria outlined in the Climate Delegated Act as well as the
Environmental Delegated Act and possess the potential to
either be or become taxonomy aligned. The scope for the 2024
reporting year has been expanded from 2023, now encompassing
all climate objectives, whereas in 2023, only the first objective
was included. Consequently, this year’s screening process was
conducted towards all six environmental objectives. Where
we have recognized Climate Change Mitigation (CCM) as the
most relevant objective for Grieg Seafood, and has identified
the following economic activities to be eligible under the EU
taxonomy reporting as at year-end 2024:
CCM 6.5 Transport by motorbikes, passenger cars and
light commercial vehicles
This activity refers to the purchase, financing, renting, leasing
and operation of vehicles, for the Group, typically passenger cars.
Grieg Seafood utilizes passenger cars, both owned and leased, as
a means of transportation of personnel between farms, our land-
based facilities and administration offices sites. The fleet contains
both ICE and electric vehicles.
CCM 6.10 Sea and coastal freight water transport,
vessels for port operations and auxiliary activities
This activity refers to operation, purchase and chartering of
vessels designed and equipped for transport of freight or for
the combined transport of freight and passengers on sea or
coastal waters, whether scheduled or not, and auxiliary activities.
For this activity, we have allocated CapEx and OpEx related to
assets that are designed and equipped for the transportation of
freight, including fish, irrespective of the usage of the asset. This
is particularly relevant for well boats. Grieg Seafood operates,
through long-term time charter contracts, well boats which is
utilized in the farming operations primarily for treatments, smolt
transportation and transportation of fish to harvesting plants.
Well boats are designed and equipped for transportation of fish.
This activity also includes service vessels and stun-and-bleed
boats designed and equipped for transportation. Such boats are
generally designed as multi-purpose and can perform a variety
of different activities at a fish farm. The CapEx in 2023 was higher
than usual, given investments into five assets: the boats Ronja
Silver, Ronja Islander, Roy Kristian, Multi Safety and Ragged
Islander. As such, there has been a material decrease in the
CapEx for this activity in 2024 when compared to 2023.
CCM 7.1 Construction of new buildings
This activity covers the construction of new buildings. In 2024,
the Group made significant investments in its facilities in British
Columbia, as well as the addition of a new unit at the freshwater
facility in Adamselv, Finnmark. This significant effect is reflected
in its CapEx KPI.
CCM 7.4 Installation, maintenance and repair of
charging stations for electric vehicles in buildings (and
parking spaces attached to buildings)
This activity refers to installation, maintenance and repair of
charging stations for electric vehicles in buildings and parking
spaces attached to buildings. Grieg Seafood has charging
stations at its facilities in Rogaland and Finnmark, providing
access for employees and company vehicles.
CCM 7.7 Acquisition and ownership of buildings
The activity refers to buying real estate and exercising ownership
of that real estate. Grieg Seafood owns and operates buildings
and lease properties through its ordinary course of business.
We have an integrated value chain, and own broodstock, smolt
facilities and harvesting plants on land, in addition to owned and
leased buildings that function as land bases in the near proximity
of certain fish farms in our regions. Additionally, we own and
lease administration buildings for our farming regions, sales
operations and corporate headquarter.
EVALUATED ACTIVITIES WHICH WERE NOT
EVALUATED AS ELIGIBLE
Grieg Seafood engages in several other taxonomy-eligible
activities. However, these activities either have no CapEx, OpEx
and turnover in 2024 or are carried out through third-party
partners. The Group is involved in activity 7.6 (Installation,
maintenance, and repair of renewable energy technologies)
through the solar panels installed on the roof of its offices at
Judaberg, Rogaland. However, this activity is not included in
2024 due to the absence of CapEx, OpEx, and turnover. Activity
2.3 (Collection and transport of non-hazardous and hazardous
waste) and 5.7 (Anaerobic digestion of bio-waste) are conducted
through third parties who retrieves non-hazardous waste,
hazardous waste and bio-waste, and process the resulting waste.
Activity 4.29 (Electricity generation from fossil gaseous fuels)
was also assessed, but Grieg Seafood utilizes alternative fuels in
their generators rather than fossil gaseous fuels.
DETERMINING WHETHER ELIGIBLE ACTIVITIES ARE
ALIGNED WITH THE TAXONOMY CRITERIA
The EU Taxonomy regulation sets out three overarching
conditions that an economic activity must meet in order to qualify
as environmentally sustainable. Firstly, the activity must do a
substantial contribution to at least one of the six environmental
objectives, Secondly, the activity must do no significant harm
to any of the other five environmental objectives. Third, the
company must comply with the minimum safeguards. For the
first and the second conditions the activity must comply with the
technical screening criteria set out in the Taxonomy Delegated
Acts.
We believe that the sustainable production of salmon is vital to feed a growing population in the world. As at year-end 2024, the core
operations of Grieg Seafood which mainly consists of aquaculture has not been defined as either an eligible or non-eligible activity
according to the EU Taxonomy. Consequently, Aquaculture as a whole is treated as a non-eligible activity for 2024. As at year-end 2024,
the assessment of the eligible activities has resulted in none of the activities being taxonomy aligned as of 31 December 2024.
TECHNICAL SCREENING PROCEDURES
Grieg Seafood has implemented the assessment of technical screening criteria for the environmental objectives; 1. Climate Change
Mitigation, 2. Climate Change Adaptation, 3. Water and Marine Resources, 4. Circular Economy, 5. Pollution Prevention and Control, and 6.
Biodiversity and Ecosystems according to the EU Taxonomy.
An economic activity contributes substantially to the environmental objective climate change mitigation where that activity complies
with the technical criteria for substantial contribution to the stabilization of greenhouse gas concentrations in the atmosphere at a level
consistent with the Paris Agreement.
Grieg Seafood has carried out the technical screening procedures as follows:
• The DNSH criterion for Climate Change Adaption, as outlined in Appendix A, has not been conducted for any of the activities at this time,
and therefore, no further assessment has been conducted.
• Grieg Seafood has a group wide and global approach to the assessment of minimum safeguards.
KPI DENOMINATOR
REVENUE (TURNOVER)
Revenue represent Grieg Seafood’s total revenue from contracts with customers, in addition to other income.
REVENUE NOK MILLION
NOTE
2024
Sales revenues
Note 5/6 to the Group Accounts
7 381
Other income
33
Total revenue according to the EU Taxonomy
7 414
CAPITAL EXPENDITURES
Total capital expenditures (CapEx) according to the EU Taxonomy consists of additions of property, plant and equipment including right
of-use assets and additions to intangible assets.
The total CapEx according to the EU Taxonomy is consistent with the consolidated financial statement of Grieg Seafood. All reported
expenditures are under category A in accordance with Section 1.1.3.2 of Annex I to the Disclosures Delegated Act as stated in the EU
Taxonomy.
CAPITAL EXPENDITURES NOK MILLION
NOTE
2024
Intangible assets
Note 13 to the Group Accounts
2
Property, plant and equipment incl. right-of-used assets
Note 14 to the Group Accounts
1 586
Total CapEx according to EU Taxonomy
1 588
Grieg Seafood is a salmon farming company, and we hold biological assets on our balance sheet. According to the EU Taxonomy,
additions to biological assets are a part of CapEx. For Grieg Seafood, biological assets is classified as current assets and a part of the
Group’s working capital. Additions to biological assets (at cost) has therefore not been included as part of the CapEx reported under the
EU Taxonomy as stated in the table above, since biological assets is not property, plant and equipment.
42
MINIMUM SAFEGUARDS
Grieg Seafood and its subsidiaries ensures that its economic activities strictly adhere to minimum safeguards, with most of these
principles being addressed through Group policies that are in alignment with both national and global regulations.
HUMAN RIGHTS
CORRUPTION
TAXATION
FAIR COMPETITION
Grieg Seafood is committed to the
UN Guiding Principles on Business
and Human Rights (UNGP) and
OECD Guidelines for MNEs, and have
established a Human Rights Due
Diligence Process in line with the
Norwegian Transparency Act where
we have used the OECD Guidelines
in the implementation of the law,
and based our due diligence process
on the approach of the UNGP.
Furthermore, our group policy on
Humans rights reflects both the
guidelines as well as our company
values. Through this policy our
operations are in line with the ILO
declaration on fundamental principles
as well as The United Nations
Conventions on the Rights of the Child
(UNCRC) as well as others covered
in larger detail in our policy. We have
also addressed consumer safety
through our policy for food safety.
Grieg Seafood perform risk
assessments of our operations
and have mitigating measures and
controls to prevent corruption. We
also perform risk assessments of the
countries where we operate. This is
further ensured through our anti-
corruption and anti-money laundering
policies, as well as thorough
coverage of these policies during the
onboarding process. Grieg Seafood
or any senior management affiliated
with the company has not been finally
convicted in court on corruption.
Grieg Seafood treat tax governance
and compliance as integral
components of its oversight
framework and maintains tax
management practices in strict
accordance with national accounting
principles and laws. This is assured
through continuous assessments of
tax regulations in the regions where
the group operates. Lastly, Grieg
Seafood or its subsidiaries has not
been found violating of tax laws.
Grieg Seafood ensures compliance
with competition laws through our
Code of Conduct, which all employees
are obliged to comprehend and comply
with through our Code of Conduct
Program. Neither Grieg Seafood or its
senior management has been finally
convicted on violating competition
laws.
NUCLEAR AND FOSSIL GAS RELATED ACTIVITIES
The disclosure requirement for Grieg Seafood’s exposure to nuclear and fossil gas related activities is provided in the table below.
ROW
NUCLEAR ENERGY RELATED ACTIVITIES
YES/NO
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity
or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
No
FOSSIL GAS RELATED ACTIVITIES
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels.
No
OPERATING EXPENSES
The definition of OpEx under the EU Taxonomy is not consistent with the operating expenses as included in the Group’s consolidated
financial statement. In short, the OpEx under the EU Taxonomy cover only part of the operating expenses in the consolidated financial
statement, as the EU Taxonomy’s OpEx definition is more narrow.
Total operating expenses (OpEx) according to the EU Taxonomy covers the direct non-capitalized costs that relate to research and
development, building renovation, short-term leases, maintenance and repair, and any direct expenditures relating to the day-to-day
servicing of assets of property, plant and equipment that are necessary to ensure the continued and effective functioning use of such
assets. In 2023, property tax was included in the OpEx calculations. However, for 2024, it has been excluded based on the assessment
that it does not constitute day-to-day servicing.
OPERATING EXPENSES NOK MILLION
NOTE
2024
Other operating expenses
Note 9 to the Group Accounts
2 458
Other operating expenses according to IFRS, not defined
as OpEx according to the EU Taxonomy
1 987
Total OpEx according to EU Taxonomy
471
KPI NUMERATOR
The KPI numerators consist of the taxonomy-eligible and taxonomy-aligned revenue, CapEx and OpEx that are included in the
denominator.
DOUBLE COUNTING
As previously mentioned, we have only identified activities under Climate Change Mitigation as the primary screening criterion and
thereby preventing double counting. During the calculation of the financial KPIs, double counting of source material between the
presented economic activities was avoided. This was ensured through the utilization of factors specific to each activity, in doing so the
basis for each factor is either fully part of the given activity or not. Dummy variables were used in order to split the numbers into the
activities that were assessed as relevant. In effect the sum of all values connected to an activity cannot become more than 100%.
43
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FIGURE 2.17
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FINANCIAL YEAR 2024
YEAR
SUBSTANTIAL CONTRIBUTION CRITERIA
DNSH CRITERIA (‘DOES NOT SIGNIFICANTLY HARM’)
ECONOMIC ACTIVITIES
Code
Turnover
(mNOK)
Proportion
of turnover,
year 2024
%
Climate
change
mitigation Y;
N; N/EL
Climate
change
adaptation
Y; N; N/EL
Water
Y; N; N/EL
Pollution Y;
N; N/EL
Circular
economy Y;
N; N/EL
Biodiversity
Y; N; N/EL
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water
Y/N
Pollution
Y/N
Circular
economy
Y/N
Biodiversity
Y/N
Minimum
safeguards
Y/N
Proportion of
Taxono-
my-aligned
(A.1) or
-eligible (A.2)
turnover,
year 2023 %
Category
(enabling
activity)
E
Category
(transitional
activity)
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-
Turnover of environmentally sustainable activities (Taxonomy-aligned)
(A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
0
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
CCM 6.10
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Construction of new buildings
CCM 7.1
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings)
CCM 7.4
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Acquisition and ownership of buildings
CCM 7.7
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Turnover of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
0
0%
0%
0%
0%
0%
0%
0%
0%
Turnover of Taxonomy-eligible activities (A.1+A.2)
0
0%
0%
0%
0%
0%
0%
0%
0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
7 414
100%
TOTAL (A+B)
7 414
100%
* Activity not reported in the 2023 taxonomy
44
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FIGURE 2.18
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FINANCIAL YEAR 2024
YEAR
SUBSTANTIAL CONTRIBUTION CRITERIA
DNSH CRITERIA (‘DOES NOT SIGNIFICANTLY HARM’)
ECONOMIC ACTIVITIES
Code
CapEx
(mNOK)
Proportion of
CapEx, year
2024 %
Climate
change
mitigationY;
N; N/EL
Climate
change
adaptation
Y; N; N/EL
Water
Y; N; N/EL
Pollution Y;
N; N/EL
Circular
economy Y;
N; N/EL
Biodiversity
Y; N; N/EL
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water
Y/N
Pollution
Y/N
Circular
economy
Y/N
Biodiversity
Y/N
Minimum
safeguards
Y/N
Proportion of
Taxono-
my-aligned
(A.1) or
-eligible (A.2)
CapEx, year
2023 %
Category
(enabling
activity)
E
Category
(transitional
activity)
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. CapEx of environmentally sustainable activities (Taxono-
my-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned)
(A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
0
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
28
2%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
CCM 6.10
126
8%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
40%
Construction of new buildings
CCM 7.1
897
56%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings)
CCM 7.4
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Acquisition and ownership of buildings
CCM 7.7
15
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
12%
CapEx of Taxonomy-eligible but not environmentally sustainable activi-
ties (not Taxonomy-aligned activities) (A.2)
1 065
67%
0%
0%
0%
0%
0%
0%
53%
CapEx of Taxonomy-eligible activities (A.1+A.2)
1 065
67%
0%
0%
0%
0%
0%
0%
53%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
523
33%
TOTAL (A+B)
1 588
100%
* Activity not reported in the 2023 taxonomy
45
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FIGURE 2.19
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
FINANCIAL YEAR 2024
YEAR
SUBSTANTIAL CONTRIBUTION CRITERIA
DNSH CRITERIA (‘DOES NOT SIGNIFICANTLY HARM’)
ECONOMIC ACTIVITIES
Code
OpEx
(mNOK)
Proportion
of OpEx,
year 2024
%
Climate
change
mitigation Y;
N; N/EL
Climate
change
adaptation
Y; N; N/EL
Water
Y; N; N/EL
Pollution Y;
N; N/EL
Circular
economy Y;
N; N/EL
Biodiversity
Y; N; N/EL
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water
Y/N
Pollution
Y/N
Circular
economy
Y/N
Biodiversity
Y/N
Minimum
safeguards
Y/N
Proportion of
Taxono-
my-aligned
(A.1) or
-eligible (A.2)
OpEx, year
2023 %
Category
(enabling
activity)
E
Category
(transitional
activity)
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. OpEx of environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned)
(A.1)
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
0
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2 Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
4
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Sea and coastal freight water transport, vessels for port operations
and auxiliary activities
CCM 6.10
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
Construction of new buildings
CCM 7.1
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings)
CCM 7.4
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/A*
Acquisition and ownership of buildings
CCM 7.7
11
2%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
8%
OpEx of Taxonomy-eligible but not environmentally sustainable activi-
ties (not Taxonomy-aligned activities) (A.2)
16
3%
0%
0%
0%
0%
0%
0%
9%
OpEx of Taxonomy-eligible activities (A.1+A.2)
16
3%
0%
0%
0%
0%
0%
0%
9%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
455
97%
TOTAL (A+B)
471
100%
* Activity not reported in the 2023 taxonomy
46
Climate change
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk
and opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Actual negative impact
from GHG emissions in
our supply chain
X
The supply chains of our fish feed involve land-use change,
transportation, processing, and use of fertilizers. We also purchase
a range of other products and services in all our regions that have
embedded upstream GHG emissions. These activities hinder climate
change mitigation and have an actual negative impact on the
environment.
Stable
Decrease
Decrease
Physical acute climate-
related risk
X
Droughts and floods may affect supply of land-based agricultural input
ingredients for fish feed. Corresponding cost increases will be passed
on to Grieg Seafood.
Stable
Increase
Increase
Physical chronic
climate-related risk
X
The “El Niño” weather phenomenon changes conditions for wild
fisheries. This may negatively affect the availability and price of
marine raw materials which are valuable ingredients in our fish feed.
Corresponding cost increases will be passed on to Grieg Seafood.
Increase
Decrease
Decrease
Physical acute climate-
related risk
X
More frequent extreme weather events such as storms, waves, and ice
can damage production facilities and infrastructure, and increase the
risk for fish escapes, as well as work accidents. This can cause direct
increased costs due to repairment services and income loss due to
disruption in production.
Stable
Increase
Increase
Physical chronic
climate-related risk
X
Increased ocean temperature leads to more algae blooms that reduce
available oxygen in the water columns and can lead to stress on the
salmon, and in worst case cause mortalities. This can lead to income
loss due to lost production volumes.
Increase
Decrease
Decrease
Actual negative impact
from GHG emissions
from transportation to
market
X
The daily deliverance of salmon to market rely on fuel combusting
vehicles, generating additional GHG emissions. These activities hinder
climate change mitigation and have an actual negative impact on the
environment.
Stable
Decrease
Decrease
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
Our salmon farming contribute to significant GHG emissions
across the value chain, with emissions related to feed fish, our
largest input factor, being especially prominent. Transportation of
fresh salmon to customers also results in significant emissions,
particularly air transport to distant markets. We also depend
on fossil fuels for our work boats and barges, although these
represent a smaller amount of our total emissions.
We have also identified material climate-related physical acute
risks in our operations and value chain. Producing salmon in
open, remote, and weather intense fjords in Norway and Canada,
we are exposed to increasing harsher weather conditions and
extreme weather events. This triggers the risk for damages to
our production facilities and infrastructure. This can happen
when higher amount of ice on our pens reduces the floating
capacity and the pens may sink. We might have situations where
the fish manage to escape due to damages on the constructions.
These events can result in decreased harvest due to loss of fish,
or lost opportunity to farm in the most exposed areas. Looking at
our upstream value chain, we depend on the global supply chain
and cost development of fish feed. Extreme weather events, such
as droughts and floods, can negatively impact agricultural feed
inputs such as soy and wheat which may in turn affect availability
and cost of our key production input factor.
We also face climate-related physical chronic risks, primarily due
to increasing ocean temperature resulting from climate change.
In our own operations, it can lead to increased algae blooms,
reduced oxygen availability and increased stress for the salmon,
which potentially harms our production. In our upstream value
chain, weather phenomenon like “El Niño” can contribute to
changes in global supply of fish meal and fish oil, and potentially
passing on increased fish feed costs to Grieg Seafood.
Concluding from our materiality assessment in 2024, we have no
material financial risks related to climate transition events such
as increased climate change regulation or significant changes in
consumer preferences. We see Grieg Seafood as being
47
repositioning. We also have three operational focus areas,
namely less time at sea, preventative farming practices and fish
welfare, and precision farming. These areas are indirectly related
to climate-related risks.
Growth will be driven by improved utilization of current
operations, with a focus on increased smolt size, by investing in
land-based smolt, and post-smolt production. This growth will
limit our risk towards the challenges brought by the physical
acute and chronic climate- and environmental risks. This is
especially true for the risks of lice, diseases, parasites, jelly
fish and algae blooms. The growth strategy is also supported
by an ambitious digital strategy called precision farming, which
helps us improve our production planning and data handling for
operational decision support.
The strategy related to cost-competitiveness focuses on
optimizing our production in line with our production capacity,
providing the ideal number of salmon to market as our licenses
can produce. This is a complicated relation between biological
and environmental conditions, and handling the unforeseen
changes in production at all times. Addressing this together with
our comprehensive data-driven decision support tools, we can
produce at the lowest cost, achieve best fish welfare and emit
less emissions to the environment.
The strategy related to value chain repositioning links to
strengthening our downstream value chain focus. By increasing
our secondary processing capacity we increase the value of our
product. In this business model, we reduce the effect on our
margins due to downgrades from production related incidents.
Additionally, we transport a higher-value product at a lower
weight to market, which impacts our downstream transportation
emissions. As such, value-added processing is a key strategic
part of our climate transition plan.
ABOUT THE CLIMATE RESILIENCE ANALYSIS
The scope of the resilience analysis encompasses our own
operations as well as our upstream and downstream value chain,
with particular focus on those areas connected to our material
impacts and risks are located. It was informed by the scenario
analysis that we conducted as part of our TCFD disclosure in
2023, and applied the same time horizons 2030 and 2050. The
conclusions from the scenario analysis were then used to stress
test our business strategy, informing the resilience of each
of the three business strategic areas. The scenario analysis
is described in Double materiality assessment under chapter
General information.
The resilience analysis rested on assumptions about the
macroeconomic trends given by the SSP15 " Taking the green
road". This expects that the Paris Agreement will be met,
low-carbon initiatives will be implemented, and suppliers and
intergovernmental policies that affect our business adapt to our
common terms on reducing fossil dependency and emissions.
The analysis further rested on the assumption that the energy
consumption will increase when more of the operations will
switch over to grid electricity. The mix of this electricity will
also be supplied by renewable energy as the development
and availability of clean, renewable energy has been heavily
funded in Europe and Canada. The technological deployment
assumptions are based on further development of open net
farms which are tailored to the specific needs of each site, i.e net
and pen size, assisting systems like skirts, predator nets, and
aeration. The analysis did not consider current and anticipated
financial effects of the specific material risks identified in our
materiality analysis, beyond the assessments performed in
association with the materiality scoring.
The conclusions made are subject to a number of uncertainties.
In particular, estimations on fish feed cost increases as an effect
of global warming contains a high degree of uncertainty. Also,
climate-related risks related to sea lice, and its implications
on our future production, depend on several factors and varies
between our regions. Lastly, the future effects of increased
seawater temperature on lice levels in our regions requires
a comprehensive analysis, which is yet to be performed. The
ability to adjust or adapt our strategy and business model on a
larger scale with specific regards to climate change transition,
including funding over the short-, medium- and long-term,
depends on a full assessment of current and future resources,
among other factors.
well placed to mitigate these risks. Nonetheless, to get a full
overview over how climate-related transition risk may evolve
and potentially affect us, we will further develop likelihood and
impacts analyses under different emission pathways and time
horizons.
Following our climate-related resilience analysis explained
further down, our business strategy is well aligned in meeting
the material impacts and risks that we have identified. The
impacts related to production of the fish feed we source will
be mitigated partially by reducing our feed conversion ratio.
This is done by improving our biological performance through
increased post-smolt production. Our post-smolt strategy also
addresses our material physical risks related to increased fish
feed prices, as these are mitigated partially by reducing our
feed conversion ratio. Overall, we are continuously working to
reduce our impact from fish feed through feed trials, research
and development on novel ingredients. The aim of this strategy is
to reduce our environmental impact from the vegetables used as
raw material input in our feed. We have a target to increase our
raw material basket with 5% novel ingredient inclusion towards
2030. Additionally, the material impact from transportation of
our product to market is mitigated through our investments in
our Canadian operation, increasing our production on both the
east and west coast. This enables us to deliver fresh salmon
to a strategically key growing American market closer to our
operations, reducing our dependence on high emitting air freight.
Our overall strategy is based on three focus areas which stands
on a foundation of sustainable principles. The three strategic
areas are global growth, cost improvement, and value chain
POLICIES
Our climate action policy dictates how we manage our material
impacts and risks related to climate change mitigation and
adaptation, in particular, negative impacts related to GHG
emissions from our fish feed supply chain and transportation
to market. The general objective of the policy is to outline our
contribution to fulfill the Paris Agreement and how we work
to reduce climate-related risks. Our material physical climate-
related risks are not directly addressed in the policy per today.
These are only covered on an overarching level, addressing
climate risks related to the sourcing of raw materials in our fish
feed. The policy is group-wide and cover all our geographies,
including relevant part of the value chain.
The policy lists the principles that govern our efforts and
commitments, which include reducing GHG emissions from fish
feed, favoring low carbon transportation methods, reducing the
carbon footprint of our production, encouraging suppliers to take
climate action, improving transparency and robustness of GHG
reporting standards, and not engaging in lobbying activities that
run contrary to the Paris Agreement. With regards to energy
deployment and efficiency in particular, the policy outlines that
eliminating our dependence on finite energy sources, as well as
optimizing transportation of our products, is fundamental for
reducing emissions. In addition, it states that renewable energy
sources shall be preferred in regions where that is commercially
available, and where not, that Grieg Seafood should take part in
R&D projects related to renewable energy.
The policy also describes how we track, report and measure our
global warming potential and the delegation of responsibilities,
with the CEO approving the policy, COO, CTO and CCO reviewing
and updating the policy, and regional directors, managers and
supervisors responsible for implementing the policy.
In addition, our policy related to sustainable feed includes one
principle addressing the climate related issues of fish feed
and sets forth a target to reduce GHG from feed by 30% (2018
baseline).
The policies are available to anyone on our website.
5 Shared Socioeconomic Pathways (SSPs)
48
TRANSITION PLAN
We have developed our transition plan that manifests how
we will achieve our climate target by 2030. The transition
plan has been presented to management and the board,
and the implementation of the actions is subject to approval
and financing, as determined on an ongoing basis. The
decarbonization levers have been considered the most critical
areas for emission reduction in our own operations and across
our value chain. We have conducted a climate-related scenario
analysis assuming a “well below 2 degrees global warming”
(SSP1-RCP2.6) and a scenario of “failing to deliver on the Paris
Our climate transition plan addresses our material climate-
related impacts and risks and contains the actions, investments
and GHG emission cuts necessary to limit global warming to
1.5 °C by 2030, in line with the Paris Agreement. The transition
plan builds on our target of reducing our GHG emissions in all
scopes with 42% by 2030, from the base year 2020.
6 The target is based on the location-based method for calculating scope 2 emissions.
GHG EMISSION REDUCTION TARGETS
Grieg Seafood has an absolute target to reduce our GHG
emissions with 42% by 2030 and net zero by 2050, from the base
year 2020. The target is combined for Scope 1, 2 and 3 and is
consistent with our GHG inventory boundaries and accounting
principles, as outlined in the Notes to this chapter.6 It means it
covers our own operations and upstream and downstream value
chain without excluding any activities. It is a gross target and
does not include any means of GHG emission compensation.
The target is science-based and compatible with limiting global
warming to 1.5 °C, consistent with our policy objective. The
targets have been set using The Corporate Net Zero Standard
by the Science Based Target Initiative (SBTi). No sectoral
decarbonization pathway was considered as salmon based
aquaculture is not part of such pathways. We have conducted
a climate-related scenario analysis as reported in previous
sections. This was assessed as part of the target setting process.
In addition, the target was set based on own projections of future
production volumes, reflecting expected increases in customer
demand of farmed salmon products driven by increased needs
for protein sources with lower relative emissions.
Sustainable feed focus on increasing the share of raw materials
in our fish feed that has lower production-related GHG emissions.
As a starting point, this requires an improvement in data quality
to ensure that actions result in tangible GHG reductions. To
capture the real incremental and time bound improvements
suppliers do reduce their GHG emissions, we need to capture
data from primary sources. Subsequently, when quality data is
in place, we plan on shifting towards fish feed with lower relative
emissions. We will also work towards decreased conversion
rate, corresponding to indirect GHG emission reductions
through lower feed consumption volumes. For this aim, fish feed
supplier engagement is the main strategic focus. We have not
yet quantified the costs of this decarbonization lever, nor the
predicted long-term cost savings.
Sustainable farming is driven by our post-smolt business
strategy and involves a set of production optimization efforts
in our salmon farming, including improvements in production
output, fish survivability, reduced feed conversion rate and
reduced days to harvest. Together, these efforts contribute to
less resources used that drive down GHG emissions over time.
We have not yet allocated the cost of the targeted emissions
reductions from the overall post-smolt investments.
Low emission transport focus on reducing emissions from our
transports to market. The focus areas are to reduce transport
distances by locating production closer to our main markets,
and by using our influence to support suppliers’ provision of
lower emission transport alternatives in line with a gradual
emission reduction pathway. Air freight is and will be a priority
for this considering its large share of our total transport-
related emissions. We have not yet quantified the cost of this
decarbonization lever.
In 2024, the target was reviewed and updated, in line with the
SBTi criteria of target revalidation at minimum every five year.
This includes that the target will be complemented by a Forest,
Land- and Agriculture (FLAG) target. The majority of our climate
emissions originates from FLAG related emissions, for which
such target is required by the SBTi. The target will be submitted
for approval to the SBTi in 2025, and thus, is not externally
assured at the time of writing.
The base year rationale and recalculation policy is described in
the Notes to this chapter.
External stakeholders have not been involved in setting or
tracking performance against targets, beyond relying on external
verification of the SBTi.
For reference, the target levels were set prior to defining our
material climate-related impacts and risks in 2024. The targets
do, nonetheless, drive emission reductions in areas where we
have significant emissions and related risks.
Agreement” (SSP5/6-RCP4.5). The conclusions provide us with
key insights about our principal climate-related risks towards our
2030 and 2050 climate targets time horizons. The scenarios have
not informed the determination of decarbonization levers per se.
The decarbonization levers and their expected contribution are
described on an overarching level below, and encompass Scope
1, 2 and 3 GHG emission reductions. The underpinning actions
are elaborated on in next section.
Scope 1
Scope 2
Scope 3
FIGURE 2.20
49
Value added processing is driven by our business strategy
of value chain repositioning and will increase our VAP share.
Subsequently, this will reduce weight of the products we
transport to market that result in less fuel used and thus cuts
emissions. In relation, we see technological potential of using
recycled and re-used content in the packaging that further
can reduce the associated GHG emissions while contributing
to increase resource circularity in the packaging value chain.
We have not yet allocated the cost of the targeted emissions
reductions from the overall VAP investments.
Fossil fuel reduction signifies an overall reduction of direct
GHG emissions in our own operations. It includes transitioning
our fleet of work- and personnel boats to electric and diesel-
electric propulsion systems and connecting fish feed barges to
the onshore grid electricity. The majority of our operational GHG
emissions generate from our well boats. We deem these vessels
not to be transformed into low-emission assets by 2030, as the
technological requirements for hydrogen- and ammonia-fuelled
vessels are still being developed. However, transitioning these
vessels will be integral to our long-term target achievement.
By activating these decarbonization levers, we plan to
achieve our 42% GHG emission reduction by 2030. The target
on achieving 100% reduction by 2050 in line with a climate
neutral society is challenging. We have not fully assessed the
implications for our business and plans related to the transition
required to achieve this target. For this reason we have proposed
a 10% carbon offset for residual emissions by 2050, in line with
the SBTi net zero criteria. This is shown in the transition plan
figure. We will further assess the details related to the long term
target from 2030 towards 2050, as we update and inform around
our sustainable business strategy in the future.
In connection to above information, we have performed a high
level assessment of potential locked-in GHG emissions from our
key assets and products. Our transition plan takes into account
our energy-intense operational assets, including work boats and
feed barges. We assess that many of these can be refurbished
and/or substituted in a longer time horizon, and thus, that there
are no locked-in emissions related to these fossil fuel-driven
assets that affect the achievement of our 2050 target.
Investments supporting the implementation of the transition
plan are detailed under the corresponding actions in next
section. None of these actions, and related investments are
associated with CapEx that is taxonomy-aligned, or plans to
achieve alignment, as disclosed in the EU Taxonomy section. If
activities in the aquaculture sector were to be covered in the
EU Taxonomy, an increase in alignment of key performance
indicators, in particular revenue, would be expected. With
reference to the EU Paris-aligned Benchmarks, Grieg Seafood is
not excluded following any of the outlined exclusion criteria.
The transition plan is embedded in our business strategy in
several ways as mentioned above. The actions under sustainable
farming are directly driven by our post-smolt strategy to mitigate
our risks related to open sea-based production, as a means to
increase growth. In consequence, it reduces our relative feed
use and increase our output at a lower energy use. The current
financial planning is to a large extent related to allocating funds
toward these land-based facility investments. Further, the
transition plan builds on the business value creation plan that
targets an increase in value-added processing, which in turn
will contribute to reducing the overall carbon footprint of our
products.
PROGRESS IN IMPLEMENTING THE TRANSITION
PLAN
In absolute terms, we have not been able to deliver on the
planned GHG emission reduction progress from 2020 to 2024.
Since 2020, we have increased our GHG emissions with 2-3%,
while according to our plan we should have had a reduction
of 4,2% per year. The decarbonization levers that have been
the more difficult to activate are also the once that represent
the majority of our total GHG emissions. These are sustainable
feed and low emission transport. As such, the outcome must be
understood in context of two principal factors.
First, for sustainable feed, the reductions required are dependent
on reliable data. Due to uncertainties in the underlying data for
fish feed emissions it has been challenging to measure on the
ground GHG emission reductions in the upstream value chain.
Further, actions activated by our supplier engagement drive
emission reductions over time, for which we have not yet seen
effects in line with the calculated target.
Second, the measures required for low carbon transportation are
related to increased costs and potential loss of sales revenue,
that have not been fully assessed and incorporated into the
transition plan. Up until now, the cost associated with switching
to lower emission transports have not been covered up for in the
short-term time horizons. Further, to build up new production to
locate our production closer to the market is subject to business
strategic decisions and still requires long-term financial planning.
In 2024 we did several investments and implemented projects
in line with our fossil fuel reduction plan. Projects were initiated
in several regions amounting to a total of 2 668 tonnes CO2e cut
potential from reduced reliance on fossil fuel. These investments
are further described in the actions section.
We are carrying out our strategy on improving our value added
processing, and in 2024 we initiated our largest internal VAP
project so far, the Gardermoen project. We have also adjusted
our target to increase our VAP to 25% toward 2026. This strategic
decision has a large potential in reducing our emission related to
Scope 3 Downstream transportation to market, and will improve
our position in sustainable packaging and products. We were not
able to allocate GHG emission cut in 2024 from this project.
50
ACTIONS
The tables below outlines the actions carried out during the year
and/or future planned actions to mitigate our climate-related
impacts and risks, aligned with our identified decarbonization
levers. Resulting GHG emission reductions are tracked and
quantified at the decarbonization lever level, as outlined in the
transition plan, while the associated actions are qualitatively
described below. The actions are currently being planned or are
ongoing and intended to contribute to the achievement of our
2030 and 2050 GHG emission reduction targets, detailed in the
following section. The climate change mitigation actions do not
involve any nature-based solutions.
ACTIONS RELATED TO SUSTAINABLE FEED
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Actual negative impact from GHG
emissions in our fish feed supply
chain
Developing a diversified raw material basket
for salmon feed, incorporating sustainable, low-
GHG raw materials, while ensuring consumer
acceptance and cost efficiency
Expected reduction of total GHG emissions
from feed, supporting sustainable feed as a key
decarbonization lever, as well as contributing
to cost control, and future consumer demand
alignment.
Upstream value
chain (production and
acquisition of fish feed)
Enhancing fish feed nutrition to improve fish
health and feed conversion rate, minimizing the
feed required per fish.
Expected reduction of GHG emission intensity
through less overall feed usage, supporting
resource efficiency and sustainable feed
initiatives.
Upstream value
chain (production and
acquisition of fish feed)
Collaborating with fish feed suppliers and other
stakeholders to improve the data quality of
emission factors, ensuring more accurate GHG
calculations.
Enhanced precision in GHG assessments,
enabling targeted reduction strategies and
supporting overall emission reductions in fish
feed production.
Upstream value
chain (production and
acquisition of fish feed)
ACTIONS RELATED TO SUSTAINABLE FARMING
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Physical acute and chronic climate-
related risk
Optimizing and adapting post-smolt production
to enable ideal timing for sea transfer based
on temperature profiles for each site, enhance
fish health and survivability, and improve
feed conversion rates, reducing exposure to
environmental risks and resource use.
Expected increased production output,
survivability and resource optimization, as well
as reduced feed consumption, all contributing
to lower GHG intensity per fish and supporting
sustainable farming as decarbonization lever.
Own operations
(farming)
Increasing the size of post-smolt prior to sea
transfer, optimizing production based on site
temperature profiles and reducing exposure to
environmental risks like diseases and lice.
Reduction in total production days from egg to
harvest, reduced need for lice treatment and
increased survivability, as well as reduced
well-boat use, all contributing to increased
production efficiency and lower GHG intensity
per fish.
Own operations
(farming)
ACTIONS RELATED TO LOW EMISSION TRANSPORT
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Actual negative impact from GHG
emissions from transportation to
market
Building up production closer to key markets,
supplying the market with fish produced from
the nearest production area.
Reduced transport distances, contributing to
lower total GHG emissions and supporting low-
emission transport as a key decarbonization
lever.
Own operations
(farming, processing)
Substituting transport methods and fuels with
lower-emission options where feasible, and
reinforcing this focus on climate with transport
suppliers.
Facilitates the transition to lower-emission
transport with improved transport efficiency
and reduced GHG emissions through strategic
fuel substitution and optimized logistics.
Downstream value
chain (transportation)
We expect that the implementation of the transition plan will
require significant resources. Funds related to investments and
projects need to be assessed by management and approved
by the Board and we have currently not committed resources
specifically related to the transition plan. However, capital
expenditure in 2024 related to our decarbonization levers
were in the range of almost mNOK 900 (related to the figures
in Notes 14 and 16 in the financial statement). Although, most
of this is connected to general investments in our post-smolt
strategy, which are not exclusively related to climate change.
Consequently, not all of this expenditure is directly related to
or for the purpose of financing our climate change actions. We
expect future expenditure to be within the same range, although
most of this is related to projects and investments that have
focuses beyond climate change, such as our post-smolt strategy
or our VAP-facility.
ACTIONS RELATED TO VALUE-ADDED PROCESSING
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Aligned with the decarbonization
efforts, however not directly linked
to a specific IRO
Increasing reused and recycled materials in
purchased packaging while minimizing overall
resource use.
Lower resource consumption which contributes
to reduced total GHG emissions associated with
packaging.
Own operations and
upstream value
chain (production of
purchased products)
GHG emissions from transportation
to market
Reducing the need for ice as a packaging
coolant, decreasing the overall weight of each
box or unit.
Less weight of transport is directly linked
to reduced fossil fuel consumption per km
transported product, contributing to lower total
GHG emissions.
Own operations,
Downstream value
chain (transportation)
Increasing processing of our products that
enhance product value as well as reduce
the relative transported weight per unit,
through expanding processing capacity and
partnerships facilitating Value-Added Products
(VAP).
Higher VAP share reduces transport emissions
by limiting the need to transport non-edible
parts, supporting value-added processing as a
key decarbonization lever and contributing to
overall GHG reduction goals.
Own operations and
downstream value
chain (transportation)
51
GREENHOUSE GAS INVENTORY
GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS
RETROSPECTIVE
MILESTONES AND TARGET YEARS
Base year
2020
2024
Change (%)
2025
2030
2050
Annual %
target/Base
year
Scope 1 GHG emissions (tCO2e)
Gross Scope 1 GHG emissions
30 726
34 233
11%
17 821
0
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0
0
Scope 2 GHG emissions (tCO2e)
Gross location-based Scope 2 GHG
emissions
1 974
2 175
10%
1 145
0
Gross market-based Scope 2 GHG
emissions
9 004
14 056
56%
NA NA
Significant Scope 3 GHG emissions (tCO2e)
Total Gross indirect (Scope 3) GHG
emissions
447 202
454 478
2%
1 Purchased goods and services
302 012
301 212
0%
175 167
0
2 Capital goods
27 778
23 844
-14%
16 111
0
3 Fuel and energy-related Activities (not
included in Scope1 or Scope 2)
8 164
7 865
-4%
4 735
0
4 Upstream transportation and
distribution
1 237
959
-22%
717
0
5 Waste generated in operations
773
604
-22%
448
0
6 Business traveling
710
680
-4%
412
0
9 Downstream transportation
106 314
118 897
12%
61 662
0
15 Investments
214
417
95%
124
0
Total GHG emissions
Total GHG emissions (location-based)
479 902
490 886
2%
278 343
0
Total GHG emissions (market-based)
486 932
502 767
3%
NA
NA
2024
Total GHG emissions (location-based) per net revenue (tCO2e/NOK 1000)
0.067
Total GHG emissions (market-based) per net revenue (tCO2e/NOK 1000)
0.068
We have experience an increase across all three scopes. To reach
our 2030 target, a concerted effort will be needed, particularly
related to market-based Scope 2 emissions, which has increased
significantly over the period, and Scope 3 emissions from
purchased goods and services and downstream transportation,
which constitute the biggest sources of emissions. We have
successfully reduced our scope 3 emissions related to capital
goods, upstream transportation and distribution and waste
generation.
GHG INTENSITY BASED ON NET REVENUE
The target is monitored through quarterly review of our climate
emission data. The activity data are collected on a monthly basis
and reviewed at the end of the financial year. We perform an
interim audit of the emission data for the first, second and third
quarter. This helps us manage the quality assurance during the
year, reducing the risk for errors and misstatements.
ACTIONS RELATED TO FOSSIL FUEL REDUCTIONS
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Aligned with the decarbonization
efforts, however not directly linked
to a specific IRO
Connecting our feed barges to the onshore
power grid and equip remaining sites with
diesel-electric systems to phase out diesel-
driven generators.
In 2024 we had two actions in our region
Finnmark, where we connected our sea
site Vedbotn to the land grid and installed
a battery system at our sea site Olanes. In
Rogaland we installed batteries at the sea sites
Nordheimsøy, Ommundsteigen and Teigane.
In British Columbia we invested in three more
battery systems.
Reduced annual fossil fuel emissions by
transitioning to cleaner energy sources,
aligning with fossil fuel reduction as a key
decarbonization lever.
Own operations
(farming)
Transitioning to a lower-emission fleet.
This includes investing in battery systems
and electric propulsion for our work boats,
personnel boats and service vessels. For our
well boats, it includes future investments
in low-emission technologies such as LNG,
ammonia, hydrogen, carbon capture.
In 2024 we had no investments in this category.
Lower fossil fuel consumption across our
maritime operations, reducing total GHG
emissions and advancing fossil fuel reduction
initiatives.
Own operations
(farming)
Investing and installing electric boilers at our
land-based facilities, substituting fossil-fueled
boilers.
In 2024 at our land-based smolt facility in
Adamselv, Finnmark, we substituted a diesel
generated water boiler, with an electric. We
also invested in an energy saving measure for
our land-based facility at Gold River, BC. This
reduces our consumption of gas for heating
purposes through the use of effective heat
exchangers.
Decreased reliance on fossil fuels for heating,
contributing to reductions in our total GHG
emissions and supporting fossil fuel reduction
initiatives.
Own operations
(farming)
52
SCOPE 3 GHG EMISSIONS
The Scope 3 inventory includes all other indirect emissions
that occur in our value chain, including both upstream and
downstream emissions. In 2024, we completed a renewed
screening of all the 15 Scope 3 categories identified by the
GHG Protocol. This resulted in an extended scope 3 inventory,
particularly relevant for category (1) Purchased goods and
services and (2) Capital goods.
The reported categories represent our significant value chain
emissions. Significance was determined on a combination of
magnitude of the emissions as well as level of influence and
stakeholder views. A significance threshold was applied, meaning
that excluded categories could not exceed 5% together out of
the total Scope 3 GHG emissions. For the disclosed categories,
no exclusions were made. Where data was missing, emissions
have been estimated. Our calculations and estimates show
that categories (1) Purchased goods and services and (9)
Downstream transportation and distribution together represent
above 90% of our total GHG Scope 1, 2 and 3 emissions in 2024.
For fish feed, we retrieved volume-weighted emission factors
specific for Grieg Seafood at product-level and per supplier, per
country and region. Emission factors of the raw materials used
were calculated on the basis of LCAs. Underlying data were feed
consumption volumes. Our emissions from fish feed are highly
dependent on the different raw materials used, as well as the
life cycle assessments and methodology chosen by our feed
suppliers. Data quality and emission calculations can therefore
vary significantly as feed suppliers can use either databases or
primary data on the same raw material. In addition, the volume
supplied from different feed suppliers often vary from one year
to another. Consequently, due to the underlying methodology and
limitations, there can be under- or overestimation of emission
from fish feed. We assess that the data accuracy will be improved
over time in line with our supplier engagement efforts.
For other products and services, we used a less precise spend-
based approach where each expenditure was classified according
to its product or service category and mapped with cradle-to-gate
emission factors for each product or service type, retrieved from
Environmental Protection Agency (2024).
NOTES ON CLIMATE CHANGE
NOTE 1 GHG EMISSIONS
The inventory covers all entities controlled by Grieg Seafood
ASA, including those where we have operational control, in line
with our financial consolidation approach. For a complete GHG
emission inventory, associated companies and joint ventures of
which we lack financial and operational control are considered
investments and reported as downstream value chain emissions.
When providing products and/or services to Grieg Seafood,
these are additionally accounted for under upstream value chain
emissions.
Our GHG emission inventory is prepared in accordance with the
CSRD and the ESRS and covers Scope 1, 2 and 3 GHG emissions.
We report on all seven greenhouse gases covered by the Kyoto
Protocol (CO2, CH4, N2O, HFC, PCFs, SF6, NF3), which are
converted to CO2-equivalents (CO2e). Emissions are reported in
gross terms and do not include any deductions for removals or
carbon credits, or similar.
As with financial accounting and reporting, our GHG accounting
and reporting aims to provide emission data that are complete,
accurate and relevant for Grieg Seafood’s operations. Activity
data are updated every year. If reported data is later discovered
to be significantly incorrect, or if conversion factors have
significantly changed, this will be specified and, if appropriate,
restated. For completeness, when data is missing for a specific
activity, estimations are made and documented.
BASE YEAR RATIONALE AND RECALCULATION
POLICY
A meaningful and consistent comparison of emissions over
time requires the definition of a performance datum with which
to compare current emissions. This performance datum is
referred to as the base year. In the context of Grieg Seafood's
GHG emission reduction target, the base year is 2020 as it is the
earliest relevant point in time for which there is reliable data. The
baseline value is representative as it reflects a normal year of
production of salmon for Grieg Seafood and encompasses those
emission activities covered by the target, in line with the GHG
inventory boundary described here. It also reflects a year where
biological interactions with external environmental variables like
ocean temperature and ecological stressors (lice and diseases)
were relatively normal, eliminating any abnormalities in own
energy consumption.
At structural changes, changes in calculation methodology, or
discovery of significant errors, our policy is to recalculate the
baseline using appropriate data and potential estimates. 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 do not trigger recalculation of
base year emissions. For deciding on base year recalculation, the
significance threshold for cumulative effects is set at plus/minus
5% of total base year emissions. From 2030, the baseline will be
updated consequently for every five-year period. Calculations of
new base year values are based on earliest available data. When
data is missing, estimations are made.
SCOPE 1 GHG EMISSIONS
Direct GHG emissions occur from sources that are owned or
controlled by Grieg Seafood. Scope 1 emissions are those that
are directly emitted as a result of Grieg Seafood’s activities
and include emissions from the combustion of fossil fuels for
generators, heating and our own vehicles. We also have a
relatively small consumption of hydrofluorocarbons (HFC) for
cooling, which are included in Scope 1.
Emissions were calculated based on the purchased quantities
of commercial fuels, mainly diesel, marine gas oil (MGO), LPG
(propane), and petrol. Underlying data were retrieved from
financial cost. The emissions of other substances such as fuel
oil, liquid oxygen, acetylene or refrigerants like HFC410A,
R-404A, or R-410A has made up < 1% in the previous years of
data collection. Nevertheless, for the sake of completeness, the
quantity of any GHG emitting substance of the production process
was taken into account. The Scope 1 emission factors used were
primarily from DEFRA (2024).
SCOPE 2 GHG EMISSIONS
Scope 2 emissions are indirect emissions relating to third-party
generation of the electricity we purchase and consume at our
sites. District heating and cooling, and steam, are not used at any
of Grieg Seafood's sites.
Underlying data were collected from metered electricity
consumption and invoices from electricity suppliers. Emissions
were calculated according to both the market- and location-based
method.
Location-based factors were retrieved from the International
Energy Agency (2024). For Norway, the Nordic Mix emission
factor is used as this is considered most representative as
Norway has a high electricity independence while the bulk of
the electricity imported to Norway comes from Sweden and
Denmark. The Nordic Mix is calculated as a weighted average
of the Swedish, Norwegian, Finnish and Danish factors. Market-
based factor represents the European Residual Mix for Norway
and is retrieved from AIB (2024). For Canada, the same emission
factor is applied as for the location-based as there is no residual
mix factor available.
The significant categories are:
1. Purchased goods and services
2. Capital goods
3. Fuel and energy-related activities (not included in Scope 1 or
Scope 2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
9. Downstream transportation and distribution
15. Investments
Noteworthy, we strive to continuously improve our collection of
Scope 3 data. Some of the figures are only technical estimates of
our actual value chain emissions. We expect our calculations to
become more precise over time, increasing the share of primary
data. We have prioritized primary data collection for the most
significant categories, including fish feed (part of category 1).
For 2024, 59 % of total Scope 3 GHG emissions were calculated
based on primary data obtained from value chain actors, mostly
suppliers. In relation to this, we encourage our fish feed suppliers
to conduct annual GHG emission accounting.
1. Purchased goods and services
This category includes all goods and services purchased by Grieg
Seafood in the reporting year. All emissions are cradle-to-gate.
Exception applies for fish feed where emissions from upstream
transports are additionally included.
We have more precise calculations in place for EPS boxes and
fish feed. These purchase categories represent the majority of
total emissions in this category. For EPS boxes, underlying data
were based on purchased volumes. The life cycle assessment
(LCA) emission factor is retrieved from SINTEF (2017).
53
2. Capital goods
This category includes capital assets acquired by Grieg Seafood
in the reporting year. This includes owned assets and finance
leases. Emissions in this category are associated with the full
production process of the assets, for example building a Grieg
Seafood farm or manufacturing a vehicle or equipment.
Emission were calculated based on a less precise spend-based
approach, using data from asset registers and applying cradle-
to-gate emission factors per product type. Factors were retrieved
from Environmental Protection Agency (2024).
3. Fuel and energy-related activities (not included in
Scope 1 or Scope 2)
This category includes production emissions associated with the
consumed fuel and energy in own operations.
Emissions were calculated using Scope 1 and Scope 2
consumption data and applicable value chain emission factors
(well-to-tank) per fuel type. Upstream value chain emissions for
generation of the electricity and the transmission and distribution
losses in the grid were also included. Factors were retrieved
from DEFRA (2024) and IEA (2024).
4. Upstream transportation and distribution
Upstream transportation and distribution includes emissions
from transportation and distribution services paid for by Grieg
Seafood, including inbound logistics, outbound logistics and
transportation and distribution between our own facilities.
The calculation was based on a combination of fuel consumption
data for harvest vessels and distance travelled for tanker and
trailer trucks. Data were retrieved from transport suppliers and
converted into emissions using applicable fuel-based factors
from DEFRA (2024).
For transport of purchased feed, the emission factors provided
by our feed suppliers were calculated based on life cycle
assessments (LCAs) and include the upstream transportation.
These emissions are instead reported under category (1)
Purchased goods and services.
5. Waste generated in operations
This category includes emissions from waste disposal and
treatment of waste generated in Grieg Seafood's own operations.
Waste data for the Norwegian regions were collected from each
disposal contractor. For the Canadian regions, waste data were
based on volumes specified on invoices. For Newfoundland, some
estimates were made using 2023 figures. Emission factors per
waste category and disposal method were applied, retrieved
from DEFRA (2024).
6. Business travel
This category includes employees' travel by air and road in
relation to business activities.
For air travel, the calculation was based on distance data
traveled collected from travel agencies and invoices. Data
was classified into domestic, continental and inter-continental.
Distance traveled with cars were collected through expense
reimbursement data. Emission factors for passenger kilometer
(p.km) were retrieved from DEFRA (2024).
9. Downstream transportation and distribution
Downstream transportation and distribution constitutes
emissions from third-party transportation and distribution of
Grieg Seafood's sold products.
Emission data were provided directly via our sales system
operator. Calculation is based on transport method (currently
road and air transport), distance from the departing warehouse
to the final delivery location, and transport weight of the
shipment. For road transport, emission factors were well-to-
wheel expressed in tonne-kilometers (t-km), and retrieved
from SINTEF. The factor reflects the typical truck type and load
utilization for Norwegian seafood transport. Default emission
factors are sourced from DEFRA.
No consideration of transportation for additional value-added
processing of sold products was made.
15. Investments
Investments covers Scope 1 and Scope 2 emissions associated
with Grieg Seafood's investments in the reporting year. For 2024,
Grieg Seafood had the equity investments Nordnorsk Smolt
(50%), Tytlandsvik Aqua (33,33%) and Årdal Aqua (44,44%).
Reported emissions correspond to the equity share of the
investment.
Emissions were calculated using energy consumption data
retrieved from the entity and fuel-based emission factors from
DEFRA (2024). Due to lack of explicit literature, the calculation
principles were selected based on an interpretation of available
guidance and may change if new information becomes available.
Excluded categories and reason for omission
NOTE 2 GHG EMISSION INTENSITY
11. Use of sold products
This category is excluded as indirect use-phase emissions of
sold products, relating to energy-consuming activities such as
refrigeration and heating of fish sold to end-consumers, were
calculated to be insignificant.
12. End-of-life treatment of sold products
This category is excluded as emissions from waste disposal and
treatment of products sold by Grieg Seafood were calculated to
be insignificant.
13. Downstream leased assets
This category is excluded as there are not many cases of
downstream leased assets. Typically, Grieg Seafood would lease
out a smaller number of boats on short-term spot contracts,
which were considered insignificant.
Category (14) Franchises is not relevant for Grieg Seafood.
7. Employee commuting
This category is excluded as emissions from employee commuting
were calculated to be insignificant.
8. Upstream leased assets
This category is excluded as owned and leased assets are
operational assets and thereby direct GHG emissions accounted for
in scope 1 and 2. Any exception was considered to be insignificant.
10. Processing of sold products
This category is excluded as emissions from the processing of
intermediate products by downstream third-party companies, e.g.
when the sold whole fish by Grieg Seafood is processed to a filet or
similar by the purchasing third-party company, were calculated to
be insignificant.
The Group’s GHG emission in relation to revenue was calculated based on total Scope 1, 2 (location-based and market-based
respectively) and 3 GHG emissions (tonnes CO2e), and total sales revenues (NOK). For total revenues, refer to Note 6 in the
financial statements.
54
Biodiversity & Ecosystems
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk and
opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Actual negative impact
from production of inputs
to fish feed on land areas
X
Production of plant based raw materials used in fish feed often
result in land areas being cleared for agricultural production. These
areas often have high biodiversity and offer important ecosystem
services. We source soy and palm oil from areas that are susceptible
for land-use change and deforestation, including Brazil, Indonesia,
and Malaysia. Land clearing of vulnerable ecosystems has an actual
negative environmental impact.
Stable
Decrease
Decrease
Actual negative impact on
native species from fish
escapes
X
Fish that escape from our aquaculture pens along the Norwegian coast
may end up in rivers where wild salmon populations reside. If they
mingle with the wild salmon population it reduces the resilience of
the wild salmon to endure. This has a negative impact on the state of
species.
Stable
Decrease
Decrease
Actual negative impact
on wild birds from
aquaculture pens
X
Our aquaculture pens attract wild birds that try to eat the farmed
salmon, which disturbs their natural behavior in the ecosystem. In
some cases birds get caught in roof net pens. In consequence, this
has a negative impact on the natural bird habitat in areas where we
operate.
Stable
Stable
Stable
Actual negative impact on
crustaceans and wild life
from sea lice treatments
X
Pharmaceutical ingredients used in sea lice treatments are effective
against sea lice, but may have negative effects on crustaceans
and wild life. The impact on crustaceans can harm their ability to
reproduce. This has a negative impact on the species and the local
biodiversity overall.
Stable
Stable
Decrease
Regulatory risk related to
sea lice control
X
The traffic light system in Norway can regulate the allowed production
with a 4% increase or decrease each year depending on levels of sea
lice. This may impact our volume and have a large financial effect in
our Norwegian regions, and would rise if we see a similar adoption in
Canadian regulating authorities.
Increase
Stable
Decrease
Nature and ecosystems provide the basic building blocks of the
global economy, and biodiversity loss and ecosystem collapse
will affect our operations, supply chains and markets. We have
a responsibility to protect biodiversity wherever we operate
by using farming methods that allow for coexistence with wild
species. This also entails feeding our salmon with certified feed
ingredients of high risk (soy, palm oil and forage fisheries) to
avoid land-use change and overfishing.
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. Similarly, in Canada, 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.
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
55
LIST OF MATERIAL SITES AND IMPACTS IN OWN OPERATIONS
MATERIAL SITES
MATERIAL IMPACTS
Region,
country
Site (Note 1)
Actual negative impact
on native species from
fish escapes
Actual negative impact on
wild birds from aquacul-
ture pens
Actual negative impact on
crustaceans and wild life
from sea lice treatments
Ecological sta-
tus (Note 2)
Biodiversity sensi-
tive area (Note 3)
Rogaland,
Norway
Dale II
X
X
Not passed
No
Dyrholmen
X
Passed
No
Hestholmen Ø
X
Passed
No
Hundaneset
X
X
Passed
No
Kilaneset
X
NA
No
Kilavaagen Sjø
X
NA
No
Lauplandsholmen
X
X
NA
No
Låderskjera
X
NA
No
Nordeimsøyna
X
NA
No
Oanes Sjø
X
Passed
No
Ommundsteigen
X
X
Passed
Yes*
Rennaren
X
Passed
No
Stjernelaks
X
NA
No
Store Teistholmen
Ø
X
X
Passed
No
Teigane
X
X
X
Passed
Yes*
Tollaksholmen
X
Passed
No
Finnmark,
Norway
Auskarnes Ø
X
Passed
No
Bergsnes V
X
X
Passed
No
Danielsnes
X
Passed
No
Davatluft
X
X
Passed
No
Grøtnes N
X
Passed
No
Jernøya
X
X
Passed
No
Kjøsen
X
Passed
No
Kleppenes N
X
X
Passed
No
Laholmen
X
X
Passed
No
Mårsanjarga
X
X
Passed
No
Olaneset
X
X
X
Passed
No
Sarnes
X
X
Not passed
No
Simanes
X
Passed
No
Stangnes
X
X
Passed
No
Steinviknes
X
Passed
No
Tinnlandet
X
X
Passed
No
Vannfjorden
X
X
X
Passed
No
Vedbotn
X
X
Passed
No
Vegglandet
X
X
Passed
No
Vinnalandet
X
X
Passed
No
MATERIAL SITES
MATERIAL IMPACTS
Region,
country
Site (Note 1)
Actual negative impact
on native species from
fish escapes
Actual negative impact on
wild birds from aquacul-
ture pens
Actual negative impact on
crustaceans and wild life
from sea lice treatments
Ecological sta-
tus (Note 2)
Biodiversity sensi-
tive area (Note 3)
BC, Canada
Atrevida
X
X
Passed
No
Conception
X
X
Passed
No
Esperanza
X
X
Passed
No
Gore
X
X
Passed
No
Lutes
X
X
NA
No
Muchalat North
X
X
Passed
No
Muchalat South
X
X
NA
No
Noo-la
X
Passed
No
Tsa-ya
X
Passed
No
Wa-kwa
X
Passed
No
Williamson
X
X
Passed
No
Newfoundland,
Canada
Gilberts Cove
X
NA**
No
Jude Island
X
NA**
No
Paradise Sound
X
NA**
No
St. Leonards
X
Passed
No
*The site is located in Sandsfjorden in Rogaland, Norway, which is classified as a National salmon fjord (NSF). This is a Marine protected area (MPA) established by the Norwegian Parliament to
protect wild salmon. This seawater farm was present in the area prior to the establishment of the MPA, and became subject to certain restrictions as a result. Based on our applied methodology and
criteria described in the Notes to this chapter, the site is considered to be located in an biodiversity sensitive area.
** Planned for 2025.
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. In relation to our
It is inevitable that our business model of farming salmon in the ocean lead to certain impacts or risks related
to biodiversity. Even with preventive measures, government regulations and certifications such as ASC, that
raise the bar above regulatory limits, there are still challenges to overcome. Our material impacts and risks
influence our strategic focus, particularly by driving efforts to increase post-smolt production. Reduced time in
sea do not only improve fish health, but also limits the risk of escape incidents that can potentially impact wild
salmon. Several of our strategic initiatives are in response to our nature-related impacts and risks, including
experimenting with new farming technologies that create barriers between the fish and the natural environment
(semi-closed sea-based systems, land-based farming and offshore farming). To manage our impacts and risks,
we monitor biodiversity metrics and apply mitigating policies and actions, such as escape control, minimizing
delousing and buying certified soy. These actions are described in more detail in subsequent chapters.
material impacts, our farming activities can potentially affect
threatened species. This is primarily a risk for birds species
that have been observed in proximity to our sites in Norway. We
keep track of red listed species impacted in areas affected by
our operations as part of the ASC certification. Concluding from
our DMA, we have not identified material negative impacts with
regards to desertification or soil sealing.
56
POLICIES
We have three group policies
governing our material
sustainability matters related
to biodiversity and ecosystems.
In particular, they address the
negative impacts resulting from
our farming activities, and the
impacts arising in our fish feed
supply chain.
The policies are group-wide and cover all our regions. Their
main content is a policy statement, governing principles,
definitions, KPIs including tracking and reporting, responsibilities
for implementation, and related documents. The group Chief
Operational Officers, and in extension the regional directors,
managers, and supervisors are responsible for implementing
the policies. The policies are available to anyone on our website.
Employees are exposed to the policies through awareness and
training programs. The policies do not address production,
sourcing or consumption from ecosystems that are managed to
maintain or enhance conditions for biodiversity.
PROTECTING BIODIVERSITY
Our policy on protecting biodiversity addresses our negative
impacts on the state of species, specifically wild salmon and
wild birds, in our farming activities. As the policy applies to all
our regions, it covers those material sites that are, or would be,
located in or near a biodiversity sensitive area.
The objective of the policy is to ensure that negative impacts
on the local biodiversity are minimized and the biodiversity
protected. The policy statement acknowledges our responsibility
to farm salmon with as low impact on ecosystems and habitats
as possible, and to ensure co-existence with other species
around our farms. It particularly covers our efforts to prevent
farmed salmon escapes, the affiliated impacts on wild salmon,
and addresses impacts on other wildlife around farms including
birds. The policy also sets out principles for actions to minimize
impact on marine ecosystems and protect seabed fauna. As such,
the policy can be considered a sustainable oceans/seas policy.
The policy incorporates KPIs in compliance with ASC. This
independent certification program that aims to ensure
sustainable aquaculture. The certification helps consumers
choose sustainably farmed salmon with a lower environmental
impact and ensures that social rights are secured.
SEA LICE CONTROL
Our material negative impacts and risks on wild salmon,
crustaceans and wildlife from the pharmaceutical ingredients
used in our salmon farming are governed through our policy on
sea lice control.
The general objective of the policy is to control sea lice levels
in our farms to avoid negative impact on wild and farmed
salmonids, and to protect biodiversity and the ecosystem around
our farms. The policy is group-wide but each region implements
complementary measures to comply with national sea lice
legislation. The policy governs sea lice treatment practices
in farming operations and addresses the health of salmon,
contamination risks to wild salmonids, and the environmental
impact of sea lice treatments. However, the policy does not
address the regulatory risk of Canada implementing a traffic light
system.
The policy is implemented in conjunction with the Global salmon
initiative protocols that aims to make significant improvements
in how salmon is produced across the industry with regards to
negative impacts on local biodiversity and ecosystems.
The policies do not directly address any social consequences
that would result from our material impacts and risk related
to biodiversity and ecosystems. Policies related to our impact
on local communities are reported under chapter Affected
communities.
SUSTAINABLE FEED
Our policy on sustainable feed, accompanied with our supplier
Code of Conduct, particularly covers our upstream value chain
and governs how we manage the negative impacts associated
with land-use change resulting from agricultural production
of the raw materials in the fish feed we procure. It covers the
human consumer, the fish itself and the footprint of raw materials
and manufacturing.
In essence, the objective of the policy is to outline how Grieg
Seafood works with fish feed and sets out the principles we
follow for improving traceability in our fish feed supply chain. It
explicitly addresses that our ingredients shall consequently not
contribute to deforestation and conversion of natural ecosystems.
To that effect, it commits to only purchase Brazilian soy protein
concentrate certified according to ProTerra or segregated RTRS,
and supplied by deforestation and conversion free Brazilian soy
suppliers.
The Director of Feed and Nutrition has a special responsibility
to communicate the policy internally and is responsible for
monitoring performance and corrective actions. Additionally,
concerned suppliers have to acknowledge it through our supplier
Code of Conduct.
Our business model and strategy's continuous focus and capacity
to respond to biodiversity and ecosystems-related challenges,
demonstrate our resilience when facing our material impacts
and risks. Our assessment of the risk related to sea lice control
and the Norwegian traffic light system also supports this. The
system regulates biomass and production allowances for salmon
farming based on the environmental impact in the particular
area. Mitigating this risk is a priority across our sector, and for
Grieg Seafood, it is directly addressed by our strategy related
to post-smolt, focused on improving the preventative sea lice
control when time at sea is reduced. Information regarding sea
lice levels is also embedded in the way we operate and plan our
production. When assessing the resilience of our business model
and strategy in relation to our material risk of sea lice control
regulation, we consider our own operations where this risk is
located, and the same time horizons as in the double materiality
assessment. In the medium- and long-term perspective, it is
reasonable to assume that the regulatory landscape may change
and impact the financial risk. In general, Norwegian authorities
and key organizations are essential stakeholders informing
assessments through investigations and published reports.
57
ACTIONS
We are assessing the need to develop a nature-related transition
plan for the Group, taking into account our material impacts and
risk. The table below outlines the actions carried out during the
year to mitigate our impacts on biodiversity and ecosystems in
line with our related policies and targets. The actions are ongoing
and the results regularly monitored to ensure compliance and
achievement of the expected outcomes.
MATERIAL IMPACT, RISK
AND OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Actual negative impact on
native species from fish
escapes
We follow procedures to avoid escapes before, during and after operations.
We have regular inspections of vessels, moorings and facilities to verify
compliance, and we conduct inspections before and after harsh weather. In
addition, we have specific training related to escape procedures.
Achievement of zero
escapes target to protect
native species
Own operations
(farming)
We perform routine inspection of nets using ROVs and divers. At our green
licenses in Finnmark, subject to stricter environmental standards, we use
nets that are particularly designed to prevent escapes. In British Columbia,
we use double nets on all pens.
Actual negative impact on
crustaceans and wild life
from sea lice treatments
We prioritize using preventive and biological sea lice measures rather than
medical and non-medical treatments. Harvesting will always be considered
when sea lice-infected fish are close to harvestable weight.
Avoidance of negative
impact to protect native
species
Own operations
(farming)
Actual negative impact on
wild birds from aquaculture
pens
As part of regular routines we check and monitor each pen physically and
conduct preventative inspections and measures on the nets as well as
walkways. If any birds or mammals are seen they are handled according to
applicable laws and regulations.
Avoidance and
minimization of negative
impact to protect native
species
Own operations
(farming)
Actual negative impact from
production of inputs to fish
feed on land areas
We require full traceability throughout the entire supply chain for the
fish feed we procure. Raw materials considered as high risk are certified.
Brazilian soy protein is certified according to ProTerra or Round Table on
Responsible Soy while soy from European sources is certified according to
Europe Soy. Palm oil is certified according to Round Table on Sustainable
Palm Oil.
Avoidance of negative
impact to protect natural
ecosystem
Own operations and
upstream value chain
(production of purchased
fish feed)
Our engagement with the WWF has resulted in a new ESG methodology for
assessing different raw materials in fish feed. The project was adopted by
Global Salmon Initiative (GSI) and was officially launched in March 2024.
Avoidance of negative
impact to protect natural
ecosystem
Own operations and
upstream value chain
(production of purchased
fish feed)
None of the actions include biodiversity offsets. With regards to local indigenous knowledge, as well as nature-based solutions, we do not consider that they have been directly incorporated into
the reported actions.
METRICS AND TARGETS
MATERIAL IMPACT, RISK
AND OPPORTUNITY
DESCRIPTION
SCOPE
2024
Actual negative impact on
native species from fish
escapes
Number (#) of sites located in or near protected areas or key biodiversity areas
Own operations
2
Area (ha.) of sites located in or near protected areas or key biodiversity areas
Own operations
8.3
MATERIAL IMPACT, RISK
AND OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
2024
Actual negative impact on
native species from fish
escapes
Number of escape incidents (Note 4)
Zero incidents
Yearly
Own operations
1
Actual negative impact from
production of inputs to fish
feed on land areas
Actual negative impact on
wild birds from aquaculture
pens
Actual negative impact on
crustaceans and wild life
from sea lice treatments
Number of ASC certification sites (Note 5)
All sites (38
eligible)
Yearly
Own operations
32
Actual negative impact on
crustaceans and wild life
from sea lice treatments
Use of hydrogen peroxide (kg per tonne
LWE) (Note 6)
Minimize use of
pharmaceutical
treatments
Own operations
3.8
Sea lice treatments - in feed (g per tonne
LWE) (Note 7)
Minimize use of
pharmaceutical
treatments
Own operations
0.13
Sea lice treatments - in bath (g per tonne
LWE) (Note 7)
Minimize use of
pharmaceutical
treatments
Own operations
0.75
The targets are not bound to a specific baseline value. No national policies or legislation have directly informed the targets. External stakeholders have not been directly involved in defining the
target setting. In addition, no particular ecological thresholds were considered. However, ecological effects have laid the foundation for the requirements in the certifications that our targets are
linked to, for our own operations as well as feed. Biodiversity offsets were not used in target setting.
Targets and entity-specific metrics reflect the policy objectives stated in Protecting
Biodiversity policy and Sea Lice Control policy. The number of fish escapes and
ASC-certified sites are in line with previous years but not at the level of our targets.
Determining the costs associated with the action plan is difficult
as most actions are not exclusively related to biodiversity and
ecosystems or segmented in our accounting. We estimate that
the ongoing costs associated with the action plan are around
mNOK 160 (related to the figures in Notes 5, 7, 9 and 14 in the
financial statement).
The sites are broodstock farms and located in Sandsfjorden in Rogaland, Norway, which is classified as a National salmon fjord (NSF). This is a Marine protected area (MPA) established by the
Norwegian Parliament to protect wild salmon.
58
NOTES ON BIODIVERSITY AND ECOSYSTEMS
NOTE 1 MATERIAL SITES
To determine which sites contribute to our identified material
negative impacts, we followed the outlined methodology. Note
that all auxiliary and inactive sites were considered not relevant.
ACTUAL NEGATIVE IMPACT ON NATIVE SPECIES
FROM FISH ESCAPES
Because of the potential scope and level of irremediability of
fish escapes, together with stakeholders expectations, the point
of departure for the assessment was that all sites are material.
However, there were two exceptions:
1.
Land based sites are assumed to be immaterial, as the risk
is much lower than ocean based farming.
2.
Sites containing triploid salmon are assumed to be
immaterial, as these salmon are not able to breed with wild
salmon stocks, and consequently have no impact on native
salmon.
ACTUAL NEGATIVE IMPACT ON WILD BIRDS FROM
AQUACULTURE PENS
All ASC-certified sites were assumed not to be material.
Additionally, all sites that are not eligible for ASC-certification
due to not having completed their first production cycle are
also assumed not to be material. The reason for this is that
we have been given license to farm in a specific area that has
gone through several screenings, which suggests that the area
is suitable for farming. All eligible non-certified sea sites were
classified as material.
ACTUAL NEGATIVE IMPACT ON CRUSTACEANS AND
WILD LIFE FROM SEA LICE TREATMENTS
Sea sites where we have conducted a medical lice treatment in
2024 were classified as material.
NOTE 2 ECOLOGICAL STATUS
Ecological status was determined by the environmental impact
assessment conducted for all our salmon farms, in line with
national regulatory requirements. For Norway, this included
independent seabed test (B-tests) and tests in the area around
the farm (C-test). For Canada, it included comparable benthic
tests. For comparability between Norwegian and Canadian sites,
we converted the Norwegian 1-4 scoring to “Passed” (1-2) and
”Not passed” (3-4). We use the latest available test that is no
older than two years.
areas, as referred to in Appendix D of Annex II to Commission
Delegated Regulation (EU) 2021/2139. For other protected areas,
we used existing Environmental Impact Assessments (EIA) that
we conduct prior to establishing new seawater sites as well as
part of the ASC certification processes. These include criteria
to minimize environmental impact and preserve biodiversity. In
particular, this considered areas of high biodiversity value (areas
defined as Special Areas of Conservation (SAC), Marine Protected
Areas (MPA), High Conservation Value Areas (HCVA) and Federal
Marine Protected Areas). For the definition of protected areas and
areas of high biodiversity value, we referred to the ASC Salmon
Standard.
NOTE 4 ESCAPE INCIDENTS
The metric corresponds to the GSI indicator "Fish escapes" which
is defined as "number of fish escape incidents”. The reported
figure is approximate not absolute, as there may be counting
errors when counting the fish in nets after escapes. This is
confirmed by deviations in harvest numbers. We report the fish
escapes we discover to the Norwegian Directorate of Fisheries.
NOTE 5 ASC CERTIFIED SITES
The metric corresponds to the the number of eligible sites
certified according to the ASC standard by 31.12.2024. Eligible
sites are active sites not being fallowed, and that have completed
at minimum its first production cycle. In 2024, 15 sites in
Finnmark, 7 sites in Rogaland and all 10 eligible sites in British
Columbia were ASC certified by end of 2024. None of the sites
in Newfoundland were eligible for certification as they have not
been operational for 18 months or completed one harvest cycle.
NOTE 6 USE OF HYDROGEN PEROXIDE
This metric corresponds to 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)". The formula used for calculating API
in hydrogen peroxide, both in Norway and in Canada, is 1 L
(hydrogen peroxide) * 1.19 (density) * 0.49 (concentration) = 1 kg
H2O2.
NOTE 7 SEA LICE TREATMENTS
This metric 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)".
Treatments are registered in our production system, specified
by pharmaceuticals treatments, prescription number, type of
pharmaceutical (active pharmaceutical ingredient grams used),
duration of treatment, date and location. Additional information
about treatment conditions during all treatments are registered
in specific forms for evaluation usage.
NOTE 3 BIODIVERSITY
SENSITIVE AREAS
To determine if any of our sites are located in or near a
biodiversity sensitive area we mapped all sites against the Nature
2000 network of protected areas, UNESCO World Heritage sites
and Key Biodiversity Areas (‘KBAs’), as well as other protected
59
Social information
SUSTAINABILITY STATEMENT
Own workforce
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk
and opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Potential negative
impact of health and
safety incidents
X
Our employees could be involved in accidents while working at our
sites. In particular, employees working in the hatcheries, on the
farms or at the harvesting plants are generally more exposed. The
potential for accidents are considered to decrease over time due to
continuous improvement of our operating procedures and HSE-culture
to safeguard our employees' health and safety.
Material
Decrease
Decrease
Actual positive impact
of securing an inclusive
working environment
X
We continuously work to make a positive impact by actively working to
increase the diversity within Grieg Seafood with respect to employees’
gender. An inclusive working environment empowers employees, give
them a feeling of belonging, and provide opportunities they would not
otherwise have experienced. This impact applies to all our employees
across our locations.
Material
Stable/
Decrease
Stable/
Decrease
Potential negative
impact of incidents
of discrimination or
harassment
X
Discrimination, harassment, bullying or other abuse of our employees
in the workplace can potentially happen. This could negatively
impact the health and well-being of our employees. Women may be
particularly exposed to discrimination as the industry has long been
male dominated.
Material
Decrease
Decrease
Every day, more than 800 people contribute to running our
business and we rely on their skills and expertise to operate and
grow. Accordingly, we are dedicated to being an employer that
provides equal opportunities while safeguarding our employees’
health and safety.
The material impacts from our operations affect employees in our
workforce, consisting of mainly permanent employees as well
as temporary employees. Temporary employees are typically
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. We also rely
on non-employees such as contractors, which are mainly used
in Norway during peak periods of harvesting, or in office roles,
providing regular services as needed.
Our material impacts on our workforce stem directly from our
activities and we consequently have to adapt our strategy and
business model to enhance our positive impacts and mitigate
our negative impacts. Failure to do so can affect both the
lives of the people working at Grieg Seafood and our ability to
attract talented employees. We have therefore developed and
implemented relevant policies, actions, and targets that underpin
our strategy and business model, as described in coming
sections. Generally, we assess that our strategy and business
model is resilient to and capable of addressing these material
impacts.
We do not have any material impacts that may arise from
transition plans for reducing negative impacts on the
environment and achieving greener and climate-neutral
operations. None of our operations related to our own workforce
are at significant risk of incidents of forced labor, compulsory
labor or child labor.
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
60
POLICIES
HEALTH AND SAFETY
We have a policy on health and safety, which governs how we
manage our material impacts and applies to all employees in
the organization. The purpose of the policy is to ensure that we
integrate safety in all we do, conduct our operations in a manner
which minimizes the chance of injury, and comply with relevant
state legislation. It provides guidelines for establishing and
implementing systems and routines that will reduce workplace
hazards, protect lives, and promote employee health and safety.
It also provides guidance to all our managers, supervisors,
employees, contractors, and visitors. The principles set forth
in the policy include developing strong regional health and
safety programs, ensuring that employees are aware of and
understand their responsibilities, and continuous monitoring
and improvement. To ensure implementation and adherence, the
policies outline responsibilities, activities and tracking, with the
CEO and global management team being the most senior level
accountable. Grieg Seafood does not incorporate third-party
standards or initiatives in the policy.
The policies are available to anyone on our website, while
employees are also exposed to the policies through awareness
and training programs. For a description of how the policies are
developed, including stakeholder engagement, see the related
Engagement chapter.
DIVERSITY
We have policies on diversity in general and gender equity
specifically, which apply to all employees in the organization
and govern how we manage our material impacts related to
securing an inclusive working environment and preventing
discrimination. The purpose of our policy on diversity is to
promote an organizational culture that values diversity and our
principles commit us to being an equal opportunity employer,
employing the most suitable person, regardless of age, race/
ethnicity, gender, political, religious or sexual persuasion,
national origin, or disability, provided that the task can be
performed in a safe and competent manner. Our policy on gender
equity serves a similar purpose, but specifically addresses issues
related to gender equity, including our commitment to promote
a family-friendly workplace, creating an equitable, respectful
and enabling environment, and demonstrate social responsibility
through community related activities. To ensure implementation
and adherence, the policies outline responsibilities, activities and
tracking, and the CEO and global management team are the most
senior level accountable. Grieg Seafood does not incorporate
third-party standards or initiatives in the policy.
The polices are available to anyone on our website, while
employees are also exposed to the policy through awareness
and training programs. For a description of how the policies are
developed, including stakeholder engagement, see chapter on
Engagement.
HUMAN RIGHTS
Grieg Seafood is also committed to respecting all human rights
relevant to our operations with respect to health and safety and
diversity. Our policy on human rights are committed to comply
with relevant international standards, including the UN Guiding
Principles on Business and Human Rights, ILO Declaration on
Fundamental Principles and Rights at Work, and OECD Guidelines
for Multinational Enterprises. The policy also recognizes
standards such as the International Covenant on Economics,
Social and Cultural Rights, UN Convention on the Elimination of
Discrimination Against Women, and UN Declaration on the Rights
of Indigenous Peoples. Although our policy explicitly addresses
human rights, including forced/compulsory labor and child labor,
we evaluate the risk of human rights breeches within our own
operations to be small. Consequently, we have not established
a specific approach to provide and/or enable remedy for human
rights impacts and do not explicitly address human trafficking in
our policies.
ENGAGEMENT
All policies related to our people are developed using the
same multi-step approach. Our Chief Human Resource Officer
is responsible for reviewing and updating the policy. Draft-
policies are developed centrally and distributed to HR/HSE
in the different regions for comments. These represent the
concerns and perspectives of the workforce. Feedback is
incorporated and the aforementioned process is repeated. The
ultimate policy is approved by the CEO and global management
team, where the frequency for review is not necessarily fixed.
Relevant levels and roles involved are outlined in the policies,
from employees to Board of Directors, ensuring perspectives
are communicated and considered in policy development and
decision making. Perspectives of our workforce are also received
through numerous channels with various frequencies, including
continuous dialogues and meetings, intranet, and employee
surveys. Additionally, employees can report issues to the nearest
leader, who escalates it to the relevant level. We also engage in
dialogue with trade unions and employee representatives.
Another way in which we engage with our employees and
ensure their input are considered, is through the Great Place to
Work Survey. Based on employees’ experiences and feedback,
the Great Place to Work assesses and evaluates organizations
and the practices that underpin the workplace culture. In 2024,
we once again participated in the survey, and we are proud to
announce that all our regions maintained the Great Place to Work
certification.
Indirect input concerning our employees are also obtained
through participation in industry and scientific conferences
and joint-industry projects, and from actively listening to
stakeholders expressing their views about our industry in media,
social media and on various arenas. See chapter on Stakeholder
engagement in General information.
All policies, including our human rights policy, apply globally,
although regions can adapt additional policies that are tailored
to their specific setting. This is especially relevant if the
workforce in the region is particularly vulnerable to impacts or
marginalized.
REMEDIATION
Employee representatives promote employees’ perspectives
and can raise specific concerns or needs on behalf of our
employees. Engagements with representatives are carried out
both on an ad hoc continuous basis and more systematically,
for example through monthly updates from the regional
quality managers. Alternatively, employees can raise concerns
anonymously through our whistleblower channel. Our Code
of Conduct explicitly prohibits retaliation against anyone for
raising or helping to address a concern. Retaliation is grounds
for sanctions, up to and including dismissal. Situations where
retaliation could potentially be a concern should be raised as
early as possible at the level felt appropriate to the situation.
To ensure that our employees are aware of how to raise
concerns, we include this as part of the onboarding, including
training on how to handle various situations and which channels
to use to raise concerns. Our quality system also has a “read
and understood” functionality, which can be used to ensure that
employees regularly read relevant documents and updates
to documents. This is the case for our HSE-handbook, which
includes descriptions of routines and contact information of
relevant representatives. Our employee survey includes a
question regarding whether employees feel that their concerns
will be addressed appropriately.
Potential negative impacts associated with health and safety
are reported and registered in our regional systems. Depending
on the type of incident, this may be reported to our insurance
provider or in accordance with local regulation, for example
in cases involving sick leave. For potential negative impacts
associated with discrimination, we first perform an internal
assessment, often including an independent third party.
Subsequently, depending on the assessment, we conduct
an analysis to determine the appropriate consequences.
The discriminated party will be notified of the outcome, and
organizational changes may be made. Our whistleblower channel
has its own procedure, which revolves around initial follow-up,
potential investigation, reporting, follow-up including potential
sanctions and/or organizational measures, and archiving.
However, we do not have an established approach with regards
to contributing remedy when incidents have occurred. The
outlined steps and responsibilities aim to ensure effectiveness of
the channels.
61
ACTIONS
To ensure that we integrate safety in all we do and are an equal
opportunity employer, we have initiated certain actions, in
accordance with our policies and targets. These include specific
local actions and general firm wide actions. The table provides
an overview of firm wide actions. These actions help promote a
positive impact for our workforce and ensure that our operations
do not cause or contribute to material negative impact, through
increased awareness and knowledge, as well as
directly tackling potential sources of negative impacts. There has
been no formalized overall process through which the actions
have been identified, rather the action plan has been developed
organically over time. These actions are intended to continue on
an ongoing basis. Likewise, no concrete resources are allocated
to the management of these impacts, as the resources needed
are expected to be trivial.
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
TRACKING
Actual positive impact of
securing an inclusive working
environment
Flexible working
arrangements, including
work-from-home
Increased female
representation across
all employment levels by
removing a potential barrier
for women to apply to and/
or accept a position at Grieg
Seafood, in accordance with
existing policy and target
Own operations (all
employees*)
HR and/or nearest leader
is responsible for managing
flexible working arrangement.
A specific work-from-home
policy is currently being
developed.
Gender representation
in interview teams and
assessment panels
Increased female
representation by ensuring
that women are represented
in arenas that make hiring
decisions to remove potential
bias, in accordance with
existing policy and target
Own operations (all locations)
HR is responsible for
managing the process, but we
currently don't have specific
measures in place to track
progress.
Potential negative impact of
health and safety incidents
Health and safety training
(onboarding and refreshers)
Increased awareness and
knowledge around safety
procedures and expectations,
ensuring that employees take
responsibility for their own
and others’ safety, bringing
down incidents and injuries
Own operations (all
employees)
Quality manager is
responsible for HSE in each
region. Reports to CHRO every
month.
Improvements of our
operating procedures and
HSE-culture with continuous
health and safety focus and
exercises
Ensure preparedness for
emergencies through regular
exercises, ensuring that
employees have awareness
and knowledge on how to
handle emergencies
Own operations (all
employees**)
Quality manager is
responsible for HSE in each
region. Reports to CHRO every
month.
* Provided task can be performed from home
** Nature and/or content may differ based on region and/or function
We do not have any specific actions with regards to providing or enabling remedy in relation to actual material impacts.
METRICS AND TARGETS
Our employees and their representatives have not been directly involved in setting or tracking performance against the targets,
nor in identifying lessons or improvements as result of our performance.
CHARACTERISTICS OF OWN WORKFORCE
FEMALE
MALE
OTHER (NOTE 1)
NOT DISCLOSED
TOTAL
Number of employees (Note 1)
233
593
0
0
826
Number of permanent employees (Note 1)
205
528
0
0
733
Number of temporary employees (Note 1)
28
65
0
0
93
Number of non-guaranteed hours employees (Note 1)
0
0
0
0
0
600
593
573
233
251
600
500
500
400
400
300
300
200
200
100
100
Male
Norway
Female
Canada
0
0
NUMBER OF EMPLOYEES WHO LEFT
DURING 2024 (NOTE 2)
TOTAL EMPLOYEES
(NOTE 1)
TOTAL EMPLOYEES: 826
TURNOVER RATE
(NOTE 2)
161
0,2
DIVERSITY
MATERIAL IMPACT, RISK
AND OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
PERFORMANCE
Actual positive impact
of securing an inclusive
working environment
Female employees in group
management team (Note 1)
40%
By 2026
Management team
3 (33%)
Female employees in our
workforce (Note 1)
NA
NA
All employees
233 (28%)
Actual positive impact
of securing an inclusive
working environment
Employees under 30 years old
(Note 1)
NA
NA
All employees
32%
Employees 30-50 years old
(Note 1)
NA
NA
All employees
47%
Employees over 50 years old
(Note 1)
NA
NA
All employees
21%
We do not have a base value or year for the metrics presented in the table.
62
MATERIAL
IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
PERFORMANCE
Potential negative
impact of health and
safety incidents
Employees covered
by HSE management
system
100%
Yearly
All employees
100%
Fatalities
0
Yearly
All employees
0
Recordable work-related
accidents (rate) (Note 3)
NA
NA
All employees
59 (46.6)
Recordable work-related
ill health cases (Note 3)
NA
NA
All employees
0
Number of lost working
days (Note 3)
NA
NA
All employees
44
REMUNERATION
MATERIAL
IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
PERFORMANCE
NA
Gender pay gap (Note 4)
NA
NA
All employees
-3%
NA
Annual total
remuneration ratio
(Note 4)
NA
NA
All employees
6.6
NOTES ON OWN WORKFORCE
NOTE 1 NUMBER OF EMPLOYEES
We pulled data on employees directly from our HR-systems. All
metrics disclosing the number of employees are reported in head
count. The same is the case for percentages or rates, which were
calculated based on head count. Because of an ongoing change
of systems, the date of the data differs between regions but is
generally at year end or some weeks into 2025.
All employees that do not have permanent contracts were
assumed to be temporary employees. We do not have data
on number of non-guaranteed hours employees. We estimate
that this number is zero based on temporary employees
generally being seasonal workers at our processing facilities or
apprentices at our farms, and these types of workers typically
have some level of guaranteed hours.
NOTE 2 EMPLOYEE TURNOVER
Employee turnover was calculated by taking the number of
employees who leave voluntarily or due to dismissal, retirement
or death in service divided by the average number of employees
over the year, as measured by the total employees at fiscal year
end for 2023 and 2024. We excluded temporary summer workers
as their engagements are supposed to be limited to a short
period of time.
NOTE 3 WORK-RELATED ACCIDENTS
AND ILL HEALTH CASES
Number of work-related accidents is based on actual reported
incidents with related injuries. We do not track ill-health cases
but these are assumed to be zero as our employees do not
engage in activities that have a significant likelihood of resulting
in ill-health cases.
NOTE 4 PAY GAPS
Remuneration metrics have been calculated in accordance with
the requirements in AR98 and AR101.
Gender pay gap = (average gross hourly pay level of male
employees - average gross hourly pay level of female employees)
/ average gross hourly pay level of male employees
Annual total remuneration ratio = annual total remuneration
for the undertaking’s highest paid individual (CEO) / median
employee annual total remuneration excluding highest paid
individual
Figures are based on employees that were currently employed at
the time the data was extracted from the system. For employees
paid in currencies other than NOK, their remuneration was
converted using yearly average exchange rates from Norges
Bank.
Generally, to discourage underreporting, we do not have explicit targets related to metrics for health and safety. The exception
to this is fatalities, where we target zero fatalities, and employees covered by our health and safety management system, where
the requirement by law is 100%. Both these targets have no set time horizon but are monitored on a yearly basis. We are in line
with our targets for 2024.
HEALTH AND SAFETY
We are dedicated to being an employer that provides equal
opportunities and recognize that historical and societal
barriers prohibiting women and men from working on a
level playing field. To address that, we have explicitly set
targets related to gender balance at Grieg Seafood, in order
to have a concrete target to work towards. We have had a
consistent positive development in female representation
over time, with nine years of positive year-on-year
development since 2015. Nevertheless, a concerted effort
may be needed to reach the target of 40% by 2026.
We do not have a base value or year for the metrics presented in the table.
We do not have a base value or year for the metrics presented in the table.
63
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk
and opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Actual positive impact
on Indigenous Peoples
in BC and Finnmark
X
X
We farm in areas that belong to or are near the homes of Indigenous
peoples in British Columbia and Finnmark. Our presence contributes
positive to First Nations and Samí communities through partnerships,
employment opportunities, local value creation, and direct donations.
Grieg Seafood currently also has impact benefit agreements with
Mowachaht/Muchalat, Tlowitsis, and Ehattesaht on both coasts of
Vancouver Island.
Material
Stable
Stable
Our operations in British Columbia and Finnmark are
conducted in areas that belong to or are near the homes of
indigenous peoples and can consequently impact their lives.
We acknowledge the heightened need to ensure that we do not
infringe on the rights of indigenous communities and to create
a positive impact on the communities. All operations in these
areas are based on respect for their territories and rights and we
have consequently signed individual agreements with Indigenous
Peoples to ensure that our operations do not infringe on their
rights.
To manage our impact on indigenous communities we have
developed and implemented relevant policies, actions, and
targets, as described in subsequent sections. We create jobs and
opportunities in the areas where we operate, use local suppliers,
support schools and training, engage in sponsorship, and monitor
and protect the local environment. Our continuous focus on
supporting mutually beneficial relationships with Indigenous
Peoples, through partnerships, community engagement, local
value creation, and targeted policies, demonstrate the business'
capacity to address and reinforce an actual positive impact.
Affected communities
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
64
ACTIONS
First and foremost, we have to adhere to the agreements
we have in place with different Indigenous People. In British
Columbia, we require the consent of the First Nations community
to receive operations licenses. Our actions are consequently
guided by the agreements established with individual groups.
These are specific to each First Nation’s needs, while other
actions are universal. We employ several members of various
Indigenous Peoples groups, use local suppliers, hire local
apprentices and support aquaculture schools and training
facilities, sponsor sports and cultural activities, and engage in
monitoring and protection of the local environment. We have also
assisted communities with business development opportunities
in the supply and support sector for our operations, such as crew
boat operations, fuel delivery and net cleaning. These actions
help contribute to local value creation and provide tangible
benefits to Indigenous communities.
METRICS AND TARGETS
Measuring and setting targets related to the positive impact we
have on Indigenous Peoples, especially quantitative metrics and
targets, is difficult due to the intangible nature of the impact.
Our primary concern is to always be in accordance with the
agreements we have with the respective indigenous groups.
These include certain criteria, such as employing a number
of members of a specific indigenous group. On a group level,
targets are not set beyond what is stipulated in the respective
agreements. We assess our compliance towards these
agreements through the regular meetings and the use
REMEDIATION
Communities may raise concerns, needs or request for remedy
due to negative impacts through their representatives, and
through established channels such as our regular meetings
with indigenous peoples. These meetings are regulated through
our agreements with each indigenous people. Alternatively,
they can contact Grieg Seafood through community.relations@
griegseafood.com. Our contact is available on our website.
Concerns from nations are reported directly to the Managing
Director and relevant departments, while concerns through
the community email are vetted by the Communications
department and directed appropriately, always involving the
Managing Director. Our Code of Conduct explicitly prohibits
retaliation against anyone for raising or helping to address a
concern. Retaliation is grounds for sanctions, up to and including
dismissal. Situations where retaliation could potentially be a
concern should be raised as early as possible at the level felt
appropriate to the situation.
POLICIES
Our Group policy on human rights, Code of Conduct and supplier
Code of Conduct, all address the rights of Indigenous Peoples
and respecting Indigenous cultures, such as local communities
in British Columbia and Finnmark. For Grieg Seafood BC, we also
have a Indigenous Peoples policy that emphasize the importance
of building strong relationships with Indigenous communities
such as through our partnership with First Nations. Our policies
and agreements dictate how we can positively contribute to the
communities, as well as how we should take particular care to
avoid infringing on the rights of indigenous groups as set forth by
the UN Declaration on the Rights of Indigenous Peoples.
Our policy on human rights outline our commitment to comply
with relevant international standards, including the UN Guiding
Principles on Business and Human Rights, ILO Declaration on
Fundamental Principles and Rights at Work, and OECD Guidelines
for Multinational Enterprises. The policy also recognizes
standards such as the International Covenant on Economics,
Social and Cultural Rights, UN Convention on the Elimination of
Discrimination Against Women, and UN Declaration on the Rights
of Indigenous Peoples. No cases of non-respect with regards to
these human rights frameworks have been detected. Any
ENGAGEMENT
The policies related to indigenous peoples are developed based
on close collaboration with Indigenous communities. We have, at
minimum, quarterly meetings with community representatives.
We have also established agreements with different communities
where their unique inputs are considered in policy setting and
dictating how we operate. This ensures that the communities,
some of which have historically been particularly marginalized,
can provide input and raise concerns before policies and
agreements are in place. We measure the effectiveness of our
engagement through the feedback we receive during our regular
meetings with community representatives. The managing
director for the relevant regions (British Columbia and Finnmark)
are responsible for ensuring that engagements take place
and are used in the development of policies and agreements.
Additionally, we rely on international frameworks, such as the UN
Declaration on Human Rights, ILO Declaration on Fundamental
Principles and Rights at Work, UN Declaration on the Rights of
Indigenous Peoples, International Covenant on Economic, Social
and Cultural Rights, and OECD Guidelines for Multinational
Enterprises.
potential negative impacts and the remediation of such can be
raised by the communities in regular meetings between Grieg
Seafood and the communities representatives.
Grieg Seafood engage in regular dialogue and contribute
to indigenous cultures in the areas where we farm salmon,
including issues relating to employment, environmental impacts,
as well as regular reporting and meetings. As outlined in the
Indigenous Peoples policy, we commit to building relationships
and consulting with Indigenous Peoples before projects, taking
into considerations their thoughts. This approach ensures
long-term positive impacts for communities, including access to
jobs, training, and education opportunities. Grieg Seafood also
provides education and training for Grieg management and staff
on the history of indigenous peoples in British Columbia.
The responsibility for implementing the policies is vested with
the regional directors, managers and supervisors, with the most
senior level accountable being the CEO and global management
team. The policies are available to anyone on our website. How
we develop the policies though stakeholder engagement is
described in next section on Engagement.
These actions are conducted on an ongoing basis and not
limited to a specific time period. In our regular meetings with
the individual groups we report to them on our processes and
operations, per our agreements. Individualized scorecards have
been developed for First Nations that require it and we provide
quarterly performance results to each First Nation. We also carry
out meeting upon request and generally aim to have continuous
dialogue with the communities. This provides First Nations with
access to information specific for their needs and enables them to
raise relevant issues.
The implementation of these actions does not require significant
operational expenditure and/or capital expenditure, although it
requires significant investment of time.
of scorecards. In addition to these agreements, we could also
measure our positive contribution to First Nations through the
value of purchased goods and services, the value of donations
and sponsorships, and the number of employees to and from
these nations. However, we do not have explicit targets related
to these metrics, unless specifically stipulated in an agreement.
Consequently we do not assess the outcome or progress against
the target unless relevant to an agreement.
65
Consumers & end-users
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk
and opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Potential negative
impact from food safety
hazards
X
Potential incidents that can cause food safety hazards for consumers
can occur in the harvesting, as well as in the processing and
transportation of salmon to market through cross-contamination of
food products.
Material
Stable
Stable
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
Food safety is at the core of everything we do at Grieg Seafood
as potential incidents could have negative health consequences.
Our customers and consumers, including VAPs, wholesalers,
retailers, restaurants and end-consumers, should always
trust our products and our food safety management systems.
This requires a continuous and concerted effort, as there is an
inherent risk for food safety hazards to occur across the value
chain. Our products are not targeting or developed for consumer
groups that are at greater risk of harm. However, some
consumers with immune system deficiencies may be at more risk
than others. This specific risk has been identified and mitigated
through food safety control measures.
Part of our business strategy is to expand our operations
downstream with our expansion plans towards increasing
our VAP. Food safety is fundamental to achieve this strategic
objective, with biological, chemical, and physical hazards
carefully managed to ensure product safety. We have therefore
developed and implemented relevant policies, actions, and
targets, as described in subsequent sections. Our stringent
food safety control measures, targeted policies, and strategic
expansion in downstream operations, all contribute to the
resilience and capacity of our business to address potential
incidents that can cause food safety hazards.
66
POLICIES
Our policy on food safety governs how we manage our material
impacts on consumers and end-users with regards to food safety.
The policy applies to all staff across all regions and processing
facilities. Our principles include ensuring that products are
produced, processed, packaged, labelled, and sold in a value
chain that ensures a high level of and focus on protection of
human health, and that we have a fully integrated traceability
system from roe to finished product, including fish feed. The
products originating from our processing plants should be
handled under a competent HAACP- and sanitary program.
Additionally, residues of medicines in our products should be
below the relevant limits, which is regulated by our policy on the
use of antibiotics. On the customer end, we advise customers
to comfortably recognize that they are responsible for storage,
handling, processing, or cooking of food after delivery. Our
approach should be based on scientific advice, data collection,
analysis, and regulatory requirements.
The policy also outlines how we track and report on food
safety, including the use of third party certification, identifying,
assessing and recording potential hazards in our HACCP system,
performing analyses according to standard analytical methods,
and establishing systems to trace the product through the value
chain. The policy outlines the responsibility for implementing and
adhering the policy, from top management developing
and approving the policy to regional directors, managers and
supervisors implementing the policy to employees and non-
employees adhering to the content of the policy.
Grieg Seafood is committed to respect and promote human rights
relevant to our operations as well in our value chain, as stated
in our human rights policy. This extends to human rights with
respect to food safety. The policy is aligned with internationally
recognized instruments such as the UN Guiding Principles on
Business and Human Rights. We have no indication of cases of
non-respect with regards to relevant human rights principles
for food safety. Generally, we evaluate the risk of human
rights breeches related to health and safety for customers and
end-users to be small. Consequently, we have not engaged
stakeholders nor have a specific approach to provide and/or
enable remedy.
The policies are available to anyone on our website, while
employees are also exposed to the policies through awareness
and training programs. Suppliers also have to agree to our
supplier Code of Conduct upon signing the contract. How we
develop the policies though stakeholder engagement is described
in next section.
ENGAGEMENT
Our stakeholder engagement with regards to food safety is based
on FSSC 22000, which requires both a documented stakeholder
analysis and a communication plan. We have regular dialogue
with multiple stakeholders, including customers, end-users,
suppliers, certification authorities, employees, competitors,
and investors, on a variety of topics, and the Norwegian food
authority. The Norwegian food authority has conducted several
inspections in the past year and is important for us to comply
to the highest standard., The engagements include gathering
information from websites and reports associated with the
stakeholders, direct meetings and dialogue, audits, and surveys.
REMEDIATION
We do not cover the business-to-customer segment and do not
have a specific process for providing or contributing to remedy
negative impacts for consumers and end-users nor tracking and
monitoring raised issues. Potential requests for remedy from
businesses are handled on a case-by-case basis in accordance
with relevant legislation. Consequently, we do not have specific
ACTIONS
It is imperative that customers trust our products and that we do
not contribute to causing material negative impacts. This starts
with regulatory scrutiny from the Norwegian food authority and
adherence to their standards. All of our actions, both global and
local, are steps to ensure that the likelihood of potential negative
impact associated with food safety are reduced.
On a general basis, we aim for all our food production and
processing plants to be certified using a relevant GSFI-
recognized food safety certifications. This entails fulfilling and
enacting set criteria and actions, to ensure compliance with
the certification. Adhering to recognized standards requires
us to have food management safety systems of a high quality
in accordance with our policy objectives. Additionally, scrutiny
through the certification process ensures that the level remains
consistently high. Line or site managers are responsible for
ensuring that we operate in compliance with the certification, but
responsibility for compliance activities is usually delegated to the
quality, compliance or certification manager.
We are currently working on implementing a more extensive
company-wide action plan in relation to our work to update the
policy and improve our management systems on food safety.
On a local level, more specific action plans are established to
ensure food safety. For example, in 2024, Grieg Seafood Finnmark
enacted concrete actions relating to the speed of registration and
handling of critical deviations, revisions with external assistance
of existing testing and cleaning plans, and which suppliers
to audit. Similarly, our slaughter facility Stjernelaks enacted
actions in 2024 relating to increase in warm water capacity,
installing new disinfection machines, and various courses and
training sessions. The process of identifying and establishing
required actions may vary and are largely dependent on the
needs and context of each individual location. For example
KPIs, age of equipment or qualitative assessments based on the
judgement of key personnel. The local action plans are developed
in collaboration with and overseen and tracked by technical
mangers, quality managers, and/or factory managers. When
needed, global personnel support the local team. The expected
outcome of these local actions is, as for our global actions related
to certification, an increased level of food safety. These action
plans are reviewed yearly in a management review meeting
involving relevant managers and employees, as required by
FSSC 22000.
Costs associated with food safety can be difficult to disentangle
at it is integrated into most of our operations at our processing
plants. Direct operational costs are primarily related to personnel
and equipment, which are estimated at around mNOK 50 per year
based on data for 2024 (related to the figures in Notes 5, 7, 9 and
14 in the financial statement).
As described in the previous section, we do not have specific
processes for providing or contributing to remedy materialized
negative impacts for consumers and end-users.
channels for consumers and end-users to raise concerns
besides through our general contact channel on our website. Our
non-retaliation policy still applies to such concerns. We do not
have plans to implement a specific process beyond our claims
processes towards our direct customers.
The engagements occur on a continuous basis and the frequency
varies depending on the type of stakeholder and engagement.
Feedback from these engagements was used to inform our
decisions and activities, including our policy. Although we do not
have concrete procedures to determine the effectiveness of the
engagement. The responsible person for each engagement varies
depending on the stakeholder in question, but includes quality
managers, sales coordinators, and key account managers. Grieg
Seafood did not specifically engage particularly vulnerable or
marginalized consumers or end-users.
67
METRICS AND TARGETS
Our overarching global target is related to the certification of our operations. These certifications require adherence to additional actions
and targets, but the specifics depend to some degree on the certification. For 2024 the majority of our volume was processed in a plant
certified with a relevant food safety certification and all internal plants and over half of external plants were certified.
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
2024
Potential negative impact from
food safety hazards
Percentage of global volume
that is certified (GFSI-
recognized) (Note 1)
NA
NA
Firm wide, internal
and external
processing
76% of volume
Percentage of Norwegian
volume that is certified (FSSC
22000) (Note 1)
100% of internal
processing plants
Yearly
Norway, internal and
external processing
100% of internal
and 50% of external
processing plants
certified
62% of volume
Yearly
Norway, internal and
external processing
83% of volume
Percentage of Canadian
volume that is certified (BAP
processing) (Note 1)
NA
NA
Canada, external
processing
100% of external plants
certified
NA
NA
Canada, external
processing
61% of volume
We are currently working on expanding our KPIs to monitor food
safety more comprehensively on a firm-wide basis.
As for our actions, in 2024, we had multiple and varied local
targets related to food safety, which are developed to measure
our performance towards health and safety and our action plans.
For example, Grieg Seafood Finnmark has targets relating to
the number and response time of (critical) deviations and the
detection rate of listeria at the facility. This relates to specific
actions concerning deviation handling and testing and cleaning,
and contributes to our objectives of producing products that
people trust. Similarly, our Stjernelaks facility has targets
relating to the number of positive sodibox tests and recalls, to
follow up the results of our actions described earlier.
The process for setting targets follows the approach for
establishing actions related to food safety, considering specific
certification requirements and local context. Stakeholder
engagement is limited to the Norwegian food authority
when setting targets, tracking performance, or identifying
improvements.
NOTES ON CONSUMERS AND END-USERS
NOTE 1 GFSI CERTIFIED VOLUME
Metrics on GFSI certified volume are based on sales data. The
percentage was calculated as follows, both globally and for
Norway and Canada respectively:
% certified volume = certified volume / total volume
To determine certified volume we summed the quantity (kg)
sold from each processing plant, using packaging labels in our
system to identify the specific plant. All volume originating from a
certified plant was denoted as “certified”. For cases where a plant
was certified during the year, all volume sold prior to certification
was denoted as “not certified” and vice versa.
For Norway, we looked at FSSC 22000 certification, while we used
BAP processing certification for Canada. The share of certified
plants was based on their status as of 31.12.2024.
The targets are not bound to a specific baseline value.
68
Governance
information
SUSTAINABILITY STATEMENT
Business conduct
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material impact, risk
and opportunity
LOCATION
Description
EXPECTED CHANGE OVER TIME
UP
VC
OO
DS
VC
Short-term
Medi-
um-term
Long-term
Actual negative impact
on fish health
X
All fish are exposed to the risk of harmful micro-organisms
(pathogens), diseases and environmental threats, which may lead
to reduced health and mortality. This applies for all our production
locations in Norway and Canada.
Material
Stable
Decrease
Actual negative impact
on fish welfare
X
X
Our farming involves activities and handling of salmon that can lead
to stress and potentially suffering and reduced welfare of the fish.
This applies for all our production locations in Norway and Canada.
Fish are held in captivity and at points transported between facilities.
Handling and treatments may additionally affect the fish negatively in
terms reduced appetite, stress and potentially reduced welfare. These
activities, and resulting negative impact, also occur in our supply chain
of fry and smolt.
Material
Stable
Decrease
Opportunity related to
lower-impact farming
methods
X
Our post-smolt business strategy has the possibility to reduce
operational expenditures and reduce costs related to fish mortality,
disease outbreaks, sea lice treatments and fish handling. Our
experience with post-smolt in Rogaland indicates that less time in
the sea reduces both the risk of and impact related to fish health.
Short-term it increases investment expenditures and smolt costs, but
will help us grow production and increase revenue in a stable manner
over time.
Material
Stable
Stable
Financial risk related to
fish health
X
At the event that fish suffer from a disease, it can potentially lead
to downgrading of product quality which directly reduces price
achievement. In relation, lice treatments are a major cost driver in our
production.
Material
Decrease
Decrease
Financial risk related to
survival rate
X
Reduced survival rates directly impact us financially, as we have
less fish to sell to the market to generate income. Low survival rates
also lead to impaired public reputation and limits our consumer
preferences compared to other proteins. This has a further negative
impact on our sales volumes. We see the financial effects of high
mortality rates and the public pushback it reinforces.
Material
Stable
Stable
As a salmon farmer we have a responsibility to ensure that
our fish have good health and welfare. Our farming activities
involve handling and treatment of salmon that may have an
impact on the fish health and welfare that can have substantial
negative financial effect if not mitigated properly. We therefore
have routines and implement targeted mitigating actions when
required. These efforts are described more in detail later in this
chapter.
The foundation for all our business is our salmon and fish health.
It is a key success factor for delivering on our financial targets
across our value chain. As such, this is something we have
monitored and reported on over time. Our post-smolt strategy
has led to significant improvements on biological performance
and fish health from our post-smolt operations. To minimize our
negative impacts on fish health and mitigate the related financial
risks, as well as to pursue opportunities related to lower-impact
farming methods, we have continued to act on our post-smolt
strategy and invested in post-smolt facilities (see more details
later in this chapter). Together with our efforts to manage our
material impacts and risks, we consider the post-smolt strategy
to further strengthen the resilience of our strategy and business
model.
* OO = Own operations, UP VC = Upstream value chain, DS VC = Downstream value chain
69
POLICIES
ANIMAL HEALTH AND WELFARE
We have three group policies addressing animal health and
welfare, as described below. The policies are group-wide and
cover all our regions. Their main content is a policy statement,
governing principles, definitions, KPIs including tracking and
reporting, responsibilities for implementation, and related
documents. The Chief Operational Officers, and in extension the
regional directors, managers, and supervisors are responsible
for implementing the policies. The policies are available to
anyone on our website. Employees are exposed to the policies
through awareness and training programs.
FISH HEALTH AND WELFARE OF SALM-
ON AND CLEANER FISH
The policy addresses the impacts our farming activities have on
health and welfare of animals kept in our care, including stun
and bleed at harvesting. In addition, it addresses the risk of high
mortality rates. The general objective of our policy “Fish health
and welfare of salmon and cleaner fish” is to ensure good welfare
and health for salmon and cleaner fish throughout their lifecycle.
Good fish health and welfare implies that the highest possible
number of fish thrive, grow normally, and survive to the end of
their lifecycle.
The fish health and welfare policy follow the guidelines of the
World organization for Animal Health (OIE), and every region
must implement and fulfill the national fish welfare and health
legislation. Every region has a specific plan for preventive
measures and treatments to secure fish health. We monitor
several health and welfare indicators, including regular
monitoring of water quality, algae and jellyfish blooms.
ACTIONS
Keeping the fish healthy and ensuring its survival is of
importance both from the perspective of the animals’ welfare
and for Grieg Seafood financially. The actions presented in
the table show how we address our material impacts, risks
and opportunities related to fish health and welfare. All these
actions are performed on a continuous and ongoing basis and
monitored using a range of fish health and welfare indicators and
environmental parameters. The ultimate results of our actions
and progress towards related targets are measured through the
metrics presented in the next section. Unless specified otherwise,
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
EXPECTED OUTCOME
SCOPE
Actual negative impacts on
fish health
Financial risks related to
survival rate
Opportunity related to lower-
impact farming methods
We ensure intake of healthy roe and fish, and strict hygienic control
of boats, feed, people and equipment taken into the farms.
Minimizing pathogens (harmful
micro-organisms) to enter the
fish farms
Own operations
(farming)
We daily remove sick or dead fish to avoid pathogens to spread.
Our feed is targeted for each fish species and life stage to stimulate
robust salmon. We also ensure to take in fish that have physiology
to thrive, and that are vaccinated with effective vaccines relevant
for the area.
Minimizing pathogens to
multiply within the fish farms
We have regular monitoring of water quality such as temperature,
oxygen and salinity. In our freshwater facilities, we adjust these
factors to ensure the fish have optimal conditions for growth and
welfare. To optimize fish welfare during transportation in tank or
well boat we continuously monitor the water environment of the
fish. In periods of risk, we monitor algae and jellyfish blooms.
Minimizing environmental
health risk to the fish
We have regular fish health inspections and screening programs at
all sites by authorized fish health personnel to detect diseases and
implement early measures
Early detection of diseases
Actual negative impacts on
fish welfare
We handle any live fish with care during treatments, grading,
transport or similar, during its life time in our farms and fresh
water facilities. We ensure that all live fish is anesthetized prior
to killing. This means that we secure access to anastetics and
equipment in all production plants, as well as regular training
courses in anestetic, control of reflexes and culling or bleeding
for all staff involved in fish production or killing at slaughter. The
density of fish in our pens are between 97,5 - 98,5 percent water
and 1,5 - 2,5 percent fish, providing space for the fish to thrive, grow
healthy and express normal patterns of behavior.
Minimizing negative impacts on
fish welfare
Own operations
(farming, processing,
transport)
Financial risks related to fish
health and survival rate
Opportunity related to lower-
impact farming methods
Keeping the fish longer on land or in closed containment systems
reduces time in sea, and thus time that the salmon is exposed
to external environmental risks such as sea lice, algae blooms,
jellyfish and low oxygen levels. We have observed reduced total
mortality during the ocean phase for larger post-smolt groups, as
well as improvement in sea lice control with preventive measures
and no need for treatment. We have continued to invest and
allocate financial resources to post smolt, with the construction of
the 3000 tonnes capacity post smolt facility in Adamselv, Finnmark,
and the opening of our second posts molt facility in Årdal,
Rogaland.
We have observed significant
biological improvements
from post-smolt operations
in Rogaland, where we have
been pioneering this production
method since 2019. We
anticipate witnessing similar
biological and fish health
improvements at the other
facilities.
Own operations
(farming)
SEALICE CONTROL
We have covered the policy of Sealice control in Policies
under chapter Biodiversity and ecosystems. In addition to the
previously stated information, the policy addresses the health of
salmon and aims to govern the impact of sea lice treatments that
effects the fish in negatively terms of stress, feed withdrawal,
and potentially reduced welfare and health.
USE OF ANTIBIOTICS
The policy covers the Use of Antibiotics and aims to avoid the use
of antibiotics in our farming operation by preventing bacterial
diseases through vaccines and biosecurity measures. It further
aims to combat antibiotic resistance and ensure fish health and
welfare. The policy addresses our material impacts and risks
related to potential reduced fish health and mortality triggered by
treatments and diseases, and linked reduced-price achievement
due to downgrading of quality.
We monitor the use of antibiotics in our production system,
specified with active pharmaceutical ingredient, amount used,
date and location. Antibiotics are only used as a last resort to
treat bacterial diseases when fish health and fish welfare are
threatened. We do not use antibiotics categorized as “critically
important” on the WHO list of Highest Priority Critically
Important Antibiotics. Compliance is monitored through
rigorous control and documentation of withdrawal periods, and
prescriptions must be approved by central management.
the scope of these actions are all our farming operations in all
regions, in Norway as well as Canada.
Most of the investments related to our actions on fish health
and welfare is tied to our post-smolt strategy. This is already
presented in the chapter on Climate change and it is difficult
to disentangle the expenditure. Similarly, our operational
expenditure is related to inspections, monitoring and follow-
up, which is presented in the chapter on Biodiversity and
Ecosystems.
70
METRICS AND TARGETS
Survival rates at both sea and in freshwater were below our stated target. Survival rate at sea was lower than previous years while the
survival rate in freshwater is higher than last year. We will continue to monitor these metrics, due to the importance for our business
model, and may implement additional actions if needed.
MATERIAL IMPACT, RISK AND
OPPORTUNITY
DESCRIPTION
TARGET
TIME HORIZON
SCOPE
2024
Actual negative impacts on fish
health and welfare
Financial risks related to
survival rate
Opportunity related to lower-
impact farming methods
Survival rate at sea (Note 1)
95%
Yearly
All seawater sites in all
regions
89.99%
Survival rate in freshwater
(Note 1)
From eyed eggs to
0.5 gram: 95%
From 0.5 gram to
sea transfer: 99.4%
Yearly
All freshwater sites in all
regions
90.06%
Financial risk related to
survival rate
Cost of reduced survival
(NOK million) (Note2)
No target
NA
All farming sites in all
regions
386
Actual negative impacts on fish
health and welfare
Use of antibiotics (g per
tonne LWE) (Note 3)
Zero
Yearly
All farming sites in all
regions
18.7
Actual negative impacts on fish
health and welfare
Sea lice counts (Note 4)
0.5/0.2
Yearly
All farming sites in all
regions
0.35
The targets are not bound to a specific baseline value.
NOTES ON BUSINESS CONDUCT
NOTE 1 SURVIVAL RATE
Survival rate was calculated according to the GSI standards.
The metric for survival rate is split into survival rate at sea
and survival rate in freshwater. The calculation of survival rate
corresponded to the GSI indicator "Fish Mortality". This 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) * 100.
Survival rate is based on tracking dead fish and errors in
counting and unregistered dead fish might occur.
NOTE 2 COST OF REDUCED SURVIVAL
The metric illustrates how risks related to fish health may
impact financial results. We report cost of reduced survival as
a separate metric in NOK million. Cost of reduced survival is
defined as cost recognized as abnormal mortality in the income
statement. See accounting policies for abnormal mortality in the
financial statements for more information.
NOTE 3 USE OF ANTIBIOTICS
This metric 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)".
Use of antibiotics is registered in our production system,
specified with active pharmaceutical ingredient, amount used,
date and location. Any use is reported according to national
regulations.
NOTE 4 SEA LICE COUNTS
This metric corresponds to the GSI indicator "Sea lice counts"
which is defined as "sea lice according to local action levels
set by the authorities". The number reflect the average sea lice
count across the year for both Norway and Canada, weighted by
production volume of each region respectively. Sea lice counts
are conducted by visual inspections. A minimum of 20 salmon
are evaluated from 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 used to estimate the
overall prevalence of sea lice in the population. As sea lice levels
are tracked by counting the number of sea lice on fish, counting
errors might occur. It is therefore not an absolute number but an
estimate based on a sample.
In Norway and Newfoundland, the sea lice counts are calculated
as the average number of adult female sea lice per month.
In Norway, 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. We report sea lice levels and sea lice treatments to
the Food Safety Authorities on a weekly basis. This is publicly
available information. In British Columbia, 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.
All non-monetary metrics are reviewed and verified by the external body Aquaculture Stewardship Council (ASC), in relation to ASC-certification of sites. The ASC-certification is done per site, per
generation.
Bergen, 27 April 2025
The Board of Directors and CEO of Grieg Seafood ASA
PAAL ESPEN JOHNSEN
PER GRIEG
NICOLAI HAFELD GRIEG
Chair
Board Member
Board Member
SILJE REMØY
MARIT SOLBERG
NINA WILLUMSEN GRIEG
Board Member
Board Member
CEO (Interim)
This document is signed electronically and therefore has no hand-written signatures.
71
STATEMENT FROM THE BOARD OF DIRECTORS AND THE CEO
Grieg Seafood ASA`s consolidated financial statements for the period from January 1 to December 31, 2024
have been prepared in accordance with IFRSs and IFRICs as adopted by the European Union, and applicable
additional disclosure requirements in the Norwegian Accounting Act. The separate financial statements for Grieg
Seafood ASA have been prepared in accordance with the Norwegian Accounting Act and Norwegian accounting
standards as of December 31, 2024. The Board of Directors´ report for the Group and the parent company is in
accordance with the requirements in the Norwegian Accounting Act and Norwegian accounting standard no 16, as
of December 31, 2024.
We hereby confirm that, to the best of our knowledge the consolidated and separate annual financial statements
for 2024 have been prepared in accordance with applicable financial reporting standards. Furthermore, the
financial statements for the period January 1 to December 31, 2024 have been prepared in accordance with the
ESEF regulations. We further confirm to the best of our knowledge that the 2024 Sustainability Statement has
been prepared in accordance with and meets the information requirements of the Norwegian Accounting Act, the
European Sustainability Reporting Standards (ESRS) and the EU taxonomy (Article 8 of EU Regulation 2020/852)
We also confirm to the best of our knowledge the consolidated and separate annual financial statements give a
true and fair view of the assets, liabilities, financial position and profit as a whole as of December 31, 2024 for the
Group and the parent company.
We also confirm that the Board of Directors´ report for the Group and the parent company includes a fair review
of:
-The development and performance of the business and the position of the Group and the parent company.
- The principal risks and uncertainties the Group and parent company face.
PAAL ESPEN JOHNSEN
PER GRIEG
NICOLAI HAFELD GRIEG
Chair
Board Member
Board Member
SILJE REMØY
MARIT SOLBERG
NINA WILLUMSEN GRIEG
Board Member
Board Member
CEO (Interim)
Bergen, 27 April 2025
The Board of Directors and CEO of Grieg Seafood ASA
This document is signed electronically and therefore has no hand-written signatures.
02
PART 01
PART 02
Board of directors report
Corporate Governance
PART 03
72
02
Corporate Governance
02
STATEMENTS
FROM THE BOARD
73
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.
COMPONENTS OF CORPORATE GOVERNANCE
A sound corporate structure, with viable decision-making
processes, a clear division of responsibility and authority,
appropriate information and communication processes as well
as remuneration and reward schemes, is key to Grieg Seafood
being able to achieve its strategic goals and objectives. The
main components of the Group’s corporate governance consist
of objectives and directions, structure, organizational planning
and management as well as learning and improvement. Together
with the external context, these components underpin our
ability to create value and achieve goals. Our operations are
clearly connected with a multitude of external expectations.
We, therefore, seek to maintain a regular dialogue with our
stakeholders, as they are the basis for our social license to
operate. Transparency and disclosure are vital in building trust,
and engaging in a dialogue with our stakeholders enables us to
better understand the role we play in local communities and in
the society as a whole.
GOVERNANCE STRUCTURE
The shareholders are the owners of the company, and the
General Meeting, which all shareholders are invited to attend,
is the supreme governing body of the company. The General
Meeting provides instructions to the Nomination Committee,
which safeguards shareholders’ interests by nominating Board
members to be elected by the General Meeting. The Board of
Directors is setting the strategy and overseeing the conduct and
management of Grieg Seafood. The Board’s responsibilities to
ensure good corporate governance include setting and approving
the vision, core values, strategies, objectives, plans, budgets and
overall organization of the operations, monitoring operational
performance and due diligence, as well as the company’s impact
on the economy, environment, people, and related risks, as well
as ensuring compliance with laws and regulations.
The Board nominates its members to specific committees
(Audit Committee and Remuneration Committee) to provide
counsel and advice or to handle tasks on the Board's agenda.
The Audit Committee members have a particular responsibility
for overseeing the integrated reporting process, the audit
process, the company's system of risk management, internal
controls and compliance with laws and regulations. The role
of the Remuneration Committee is to establish and maintain
an appropriate rewards policy that attracts and motivates
executives to achieve the short and long-term interests of
shareholders.
The Board has delegated the management of the Group’s overall
operations and resources to the CEO. The CEO’s responsibilities
include establishing a vision, core values, strategies, objectives,
plans and budgets for the Group. The CEO is also responsible for
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
engagement. The CEO is also responsible for establishing rules
for handling possible conflicts of interest.
The CEO delegates authority and responsibility to the group
executive management team, from where responsibilities
cascade throughout the Group. The executive management
team, which consists of senior executives representing all
aspects of the Group’s operations, is responsible for establishing
operational plans and targets, allocating resources to its
members’ specific functions and following-up their operational
performance. In 2024, the executive team consisted of the Chief
Financial Officer (CFO), two Chief Operational Officers (COO,
responsible for farming operations in Norway and Canada),
the Chief Commercial Officer (CCO, responsible for the sales
function), in addition to the supporting functions lead by Chief
Technology Officer (CTO), the Chief Human Resource Officer
(CHRO), the Chief Communication Officer, and the Chief Strategy
Officer. The executive management team is responsible for
implementing group policies, monitoring their functions’ impacts
on the economy, environment and people, managing related
risks and securing compliance with laws and regulations. This
also includes adhering to our Code of Conduct and ensuring
that responsible business conduct underpins all activities. The
executive management team is responsible for ensuring that
employees receive the proper training of policy commitments.
The CEO and the group executive management team together
engage with the Group’s stakeholders, which is key to be able
to grasp emerging opportunities for the Group, and at the same
time to understand and mitigate economic, environmental and
social risks. Results of stakeholder engagement is reported
to the Board as part of risk management procedures and
regular business updates in Board meetings. See examples of
stakeholder engagements in our Sustainability statement.
The CEO has delegated the establishment of group policies to
the Sustainability Steering Committee, which prepares and
updates them on the basis of a holistic assessment of economic
and environmental, social and governance (ESG) issues (the
materiality assessment). Relevant organizational functions and
expertise take part in preparing the policies. The policies are
approved by the CEO while the Board of Directors monitors
compliance with the policies. Policies are presented to the group
management team and the regional management team, and are
available to all employees through the internal Governance,
Risk and Control system. We have a special focus on our Code
of Conduct, where the employees are required to complete a
program every second year. In 2024, 83% of our employees
completed the Code of Conduct program. Our policies are
available to the public through our website. The group policies
contain a set of targets and Key Performance Indicators (KPIs),
of which most are included in the sustainability scoreboard in the
company’s quarterly and annual reports as part of the material
topic they relate to. As such, the Board, and in particular the
Audit Committee, reviews and approves the Group’s performance
74
with respect to 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 Audit Committee has been presented results
from the double materiality assessment, in 2024.
RESPONSIBLE BUSINESS CONDUCT
Our values and Code of Conduct underpin the way we conduct
ourselves and our approach to responsible business behavior.
Our Code of Conduct sets out the ethical principles and standards
that must be upheld by each and every employee, and any
agent that acts on our behalf, including our Board of Directors.
Through our Supplier Code of Conduct, we demonstrate that
we expect no less from our supply chain. A large share of our
suppliers, in purchase value, have signed the Supplier Code of
Conduct. Additionally, our Procurement policy provides global
standards for how we source goods and services. Through our
Human Rights policy, we recognize that we can contribute to the
fulfillment of human rights. We have a responsibility to prevent,
mitigate, and address adverse human rights impacts in our own
operations, but we also use our leverage to promote respect for
human rights in our value chain. Our approach to responsible
business conduct including human rights is based on the OECD
Guidelines for Multinational Enterprises, the OECD Due Diligence
Guidance for Responsible Business Conduct, the UN Convention
against Corruption, the UN Guiding Principles on Business and
Human Rights, the Universal Declaration of Human Rights, the
ILO Declaration on Fundamental Principles and Rights at Work,
the United Nations Convention on the Rights of the Child, the UN
Convention on the Elimination of Discrimination against Women,
the UN Declaration on the Rights of Indigenous Peoples, and the
UN Global Compact.
Our policies set out guidelines and precautionary principles to
enable adoption of precautionary measures. We are committed
to respecting fundamental human rights in our operations, our
value chain, and in the communities where we operate. We
use our influence to promote the fulfillment of human rights
and always seek to avoid involvement, even indirectly, in their
abuse. Please find the details of our commitment in the Human
Rights policy on our website. We also aim to conduct proper due
diligence when engaging with third parties. See also our Human
Rights Progress Report 2024.
Our policies state that we do not permit or tolerate engagement
in any form of corruption or money laundering activities. We
also refrain from anti-competitive behavior, anti-trust and
monopolistic practices, as this can severely affect consumer
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
implement mitigating measures or controls to prevent corruption
and money laundering activities. According to Transparency
International/OECD, aquaculture is not assessed as an industry
of high risk for corruption. Based on our risk assessments of
farming and sales operations, there are no significant risks that
require specific mitigation actions beyond normal compliance
and risk management. 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 2024. We had no corruption incidents that resulted
in the termination or non-renewal of contracts with a business
partner. We will continue to perform these risk assessments.
Our policies stipulate our mechanisms for grievance and
remediation of negative impacts, as well as for seeking advice
and raising concerns. We aim to have an open and transparent
dialogue with all our stakeholders, and regularly meet with
stakeholders as well as invite them to our sites. Our employees
can raise any concerns about our business conduct, business
relationships, or potential and actual negative impacts
through our whistleblower channel. All reported incidents are
investigated and reported to the CEO and Board of Directors.
Employees can also raise concerns through their line manager
or HR functions, through their labor unions or relevant human
rights tribunals. Complaints by local communities or other
stakeholders can be raised through meetings, through the
regional websites or through the whistleblower channel. In 2024
we had one whistleblower case, the claim was closed after an
internal investigation. Our organization investigates misconduct
and whistleblowing situations with third-party assistance to
ensure justice and objectivity. We have not received any concerns
from external stakeholders, and as such have not provided any
related remediation. While our policies set out our commitments
related to the environment and social impacts, we recognize that
we can improve our grievance mechanisms and remediation
processes.
INVESTIGATIONS
In February 2019, the European Commission launched an
investigation to explore potential anti-competitive behavior in
the market for spot sales of fresh, whole and gutted Norwegian
farmed Atlantic salmon. In January 2024, Grieg Seafood received
a Statement of Objections from the European Commission related
to its investigation. The issuance of a Statement of Objections is
a common and formal step in the process, where the European
Commission sets out its preliminary view in the matter. The
Statement of Objections in no way prejudices the final outcome
of the European Commission’s proceedings. Subsequent to the
Statement of Objections, the companies concerned may examine
the documents in the Commission’s investigation file and present
their views on the case, before the Commission takes a decision
on the matter. Grieg Seafood has examined the Statement of
Objections carefully and has responded in writing as well as
presented its views in an oral hearing. Grieg Seafood continues
to fully cooperate with the European Commission’s investigation.
Three claims have been filed for damages in the UK against,
among others, Grieg Seafood ASA and Grieg Seafood UK Limited
arising from alleged unlawful cartel arrangements in relation
to the supply of farmed Atlantic salmon. Grieg Seafood rejects
that there is any basis for the alleged claims and considers the
complaint to be entirely unsubstantiated.
Furthermore, three class-actions filed in Canada (none was
certified as a class-action) were settled, even though Grieg
Seafood considers the complaints to be entirely without merit,
as the costs of litigation in Canada can be substantial. The
settlement agreement was approved by the Federal Court in
February 2024.
In general, Grieg Seafood denies any anti-competitive conduct
whether it is in regard to the EC investigation, the claims filed
in the UK or any possible future claims related to this matter
subsequent to the issuance of the SO. Grieg Seafood will follow
up all processes as it deems appropriate.
NOK 27 million were spent on legal fees related to the EC-
investigation and the lawsuits in 2024. The cost has been
included as ownership cost.
COMPLIANCE
We aim to comply with all relevant laws and regulations in
the regions in which we operate. Salmon farming is a highly
regulated industry, and we are subject to strict standards for fish
welfare, environmental impact, food production and production
equipment. We must comply with operational requirements
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.
75
Corporate Governance Principles
Adopted by the Company’s Board of Directors on
20 April 2007, and updated on 27 April 2025.
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.
Statement of corporate governance
No deviation
2.
Activities
No deviation
3.
Share capital and dividends
No deviation
4.
Equal treatment of shareholders and transactions with related parties
No deviation
5.
Negotiability
No deviation
6.
General Meeting
Two deviations, see below
7.
Nomination Committee
One deviation, see below
8.
Corporate Assembly and Board of Directors - composition and independence
No deviation
9.
Work of the Board of Directors
No deviation
10.
Risk management and internal control
No deviation
11.
Directors' fees
No deviation
12.
Remuneration of executive personnel
No deviation
13.
Information and communication
No deviation
14.
Company takeovers
No deviation
15.
Auditor
No deviation
1. IMPLEMENTATION AND REPORTING ON CORPORATE GOVERNANCE
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 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 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
76
2. BUSINESS
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
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
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. Therefore, to the extent possible, 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 all suppliers are expected 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
3. EQUITY AND DIVIDENDS
EQUITY
At any given time, the Group shall have a level of equity and a capital structure that is 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 2024, the company's consolidated equity totaled NOK 4 052 million, equivalent to 31% of total assets and a debt-to-
equity ratio of 0.5. The year 2024 has been weak with a total loss before tax of NOK 2 680 million. The Board of Directors have launched
a transformation program to lay the financial and organizational foundation for profitable and sustainable growth going forward. In the
end of February 2025, we have issued a NOK 2 000 million subordinated perpetual callable green hybrid bond that will add to equity and
straighten financial flexibility.
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 earnings after taxes, 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 cost.
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 terms). Furthermore, although a net
interest-bearing debt per harvested kg of up to NOK 40 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.
In 2024, the Group distributed a dividend of NOK 1.75 per share to shareholders, which corresponds to 39,5% of the net profit before fair
value adjustment of biological assets for the 2023 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 45 378 816, divided into 11 344 704 shares at the nominal value of NOK 4 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 45 378 816. The company shall pay
not less than NOK 4 per share and not more than NOK 240 per share when acquiring treasury shares. No treasury shares were acquired
in 2024. See Note 24 to the Group Accounts.
All the authorizations remain in effect until the next AGM, but not later than 30 June 2025. 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
77
4. EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH RELATED PARTIES
5. SHARES AND NEGOTIABILITY
There are no limitations with regards to owning, or trading for the company’s share or voting right conferred by them.
Deviations from the Norwegian Code of Practice: None
6. GENERAL MEETINGS
The shareholders are the owners of the company, and the General Meeting is the supreme governing body of the company. All
shareholders are invited to attend the Annual General Meeting (AGM) and Extraordinary General Meeting (EGM), if any. 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 the meeting form (physically and/or digital).
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 shall be approved by the AGM. The
remuneration guidelines shall be reviewed and approved every four years or earlier in the event of significant changes.
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 each
shareholder do not apply. Nevertheless, a shareholder may ask to be sent physical documents concerning matters to be considered at
the General Meeting.
Shareholders who wish to attend the General Meeting in person or by proxy, must notify the company at the latest two working days
before the General Meeting.
Shareholders can vote on each individual matter (subject to statutory disqualifications), 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 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.
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.
In 2024, Grieg Seafood Group held its AGM on 19 June as a virtual 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.
SHARE CLASS
The company has one class of shares, and all shares carry the same rights. As at 31 December 2024, 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 2024, the company held 1 203 089 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 the General Meeting, 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 2024. 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 31 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 2024.
Deviations from the Norwegian Code of Practice: None
78
7. NOMINATION COMMITTEE
On 13 February 2009, the AGM approved a resolution to establish a Nomination Committee.. This is described in Article 9 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. Instructions for the Nomination Committee were updated on 27 June 2023.
The present Nomination Committee was elected at the AGM on 19 June 2024.
Nomination Committee
Role
Considered independent
Served since
Term expires
Elisabeth Grieg
Chair
No
12.06.2018
AGM 2025
Erlend Sødal
Member
Yes
27.06.2023
AGM 2025
Terje Breivik
Member
Yes
19.06.2024
AGM 2025
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. 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 must ensure that the composition of the Board can safeguard the interests and independence of the
shareholder community and the company's need for expertise, capacity and diversity. Furthermore, the Nomination Committee
should consult relevant stakeholders to assess the need for changes in the composition of the Board. 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 member of the Board, as well as details of their attendance at Board meetings.
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. Proposals should
be submitted via email to the chair of the Nomination Committee, Elisabeth Grieg, at elisabeth.grieg@grieg.no.
A proposal submitted to the Nomination Committee should include relevant information about the recommended 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 send an
email to the chair of the Nomination Committee directly. The company will investigate how it can further facilitate the submission of
new proposals so that all shareholders can easily propose candidates to the Board and Nomination Committee.
8. BOARD OF DIRECTORS:
COMPOSITION AND INDEPENDENCE
BOARD MEMBERS
Pursuant to Article 6 of its Articles of Association, the company’s Board of Directors comprises three to ten members. The shareholder
elected Board members are 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. The requirements for gender representation apply, i.e. if the Board has
three of four members, no more than two Board members may belong to the same gender and if the Board has five or more members, no
more than 60% of the Board members may belong to the same gender.
The Board’s chair is elected directly by the AGM. The chair of the Board 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 not entitled to vote on Board decisions.
ELECTION PERIOD
All Board members are elected at the AGM, for a one-year term. Board members may be re-elected.
INDEPENDENT BOARD MEMBERS
As at 31 December 2024, the Board of Directors consisted of the following non-executive members (whereof 60% men and 40% women):
Name
Male/
Female
Role
Considered
independent
Served since
Term expires
2024 meeting
attendance
% of shares in GSF
per 31.12.2024
Per Grieg**
M
Chair
No
20.05.2009
AGM 2025
100%
51.06% *
Paal Espen Johnsen**
M
Vice chair
No
19.06.2024
AGM 2025
100%
0.00%
Marit Solberg
F
Board member
Yes
19.06.2024
AGM 2025
100%
0.00%
Silje Remøy
F
Board member
Yes
19.06.2024
AGM 2025
100%
0.00%
Nicolai Hafeld Grieg
M
Board member
No
04.11.2021
AGM 2025
100%
50.17% *
*Indirectly via the Grieg Group.
**As of 30 March 2025, Chair of the Board is Paal Espen Johnsen. Board member: Per Grieg.
Per Grieg, Nicolai Hafeld Grieg and Paal Espen Johnsen represent the main shareholders in the Group, and as such are defined as
not independent. The Board works on the basis that there may be cases where one or more of its members may be prejudiced. To
prevent and mitigate any conflict of interests, any such issues are clarified before meetings are held. A Board member or members who
are prejudiced refrain from participating in the relevant matter. Apart from shareholder’s representation, no other stakeholders are
represented in the Board.
Board members’ qualifications are wide-ranging, with the relevant competencies relevant to the impacts of 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. Two of the members have experience from banking and financial institutions, and one with extensive experience as a lawyer,
including several years as a corporate lawyer in seafood companies. The average age of the Board members is 54.
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 yearly updated Board members’
shareholdings in the company. No under-represented social groups are included in the Board or any of its committees.
Deviations from the Norwegian Code of Practice: None.
79
9. THE WORK OF THE BOARD OF DIRECTORS
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 ensure a proper organization of the company’s business and thereby also safeguard the shareholders'
interests. The Board has partly delegated the management and takes up a supervisory role for delegated tasks, 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
investigation 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 meetings of the Board, 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. To prevent and mitigate any conflict of interests, any such issues are clarified before Board meetings
are held. A Board member or members who are not independent must refrain from participating in the relevant matter. Any conflicts
of interest must be registered by the administration and disclosed in the Annual Report. Please refer to Note 31 to the Group Accounts
in the Annual Report 2024 for an overview of related parties transactions in 2024. 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 2024, did not uncover any need for
changes to the composition of the Board or organizational practices.
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
financial and operational background and experience, elected from among the Board’s members, and has drawn up a mandate for its
work. The mandate was last updated in 2023.
The Audit Committee has a particular responsibility for overseeing the integrated financial and sustainability reporting process, the audit
process, the company’s system of risk management, internal controls and compliance with laws and regulations. The Audit Committee
reviews the Group’s quarterly and annual reports before they are put to the full Board for final approval. In 2024, the Audit Committee
held eight meetings, in accordance with its annual plan. The Audit Committee also carries out an annual assessment of is work, including
its performance in overseeing the conduct, impact and management of all risk areas, as well as its own composition. The Group’s
external auditor participates in all Audit Committee meetings.
As at 31 December 2024, the Audit Committee consisted of one woman and one man:
Board’s Audit Committee
Role
Considered independent
Served since
2024 meting attendance
Paal Espen Johnsen
Chair
No
19.06.2024
100%
Silje Remøy
Member
Yes
19.06.2024
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 and shall be independent of the company's
executive management. As at 31 December 2024, the Remuneration Committee consisted of one woman and one man:
Board's Remuneration Committee
Role
Considered independent
Served since
Per Grieg
Chair
No
13.06.2009
Marit Solberg
Member
Yes
19.06.2024
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 audited by the company’s auditor. The AGM shall conduct a consulting vote over the remuneration report.
The Remuneration Committee shall hold discussions with the CEO concerning his/her financial terms of employment. It shall further
submit a recommendation to the Board concerning all matters relating to the CEO’s financial terms of employment.
The Remuneration 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 Remuneration Committee is assessed 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, as well as 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.
Internal control comprises activities and procedures carried out to safeguard the Group’s resources and those of its customers, and to
realize its goals through appropriate operations. The achievement of these goals requires systematic strategy development and planning,
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
goals include targeted, efficient, and appropriate operations, reliable internal and external reporting, as well as compliance with laws and
regulations, including internal policies and principles.
80
The Board has a responsibility to ensure that the Group has proper risk management and such internal control as is required by
statute. The Audit Committee has been given a particular responsibility to monitor critical business risks and address the quality and
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.
Each year, the external auditor carries out a review of the Group’s performance of internal control relevant for financial reporting. The
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 has 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 management 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.
11. REMUNERATION OF THE BOARD OF DIRECTORS
Proposals concerning the remuneration of the Board are submitted by the Nomination Committee. The guidelines approved by the AGM
state that remuneration to members of the Board 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 member. No Board member participates
in any incentive or share-purchase programs.
Board remuneration is shown in the financial statements of both the parent company and the Group.
Deviations from the Norwegian Code of Practice: None.
12. REMUNERATION OF THE GROUP EXECUTIVE TEAM
The objective of the guidelines approved by the AGM for salary and other remuneration payable to executive employees within the
Group is both to attract people with the required competence and retain key personnel. The guidelines shall create a wage culture which
promotes the company’s long-term interests, business strategy and financial strength. The guidelines should also motivate employees to
work with a long-term perspective to achieve the company’s goals.
The determination of salary and other remuneration payable to the Group’s executive management team is based on the following
guidelines:
• Ensuring that salaries and other remuneration are competitive and motivating for each executive.
• Linking salaries and other remuneration to, among other things, the company’s value creation, the company’s stakeholders and
shareholders.
• Attracting, motivating and retaining an executive management team with qualifications that correspond to the company’s size and
complexity.
• Developing competence and creating continuity in management.
• Ensuring transparency and publishing management’s remuneration in the company.
The principles used to determine salary and other forms of remuneration shall be simple and understandable to employees,
shareholders and the public at large.
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
for the Board’s decision on remuneration of the CEO. The committee shall hold discussions with the CEO about financial terms annually
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.
The salary agreed to the members of the Group’s executive management team in 2024 consisted of a fixed and a variable element. A fixed
base 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). For 2024, individual personal goals were evaluated separately and paid out accordingly.
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
according to the guidelines approved by the AGM. Each year, the Board shall report to the 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. The guidelines and the remuneration report will be published on the company’s website.
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 19 June 2024. Members of executive management are included in the synthetic options
program, see Note 8 to the Group Accounts in the Annual Report 2024. The option agreements have been entered into within the scope of
the resolution adopted by the AGM. Minutes of this AGM can be accessed here.
OPTION PROGRAM
A synthetic option scheme has been established for group management including regional directors. The Board wishes group
management 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 group management to take part in the company’s dividends from growth and success.
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
of variable compensation under the incentive plan is acceptable. If so, the committee will submit a recommendation to the Board, which
makes the final decision. If the company cannot achieve the financial results associated with the incentive plan, no bonus pay-out will
81
be awarded. The bonus is a function of the number of fixed monthly salaries (maximum six month) and the individual’s level within the
organization.
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.
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
who have been employed for at least six months at Grieg Seafood ASA or a wholly owned subsidiary are included in this program. Minor
changes in qualifications to this program may be approved by the Remuneration Committee and/or the CEO.
SEVERANCE PAY
The CEO, CFO and COO Farming Norway are entitled to 12 months’ severance pay after termination of the employment relationship by the
company. The CEO is further entitled to full salary during sick leave lasting up to 12 months.
Deviations from the Norwegian Code of Practice: None.
13. INFORMATION AND COMMUNICATION
FINANCIAL INFORMATION
The guidelines for reporting financial and other information to the stock market are defined within the framework established by
securities and accounting legislation and the rules and regulations of the stock exchange. The company also complies with the Oslo Stock
Exchange (Euronext) Code of Practice for IR, published on 1 March 2021.
The Group’s investor relations policy clarifies roles and responsibilities related to financial reporting, and regulates contact with
shareholders and the investor market. This policy is based upon the key principles of transparency and equal treatment of market
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
(Euronext), and other stakeholders (through the Oslo Stock Exchange information system) with timely information. The Board shall
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. 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 announcement of its interim results. The company publishes all information (including quarterly reports and annual reports in
accordance with the company’s financial calendar) through stock exchange/press releases, all of which are also published on the
company’s website. The presentation of each quarter’s results is available as webcast.
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
place in a reliable and comprehensive manner, and by means of information channels which ensure that everyone has equal access to
the information.
All information shall be provided in English. The company has procedures to ensure that this is done. The Board of Directors’
communication with shareholders and other stakeholders is delegated to the Board’s chair, or other appointed persons in specific cases.
The Board’s chair shall ensure that the shareholders’ views are communicated to the entire Board.
Deviations from the Norwegian Code of Practice: None.
14. TAKEOVERS
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
Meeting of shareholders and requires a majority of two-thirds of the votes cast and of the share capital represented. After a takeover
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
a competent independent party and advise the shareholders whether to accept or reject the bid. Shareholders will be advised of any
difference of views among members of the Board in its statements on the takeover bid.
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
principles are in accordance with the Norwegian Code of Practice.
Deviations from the Norwegian Code of Practice: None.
15. AUDITOR
Through its Audit Committee, the Board seeks to collaborate fully and transparently with the Company’s auditor. Each year, the Audit
Committee obtains confirmation that the auditor meets the requirements of the Norwegian Auditing Act concerning the independence and
objectivity of the external auditor.
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.
Both the company’s management and the auditor comply with guidelines issued by the Financial Supervisory Authority of Norway
concerning the extent to which the auditor may provide advisory services.
The Board invites the auditor to the meeting which address the annual financial statements. The auditor attends all meetings with the
Audit Committee to consider quarterly reports and other relevant matters, and has at least one meeting a year to report on the Group’s
accounting principles, risk areas and internal control procedures. Moreover, each year, the Board has a meeting with the auditor at which
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, 27 April 2025
Grieg Seafood ASA
03
FINANCIAL
STATEMENTS
GRIEG SEAFOOD GROUP ACCOUNTS
83
GRIEG SEAFOOD ASA ACCOUNTS
121
AUDITOR’S REPORT
136
AUDITOR’S SUSTAINABILITY REPORT
140
ALTERNATIVE PERFORMANCE MEASURES
142
83
GROUP ACCOUNTS
84
Income statement
84
Comprehensive income statement
85
Statement of financial position
86
Statement of changes in equity
86
Cash flow statement
NOTES
87
NOTE 1
General information
88
NOTE 2
Accounting Policies
89
NOTE 3
Climate-related risk
90
NOTE 4
Financial risk management
92
NOTE 5
Segment information
93
NOTE 6
Sales revenues
94
NOTE 7
Salaries and personnel expenses
96
NOTE 8
Share-based payments
98
NOTE 9
Other operating expenses
98
NOTE 10
Contingent liabilities, litigation and legal claims
99
NOTE 11
Financial income and financial expenses
99
NOTE 12
Income taxes
101
NOTE 13
Intangible assets
103
NOTE 14
Property, plant and equipment incl. right-of-use assets
104
NOTE 15
Impairment of non-financial assets
106
NOTE 16
Investment in associated companies and joint ventures
107
NOTE 17
Other non-current receivables
107
NOTE 18
Inventories
107
NOTE 19
Biological assets
110
NOTE 20
Trade receivables
111
NOTE 21
Other current receivables
111
NOTE 22
Investment in money-market funds
111
NOTE 23
Cash and cash equivalents
111
NOTE 24
Share capital and shareholder information
113
NOTE 25
Contingent consideration, other equity and retained earnings
113
NOTE 26
Earnings per share and dividend per share
114
NOTE 27
Borrowings
116
NOTE 28
Leases
117
NOTE 29
Other current liabilities
118
NOTE 30
Asset retirement obligation
118
NOTE 31
Related parties
119
NOTE 32
Financial instruments and fair value measurement
121
NOTE 33
Events after the reporting date
84
INCOME STATEMENT
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
2024
2023
Sales revenues
5/6
7 381 241
7 019 632
Other income
32 923
38 497
Other gains/losses
19 915
-6 959
Share of profit from associates
16
857
-6 957
Raw materials and consumables used
18/19
-3 525 403
-2 747 944
Salaries and personnel expenses
7/8
-792 455
-725 653
Other operating expenses
9/20/28/31
-2 457 967
-2 236 165
Depreciation property, plant and equipment and right-of-use assets
14/28
-628 974
-532 911
Amortization licenses and other intangible assets
13
-22 042
-21 792
Write-down of tangible and intangible non-current asset
13/14/15
-1 803 269
136
Production fee
-50 405
-34 987
Fair value adjustment of biological assets
19
-534 383
217 922
Other non-operational costs
10
0
17 912
EBIT (Earnings before interest and taxes)
-2 379 964
980 731
Financial income
11
8 875
140 195
Financial expenses
11
-308 606
-276 768
Net financial items
-299 731
-136 573
Profit before tax
-2 679 695
844 158
Income tax expense
12
229 188
-284 407
Net profit for the year
-2 450 507
559 750
ALLOCATED TO
Owners of the parent company, Grieg Seafood ASA
-2 450 507
559 750
Earnings per share
Earnings per share (NOK)
26
-21.9
5.0
Diluted earnings per share (NOK)
26
-21.9
5.0
COMPREHENSIVE INCOME STATEMENT
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
2024
2023
Net profit for the year
-2 450 507
559 750
NET OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT/LOSS IN SUBSEQUENT YEARS
Currency effect on investment in subsidiaries
10 841
98 316
Currency effect on loans to subsidiaries
25
15 544
28 784
Tax effect
25
-3 420
-6 332
Total other comprehensive income for the year, net of tax
22 965
120 767
Total comprehensive income for the year
-2 427 542
680 517
ALLOCATED TO
Controlling interests
-2 427 542
680 517
85
STATEMENT OF FINANCIAL POSITION
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2024
31.12.2023
ASSETS
Goodwill
13/15
20 463
727 111
Licenses
13/15
1 152 173
1 489 798
Other intangible assets
13
10 119
13 275
Property, plant and equipment incl. right-of-use assets
14/15/28/30
5 399 240
5 095 401
Indemnification assets
40 000
40 000
Investments in associates
16
244 429
209 667
Other non-current receivables
17/32
37 439
42 337
Total non-current assets
6 903 863
7 617 589
Inventories
18
219 348
230 053
Biological assets
19
5 002 989
5 065 718
Trade receivables
4/20/32
285 603
327 160
Other current receivables
21/32
338 199
171 249
Derivatives and other financial instruments
4/32
1 759
35 164
Cash and cash equivalents
4/23/32
202 979
216 318
Total current assets
6 050 877
6 045 662
Total assets
12 954 740
13 663 251
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2024
31.12.2023
EQUITY AND LIABILITIES
Share capital
24
453 788
453 788
Treasury shares
24
-4 812
-5 255
Contingent consideration
25
701 535
701 535
Other equity
25
340 912
317 947
Retained earnings
25
2 560 530
5 201 155
Total equity
4 051 953
6 669 170
Deferred tax liabilities
12
604 078
842 612
Non-current provisions
8/30
73 701
8 178
Borrowings
27/32
3 778 696
3 491 980
Lease liabilities
27/28/32
1 100 724
1 111 049
Total non-current liabilities
5 557 199
5 453 819
Share-based payments
8/32
—
834
Current portion of borrowings
27/32
1 581 075
208 335
Current portion of lease liabilities
27/28/32
322 603
299 626
Trade payables
4/32
1 054 706
760 753
Tax payable
12
5 364
6 156
Public duties payable
29 106
27 266
Derivatives and other financial instruments
4/32
11 516
1 709
Other current liabilities
29/32
341 218
235 584
Total current liabilities
3 345 588
1 540 263
Total liabilities
8 902 787
6 994 082
Total equity and liabilities
12 954 740
13 663 251
BERGEN, 27 APRIL 2025
The Board of Directors and CEO of Grieg Seafood ASA
PAAL ESPEN JOHNSEN
PER GRIEG
NICOLAI HAFELD GRIEG
Chair
Board Member
Board Member
SILJE REMØY
MARIT SOLBERG
NINA WILLUMSEN GRIEG
Board Member
Board Member
CEO (Interim)
This document is signed electronically and therefore has no hand-written signatures.
86
STATEMENT OF CHANGES IN EQUITY
GRIEG SEAFOOD GROUP NOK 1 000
SHARE
CAPITAL
TREASURY
SHARES1
CONTINGENT
CONS.2
OTHER
EQUITY2
RETAINED
EQUITY2
TOTAL
Equity at 01.01.2023
453 788
-5 407
701 535
197 180
5 138 612
6 485 708
Profit for 2023
—
—
—
—
559 750
559 750
Other comprehensive income 2023
—
—
—
120 767
—
120 767
Total comprehensive income 2023
—
—
—
120 767
559 750
680 517
Sale of treasury shares to employees1
—
433
—
—
6 632
7 065
Purchase of treasury shares
—
-280
—
—
280
—
Dividend
—
—
—
—
-504 120
-504 120
Transactions with owners [in their capacity as owners] 2023
—
153
—
—
-497 208
-497 055
Total change in equity 2023
—
153
—
120 767
62 542
183 462
Equity at 31.12.2023
453 788
-5 255
701 535
317 947
5 201 154
6 669 170
Equity at 01.01.2024
453 788
-5 255
701 535
317 947
5 201 154
6 669 170
Profit for 2024
—
—
—
—
-2 450 507
-2 450 507
Other comprehensive income 2024
—
—
—
22 965
—
22 965
Total comprehensive income 2024
—
—
—
22 965
-2 450 507
-2 427 542
Sale of treasury shares to employees1
—
442
—
—
6 115
6 557
Purchase of treasury shares
—
—
—
—
—
—
Dividend
—
—
—
—
-196 233
-196 233
Transactions with owners [in their capacity as owners] 2024
—
442
—
—
-190 118
-189 676
Total change in equity 2024
—
442
—
22 965
-2 640 625
-2 617 218
Equity at 31.12.2024
453 788
-4 813
701 535
340 912
2 560 530
4 051 953
1 The recognized amount equals the nominal value of the parent company's holding of treasury shares.
2 See Note 25.
CASH FLOW STATEMENT
GRIEG SEAFOOD GROUP NOK 1000
NOTE
2024
2023
EBIT (Earnings before interest and taxes)
-2 379 964
980 730
Depreciation, amortization and write-down of non-current assets
13/14
2 454 285
554 568
Gain/loss on sale of property, plant and equipment
117
8 159
Share of profit from associates
16
-857
6 957
Fair value adjustment of biological assets
19
534 383
-217 922
Change in inventories and biological assets excl. fair value
-455 346
-829 630
Change in trade and other receivables
-125 393
-82 213
Change in trade payables
293 953
43 256
Change in other accruals
160 652
93 357
Change in non-current, cash-settled share option liability
8
—
1 422
Taxes paid
12
-31 210
-860 705
Net cash flow from operating activities
450 620
-302 021
Proceeds from sale of property, plant and equipment
718
2 408
Payments on purchase of property, plant and equipment
14
-1 208 180
-790 032
Payments on purchase of intangible assets incl. licenses
13
-1 669
-1 592
Government grant
14
10 042
25 847
Investment in money market funds
22
—
1 041 914
Investment in associates and other invest. incl. loan receivables
16/17
-30 106
-22 821
Net cash flow from investing activities
-1 229 195
255 724
Proceeds of long-term int. bearing debt
27
1 250 000
754 379
Proceeds of short-term int. bearing debt
27
-63 113
63 113
Revolving credit facility (net draw-down/repayment)
27
630 000
—
Repayment long-term int. bearing debt excl. lease liabilities
27
-208 445
-193 517
Repayment lease liabilities
27/28
-332 841
-279 830
Interests paid
11
-318 346
-221 759
Repurchase of own shares
25
—
-5 540
Paid dividends
25
-196 233
-504 120
Net cash flow from financing activities
761 022
-387 274
Net change in cash and cash equivalents
-17 553
-433 571
Cash and cash equivalents - 01.01.
216 318
642 719
Currency translation of cash and cash equivalents
4 214
7 170
Cash and cash equivalents - 31.12.
23
202 979
216 318
87
NOTE 1 GENERAL INFORMATION
AUTHORIZATION OF THE CONSOLIDATED FINANCIAL
STATEMENTS
The consolidated financial statements of Grieg Seafood for the
full year ended 31 December 2024 were approved for issuance by
the Board of Directors on 27 April 2025 and subject to approval
by the Annual General Meeting of Grieg Seafood ASA.
ORGANIZATION
The Grieg Seafood Group (Grieg Seafood) consist of the parent
company Grieg Seafood ASA and its subsidiaries. Grieg Seafood
ASA is incorporated and domiciled in Norway. Grieg Seafood
ASA is a public limited company registered in Norway, and is
listed on the Oslo Stock Exchange in Norway. The address for its
registered office is C. Sundts Gate 17/19, 5008 Bergen, Norway.
Grieg Seafood is an integrated Norwegian seafood company
engaged in farming of Atlantic salmon. The consolidated Grieg
Seafood’s (“The Group”) integrated sales organization sell the
farmed salmon from our regions to the market, primarily as fresh
head-on gutted, but also processed through external processing
partners. The Group has operations in Norway and Canada.
The ultimate parent company of Grieg Seafood ASA is Grieg
Maturitas AS, the parent company of Grieg Maturitas II AS, which
in turn owns 100 % of Grieg Aqua AS, which owns 50.17% of Grieg
Seafood ASA.
COMPANIES OF THE GROUP
Grieg Seafood Group comprised the following entities
at 31 December 2024
Grieg Seafood UK Ltd (owned 100% by Grieg Seafood Sales AS) is
domiciled in the UK. Grieg Seafood BC Ltd., and its 100% owned
subsidiary Grieg Seafood Sales North America Inc, are domiciled
in British Columbia, Canada, while Grieg Seafood Newfoundland
Ltd (incl. the subsidiaries Grieg Marine NL Ltd and Grieg NL
Nurseries Ltd) are domiciled in Newfoundland, Canada. Grieg
Seafood Premium Brands Inc (domiciled in the USA) is owned
100% by Grieg Seafood Sales North America Inc. Grieg Seafood
Sales USA Inc (domiciled in the USA) is owned 100% by Grieg
Seafood Sales AS.
To be able to correctly calculate and report the resource rent tax
in Norway as from 2023, Grieg Seafood considered it necessary
in 2022 to reorganize the ownership of aquaculture licenses in
Norway into separate legal entities owning the commercial and
non-commercial aquaculture licenses. Therefore, Grieg Seafood
Rogaland Sjø AS was established as a subsidiary (100%) of Grieg
Seafood Rogaland AS, and Grieg Seafood Finnmark Sjø AS as a
subsidiary (100%) of Grieg Seafood Finnmark AS. The commercial
aquaculture licenses in Norway are owned by Grieg Seafood
Rogaland Sjø AS and Grieg Seafood Finnmark Sjø AS. In 2024,
Grieg Seafood Rogaland Sjø AS and Grieg Seafood Finnmark Sjø
AS merged and have changes the name to Grieg Seafood Norway
AS. The entity is domiciled in Norway.
The remaining subsidiaries are domiciled in Norway and owned
by Grieg Seafood ASA.
Grieg Seafood Canada AS (100%) and Grieg Seafood
Newfoundland AS (99%) are holding companies within the Group,
and wholly own the production companies Grieg Seafood BC Ltd.
(incl. subsidiaries) and Grieg Seafood Newfoundland Ltd (incl.
subsidiaries), respectively.
Grieg Seafood Rogaland AS has investments in two associated
companies; Tytlandsvik Aqua AS (33,33%), Årdal Aqua (45,79%),
while Grieg Seafood Finnmark has an investment (50%) in
Nordnorsk Smolt AS.
GROUP LEGAL STRUCTURE
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
USA INC
GRIEG SEAFOOD SALES
USA INC
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD NORWAY
ANDEL FINNMARK
GRIEG SEAFOOD NORWAY
ANDEL ROGALAND
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
SALES AS
GRIEG SEAFOOD
SALES AS
SEGMENT STRUCTURE
NOR
CAN
CAN
NOR
ROGALAND
FINNMARK
BRITISH COLUMBIA
GRIEG SEAFOOD
BC LTD
NEWFOUNDLAND
GRIEG SEAFOOD
NEWFOUNDLAND LTD
88
NOTE 2 ACCOUNTING POLICIES
The material accounting policies applied by Grieg Seafood when
preparing the consolidated financial statement are set out below
and in the following note disclosures. These note disclosures of
the consolidated financial statement have been structured such
that the material accounting policies relevant for the various note
disclosures have been presented together, and not separated
by a dedicated accounting policy note. For those material note
disclosures then encompass accounting policies not specific for a
financial statement line item or otherwise topic of disclosure, the
relevant material accounting policies have been set forth in this
Note 2.
STATEMENT OF COMPLIANCE
The consolidated financial statements as per 31 December 2024
for the period 1 January to 31 December have been prepared
in accordance with IFRS® Accounting Standards as adopted by
the EU and with IFRSs as issued by the International Accounting
Standards Board (IASB), interpretations issued by IASB and
the additional requirements of the Norwegian Accounting Act,
effective on 31 December 2024.
BASIS OF PREPARATION
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. Estimates and underlying assumptions are
continuously evaluated and are based on historical experience
and other factors, including expectations of future events that
are believed to be probable under the present circumstances.
The final outcomes may deviate from these estimates. Changes
in accounting estimates are recognized in the period in which the
estimates are changed.
The main areas where Grieg Seafood has made significant
judgements when applying the accounting policies and that have
the most material effect on the amounts as recognized in the
consolidated financial statements are listed below, with reference
to the relevant note disclosure.
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
NOTE
Norwegian resource rent tax scheme (assumptions made concerning the basis for taxation)
12
Classification of fish-farming licenses (indefinite or definite economic life)
13
Impairment test of non-financial non-current assets
15
Fair value measurement of biological assets
19
The material accounting policies described in these consolidated
financial statements have been applied consistently to all periods
presented, except as otherwise noted in in the disclosure related
to the impact of new standards, amendments and interpretations
adopted by the Group.
All amounts in these consolidated financial statements are stated
in NOK thousand unless otherwise specified.
Certain amounts in the comparable years can be reclassified to
conform to current year presentation. If such reclassification is
not clearly immaterial, the reclassification is disclosed in the
relevant note disclosure for the financial statement line item.
Operational expenses in the consolidated income statement are
presented based on nature of expense.
NEW STANDARDS, AMENDMENTS AND
INTERPRETATIONS ADOPTED BY THE GROUP
NEW AND AMENDED STANDARDS, AND
INTERPRETATIONS - ADOPTED IN 2024
Other standards, amendments to standards and interpretations
of standards, effective as of 1 January 2024
The Group has not early adopted any standards, amendments
or interpretations. Other amendments to standards, and
interpretations of standards, effective as from 1 January 2024,
and adopted by the Group in 2024, has not had any material
impact on the consolidated financial statements of Grieg Seafood.
NEW STANDARDS, AMENDMENTS AND
INTERPRETATIONS - NOT YET ADOPTED
At the end of 2024, there are some amendments to, and
interpretations of, existing IFRS standards that are not yet
effective. The Group has not early adopted any amendments
or interpretations of such standards. 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.
There are no amendments, or interpretations, of standards not
yet adopted that are expected to have a material impact on the
consolidated financial statements of Grieg Seafood.
CONSOLIDATION PRINCIPLES
The consolidated financial statements include all entities
controlled by Grieg Seafood ASA.
Subsidiaries are all 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.
There are no non-controlling interests recognized in the Group’s
equity. All the subsidiaries of Grieg Seafood ASA, except for
Grieg Seafood Newfoundland AS, are wholly owned, see Note 1
in general and Note 25 for Grieg Seafood Newfoundland AS in
specific.
FOREIGN CURRENCY TRANSLATION
INDIVIDUAL ENTITIES OF GRIEG SEAFOOD
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”).
In preparing the financial statements of the individual entities in
the Grieg Seafood Group, transactions in currencies other than
the functional currency are translated at the foreign currency
exchange rate at the transaction date.
Monetary assets and liabilities denominated in foreign currencies
are translated at the functional currency at the foreign currency
exchange rate at the balance sheet date. Foreign currency
translation differences are recognized in the consolidated
income statement as foreign currency exchange gains or
losses within the subtotal financial statement line item of “Net
financial items”. However, there are two exceptions. Firstly,
foreign currency translation differences arising from sales
revenue to external customers of the Group, which is included
on the financial statement line item of “other gains and losses”,
included in the subtotal of EBIT (Earnings before interests and
taxes) in the consolidated income statement. Secondly, foreign
currency translation differences arising from the translation of
estimate-based provisions are generally recognized as part of
the change in the underlying estimate and include within the
relevant financial statement line item relevant for the item that is
estimated.
Non-monetary assets measured at historical cost in a foreign
currency are translated using the currency exchange rate at the
date of the transaction.
CONSOLIDATED FINANCIAL STATEMENT
The consolidated financial statements are presented in
Norwegian Kroner (NOK), which is the parent company’s
functional currency and the Group’s presentation currency.
When preparing the consolidated financial statements, the
income statements and statements of financial positions
of the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the
presentation currency as follows:
• The statement of financial position is translated using the
closing rate at the end of the period.
• Income and expense items are translated at average 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.
Grieg Seafood ASA has provided loans to subsidiaries of the
Group with other functional currencies than the parent company,
and for which settlement of the loan neither is planned nor likely
to occur in the foreseeable future. In addition, certain parent
companies of sub-consolidation levels of the Group has provided
similar loans to subsidiaries of its sub-group. Foreign currency
exchange differences arising on such loans are recognized in the
consolidated statement of other comprehensive income in the
consolidated financial statements of the Group.
CASH FLOW STATEMENT
The Group’s cash flow statement shows the overall cash flow
specified by operating, investing and financing activities using the
indirect method. The cash flow statement illustrates the effect
of the various activities on cash and cash equivalents. Operating
activities are presented using the indirect method, where EBIT
(Earnings before interests and taxes) is adjusted for changes in
biological assets at cost, other inventories, operating receivables
and liabilities, the effect of non-cash items such as depreciation,
amortization and fair value adjustment of biological assets, profit
and loss from investment in associates and joint ventures, and
taxes paid. Increase/decrease in derivative financial instruments
are included as part of the operational activities.
GOING CONCERN
The Board confirms that the annual financial statements
have been prepared on a going concern basis, and that the
requirements for so doing have been met.
Grieg Seafood ASA has conducted a thorough evaluation of its
financial position and liquidity in connection with the preparation
of the 2024 annual financial statements. Based on financial data
per 31 December 2024 and subsequent financial initiatives, the
assessment considers the company’s revenue development,
profitability, debt structure, and strategic financial initiatives
89
NOTE 3 CLIMATE-RELATED RISKS
IMPACT ON FINANCIAL REPORTING AND ESTIMATES AS AT 31 DECEMBER 2024.
As at 31 December 2024, there has been no material impact
identified on financial reporting judgments and estimates. The
Group recognizes 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.
The effects of climate change could have impact on our short,
medium, and long-term business operations. Through our day-
to-day operations we consider the climate related risks and
opportunities, and those whom can impact the financial position.
We classify these risks as physical and transitional risks and
opportunities. Physical risks such as extreme weather events,
fluctuating temperatures in seawater, effects on biodiversity, and
raw materials for our feed. We monitor these, which is a part
of our risk management, and it’s potential impact. Transitional
risks are potential changes in taxes, and induced policies and
legislation which may change our operation.
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, and
CSRD). Grieg Seafood also performs climate-related scenario
analysis upon our operations, assessing the impact of transitional
risks and physical risks. These risks are included in the Group’s
risk assessment as part of Grieg Seafood’s regular forecast and
budgeting process.
We see that physical climate risks could potentially increase
our costs through increased mortality, increased maintenance,
and increased treatments, and higher frequency of replacement
due to extreme weather and the consequences that may arise
from breakage. Transitional risks may be potential changes in
taxes, and induced policies and legislation which may change our
operation. However we also see that this may increase the focus
on salmon as a more carbon friendly food production.
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 2024, but these impacts may change,
and are considered throughout our day-to-day operations.
Any significant physical change may 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 able to mitigate these risks.
As at 31 December 2024, 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 impairment test
calculations, fair value calculations, nor our asset retirement
obligation. 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. Furthermore, our budget
(basis for the impairment tests) has factored in the quantifiable
nature- and climate related risks. When doing cash flow forecast
for impairment test management has considered climate related
risks. In the budget period there are no quantifiable effects. Even
though the operations are more exposed to climate related risks
on a longer time horizon which could lead to increased expenses,
management does no expect this to have a significant negative
impact on the cash flows. The impacts of climate risk related
to the price of fish feed will be mitigated partially by reducing
the feed conversion rate. This will be done by improving the
biological performance through increased post-smolt production
in addition to increase the raw material basket with 5% novel
ingredient inclusion towards 2030. Additionally, the material
impact from transportation of our product to market is mitigated
through geographical diversification in both east and west
Canada.
Total revenue for 2024 increased to NOK 7 381 million from
NOK 7 020 million in 2023, mainly driven by higher harvest
volumes. However, operational EBIT declined significantly from
NOK 780 million in 2023 to NOK 8 million in 2024, primarily due
to increased production costs in Finnmark and challenging cost
conditions in Newfoundland, Canada. Despite this, the company
maintained sufficient liquidity, with approximately NOK 1 billion
in available resources at year-end, including NOK 203 million
in cash. While loan covenants remained intact, the company
identified the need to strengthen its financial position and
initiated several strategic measures.
To enhance financial stability and flexibility, Grieg Seafood
successfully secured a hybrid bond, commenced a sale-leaseback
process, and pursued refinancing efforts. Additionally, the
company is evaluating structural initiatives.
Given the company’s financial flexibility, asset base, and strategic
initiatives, the Board and management conclude that there are
no material uncertainties related to going concern. Grieg Seafood
remains well-positioned to meet its financial obligations and
sustain its operations in the foreseeable future.
90
NOTE 4 FINANCIAL RISK MANAGEMENT
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 salmon
farming industry. 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 liquidity.
The Group’s funding is primarily syndicated debt with banks
in addition to a green bond loan. The level of liabilities and
alternative forms of funding are subject to constant evaluation.
As at 31 December 2024, the Group had a sufficient financial
foundation, with cash and cash equivalents of NOK 203 million
and unutilized facilities of NOK 820 million. See Note 27 for more
information.
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 40, but
can be exceeded in periods of growth investments.
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 short-term
financial derivatives to reduce certain risks. Such contracts are
recognized at fair value through profit or loss and presented as
financial income/financial expenses. As at 31 December 2024 (31
December 2023), 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.
I) MARKET RISKS
(i) FOREIGN EXCHANGE RISK
The Group operates internationally and is exposed to foreign
exchange risk relating to various currencies, primarily CAD,
EUR, USD and GBP. 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.
TRADE RECEIVABLES AND
TRADE PAYABLES
CURRENCY IN NOK 1 000
NOK
CAD
EUR
USD
GBP
OTHER
TOTAL
2024
Trade receivables
59 177
48 693
30 313
146 703
42
675
285 603
Trade payables
800 398
210 983
23 826
1 731
17 127
641
1 054 706
2023
Trade receivables
77 744
79 815
15 276
154 221
—
104
327 160
Trade payables
544 185
195 287
16 603
3 390
751
535
760 753
NET INTEREST-BEARING LIABILITIES
CURRENCY IN NOK 1 000
NOK
CAD
EUR
USD
GBP
OTHER
TOTAL
2024
Cash and cash equivalents*
186 592
-254 872
123 000
126 682
19 437
2 139
202 979
Loans to associated companies
36 208
36 208
Gross interest-bearing liabilities**
5 494 660
602 782
700 328
—
—
6 797 770
Net interest-bearing liabilities
5 271 860
857 654
577 328
-126 682
-19 437
-2 139
6 558 583
2023
Cash and cash equivalents
30 452
138 121
144
47 601
—
—
216 318
Money market funds
—
—
—
—
—
—
—
Loans to associated companies
32 529
—
—
—
—
—
32 529
Gross interest-bearing liabilities**
3 749 524
798 184
650 265
-52 476
-16 068
-1 698
5 127 730
Net interest-bearing liabilities
3 686 542
660 062
650 122
-100 077
-16 068
-1 698
4 878 884
* See note 23 for information about multi-currency group account scheme.
**See Note 27 for more information on the Group’s interest-bearing liabilities.
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 is managed primarily through intercompany borrowings denominated in the
relevant foreign currencies.
The term-loan facility of the syndicated bank loan is split into NOK and EUR. 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.
Sensitivity analysis
The sensitivity of a depreciation (appreciation) of 5% change in NOK foreign exchange rates versus CAD, EUR, USD and GBP at the
balance sheet date (all other factors remaining unchanged) would be expected to have the following effects on the Group's profit after
tax, other comprehensive income and total comprehensive income / equity effect. The OCI item reflect currency gain on intercompany
long-term loans and the effect of translating the foreign subsidiary financials to the Group’s presentation currency, while the profit after
tax-item include trade receivables and trade payables (incl. intercompany items), term-loan, lease liabilities, cash and cash equivalents
and foreign currency derivative contracts.
SENSITIVITY NOK 1 000
CAD
EUR
USD
GBP
TOTAL
31.12.2024
Profit after tax
-/+
10 050
-30 717
-8 094
-4 502
-33 263
Other comprehensive income
-/+
26 375
—
—
—
26 375
Total comprehensive income / effect on equity
-/+
36 425
-30 717
-8 094
-4 502
-6 888
31.12.2023
Profit after tax
-/+
8 487
-32 533
-632
-570
-25 249
Other comprehensive income
-/+
25 660
—
—
—
25 660
Total comprehensive income / effect on equity
-/+
34 147
-32 533
-632
-570
411
91
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT AND LOSS
31.12.2024
SOLD
AMOUNT CURRENCY
IN 1 000
BOUGHT
AMOUNT CURRENCY
IN 1 000
WEIGHTED
HEDGING RATE
MARKET RATE
MATURITY INTERVAL *
MARKET VALUE
NOK 1 000
USD
18 777
NOK
207 060
11,0273
11,3534
02.01.2025 - 29.12.2025
-6 023
GBP
7 250
NOK
103 211
14,2360
14,2249
27.02.2025 - 30.12.2025
242
EUR
8 000
NOK
94 744
11,8430
11,2405
04.02.2025 - 30.12.2025
-505
USD
15 850
CAD
22 501
1,4196
1,4388
03.01.2025 - 30.01.2025
-2 194
Total
-8 480
*Maturity specified as an interval for multiple contracts
31.12.2023
SOLD
AMOUNT CURRENCY
IN 1 000
BOUGHT
AMOUNT
CURRENCY IN 1 000
WEIGHTED
HEDGING RATE
MARKET RATE
MATURITY INTERVAL *
MARKET VALUE
NOK 1 000
USD
2 372
NOK
26 259
11.0702
10.1724
16.01.2024 - 17.06.2024
2 243
GBP
1 073
NOK
14 680
13.6809
12.9342
23.01.2024 - 06.02.2024
843
EUR
8 528
NOK
100 580
11.7940
11.2405
30.01.2024 - 30.12.2024
4 525
USD
22 147
CAD
29 852
1.3479
1.3251
04.01.2024 - 08.02.2024
4 241
Total
11 852
*Maturity specified as an interval for multiple contracts
(ii) INTEREST RATE RISK
Since the Group has no significant interest-bearing assets apart from bank deposits, 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 100 basis points lower (higher) throughout the
year, all other factors remaining unchanged, the pre-tax profit would have increased (decreased) by NOK 42.9 million in 2024 and NOK
30.4 million in 2023 due to the floating rate of interest on loans and deposits. The sensitivity analysis is calculated based on our term
loans in NOK and EUR (including revolving credit facility and overdraft) and bond loan, irrespective of concluded interest rate swap
agreements.
SENSITIVITY NOK 1 000
CHANGE IN BASIS POINTS
2024
2023
Effect on profit before income tax
-/+100
+/- 42 950
+/- 30 439
The sensitivity table is for our bank and bond loans. A reduction in interest rates will increase profit before tax.
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. 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
MARKET
VALUE
NOK 1 000
31.12.2024
MARKET
VALUE
NOK 1 000
31.12.2023
Fixed rate paid - floating rate received
NOK 200 million
1.35
Nibor 3 months
04.03.2024
—
1 677
Fixed rate paid - floating rate received
NOK 200 million
1.07
Nibor 3 months
05.07.2024
—
5 391
Fixed rate paid - floating rate received
NOK 200 million
0.71
Nibor 3 months
18.12.2024
—
7 187
Fixed rate paid - floating rate received
NOK 200 million
0.72
Nibor 3 months
18.12.2024
—
7 181
Fixed rate paid - floating rate received
NOK 200 million
3.16
Nibor 3 months
30.08.2027
4 741
1 875
Interest rate collar
NOK 400 million
3.79 - 4.5
Nibor 3 months
24.04.2028
-1 315
—
Interest rate collar
NOK 400 million
3,79 - 4.5
Nibor 3 months
19.04.2028
-1 666
—
Total
1 759
23 312
(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.
For the financial contracts entered into with Fish Pool, changes in unrealized gains and losses on the sale and purchase agreements
are recognized net in the income statement as a fair 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. As biological assets
are recognized at fair value, the expected costs to meet contract terms will be included in the fair value adjustment. We target a contract
share of 20-50% of our Norwegian volume. In 2024, financial fixed-price contracts accounted for 8% (16%) of the volume harvested in our
Norwegian regions. As at 31 December 2024, the Group had financial salmon contracts totaling NOK -3.0 million (NOK -1.7 million), of
which all were sales contracts. The estimated contract share for the Norwegian harvest volume is 22% for the full-year 2025.
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 carrying value of receivables, loans and bank deposits represent the maximum credit exposure. In addition the Group has retained
5% of the credit risk for credit insured receivables sold to factoring companies. For further information about the factoring arrangement
and credit risk related to trade receivable, see note 20.
92
III) LIQUIDITY RISK
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.
Management monitors the Group's liquidity reserve, which comprises a bond and loan facility (see Note 27), cash and cash equivalents
(Note 23), and short-term money market investments (Note 22). Cash flow forecasts for all farming regions, sales and the whole Group
are performed regularly, and simulation/stress testing of the liquidity risk is carried out. This is generally carried out at Group level in
cooperation with the operating companies.
Management and the Board seek to maintain a high equity ratio (31% at 31 December 2024), to be positioned to meet financial and
operational challenges.
The following table is a specification of the Group’s financial liabilities, classified by maturity structure.
31.12.2024
NOK 1 000
< 3 M
3 M
- 1 Y
Y 2
Y 3
Y4
Y 5
> 5 YRS
TOTAL
Green bond loan instalment
1 392 500
—
—
—
—
—
1 392 500
Green bond loan interest*
28 372
29 003
57 375
Term-loan instalment
88 943
88 943
927 885
1 417 474
2 345 359
Term-loan interest*
41 545
123 120
164 664
120 366
22 761
—
—
472 456
Revolving credit and overdraft installment
1 380 000
1 380 000
Revolving credit and overdraft interests*
24 840
74 520
99 360
23 840
—
—
222 560
Other non-current liabilities
3 611
10 833
13 491
12 113
11 980
11 980
14 689
64 254
Lease liabilities
100 829
290 107
360 868
283 570
180 454
136 143
293 206
1 645 177
Trade payables
1 054 707
1 054 707
Derivative financial instruments
12 014
-8 979
3 035
Other current liabilities
24 709
24 709
Total liabilities
1 379 570
2 000 047
1 566 268
3 237 363
215 195
148 123
307 895
8 662 132
M = Months, Y = Year, YRS = Years, * = floating
31.12.2023
NOK 1 000
< 3 M
3 M
- 1 Y
Y 2
Y 3
Y4
Y 5
> 5 YRS
TOTAL
Green bond loan instalment
—
—
1 392 500
—
—
—
—
1 392 500
Green bond loan interest*
28 057
86 693
57 375
—
—
—
—
172 125
Term-loan instalment
66 377
66 377
132 753
132 753
995 648
—
—
1 393 908
Term-loan interest*
19 634
65 111
67 318
59 838
14 025
—
—
225 926
Revolving credit and overdraft installment
63 113
—
—
—
750 000
—
—
813 113
Revolving credit and overdraft interests*
12 120
37 306
49 425
49 425
12 120
—
—
160 396
Other non-current liabilities
5 577
11 176
13 490
15 772
15 391
15 262
67 094
143 761
Lease liabilities
89 784
274 425
300 234
274 530
233 619
151 077
312 041
1 635 709
Trade payables
760 753
—
—
—
—
—
—
760 753
Derivative financial instruments
8 741
(7 033)
—
—
—
—
—
1 709
Other current liabilities
15 667
—
—
—
—
—
—
15 667
Total liabilities
1 069 823
534 055
2 013 094
532 318
2 020 803
166 339
379 134
6 715 567
M = Months, Y = Year, YRS = Years, * = floating
NOTE 5 SEGMENT INFORMATION
ACCOUNTING POLICIES
Operating segments are reported in a manner consistent with internal reporting to the chief operating decision-maker. The chief
operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the Group management.
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 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. 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.
RECONCILIATION OF OPERATIONAL EBIT WITH EBIT IN THE INCOME STATEMENT NOK 1 000
2024
2023
Sales revenues
7 381 241
7 019 632
Other income
32 923
38 497
Other gains/losses
19 915
-6 959
Share of profit from associates (operational)
857
-6 957
Raw materials and consumables used
-3 525 403
-2 747 944
Salaries and personnel expenses
-792 455
-725 653
Other operating expenses
-2 457 967
-2 236 165
Operational EBITDA
659 110
1 334 451
Depreciation property, plant and equipment
-628 974
-532 911
Amortization licenses and other intangible assets
-22 042
-21 792
Operational EBIT
8 094
779 747
Write-down of non-current assets (non-operational)
-1 803 269
136
Production fee
-50 405
-34 987
Fair value adjustment of biological assets
-534 383
217 922
Other non-operational items
—
17 912
EBIT (Earnings before interest and taxes)
-2 379 964
980 730
93
2024
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG
SEAFOOD
GROUP
SEGMENTS
NOK 1 000
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
Sales revenues
2 431 745
1 844 328
964 343
909 608
1 231 217
7 381 241
Other income
127 649
17 087
30 438
828
-143 079
32 923
Other gains/losses
250
62
-429
—
20 032
19 915
Share of profit from associates
5 710
-4 853
—
—
—
857
Raw materials and consumables used
-1 228 919
-801 464
-498 488
-455 419
-541 113
-3 525 403
Salaries and other operating costs before depreciation
and amortization
-612 230
-871 095
-636 271
-433 555
-697 273
-3 250 422
Depreciation and amortization
-108 670
-202 034
-135 878
-194 707
-9 727
-651 016
Operational EBIT
615 534
-17 969
-276 285
-173 244
-139 942
8 094
Harvest volume (tonnes GWT)
28 813
25 717
12 499
10 674
—
77 704
Sales revenue/kg (NOK)
84.4
71.7
77.2
85.2
n/a
79.1
Farming cost/kg (NOK)
63.0
72.4
99.3
101.4
n/a
77.2
Other costs/kg (NOK) *
—
—
—
—
n/a
1.8
Operational EBIT/kg (NOK)
21.4
-0.7
-22.1
-16.2
n/a
0.1
Total assets
3 416 854
5 303 096
1 940 927
4 673 750
-2 379 887
12 954 740
Total liabilities
1 207 990
1 686 502
1 147 735
5 211 848
351 288
8 902 787
*Other costs incl. ownership and headquarters costs/kg (NOK)
Sales revenue on regional level comprises revenue from the sale of Atlantic salmon including gains/loss on contracts. Other income at regional level 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. On
regional level, other income also includes rental income and income from overcapacity of operational assets. Gains/losses from the sale of fixed assets and other equipment, are included in the
line “other income” in the segment information. Profit and loss from associated companies that are closely related to the Group's operations and included in the Group’s value chain, are included
in the Group's 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. The elim/
other items comprise, in addition to intercompany eliminations and the effect of share-based payments, the profit/loss from activities conducted by the parent company or other Group companies
not geared to production. Earnings from the sales companies in the Group are reported per producer. The elim/other column thus include the effect the sales organization has on the gross figures
related to sales revenue and operating expenses, as well as the impact the other non-farming entities has on the Group’s consolidated figures.
Sales revenue/kg reported in the segment information is equal to the sum of sales revenue of the regions divided by the related harvest volume. Group sales revenue is calculated based on the
farming operation of the Group, excluding sales revenue from Group companies not geared for production.
Farming cost/kg reported in the segment information comprise all costs directly related to production and harvest of salmon, divided by the related harvest volume. On regional level, farming cost
equal the operational costs. Other income are included in the farming cost metric, considered as cost-reducing activities. Group farming cost is calculated based on the farming operation of the
Group, excluding ownership costs and costs from Group companies not geared for production.
Other costs incl. ownership and headquarter costs/kg reported in the segment information include all costs and revenue not directly related to production and harvest of salmon, hereof the costs
from activities conducted by the parent company and other Group companies not geared for production, divided by the Group's harvest volume. Operational EBIT/kg reported in the segment
information is equal to the 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.
NOTE 6 SALES REVENUES
ACCOUNTING POLICIES
SALE OF ATLANTIC SALMON
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The
Group’s revenue derives primarily from the sale of whole and processed fish. Sales contracts cover both spot sales and fixed-price
deliveries. Revenue from the sale of salmon is generally recognized upon delivery, as the Group considers delivery as the 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. Each week, the sale of fish is settled with the customers. The fixed-price delivery contracts
that are entered into with customers, specify a per-week volume.
The sales price is determined upon contract settlement and is based on available market price (for example Nasdaq prices including
transport and margin, with a price per kilogram). The price varies according to the quality and weight of the salmon. Payment is settled
upon delivery, and the performance obligation related to the sale of fish is satisfied at delivery.
The normal credit term of the Group’s sales transactions is 30 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.
Cash refunds are given to the customer if the sold product is delivered with discrepancies compared to the agreed sales contract, or if
the product is damaged. Generally, refunds are not material.
Revenue is shown net of value added tax, returns, rebates and discounts and after eliminating intragroup sales.
OTHER REVENUE STREAMS
The Group’s revenue stream also comprises some ensilage (byproduct from the harvesting of Atlantic salmon), in addition to sales of
smolt, roe and and third-party harvesting if the Group has overcapacity at its facilities. Together, these have historically made up a non-
significant part of the total sales of Grieg Seafood.
2023
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG
SEAFOOD
GROUP
SEGMENTS
NOK 1 000
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
Sales revenues
2 305 214
1 946 648
1 468 303
235 715
1 063 750
7 019 632
Other income
93 550
28 335
7 884
2 186
-93 458
38 497
Other gains/losses
-1 710
-3 678
-2 771
—
1 200
-6 959
Share of profit from associates
2 386
-9 343
—
—
—
-6 957
Raw materials and consumables used
-911 038
-771 934
-737 549
-76 578
-250 845
-2 747 944
Salaries and other operating costs before depreciation
and amortization
-649 118
-701 583
-691 323
-164 885
-754 909
-2 961 818
Depreciation and amortization
-102 834
-161 828
-138 444
-142 545
-9 051
-554 703
Operational EBIT
736 449
326 617
-93 899
-146 107
-43 312
779 747
Harvest volume (tonnes GWT)
25 980
25 170
17 682
3 184
—
72 015
Sales revenue/kg (NOK)
88.7
77.3
83.0
74.0
n/a
82.7
Farming cost/kg (NOK)
60.4
64.4
88.4
95.9
n/a
70.2
Other costs/kg (NOK) *
—
—
—
24.0
n/a
1.7
Operational EBIT/kg (NOK)
28.3
13.0
-5.3
-45.9
n/a
10.8
Total assets
3 062 846
4 503 373
2 541 031
4 180 619
-624 616
13 663 252
Total liabilities
931 648
2 171 857
1 316 620
4 151 619
-1 577 662
6 994 082
*Other costs incl. ownership and headquarters costs/kg (NOK).
94
SALES REVENUE IN TOTAL
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 2024, the sale of fresh whole Atlantic salmon totaled 93% (2023: 93%) of the Group's sales revenues (excluding other
products), while fresh processed fish accounted for 4% (2023: 4%).
SALES REVENUES FROM CONTRACTS
WITH CUSTOMERS, BY GEOGRAPHICAL
MARKET
NOK 1 000
NORWAY*
CANADA*
TOTAL
2024
2023
2024
2023
2024
2024%
2023
2023%
Continental Europe
3 863 048
3 690 607
—
—
3 862 817
52%
3 690 607
53%
UK
330 514
384 716
—
—
330 514
4%
384 716
5%
USA
247 448
316 139
1 432 186
1 228 930
1 679 634
23%
1 545 069
22%
Canada
40 192
49 944
546 968
586 334
587 160
8%
636 279
9%
Asia
821 313
702 646
65 789
36 694
887 102
12%
739 340
11%
Other markets
34 015
23 621
—
—
34 015
0%
23 621
1%
Total
5 336 529
5 167 674
2 044 942
1 851 957
7 381 241
100%
7 019 632
100%
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations. See Note 5.
Grieg Seafood did not have any sales to Russia in 2024 or in 2023.
NOTE 7 SALARIES AND PERSONNEL EXPENSES
SALARIES AND PERSONNEL EXPENSES NOK 1 000
2024
2023
Salaries
615 072
579 759
Social security costs
41 187
41 388
Synthetic stock options granted to directors and key employees, incl. social security costs (Note 8)
6 080
1 584
Pension costs
39 239
34 188
Other personnel costs
90 878
68 733
Total
792 455
725 653
Average full time equivalents (FTE)
826
759
Pension obligations
The Group pays premiums to local, defined-contribution schemes for all employees. The Group'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. Grieg
Seafood Rogaland AS and Grieg Seafood Finnmark AS have a contractual early retirement pension scheme (AFP). AFP is a multi-
enterprise defined benefit pension scheme that is booked as an defined contribution scheme as the Group cannot identify the obligation
per employee which is part of the scheme. The financial commitments associated with the AFP scheme are therefore included in the
Group’s pension expenses. The AFP early retirement scheme follows the rules for private sector AFP, and both companies are members
of the Norwegian Confederation of Trade Unions (LO)/the Confederation of Norwegian Enterprise (NHO) scheme. The pension payment
calculations are based on standard assumptions relating to the development of mortality and disability as well as other factors such as
age, years of service and remuneration. Pension premiums are recognized in the income statement through operations as they arise.
Share savings program
Grieg Seafood established a share savings program for its employees in 2018, which has continued throughout 2024. 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 participating employees buy shares on a discount. The discount is recognized as a cost in the
income statement and included as an other personnel cost as presented in the table above. The total costs related to the discount was
NOK 2.0 million, in line with NOK 2.1 million in costs for 2023. The purchase price and the number of shares acquired by the company will
be reported in accordance with the applicable regulations.
At 31 December 2024, loan to employees related to the share savings program equals NOK 4.7 million (2023: NOK 5.0 million). The total
shares sold to employees was 110 565 in 2024 (2023: 107 473). See also Note 24.
SALES REVENUES FROM CONTRACTS WITH CUSTOMERS, BY DISTRIBUTED
PRODUCTS
NOK 1 000
NORWAY*
CANADA*
TOTAL
2024
2023
2024
2023
2024
2023
Fresh whole fish
5 037 740
4 864 040
1 852 150
1 686 482
6 889 660
6 550 522
Frozen whole fish
5 756
—
13 789
—
19 545
—
Fresh processed fish
83 218
136 072
176 882
164 134
260 100
300 206
Frozen processed fish
95 222
95 227
26
32
95 248
95 259
Other products and services
114 593
72 335
2 095
1 310
116 688
73 645
Total
5 336 529
5 167 674
2 044 942
1 851 957
7 381 241
7 019 632
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations. See Note 5.
95
Management remuneration
The guidelines for management remuneration are available on Grieg Seafood ASA’s website.
The remuneration to the Group Management Team is disclosed below.
REMUNERATION PAID TO GROUP
MANAGEMENT TEAM IN 2024 NOK 1 000
SALARY
BONUS
RETAINED
BONUS , NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
TOTAL
Andreas Kvame (Chief Executive Officer)
3 993
—
—
—
553
4 546
Atle Harald Sandtorv (Chief Financial Officer)
2 981
—
407
—
133
3 521
Alexander Knudsen (Chief Operating Officer
Farming Europe)
2 464
—
387
—
288
3 139
Grant Cumming (Chief Operating Officer
Farming Canada)
2 362
—
—
—
179
2 541
Erik Holvik (Chief Commercial Officer)
2 456
—
499
—
137
3 092
Knut Utheim (Chief Technology Officer)
2 274
—
276
—
356
2 906
Kathleen O. Mathisen
(Chief Human Resource Officer)
2 229
—
—
—
156
2 384
Nina Stangeland (Chief Strategy Officer)
1 739
—
—
—
127
1 866
Kristina Furnes (Chief Communication Officer)
1 446
—
123
—
120
1 689
Total remuneration
21 942
—
1 693
—
2 049
25 684
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 8.
REMUNERATION PAID TO GROUP
MANAGEMENT TEAM IN 2023 NOK 1 000
SALARY
BONUS
RETAINED
BONUS, NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION*
TOTAL
Andreas Kvame (Chief Executive Officer)
4 003
—
—
—
454
4 457
Atle Harald Sandtorv (Chief Financial Officer)
2 885
—
—
—
136
3 021
Alexander Knudsen (Chief Operating Officer
Farming Europe)
2 270
—
—
—
331
2 601
Grant Cumming (Chief Operating Officer
Farming Canada)
2 347
—
—
—
252
2 599
Erik Holvik (Chief Commercial Officer)
2 435
—
—
—
139
2 574
Knut Utheim (Chief Technology Officer)
2 259
—
—
—
147
2 406
Kathleen O. Mathisen
(Chief Human Resource Officer)
1 833
—
—
—
152
1 985
Nina Stangeland (Chief Strategy Officer)
524
—
—
—
44
568
Kristina Furnes (Chief Communication Officer)
1 348
—
—
—
116
1 464
Total remuneration
19 903
—
—
—
1 770
21 673
REMUNERATION PAID TO BOARD MEMBERS IN 2024 NOK 1 000
TOTAL
Per Grieg 1,3)
556
Tore Holand (until 19 of June 2024) 2)
211
Marianne Ribe (until 19 of June 19 2024) 1)
171
Katrine Trovik (until 19 of June 2024) 2)
197
Nicolai Hafeld Grieg
322
Ragnhild Fresvik (until 19 of June 2024)
157
Marit Solberg (from 19 of june 2024) 1)
203
Silje Remøy (from 19 of June 2024) 2)
207
Paal Espen Johnsen (from 19 of June 2024) 2)
199
Total remuneration including social security costs
2 221
1 Payment for work performed on the Remuneration Committee is included in the remuneration paid to Per Grieg, Marianne Ribe and Marit Solberg.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand, Katrine Trovik, Paal Espen Johnsen and Silje Remøy. The payment to Paal Espen Johnsen
is made through Grieg Maturitas II.
The amounts include social security costs.
3 The 30th of March 2025 Per Grieg stepped down as chair, becoming a regular board member, with Paal Espen Johnsen taking the role of chair of the board.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 8.
REMUNERATION PAID TO BOARD MEMBERS IN 2023 NOK 1 000
TOTAL
Per Grieg1
542
Tore Holand2
422
Marianne Ribe1
342
Katrine Trovik2
394
Nicolai Hafeld Grieg
314
Ragnhild Fresvik (from 9 of June 2022)
314
Total remuneration including social security costs
2 328
1 Payment for work performed on the Remuneration Committee of NOK 25 575 is included in the remuneration paid to Per Grieg 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 79 870.
The amounts include social security costs.
96
NOTE 8 SHARE-BASED PAYMENTS
ACCOUNTING POLICIES
The Group operates a share-based remuneration scheme with settlement in cash for the management team of the Group. The options’
strike price is the stock market price on the date of issue, rising by 0.5% per month until the exercise date. The most recent allocation
was in 2023, totalling 2 680 000 options. The final exercise date is 31 May 2026. 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 value of the synthetic stock options settles in cash is recognized as a salary and personnel cost in income statement (see Note
7) and as a liability in the statement of financial position (see Note 32) as well as the table in this note that specify the amounts in the
balance sheet.
The cost of the executive management synthetic option scheme is expensed over the average vesting period. The liability is measured
at fair value at each balance sheet date until settlement, and changes in the fair value are recognized in profit and loss. Social security
tax on options is recorded as a liability and is recognized over the estimated vesting period.
OUTSTANDING OPTIONS
TOTAL
OUTSTANDING OPTIONS
VESTED
ALLOCATION:
YEAR - MONTH
EXPIRY DATE:
YEAR - MONTH
STRIKE PRICE NOK
PER SHARE AT
31.12.2024
STRIKE PRICE NOK
PER SHARE AT
31.12.2023
2024
2023
2024
2023
2020 - 12
2023 - 05
—
—
—
—
—
2020 - 12
2024 - 05
—
94.03
—
710 118
—
710 118
2023 - 12
2026 - 05
83.95
79.20
1 215 000
1 340 000
1 215 000
—
2023 - 12
2027 - 05
83.95
79.20
1 215 000
1 340 000
—
—
Total
2 430 000
3 390 118
1 215 000
710 118
2024
2023
Cash-based options available for settlement
2 430 000
3 390 118
Weighted average exercise price on outstanding options (NOK per option)
75.93
76.56
The Black and Scholes option pricing model is used for valuation. A brokerage firm is used to perform the calculations and the
measurement is according to level 3 of the fair value hierarchy. The table below shows the movement in outstanding options in 2024 and
2023.
OVERVIEW 2024
(TOTAL CASH-SETTLED OPTIONS)
OUTSTANDING
OPTIONS AT
31.12.2023
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2024
Andreas Kvame (Chief Executive Officer)
550 000
—
—
170 000
380 000
Atle Harald Sandtorv (Chief Financial Officer)
330 799
—
—
80 799
250 000
Knut Utheim (Chief Technology Officer)
185 000
—
—
85 000
100 000
Kathleen O. Mathisen (Chief Human Resource Officer)
149 011
—
—
49 011
100 000
Kristina Furnes (Chief Communication Officer)
139 262
—
—
39 262
100 000
Alexander Knudsen (Chief Operating Officer Farming Norway)
255 000
—
—
85 000
170 000
Grant Cumming (Chief Operating Officer Farming Canada)
170 000
—
—
—
170 000
Erik Holvik (Chief Commercial Officer)
235 788
—
—
65 788
170 000
Nina Stangeland (Chief Strategy Officer)
100 000
—
—
—
100 000
Others
1 275 257
—
—
385 258
890 000
Total
3 390 118
—
—
960 118
2 430 000
OVERVIEW 2023
(TOTAL CASH-SETTLED OPTIONS)
OUTSTANDING
OPTIONS AT
31.12.2022
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2023
Andreas Kvame (Chief Executive Officer)
229 764
380 000
—
59 764
550 000
Atle Harald Sandtorv (Chief Financial Officer)
80 799
250 000
—
—
330 799
Knut Utheim (Chief Technology Officer)
88 302
100 000
—
3 302
185 000
Kathleen O. Mathisen (Chief Human Resource Officer)
49 011
100 000
—
—
149 011
Kristina Furnes (Chief Communication Officer)
39 262
100 000
—
—
139 262
Alexander Knudsen (Chief Operating Officer Farming Norway)
86 832
170 000
—
1 832
255 000
Grant Cumming (Chief Operating Officer Farming Canada)
—
170 000
—
—
170 000
Erik Holvik (Chief Commercial Officer)
65 788
170 000
—
—
235 788
Others
135 260
1 140 000
—
—
1 275 257
Total
775 016
2 680 000
—
64 898
3 390 118
AMOUNTS IN NOK 1 000
2024
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION*
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2024
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2024
ACC. COST
RECOGNIZED
IN EQUITY
AT
31.12.2024
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2024
Former employees with expired
options**
—
—
—
—
—
—
6 887
—
Andreas Kvame (Chief Executive
Officer)
75.93
4.08
1 552
803
589
—
—
1 392
Atle Harald Sandtorv (Chief
Financial Officer)
75.93
4.48
1 119
519
484
—
—
1 003
Knut Utheim (Chief Technology
Officer)
75.93
6.41
641
390
180
—
—
570
Kathleen O. Mathisen (Chief
Human Resource Officer)
75.93
5.94
594
320
209
—
—
529
Kristina Furnes (Chief
Communication Officer)
75.93
5.22
522
258
208
—
—
466
Alexander Knudsen (COO Farming
Norway)
75.93
5.16
878
453
331
—
—
785
Grant Cumming (COO Farming
Canada)
75.93
4.27
725
497
154
—
—
650
Erik Holvik (Chief Commercial
Officer)
75.93
5.14
874
443
338
—
—
781
Nina Stangeland (Chief Strategy
Officer)
75.93
6.03
603
306
231
—
—
537
Other options allocated in 2024
75.93
4.65
4 136
2 877
1 620
—
—
4 200
Total
11 644
6 867
4 343
—
6 887
10 914
* 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.
97
AMOUNTS IN NOK 1 000
2023
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION*
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2023
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2023
ACC. COST
RECOGNIZED
IN EQUITY
AT
31.12.2023
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2023
Former employees with expired
options**
—
—
0
0
—
—
6 887
—
Andreas Kvame (Chief Executive
Officer)
78.96
4.35
1 480
1 652
-1 488
—
—
163
Atle Harald Sandtorv (Chief
Financial Officer)
78.96
6.34
1 078
669
-589
—
—
81
Knut Utheim (Chief Technology
Officer)
78.96
5.82
989
663
-579
—
—
84
Kathleen O. Mathisen (Chief
Human Resource Officer)
78.96
7.20
720
442
-392
—
—
50
Kristina Furnes (Chief
Communication Officer)
78.96
6.04
604
354
-316
—
—
39
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
78.96
5.87
999
654
-570
—
—
84
Erik Holvik (Chief Commercial
Officer)
78.96
6.13
1 042
606
-542
—
—
65
Other options allocated in 2020
78.96
7.04
3 519
1 469
-1 334
—
—
135
Atle Harald Sandtorv (Chief
Financial Officer)
75.93
4.22
1 055
—
519
—
—
519
Knut Utheim (Chief Technology
Officer)
75.93
7.97
797
—
390
—
—
390
Kathleen O. Mathisen (Chief
Human Resource Officer)
75.93
6.53
653
—
320
—
—
320
Kristina Furnes (Chief
Communication Officer)
75.93
5.26
526
—
258
—
—
258
Andreas Kvame (Chief Executive
Officer)
75.93
4.29
1 632
—
803
—
—
803
Alexander Knudsen (COO Farming
Norway)
75.93
5.43
923
—
453
—
—
453
Alexander Knudsen (Chief
Operating Officer)
75.93
5.95
1 011
497
497
Erik Holvik (Commercial Officer)
75.93
5.30
901
443
443
Nina Stangeland (chief Strategy
Officer)
75.93
6.24
624
306
306
Othre options allocated in 2023
75.93
5.28
5 227
2 877
2 877
Total
23 777
6510
1 056
—
6 887
7 566
* 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.
RECOGNIZED LIABILITY, COSTS AND KEY ESTIMATES USED FOR THE FAIR VALUE CALCULATION OF OPTIONS
As at 31 December 2024, fair value of outstanding options with the right to cash settlement were NOK 11 million (NOK 8 million). In
addition, social security costs is included in the recognized liability in the statement of financial position, which totaled NOK 2.1 million
(NOK 1.4 million) bringing the total recognized liability to NOK 13.0 million (NOK 9.0 million). See the table below for specification of the
liability as per the balance sheet date.
FAIR VALUE OF SYNTHETIC
OPTIONS
SOCIAL SECURITY COSTS
TOTAL RECOGNIZED LIABILITY
RECOGNIZED LIABILITY IN THE STATEMENT OF
FINANCIAL POSITION NOK 1 000
2024
2023
2024
2023
2024
2023
Non-current liabilities
10 913
6 867
2 084
1 312
12 997
8 178
Current liabilities
—
700
—
134
—
834
Total
10 913
7 566
2 084
1 445
12 997
9 012
COSTS RELATED TO CASH OPTIONS NOK 1 000
2024
2023
CLASSIFICATION IN FINANCIAL STATEMENTS
Change in provisions
4 343
1 056
Non-current provisions
Exercised options during the year
—
—
Salaries and personnel expense / cash
Total costs excl. social security costs
4 343
1 056
Social security costs
639
527
Public taxes payable
Total costs incl. social security costs
4 983
1 584
Salaries and personnel expense
The total cost incl. social security costs totaled NOK 5.0 million (NOK 1.6 million) These costs are recognized in the income statement as
an other personnel cost (see Note 7). Social security contributions are provided for on an ongoing basis based on the fair value of the
options.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
2024
2023
Anticipated volatility (%)
42.00%
45.63%
Risk-free rate of interest (%)
4.00%
4.00%
Estimated qualification period (years)
1.92
2.33
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.
98
NOTE 9 OTHER OPERATING EXPENSES
OTHER OPERATING EXPENSES NOK 1 000
2024
2023
Transportation costs
463 107
433 469
Maintenance costs
449 729
346 941
Electricity and fuel
187 599
179 076
Outsourced services and audit fees
128 389
98 980
Insurance
102 553
115 583
IT expenses
81 773
84 225
Marketing costs
16 514
14 327
Other operating expenses2
154 445
162 689
Other production-related costs1,3
873 859
800 875
Total other operating expenses
2 457 967
2 236 165
1Includes lease expenses and lease-related expenses
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.
BREAKDOWN OF TOTAL AUDITOR'S FEES NOK 1 000
2024
2023
AUDIT SERVICES
Group auditor
6 606
3 815
Other auditors
1 531
1 180
OTHER ASSURANCE AND CERTIFICATION SERVICES
Group auditor
845
1 416
Other auditors
—
—
TAX SERVICES
Group auditor
988
1 082
Other auditors
20
OTHER SERVICES
Group auditor
1 404
563
Other auditors
—
—
Total Group auditor
9 843
6 877
Total other auditors
1 531
1 200
Total auditor's fees
11 374
8 077
The auditor’s fees cover financial audit of the Group, assurance engagement on sustainability reporting and related services.
NOTE 10 CONTINGENT LIABILITIES, LITIGATION AND LEGAL CLAIMS
CONTINGENT LIABILITIES
ACCOUNTING POLICIES
Contingent liabilities are defined as:
• possible obligations resulting from past events whose existence depends on future events,
• obligations that are not recognized because it is not probable that they will lead to an outflow of resources entailing financial benefits
from the company,
• obligations that cannot be measured with sufficient reliability.
Contingent liabilities are not recognized in the annual financial statements apart from contingent liabilities resulting from the
acquisition of an entity.
LITIGATION AND LEGAL CLAIMS
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the market for
spot sales of fresh, whole and gutted Norwegian farmed Atlantic salmon. On 25 January 2024, Grieg Seafood received a Statement of
Objections from the European Commission related to its investigation. The issuance of a Statement of Objections is a common and formal
step in the process, where the European Commission sets out its preliminary view that the companies under investigation have breached
European competition rules, but not a final decision. The Statement of Objections does neither prejudice the final outcome of the European
Commission's proceedings. Grieg Seafood has examined the Statement of Objections carefully and replied to it. Grieg Seafood continues
to fully cooperate with the European Commission's investigation. A hearing in the matter was held in September 2024 and the European
Commission is still going through the information and documentation received and to be received. A final decision by the European
Commission might be expected in the calendar year 2025.
Three claims for damages have been filed in the UK against, among others, Grieg Seafood ASA and Grieg Seafood UK Limited arising
from alleged unlawful cartel arrangements in relation to the supply of farmed Atlantic salmon. Grieg Seafood rejects that there is
any basis for the alleged claims and considers the complaint to be entirely unsubstantiated. Thus, no provisions have been made for
these claims, nor the EC investigation. In general, Grieg Seafood denies any anti-competitive conduct whether it is in regard to the EC
investigation, the claims filed in the UK or any possible future claims related to this matter subsequent to the issuance of the SO. Grieg
Seafood will follow up all processes as it deems appropriate.
The three class-actions filed in Canada (none was certified as a class-action) were settled, even though Grieg Seafood considers the
complaints to be entirely without merit, as the costs of litigation in Canada can be substantial. A provision was made in 2022. The costs in
the income statement are included in the line of “Other non-operation cost”. In 2023, the accrual remaining after the settlement payment
was released. The reversal of the accrual led to an income in the 2023 income statement of NOK 23 million. The settlement agreement
was approved by the Federal Court in February 2024. In 2024 there has not been made any accrual for the class-actions.
OTHER CASES
In December, Grieg Seafood BC has had an accident with pouring diesel into the seawater at one of the site. The cleanup of the diesel
spill, about 8,000 liters, has been carried out and an environmental inspection has been conducted to determine the extent of any damage
to the environment. The report from the inspection has not yet been received and we do not know at this time the extent of any possible
damage to the environment or whether a fine will be imposed, nor the timing of conclusions from authorities. At this point it is not likely
that a conclusion from the authorities will lead to a material adverse effect for the company, and no provision has been recognized in the
financial statements.
99
NOTE 11 FINANCIAL INCOME AND FINANCIAL EXPENSES
FINANCIAL INCOME AND FINANCIAL EXPENSES NOK 1 000
2024
2023
FINANCIAL INCOME
Realized gain (loss) on investment in money market fund
—
41 461
Unrealized gain (loss) on investment in money market fund
—
-12 624
Net change in fair value of derivatives
—
26 703
Net currency gains
—
79 060
Other interest income
5 996
3 796
Other financial income
2 879
1 800
Total financial income
8 875
140 195
FINANCIAL EXPENSE
Interest expense on external borrowings and leases
215 673
253 706
Amortization of transaction cost on external borrowings
8 445
8 311
Net change in fair value of derivatives
21 552
11 926
Net currency loss
37 553
—
Other financial expenses
25 383
2 825
Total financial expenses
308 606
276 768
Net financial items
-299 731
-136 573
NOTE 12 INCOME TAXES
ACCOUNTING POLICIES
Income tax expense consists of tax payable and changes to deferred tax.
Deferred tax is provided for in full at nominal value, using the liability method, on temporary differences arising between the value of
assets and liabilities for tax and accounting purposes. The liability method is applied both for ordinary corporate taxation as well as for
the Norwegian resource rent tax scheme.
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 realized, or the deferred income liability is settled. Deferred tax assets are
recognized to the extent that it is probable that future taxable income will be available, from which the temporary differences can be
deducted. Deferred tax is calculated on temporary differences arising on investments in subsidiaries and associates, except where the
timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not be
reversed in the foreseeable future.
For the Norwegian resource rent tax scheme deferred tax liability is recognized for temporary differences on biological assets
allocated to fish farming licenses subject to the resource rent tax. The deferred resource rent tax is recognized using the effective tax
rate 25%. For the fish farming licenses subject to the resource rent tax, no deferred tax liability is recognized, because a subsequent
sale will not be subject to resource rent tax and the carrying value is not realized through use. A deferred tax asset is recognized, with
the effective rate of 25%, for any loss carried forward within the resource rent tax regime as long as it probable that there is sufficient
taxable income in future periods.
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
THE NORWEGIAN RESOURCE RENT TAX SCHEME
On 31 May 2023, the Norwegian Parliament passed the resource rent tax scheme on aquaculture in Norway. The tax scheme applies to
net profits from commercial sea-phase salmon aquaculture activity in Norway. The tax is an additional layer of taxation on aquaculture,
on top of ordinary corporate income taxation of 22%, bringing the total marginal tax rate for the in-scope aquaculture activity to 47%.
This new tax scheme was implemented with effect from 1 January 2023. The Norwegian resource rent tax will not affect the tax load of
the Group’s operations in British Columbia and Newfoundland.
The Group has aquaculture licenses both in- and out-of-scope of the resource rent tax scheme, expenses and income
related to the tax scheme have to be identified. The group allocates cost depending on the scope of the licenses and whether or not
they are part of the resource rent tax scheme.The implementation of the resources tax regime has caused internal reorganizations, and
the transfer pricing model applied by the Group pursuant to the OECD transfer pricing guidelines induces a variability in profitability
mainly affecting the company subject to resource rent tax. As this is a new tax, it is unknown how the tax authorities will assess the
methods used and the assumptions made. Management is, therefore, not able to quantify any meaningful sensitivity, caused by a
reasonable change in the assumptions applied.
The group also during the reorganization transferred the biomass by way of a sale and purchase transaction at fair value, using tax
discontinuity. The biomass was capitalized, carrying over the tax position into the previous year. With tax effect for 2023 and 2024, the
capitalized costs both in the basis for the ordinary corporate income tax, as well as in the basis for the new resource rent tax scheme.
Consequently, the Group has not recognized an implementation effect concerning the transitioning to the resources rent tax scheme.
If the deduction in the new resource rent tax scheme is not accepted by the tax authorities, the deferred tax asset released to loss
carried forward in the regime will be reduced accordingly.
100
CHANGE IN BOOK VALUE OF DEFERRED TAX NOK 1 000
2024
2023
Balance sheet value at 01.01.
842 612
1 041 101
Reclassified from deferred tax to tax payables *
0
-492 959
Currency conversion
-13 082
14 892
Tax effect of OCI transactions (see Note 25)
3 420
6 332
Other effects
9 661
7 538
Changes to income in the period
-284 981
254 435
Changes to income in the period of resource rent tax
46 448
11 273
Net deferred tax liability at balance sheet date 31.12
604 078
842 612
*After the completion of the consolidated financial statements and before the submission of tax returns for each subsidiary, there was
a reclassification of deferred tax to payable tax, resulting in an impact on the consolidated financial statement. Instead of expensing all
costs associated with the biomass, the value of the biomass was capitalized for tax purposes, reflecting a general option available to
taxpayers. The corresponding amount was included in the tax payment for corporate income tax paid in 2023.
The nominal tax rate in Norway is 22% and the resource rent tax is 25%. The nominal tax rate for 2024 was 27% in British Columbia and
30% in Newfoundland.
TOTAL DEFERRED TAX ASSETS/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION NOK 1 000
2024
2023
Deferred tax assets (+)
—
—
Deferred tax liabilities (-)
-604 078
-842 612
Net deferred tax (-)
-604 078
-842 612
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. There is no effect from the asset retirement
obligation in 2024.
SPECIFICATION OF DEFERRED TAX AND TAX ASSETS NOK 1 000
2024
2023
Non-current assets
36 175
340 073
Current assets
1 070 114
711 458
Debt (lease, other liabilities)
-172 694
-76 484
Tax losses carried forward
-383 817
-143 708
Total recognized deferred tax liability ordinary taxation
546 357
831 339
Biological assets - deferred resource rent tax
816 743
624 315
Tax losses carried forward - resource rent tax
-759 022
-613 042
Total recognized deferred tax liability resource rent tax
57 721
11 273
Total recognized deferred tax liability
604 078
842 612
SPECIFICATION OF DEFFERED TAX ASSETS RELATED TO LOSS CARRIED FORWARD NOK 1 000
2024
2023
Tax losses carried forward resources rent tax in Norway
-759 022
-613 042
Tax losses carried forward in Canada
-112 586
-143 708
Tax losses carried forward in Norway
-271 231
—
Total
-1 142 839
-756 750
The tax loss carry forward in Norway has no expiration date. Losses in Canada have a 20-years carry forward period, with the first
expiration date in 2036. In addition to the amount disclosed above the group has unrecognized deferred tax assets related to tax
loss carried forward in Newfoundland at NOK 430 million. In addition there are unrecognized deferred tax assets related to other
temporary differences in Newfoundland of NOK 218 million. The Group does not recognize deferred tax assets related to the operation in
Newfoundland because the operations has not yet become profitable.
TAX PAYABLE BOOKED IN FINANCIAL STATEMENT CURRENT LIABILITIES NOK 1 000
2024
2023
Tax payable in Norway
—
—
Tax payable resource rent in Norway
—
—
Tax payable abroad
5 364
6 156
Total tax payable in the statement of financial position
5 364
6 156
INCOME TAXES FOR THE YEAR IN THE INCOME STATEMENT NOK 1 000
2024
2023
Norway
6 302
14 614
Norway - resource rent tax
—
—
Abroad
3 044
4 084
Current income tax
9 346
18 698
Norway
-35 962
250 032
Norway - resource rent tax
46 448
11 273
Abroad
-249 019
4 403
Changes in deferred tax
-238 533
265 708
Total income taxes related to profit for the year
-229 188
284 407
TAX RECONCILIATION BETWEEN NOMINAL AND EFFECTIVE TAX RATES NOK 1 000
2024
2023
Profit before tax
-2 679 695
844 157
Taxes calculated at nominal tax rate
-869 156
210 484
Withholding tax
17 248
12 600
Non-taxable income/loss from associated companies
731
1 531
Effect of adjustment of income tax from previous years
-2 984
-10 436
Impairment of goodwill
216 866
—
Effect of non-recognition of losses and tax assets
436 630
74 439
Effect of resources tax
46 448
11 273
Other permanent differences
-74 971
-15 484
Total income tax expense
-229 188
284 407
Weighted average tax rate
8.6%
33.7%
101
NOTE 13 INTANGIBLE ASSETS
ACCOUNTING POLICIES
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is the fair value of the asset at the date of the acquisition.
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 of the
acquired entity at the date of acquisition. Goodwill on acquisitions of subsidiaries is classified as an intangible asset. Goodwill is tested
annually for impairment and carried at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is
allocated to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination
in which the goodwill arose.
LICENSES
Fish-farming licenses acquired by the Group are measured on initial application at cost. Fish-farming licenses with an indefinite useful
life are not amortized but reviewed for impairment annually, or more frequently if there are indications that the carrying value may
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.
• Licenses granted with a finite useful life, but where the license holders can renew the licenses without incurring considerable
expenses.
Licenses with a finite useful life are amortized over their useful lives, and tested for impairment if there are indications that future
earnings do not justify the asset’s carrying value. Such licenses relate to water licenses for hatcheries and some specific seawater
licenses.
See the separate section below for more information concerning the fish farming licenses of our farming regions.
OTHER INTANGIBLE ASSETS
Acquired customer portfolios and computer software licenses are measured on initial recognition at cost and amortized over their
estimated useful lives. Customer portfolios are recognized in the statement of financial position at cost on the date of purchase.
Amortization is calculated using the straight-line method over the estimated useful life, as follows:
• Other intangible assets 3–10 years
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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 tested for impairment only. All licenses where the Group has no other contractual restrictions relating to the use of the licenses
have 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 (see separate section in this Note for each license regime) 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.
BRITISH COLUMBIA
In British Columbia (BC), licenses are renewed by the federal Department of Fisheries and Oceans (DFO) on a regular basis, with
different length. In 2019, the Canadian Federal Government committed to develop a responsible plan to transition into better
and more sustainable aquaculture practices in BC, in order to reduce interactions with wild Pacific salmon. In June 2024, the
Canadian Department of Fisheries and Oceans announced a ban on open net-pen salmon aquaculture in BC by 2029. Following the
announcement, the Government of Canada will release a draft salmon aquaculture transition plan, however this has been postponed
due to several factors, with the Prime minister’s resignation being one of them. A Federal election for a new Prime Minister was
initiated on 23 March 2025. With an election date of 28 April 2025, the government has gone into caretaker mode. As such, it is
uncertain if we can expect a draft framework to be released in 2025 or if the new government will continue with this process. With the
election focus on the economy, Grieg Seafood continues to work collaboratively with our First Nation partners, government and local
communities on the importance of our sector to the BC and Canadian economy.
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. All of Grieg Seafood's current
production is operating under agreements with First Nations. 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.
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 classified the licenses as having indefinite lives, based on the lack of
sufficient relevant factors to change the principle at this point. At the end of 2024, we assessed the political risk to have increased and,
based on this, we have written down the book value of our licenses related to the seawater phase. Licenses representing our smolt
production on land have not been written down, but will follow the same depreciation plan as before.
NEWFOUNDLAND
Grieg Seafood Newfoundland has 14 approved seawater farming licenses, as well as one freshwater license. The seawater licenses are
granted for terms of six years. To renew the licenses, licenses must follow the Provincial Aquaculture Policy and Procedures Manual.
As long as licenses follow and comply with the requirements, the license will be renewed. For this reason, the licenses are classified as
having indefinite lives and, as such, are not amortized.
102
INTANGIBLE ASSETS
2024 NOK 1 000
GOODWILL
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
TOTAL
Book value at 01.01.
727 111
1 369 991
119 807
13 275
2 230 184
Currency translation differences
19 445
16 074
3 213
148
38 880
Additions
—
—
—
1 669
1 669
Amortization
—
—
-18 474
-3 568
-22 042
Impairment1
-726 093
-303 543
-34 895
-1 405
-1 065 936
Book value at 31.12.
20 463
1 082 522
69 651
10 119
1 182 755
ACCUMULATED VALUES
Acquisition cost
836 165
1 437 245
187 783
65 598
2 526 791
Accumulated amortization
—
—
-83 220
-54 061
-137 281
Accumulated impairments
-815 702
-354 723
-34 912
-1 418
-1 206 755
Book value at 31.12.
20 463
1 082 522
69 651
10 119
1 182 755
See Note 27 for information on assets pledged as security for financial liabilities.
1 For information concerning the impairment of intangible assets, refer to Note 15
INTANGIBLE ASSETS
2023 NOK 1 000
GOODWILL
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
TOTAL
Book value at 01.01.
691 094
1 332 936
130 775
14 689
2 169 493
Currency translation differences
36 016
37 055
7 461
357
80 891
Additions
—
—
—
1 592
1 592
Amortization
—
—
-18 429
-3 363
-21 792
Impairment
—
—
—
—
—
Book value at 31.12.
727 111
1 369 991
119 807
13 275
2 230 184
ACCUMULATED VALUES
Acquisition cost
816 714
1 505 283
182 694
63 957
2 568 649
Accumulated amortization
—
—
-62 888
-50 682
-113 570
Accumulated impairments
-89 603
-135 292
—
—
-224 895
Book value at 31.12.
727 111
1 369 991
119 807
13 275
2 230 184
See Note 27 for information on assets pledged as security for financial liabilities.
Seawater licenses
Each license for the farming of salmon in the sea is subject to a production limit in the form of “maximum allowed biomass” (MAB) on
both company and location/seawater site level. The system means the license holder can at no time have a standing biomass (number
of kg of live fish in seawater) that exceeds the company level MAB, in addition that no location can have a standing biomass that
exceeds the seawater site’s MAB. When a seawater site is approved, a maximum level of tonnes of fish is set, based on the location and
environmental conditions on the site. The normal size of a permit is 780 tonnes at the license level ex. the county of Finnmark, while the
normal size of a permit in 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 sustainability. See Section 15 of the
Salmon Allocation Regulation (“Laksetildelingsforskriften”).
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.
Hatchery licenses
Young salmon are defined as eggs, juveniles, parr or smolt to be released at another location, see Section 4(f) of the Salmon Allocation
Regulation. Such licenses are not limited and thus 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 broodstock licenses is to produce roe and milt from salmon with improved and/
or specific traits. Broodstock licenses include both a land and sea phase, i.e. broodstock and egg production are covered by the same
licensing process. The purpose of an R&D license is to encourage important research projects that can bring the Norwegian aquaculture
industry forward. Permits are means tested, meaning that the applicant must demonstrate a need for the production of eggs, specific
research projects or for educational purposes.
Educational licenses
Educational licenses in Norway are given to universities, colleges or high schools offering aquaculture-related courses of study. Salmon
farming companies can lease educational licenses from the educational institution. Part of the students’ training will then take place at
these salmon farms.
Harvesting pen licenses
Licenses utilized for holding pens where live fish are kept prior to harvesting. These relate to specific locations.
Duration and renewal
The Ministry may in individual decisions or regulations specify further provisions on the content of aquaculture licenses, including
matters relating to scope and time limitations, see Section 5(2) of the Aquaculture Act. Nonetheless, the preparatory work for the
Aquaculture Act specifies that licenses are normally granted without a time limit.
Grieg Seafood’s general fish farming and hatchery licenses are not time-limited under current regulations. After the reform in 2009, a
number of licenses were time-limited, mainly for 15 years. As no government practices have been established relating to the renewal of
broodstock licenses, the current understanding is that they will be renewed upon application. Expiration of licenses allows for application
for renewal on demand. A license for harvesting pens is valid for ten years and must be renewed on expiration, provided that the license
is still connected to an approved harvesting facility.
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.
Section 9 of the Aquaculture Act sets out the basis for withdrawal of an aquaculture license. This states that there must be significant
breaches of the terms of an aquaculture license before it can be revoked.
LICENSES
Norway
The licensing regime for the production of salmon in Norway is enacted by the Norwegian Parliament through the Aquaculture Act. The
Ministry of Trade, Industry and Fisheries grants permits for aquaculture (licenses). All aquaculture operations are subject to licensing,
and no one can produce salmon without permission from the authorities, see Section 4 of the Aquaculture Act.
The aquaculture permit allows the production of salmon in limited geographic areas within the current determined limitations of the
permit scope. The Aquaculture Act is 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.
103
NORWAY
LICENSE CATEGORY AND TOTAL CAPACITY
TOTAL NUMBER
CAPACITY TONNES
Seawater licenses
35
30 853
Green licenses 1
8
7 743
R&D permit
3
2 340
Broodstock
3
2 340
Smolt
3
4 045
Harvesting pens
2
1 106
Education 2
2
1 560
Total licenses in production
56
49 987
Visitor center for fish farming 3
1
780
Total
57
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 2025. The license cannot be utilized before the visitor center is
constructed.
CANADA - NEWFOUNDLAND
Grieg Seafood Newfoundland is the single aquaculture operator/salmon farmer in the Placentia Bay area. Newfoundland currently holds
14 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.
To operate aquaculture sites in Newfoundland, the following approvals and licenses must be in place:
• Aquaculture License – issued by the Department of Fisheries Forestry and Agriculture
• Lease License for Occupancy – issued by Crown Lands division of Department of Fisheries Forestry and Agriculture
• Canadian Navigable Waters Act - issued by Transport Canada
• Water Use Approval – issued by Department of Environment, Climate Change, and Municipalities
Duration and renewal
Aquaculture licenses are granted for a six-year term. Each year, licensees must complete the validation process and abide by the
legislative references: Aquaculture Act and the Policy cross references as Aquaculture License Renewal AP 6, Annual 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 conditions, policies, and regulations at all times. Licenses may be suspended or cancelled if a breach
occurs, or they may not be renewed.
The timeline supports two production cycles and promotes longer-term investment and stability. Ensuring sites are being utilized and
developed by license holders in accordance with approved plans on file with the department falls under AP 8 Site Utilization. If sites are
not being utilized based on approved plans on file, they may not be renewed.
CANADA - BRITISH COLUMBIA
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:
1.
Aquaculture license – issued by the Department of Fisheries and Oceans and the First Nations.
2.
License of Occupation (Tenures) – issued by the Ministry of Forest, Lands and Natural Resource Operations.
3.
Navigation Water Permit – issued by Transport Canada (Canadian public authority).
For restrictions regarding production quantity, see the table summarizing BC licenses below.
Duration and renewal
1.
Aquaculture license – duration of one year, renewal each year is a formality.
2.
License of Occupation – duration of 2–20 years. Renewal is applied for on expiration.
3.
Navigation Water Permit – duration of five years, but possible to apply for renewal.
CANADA - BC
TOTAL CAPACITY, WEST AND EAST OF VANCOUVER ISLAND
WEST
EAST
TOTAL
Total
41 900
17 500
59 400
NOTE 14 PROPERTY, PLANT AND EQUIPMENT INCL. RIGHT-OF-USE-ASSETS
The capacity in BC is merely theoretical capacity, as all locations cannot be utilized simultaneously. BC also has a license for broodstock and smolt.
Grieg Seafood formally holds the licenses with DFO as at year-end 2024, however we have decommissioned our farming operations at the sites.
ACCOUNTING POLICIES
Property, plant and equipment incl. right-of-use assets is stated at historical cost, including initial estimate of asset retirement
obligation, less depreciation and impairment losses.
Land and buildings mainly comprise freshwater facilities, harvesting plants and offices. Land is not depreciated. Other operating assets
are depreciated in accordance with the straight-line method so that the cost, or remeasured value, is written down to residual value
over its expected useful economic life as follows:
• Buildings/real estate 10–50 years
• Plants, barges, onshore power supply 5–30 years
• Nets/cages/moorings 5–25 years
• Other equipment 3–35 years
The assets’ useful lives and residual values are estimated at each balance sheet date and adjusted if necessary. In 2024 there has not
been any changes to the estimated useful life of the Group’s property, plant and equipment as a consequence of climate-related risk.
104
TANGIBLE ASSETS
2024 NOK 1 000
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
Book value at 01.01.
1 472 094
1 576 496
729 174
1 317 638
5 095 401
Currency translation differences
24 461
19 628
11 808
19 899
75 797
Additions1
741 340
510 343
155 570
178 901
1 586 154
Disposals
8 808
-540
—
-74
8 194
Depreciation
-46 756
-150 406
-122 575
-309 237
-628 974
Impairment
-338 300
-164 078
-123 432
-111 523
-737 333
Book value at 31.12.
1 854 384
1 760 944
650 546
1 133 367
5 399 240
ACCUMULATED VALUES
Acquisition cost
2 581 303
2 913 727
1 633 377
2 106 075
9 234 483
Accumulated depreciation
-388 620
-988 597
-855 471
-860 990
-3 093 678
Accumulated impairments
-338 300
-164 187
-127 360
-111 720
-741 567
Book value at 31.12.
1 854 384
1 760 944
650 546
1 133 366
5 399 239
Of which book value of non-depreciable property
130 423
—
—
—
130 423
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 28)
55 072
257 994
105 901
979 128
1 398 095
See Note 15 for information on impairment
See Note 27 for information on assets pledged as security for financial liabilities.
See Note 28 for specification of the Group's right-of-use assets and further information on its leases.
1The 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. This year there is an
change also related to the asset retirement obligation (ARO) of NOK 34,6 million on prod. plant and barges, and NOK 26 million on cages & moorings.
TANGIBLE ASSETS
2023 NOK 1 000
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
Book value at 01.01.
1 302 600
1 380 814
603 938
748 238
4 035 591
Currency translation differences
34 151
30 916
16 575
19 018
100 659
Reclassification
—
—
—
—
—
Grants and other deductions to historic cost1
-25 847
—
—
—
-25 847
Additions2
209 058
300 518
230 046
788 893
1 528 515
Disposals
-2 299
-5 857
-928
-1 657
-10 741
Depreciation
-45 705
-129 895
-120 458
-236 855
-532 911
Impairment3
136
—
—
—
136
Book value at 31.12.
1 472 094
1 576 496
729 174
1 317 638
5 095 401
ACCUMULATED VALUES
Acquisition cost
1 820 899
2 428 996
1 468 702
1 958 891
7 677 488
Accumulated depreciation
-348 805
-852 391
-735 600
-641 057
-2 577 853
Accumulated impairments
—
-109
-3 928
-197
-4 234
Book value at 31.12.
1 472 094
1 576 496
729 174
1 317 638
5 095 401
Of which book value of non-depreciable property
118 833
—
—
—
118 833
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 28)
64 048
303 108
66 039
1 063 884
1 497 079
NOTE 15 IMPAIRMENT OF NON-FINANCIAL ASSETS
ACCOUNTING POLICIES
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 indications that future earnings do not justify the carrying value.
An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets, other
than goodwill, that have suffered an impairment are reviewed for indicators of possible reversal of the impairment at each reporting
date.
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The Group tests whether goodwill and licenses have suffered any impairment on an annual basis. The recoverable amounts of cash-
generating units are generally determined on the basis of value-in-use calculations.
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.
VIU calculations require the use of estimates of future cash flows from the cash-generating unit, and the application of a discount rate
to calculate the present value of future cash flows. Expectations of future cash flows will vary over time. Changes in market conditions
and expected cash flows can result in losses due to future value decreases. The value of long-term growth in demand, changes in
market competition, the strength of the production stage in the value chain and thus also expectations of the long-term profit margin
are also of significance. The different parameters could variously affect the value of the licenses over time. Any changes in these
critical assumptions will result in related write-downs, or the reversal of write-downs of the value of licenses. The FVLCD calculations
based on an expected transaction price require the use of estimates of regarding the outcome of negotiations.
Management’s future assumptions are used for value in use impairment testing. While there are inherent uncertainties in the
assumptions, the assumptions reflect management’s best estimate of the development over the life of the Group’s assets based on
its view of relevant current circumstances and the likely future development of such circumstances. inputs include discount rates,
expected EBITDA margins, harvest growth rates and investments. Expected capital expenditures in the budget period to meet expected
revenues and growth are included. The capital expenditure estimates are based on best estimate.
IMPAIRMENT TESTING OF TANGIBLE ASSETS, GOODWILL AND LICENSES
Booked value of goodwill and licenses 31.12.2024 after impairment
CASH-GENERATING UNIT NOK 1 000
LOCATION
BOOK VALUE OF
RELATED
GOODWILL
BOOK VALUE
OF LICENSES
TOTAL
Rogaland
Norway
20 463
206 394
226 857
Finnmark
Norway
—
397 218
397 218
British Columbia (BC)
Canada
—
11 020
11 020
Newfoundland (NFL)
Canada
—
537 541
537 541
Total value
20 463
1 152 173
1 172 636
See Note 27 for information on assets pledged as security for financial liabilities.
See Note 28 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 26 million relates to government grants received in 2023 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.
3Reversal of impairment in 2023 related to Sechelt farming area in British Colombia.
105
Booked value of tangible assets 31.12.2024 after impairment
CASH-GENERATING UNIT NOK 1 000
LOCATION
BOOK VALUE OF
TANGIBLE
ASSETS
TOTAL
Newfoundland (NFL)
Canada
1 489 733
1 489 733
Total value
1 489 733
1 489 733
Impairment tests are initially based on the Group’s rolling five-year projections, which are also used in connection with the Group's
liquidity planning. Future price levels are estimated by using SISALMONI forward prices as a basis, adjusted for other considerations
such as quality reductions and shipping costs. The explicit period in the impairment test is three years for Norway and four years
for BC. Cash flows beyond these periods are extrapolated using the estimated growth rates stated below. The estimated growth rate
corresponds to expected inflation.
In June 2024, the Government of Canada announced a policy statement concerning a ban on open net-pen salmon aquaculture in
British Columbia coastal waters by June 2029. Since that announcement, the Canadian prime minister Justin Trudeau, announced his
resignation. Together with Trumps victory in the US election, the political uncertainties are considered high. This is reflected in an
increased discount rate compared to the Norwegian regions.
Newfoundland (NFL) applies a different methodology for impairment testing as it is being a region under development. To test the
NFL operation for impairment, we estimated the FVLCD. Grieg Seafood ASA has been engaged in a sales/partnership process for
Newfoundland for an extended period. Since the summer of 2024 there has been negotiations with one potential buyer. There has been
several non-binding bids with associated negotiations. Both pure cash transactions and cash combined with earn-out has been on the
table. There was active dialogue in the period near year-end. These negotiations stopped in late February 2025 but the dialogue resumed
in March 2025. The recoverable amount has primarily been determined based on the non-binding bid received close to year-end, adjusted
for expected outcome of remaining negotiations. The estimated recoverable amount is higher than the bid received before year-end.
Around year-end it was considered realistic to reach an agreement acceptable to both parties.
As part of exploring different structural initiatives, and to underpin management’s impairment assessment the company has engaged a
Norwegian investment bank to perform a valuation of the Canadian operations. The investment bank has estimated broad value range for
Newfoundland. The recoverable amount is closer to the low range than the high range.
The estimated fair value less cost of disposal is at level 3 in the fair value hierarchy. The valuation technique has changed since last
year, when the company used a discounted cash flow model. The reason for the change is that the ongoing negotiation at year-end is
considered to be a better approximation for an expected transaction price.
Assumptions used for estimating recoverable amount
ROGALAND
FINNMARK
BC
NEWFOUNDLAND
(FVLCD)
Budget period
3 years
3 years
4 years
n/a
Revenue growth - growth from base year to terminal year
25%
87%
72%
n/a
Operational EBITDA-margin (1)
31% - 33%
23% - 35%
2% - 25%
n/a
Operational EBITDA-margin in terminal period
33%
35%
17%
n/a
Harvest growth (tonnes) - growth from base year to terminal year (2)
13%
48%
58%
n/a
Required rate of return before tax (3)
10.7%
10.7%
14.3%
n/a
Required rate of return after tax (3)
8.3%
8.3%
10.5%
n/a
Growth rate (4)
1%
1%
1%
n/a
The recoverable amount from Newfoundland is calculated based on value indications in the sales process and therefore does not have any corresponding assumptions regarding the calculation of
the recoverable amount.
Other comments/explanations on assumptions applied in impairment testing are presented below.
1. Budgeted EBITDA margin: The margin remains more stable for the Norwegian regions, and is assumed to increase for BC during the
budget period. Increase in harvest volume is assumed in all regions the next three-four years, with only a modest increase in the "no
growth"-scenario for NFL. For NFL, the EBITDA-margin varies for the different scenarios.
2. The growth rate for the harvest volume in the budget period (nominal growth rate) is measured against the 2024 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 the terminal year, the annual
reinvestment is assumed to be equal to annual depreciation.
5. The required rate of return is calculated independently for each region based on the specific risk premium (“alpha”) and tax rate.
Management has assessed that there is a higher alpha risk associated with BC due to the political uncertainty in the region.
OPERATIONAL EBITDA-MARGIN IN THE BUDGET AND TERMINAL PERIOD
The budgeted Operational EBITDA-margin is based on several factors such as experience from past performance, observable input
variables from peers, expected cost of production going forward and expected market price developments. An increase in gutted weight
output is assumed towards the terminal year. 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 implemented post-
smolt in Rogaland, and will increase post-smolt capacity also in Finnmark. The expansion of a post-smolt facility at Adamselv, Finnmark,
are progressing as planned. 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.
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 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.
When changing the assumptions of the discount rate or Operational EBIT/kg, all else input variables and assumptions remains the same.
For British Columbia, an increase in the discount rate by 1.0% would trigger an additional impairment of NOK 340 million, while a
reduction of NOK 5 in Operational EBIT/kg for the entire budget period and terminal would entail an additional estimated impairment
of NOK 790 million. The other cash-generating units (Rogaland and Finnmark) are not sensitive to equivalent changes in the same
assumptions. The impairment of Newfoundland is based on the non-binding bid received close to year-end, adjusted for expected
outcome of remaining negotiations. Therefore, the impairment of Newfoundland is not based on the same assumptions, and a sensitivity
analysis is not considered relevant.
WRITE-DOWN OF TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS
The operations in Canada have not reached their full potential. The changes in operational, industrial, economic and regulatory conditions
have caused the Group to cautiously revisit it’s future plans. This includes changes in both assumptions and estimates. For BC the
recognition of impairment is based on the updated assessment of BC considering the recent regulatory changes for fish farming in British
Columbia. The main changes in the assumptions for BC is an increased risk of regulatory changes and thereby an increased required rate
of return. Based on the impairment testing as mentioned above, Grieg Seafood has thus recognized impairment losses totaling NOK 1 803
million related to the Canadian assets, of which NOK 1 066 million relates to goodwill and licenses, and the remaining NOK 737 million
relates to property, plant, and equipment. incl. rights-of-use-assets. In BC, we maintain a cautious approach given the persisting political
uncertainty. In Newfoundland, we are temporarily scaling down the growth ambition while maintaining the position in Canada.
There was no impairment of tangible and intangible non-current assets in 2023, only a reversal of impairment of NOK 0.1 million from
2022 related to the discontinuing of farming operations in the Shíshálh (Sechelt) area in BC. There has been no additional impairment due
to climate-related risks, nor changes in useful lifetime in 2024.
WRITE-DOWN ON TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS NOK 1 000
NOTE
2024
2023
Goodwill and other intangible assets, Newfoundland, Canada
13
978 694
—
Non-current tangible assets, Newfoundland, Canada
14
737 333
—
Goodwill and other intangible asset, British Columbia, Canada
13
87 242
—
Non-current tangible assets, British Columbia, Canada
14
—
-136
Total write-down
1 803 268
-136
- Of which total write-down of intangible non-current assets
1 065 936
—
The conditions according to IFRS 5 - “Non-current Assets Held for Sale and Discontinued Operations” were not considered to be met at
31 December 2024, and thus, no assets were classified as held-for-sale at the balance sheet date.
106
NOTE 16 INVESTMENT IN ASSOCIATED COMPANIES AND JOINT VENTURES
ACCOUNTING POLICIES
The Group’s investments in associated companies and joint ventures are recognized in the consolidated financial statement according
to the equity method.
Associates and joint ventures that are closely related to the Group's operations and included in the Group’s value chain are classified
on a separate line in the income statement and included in the subtotal of EBIT (Earnings before interests and taxes) when the relevant
associates operate in the same position in the value chain as the Group (see Note 5). All investments in associates in 2024 and 2023 are
closely related. The carrying value of the investment is classified on a single line item included in the subtotal of non-current assets in
the statement of financial position.
Set out below are the associated companies and joint ventures of the Group as at 31 December 2024. The entities listed below have share
capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their
principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. All investments
in associates and joint ventures have the same financial year as the Group.
The Group owns, through Grieg Seafood Finnmark AS, 50.00% of Nordnorsk Smolt AS together with SalMar ASA (50.00%). At 31
December 2024, Grieg Seafood Finnmark AS has an outstanding interest-bearing long-term loan to Nordnorsk Smolt AS of NOK 28.9
million (NOK 26.5 million at 31 December 2023). The loan is classified as a non-current receivable in the statement of financial position
(see Note 17). Nordnorsk Smolt AS is located in Finnmark county in Northern Norway, and has an annual production capacity of 900
tonnes.
The Group owns, through Grieg Seafood Rogaland AS, 33.33% of Tytlandsvik Aqua AS, together with Bremnes Seashore AS (33.33%)
and Vest Havbruk AS (33.33%). Tytlandsvik Aqua AS has an annual smolt production capacity of 6 000 tonnes, of which Grieg Seafood
Rogaland AS is entitled to 4.500 tonnes.
The Group owns, through Grieg Seafood Rogaland AS, 45.79% (44.44% in 2023) of Årdal Aqua AS together with Vest Havbruk AS and
Omfar AS. In 2024, a share issue was conducted, raising a total of NOK 80 million, of which Grieg Seafood Rogaland AS’s share was
NOK 41.5 million. As a result of the capital raise, Grieg Seafood Rogaland increased its ownership from 44.44% to 45.79%. Grieg Seafood
Rogaland AS has provided an interest-bearing loan of NOK 6 million (NOK 6 million) to Årdal Aqua AS. The loan is classified as a non-
current receivable in the statement of financial position (see Note 17). The construction of Årdal Aqua AS, a land based facility with the
same design as Tytlandsvik Aqua AS, is progressing according to plan. The first fish entered the Årdal Aqua facility in October 2024 and
will be transferred to ocean farms during the spring of 2025. Årdal Aqua AS is expected to produce at least 4 500 tonnes of post-smolt
annually from 2025, with another 1 500 tonnes of fish ready for harvest. The production will ramp up gradually through 2025 as the full
facility is phased into production.
Grieg Seafood Rogaland AS, sold the 50.00% shares in NextSeafood AS in 2024, and the long-term loan of NOK 8.6 million has been fully
paid. The loan was classified as a non-current receivable in the statement of financial position in 2023 (see Note 17).
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
INVESTMENT IN ASSOCIATES
AND JOINT VENTURES
PLACE OF BUSINESS
/ COUNTRY OF
INCORPORATION
EQUITY
INTEREST
AT 31.12.2024
BOOK VALUE AT
01.01.2024
NOK 1 000
PROFIT/LOSS
2024
NOK 1 000
CHANGES IN THE
PERIOD, INCL.
REPAID CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2024
NOK 1 000
Nordnorsk Smolt AS
Troms and Finnmark
County, Norway
50.00%
29 710
-4 853
—
24 857
Tytlandsvik Aqua AS
Rogaland County, Norway
33.33%
58 215
12 852
—
71 067
Årdal Aqua AS
Rogaland County, Norway
45.79%
114 168
-7 142
41 480
148 506
Nextseafood AS
Rogaland County, Norway
—%
7 574
—
-7 574
—
Total
209 667
857
33 906
244 429
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
AT 31.12.2024
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
Nordnorsk Smolt AS
01.07.2019
50.00%
17 022
9 362
7 660
Tytlandsvik Aqua AS
01.06.2017
33.33%
14 600
7 594
7 006
Årdal Aqua AS*
15.01.2020
45.79%
17 634
—
17 634
Nextseafood AS
31.01.2022
50.00%
—
—
—
Total ownership
49 257
16 956
32 300
*Depreciation of the excess values in Årdal Aqua will start when the facility of Årdal Aqua is constructed and production has commenced.
The following table displays provisional financial information at 31 December 2024 (100%).
AT 31.12.2024 NOK 1 000
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
OPERATING INCOME
PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
121 905
88 796
33 109
63 933
-10 400
Tytlandsvik Aqua AS
794 623
606 335
188 288
506 242
50 643
Årdal Aqua AS
1 215 206
933 730
281 476
3 040
-14 713
Nextseafood AS
—
—
—
—
—
Specification of book value of the investments in associates and joint ventures according to the equity method:
INVESTMENT IN ASSOCIATES
AND JOINT VENTURES
PLACE OF BUSINESS
/ COUNTRY OF
INCORPORATION
EQUITY
INTEREST
AT 31.12.2023
BOOK VALUE AT
01.01.2023
NOK 1 000
PROFIT/LOSS
2023
NOK 1 000
CHANGES IN THE
PERIOD, REPAID
CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2023
NOK 1 000
Nordnorsk Smolt AS
Troms and Finnmark
County, Norway
50.00%
39 053
-9 343
—
29 710
Tytlandsvik Aqua AS
Rogaland County, Norway
33.33%
55 951
2 264
—
58 215
Årdal Aqua AS
Rogaland County, Norway
44.44%
114 047
121
—
114 168
Nextseafood AS
Rogaland County, Norway
50.00%
7 574
—
—
7 574
Total
216 624
-6 957
—
209 667
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
AT 31.12.2023
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
Nordnorsk Smolt AS
01.07.2019
50.00%
17 022
7 660
9 362
Tytlandsvik Aqua AS
01.06.2017
33.33%
14 600
6 134
8 466
Årdal Aqua AS
15.01.2020
44.44%
17 634
—
17 634
Nextseafood AS
31.01.2022
50.00%
—
—
—
Total ownership
49 257
13 794
35 463
The following table displays provisional financial information at 31 December 2023 (100%).
AT 31.12.2023 NOK 1 000
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
OPERATING INCOME
PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
125 099
88 016
39 084
25 752
-19 395
Tytlandsvik Aqua AS
746 748
596 389
150 359
298 620
13 742
Årdal Aqua AS
707 436
490 213
217 223
2 006
218
Nextseafood AS
15 149
—
15 149
—
—
107
NOTE 17 OTHER NON-CURRENT RECEIVABLES
OTHER NON-CURRENT RECEIVABLES NOK 1 000
NOTE
2024
2023
Loan to associated company (interest- and non-interest bearing)
16
36 208
41 129
Investments in shares
32
402
402
Other non-current receivables
828
806
Total
37 439
42 337
NOTE 18 INVENTORIES
ACCOUNTING POLICIES
Inventories are stated at the lower of historical cost and net realizable value. Cost are determined by FIFO (first in, first out), with the
exceptions being weighted average cost for feed, and broodstock and roe. The net realizable value is the estimated sales price less the
estimated costs of completion and sale.
Biological assets are classified on a separate financial statement line item in the statement of financial position. See Note 19 for more
information.
INVENTORIES NOK 1 000
2024
2023
Raw materials (feed) at cost price
127 256
132 198
Broodstock and roe
18 461
25 027
Other (goods in transit, frozen fish, supplementary products)
73 631
72 828
Total inventories
219 348
230 053
Write-down of inventories recognized in the statement of financial position at year-end
—
—
Write-down of inventories recognized in the income statement for the year*
—
34 620
*The impairments of inventories for the year were related to broodstock and roe.
See Note 27 for information on assets pledged as security for financial liabilities.
COST OF RAW MATERIALS AND CONSUMABLES PURCHASED NOK 1 000
2024
2023
Inventories at 01.01. (inverted number)
-230 053
-240 172
Raw materials and consumables purchased
-3 514 698
-2 737 825
Inventories at 31.12.
219 348
230 053
Raw materials and consumables used
-3 525 403
-2 747 944
The item raw materials and consumables mainly comprises feed, roe, recognition of extraordinary mortality and external purchases of fish by our sales organization.
NOTE 19 BIOLOGICAL ASSETS
ACCOUNTING POLICIES
Biological assets are recognized in the statement of financial position at their fair value less cost to sell. The fair value of biological
assets are measured according to level 3 of the fair value hierarchy, based on factors not drawn from observable market rates and
-prices.
The fish are divided into two main groups, depending on the stage of the life cycle. At the earliest stage of the life cycle, the fish are
kept on land in freshwater facilities, This group encompass roe, fry and smolt. When the fish are large enough to be transferred to the
sea, they are classified as biomass in sea.
In accordance with application of highest and best use when estimating the fair value of live fish, Grieg Seafood considers that the fish
have optimal harvest weight when they have a live round weight of 4.60 kg, which corresponds to 4.00 kg gutted weight. Fish with a
live round weight of 4.60 kg or more are classified as ready for harvest (mature fish), while fish with an weight lower than 4.60 kg are
classified as not ready for harvest (immature fish).
Fish onshore (smolt) are recognized at accumulated cost, which is considered the best estimate of fair value. For fish in sea, the fair
value is calculated by applying a cash-flow based present value model. Theoretically the measurement unit is the individual fish.
However, for practical reasons, cash flows and estimates are prepared per farming location.
When estimating the fair value of the fish, a cash flow model is applied. 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 and payable costs for completion,
constitutes the cash flow.
Incoming cash flow is calculated as a function of estimated volume multiplied by estimated price. For fish not ready for harvest, a
deduction is made to cover estimated residual costs to grow the fish to harvestable weight. The cash flow is discounted monthly by
a discount rate. The discount rate comprises three main components: 1) the risk of incidents that influence cash flow, 2) hypothetical
license lease and 3) the time value of money.
Sales prices for the fish in the sea are based on forward prices from Euronext Salmon Futures (ESF). The fish is valued according to
the expected price in the period the fish is expected to be harvested. The price is adjusted for expected quality variations and their
expected price achievements, logistics expenses and sales costs. The Euronext Salmon Futures reflects the expected marked price
for fresh salmon head on gutted (HOG) of superior quality. The assumption for superior graded quality is based on historical and
observable quality metrics as of the end of December 2024. The discount on non-superior graded fish reflects the historically achieved
price for production fish and the expectation of the market going forward. Estimated production cost until harvest and harvesting
expenses are deducted from the expected net sales revenue.
The expected harvest volume (biomass) is based on the actual number of individuals in the sea at the balance sheet date, adjusted
to cover estimated mortality up to harvest date and multiplied by the estimated harvest weight per individual at the time of harvest.
The fair value estimate for the fish in sea figure is adjusted for gutting waste, as the price is measured for gutted weight. Budgeted
harvesting and freight costs are applied.
108
OPENING TO CLOSING BALANCE RECONCILIATION OF THE CARRYING VALUE OF BIOLOGICAL ASSETS
TONNES
NOK 1 000
BIOLOGICAL ASSETS
2024
2023
2024
2023
Biological assets at 01.01.
58 181
50 614
5 065 718
4 045 800
Currency translation differences
NA
NA
41 462
58 707
Increase due to production
94 616
94 144
6 222 928
5 563 616
Decrease due to abnormal mortality/loss
-1 535
-3 801
-385 677
-294 832
Decrease due to sales
-89 315
-82 776
-5 412 662
-4 487 742
Fair value adjustment at 01.01.
NA
NA
-1 329 761
-1 149 591
Fair value adjustment at 31.12.
NA
NA
800 981
1 329 761
Biological assets at 31.12.
61 947
58 181
5 002 989
5 065 718
See Note 27 for information on assets pledged as security for financial liabilities.
Tonnes is provided in live round weight.
SPECIFICATION OF THE CARRYING VALUE OF BIOLOGICAL ASSETS
STATUS OF BIOLOGICAL ASSETS
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
2024
Biological assets on land *
21 565
618
266 761
—
266 761
Immature fish at sea, round weight < 4.60 kg
29 781
48 731
3 280 597
539 896
3 820 492
Mature fish at sea, round weight > 4.60 kg
2 508
12 598
654 650
261 085
915 736
Total
53 854
61 947
4 202 008
800 981
5 002 989
2023
Biological assets on land *
27 227
541
265 069
—
265 069
Immature fish at sea, round weight < 4.60 kg
28 854
39 784
2 497 747
943 998
3 441 745
Mature fish at sea, round weight > 4.60 kg
3 262
17 857
973 142
385 763
1 358 905
Total
59 343
58 181
3 735 957
1 329 761
5 065 718
* Smolt production
ABNORMAL MORTALITY
Abnormal mortality in 2024 and 2023 is related to winter ulcers, jelly fish, Spironucleus salmonicida (Spiro), sea lice treatment, low
dissolved oxygen levels (low DO), algae bloom and gill disease.
ABNORMAL MORTALITY - WRITE-DOWN
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
AVERAGE
SIZE KG
WRITE-DOWN
NOK 1 000
2024
Immature fish in sea, round weight < 4.60 kg
3 529
4 764
1.35
339 321
Mature fish in sea, round weight > 4.60 kg
74
394
5.29
21 856
Total abnormal mortality in sea
3 603
5 158
1.43
361 177
Biological assets onshore
24 499
Total abnormal mortality
3 603
5 158
1.43
385 677
2023
Immature fish in sea, round weight < 4.60 kg
1 832
3 278
1.79
197 750
Mature fish in sea, round weight > 4.60 kg
102
523
5.13
23 865
Total abnormal mortality in sea
1 934
3 801
1.97
221 615
Biological assets onshore
73 217
Total abnormal mortality
294 832
FAIR VALUE ESTIMATE AND RECOGNIZED FAIR VALUE ADJUSTMENT TO THE BIOLOGICAL ASSETS
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The fair value model calculates the net present value of expected cash flow. Valuation is based on a variety of premises, many of which
are non-observable. 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 generally higher. Price, volume and discount rate are the main
uncertainty factors. However, uncertainty is also related to biological transformation and mortality prior to the harvest date for the fish.
Risks in regard to climate change has had no impact on our present value due to the short time frame of the valuation, see note 3.
Sales price
Salmon sales prices are volatile. The sales price is based on forward prices from Euronext Salmon Futures exchange (ESF) 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
reflects the expected marked price for fresh salmon head on gutted (HOG) of superior quality. 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.
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. These estimates are affected by uncertainty regarding the number of lice treatments to be
carried out, the sea temperature and other conditions affecting growth, survival 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 expected mortality until harvest. 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.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.
ACCOUNTING POLICIES
Fish farming naturally comes with a certain level of loss of fish along the production cycle, and our budgets are typically produced with
an inherent assumption of a 0.5-1% monthly mortality. The losses associated with normal levels of survival are not directly recognized
in the income statement. In periods where specific abnormal incidents lead to reduced survival, we immediately recognize write-
downs of the biomass inventory to better reflect the actual biomass in sea or on land. The write-down costs are recorded in the income
statement as they arise, included in the financial statement line item “raw materials and consumables used”.
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.
109
Superior graded quality
The fair value estimate assumes a certain distribution of harvest volume between superior, ordinary and production quality. An estimated
discount for ordinary and production quality compared to the superior price achievement is used to estimate the combined sales revenue
for the fish. Both the quality distribution and the expected price discounts are based on a combination of historical data and our best
assessment of the current biomass in sea and current market conditions.
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 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 range from 10 to 18 months. 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. The longer it takes to
reach harvest date, the higher the risk that something may occur that will affect the cash flow. Production costs for the group up until
harvest are treated as a cash cost in the estimate, while expected internal profit margins are assumed included as part of the discount
rate.
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.
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.
Biological assets are measured at fair value, unless the fair value cannot be measured reliably. The change in the fair value of
biological assets is recognized in the income statement as “fair value adjustment of biological assets”. The table below summarizes the
components of the fair value adjustment recognized in the income statement for the year.
RECOGNIZED FAIR VALUE ADJUSTMENT IN THE INCOME STATEMENT NOK 1 000
2024
2023
Change in fair value adjustment of biological assets1
-525 973
156 557
Change in physical delivery contracts relating to fair value adjustment of biological assets2
-7 084
-1 846
Change in fair value of financial derivatives from salmon (Fish Pool contracts)3
-1 326
63 211
Total recognition of fair value adjustment of biological assets
-534 383
217 922
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
Changes arising from physical delivery contracts are recognized as “fair value adjustment of biological assets”. The provision relates to
onerous contracts for delivery of salmon, where the expenses of fulfilling the contracts are higher than the economic yield the company
expects to gain by fulfilling the contracts. As biological assets are recognized at fair value, the fair value adjustments of the biological
assets will be included in the estimated expenses required to fulfil the contract. The contracts are calculated based on the same forward
prices used for the fair value calculation of biological assets. This implies that the Group may experience loss-making (onerous) contracts
according to IAS 37 even if the contract price for physical delivery contracts is higher than the actual production cost for the products. If
that occurs, a provision is made for the estimated negative value. The liability in the statement of financial position is recognized as other
current liabilities, see Note 29.
Changes in the value of salmon-related financial derivatives are recognized in the balance sheet under derivatives and other financial
instruments. Financial derivatives are calculated at market value. See Note 32 for further information.
2024
2023
2024
2023
Price related assumptions
NORWAY
NORWAY
CANADA
CANADA
Average assumed market price HOG superior quality NOK /kg
83.0
84.0
83.6
91.2
Average superior share
80%
73%
93%
92%
Average price discount non-superior graded fish NOK/kg
15.0
12.5
7.1
6.9
Forward prices from European Salmon Futures (ESF) are adjusted for expected quality reductions and stated before logistics expenses.
The deduction for quality distribution and discount 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, in lack of better forward-looking sources in
the Canadian/American market.
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.
DISCOUNT RATE PER REGION
2024
2023
Rogaland
5.0%
5.0%
Finnmark
5.0%
5.0%
British Columbia
3.5%
3.5%
Newfoundland
3.5%
3.5%
Grieg Seafood considers three components to be key parameters for valuation: price, estimated harvest biomass volume, quality
adjustments and the applied monthly discount 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 contributory assets. The following table is a sensitivity analysis, showing the change in the fair
value of the biological assets, and hence the Group’s profit before tax, in the event of changes in these parameters. 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. Price for superior quality fish, the superior share and the price discount for non-superior graded fish are interrelated. If Grieg
Seafood experiences a reduced superior share, other producers in the same area will usually also be affected. This will increase the
price discount for non-superior graded fish. At the same time, this will reduce the available volume of superior fish in the market, driving
up the price for superior fish, partly mitigating the negative effects. How strong these effects are will vary over time. The sensitivity
analyses below, only reflects changes in one assumptions, all others held constant.
SENSITIVITY ANALYSIS OF BIOMASS - EFFECT ON PRE-TAX PROFIT NOK 1 000
2024
2023
Change in discount rate +1%
-176 837
-215 696
Change in discount rate -1%
197 241
264 132
Changes in sales price +1 NOK/kg
64 275
82 860
Changes in sales price -1 NOK/kg
-64 725
-70 722
Changes in sales price +5 NOK/kg
323 627
409 732
Changes in sales price -5 NOK/kg
-323 627
-359 003
Changes in biomass volume +1% kg
56 992
62 821
Changes in biomass volume -1% kg
-56 428
-50 824
Changes in superior quality +3% / Production quality -3%
22 649
25 367
Changes in superior quality -10% /Production quality +10%
-75 496
-78 506
Changes in average price discount of non-superior grade fish -5 NOK/kg
41 663
80 716
Changes in average price discount of non-superior grade fish +5 NOK/kg
-41 664
-75 478
Change sales price show a change in price achievement across all fish and all qualities.
110
NOTE 20 TRADE RECEIVABLES
ACCOUNTING POLICIES
Trade receivables arising from the trading of goods or services within the ordinary operating cycle and under normal terms of payment
are initially recognized at nominal value.
The Group is engaged in factoring agreements that cover financing of outstanding receivables for the sales organization in Norway.
Generally, a financial asset is derecognized from the statement of financial position when either the rights to receive cash flows from
the asset have expired, or the Group has transferred its right to receive cash flows from the asset, preconditioned that the Group has
transferred substantially all risks and rewards, or control, of the financial asset to a third party. The Group's factoring agreements
qualify for derecognition, but the company has retained up to 5% of the credit risk exposure. Because of this, the receivables are
included in the aging profile disclosed below.
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or
loss. ECLs are based on the difference between the 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. Losses on receivables are
classified as other operating expenses in the income statement.
For trade receivables, the Group applies a simplified approach in calculating expected credit loss (ECL). In the Group's expected credit
ECL 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 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
receivables rather than total receivables less the factored receivables. For more information about credit risk, refer to Note 4.
TRADE RECEIVABLES NOK 1 000
2024
2023
Gross amount of trade receivables
716 897
603 229
Trade receivables deducted*
-409 284
-256 597
Loss allowance
-22 010
-19 472
Trade receivables at 31.12.
285 603
327 160
*Trade receivables bought by the factoring company.
See Note 4 for a specification of the carrying value per currency.
See Note 27 for information on assets pledged as security for financial liabilities.
RECOGNIZED LOSSES ON TRADE RECEIVABLES
RECOGNIZED LOSSES NOK 1 000
2024
2023
Change in loss allowance
2 539
4 436
Confirmed losses in the year
—
—
Total recognized losses on receivables
2 539
4 436
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) 31.12.2024
Regular/normal
risk countries
TR Credit
insured
602 246
2 635
379 143
188 115
30 603
2 618
1 767
—
602 246
TR
Unsecured
91 433
91 299
13 790
5 213
3 423
17 761
31 622
19 625
91 434
High risk
countries
TR Credit
insured
21 499
—
13 476
—
7 824
—
199
—
21 499
TR
Unsecured
1 719
1 719
—
—
—
—
1 719
—
1 719
Total
716 897
95 653
406 409
193 328
41 850
20 378
35 307
19 625
716 897
LOSS ALLOWANCE 31.12.2024
Regular/normal
risk countries
TR Credit
insured
2 632
2 635
4
30
34
—
1 770
795
2 633
TR
Unsecured
19 378
91 299
182
326
414
177
2 417
15 862
19 378
High risk
countries
TR Credit
insured
—
—
—
—
—
—
—
—
—
TR
Unsecured
—
1 719
—
—
—
—
—
—
—
Total
22 010
95 653
186
355
448
177
4 187
16 657
22 010
*Receivables not bought by the factoring company are all those whom are unsecured. There are also receivables of those secured between not due and 60 days which are not bought.
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) 31.12.2023
Regular/normal
risk countries
TR Credit
insured
520 137
27 925
336 869
169 204
12 480
293
1 291
—
520 137
TR
Unsecured
82 117
81 261
21 591
17 934
21 370
412
5 364
15 445
82 117
High risk
countries
TR Credit
insured
975
—
975
—
—
—
—
—
975
TR
Unsecured
—
—
—
—
—
—
—
—
—
Total
603 229
109 187
359 434
187 139
33 850
705
6 655
15 445
603 229
LOSS ALLOWANCE 31.12.2023
Regular/normal
risk countries
TR Credit
insured
—
27 925
132
244
94
5
3
—
478
TR
Unsecured
—
81 261
2
7
28
202
4 389
14 365
18 993
High risk
countries
TR Credit
insured
—
—
1
—
—
—
—
—
1
TR
Unsecured
—
—
—
—
—
—
—
—
—
Total
—
109 187
135
251
122
207
4 392
14 365
19 472
111
NOTE 21 OTHER CURRENT RECEIVABLES
OTHER CURRENT RECEIVABLES NOK 1 000
2024
2023
VAT receivable
119 090
80 968
Prepaid expenses
166 472
58 656
Other current receivables
52 637
31 625
Total
338 199
171 249
NOTE 22 INVESTMENT IN MONEY MARKET FUNDS
INVESTMENT IN MONEY MARKET FUNDS NOK 1 000
NOTE
2024
2023
Investment in money market funds
—
—
Unrealized gain/loss
—
—
Total investment in money market funds
—
—
Realized fair value gains (losses) recognized in the income statement
11
—
41 461
Unrealized fair value gains (losses) recognized in the income statement
11
—
-12 624
In 2022, the Group temporarily placed surplus liquidity funds in money market funds. The entire investment has been exited as per year-
end 2023. The Group did not invest directly in bonds or securities, but through units in established money market funds. All three funds
held in the investment portfolio as per 31 December 2022 were money market funds that invested in bonds and securities with short time
to maturity in the Norwegian market.
NOTE 23 CASH AND CASH EQUIVALENTS
ACCOUNTING POLICIES
Cash and cash equivalents include cash in hand, bank deposits and other short-term highly liquid investments with original maturities
of three months or less. The overdraft facility is included in current borrowings in the statement of financial position.
CASH AND CASH EQUIVALENTS NOK 1 000
2024
2023
Restricted deposits incl. employee tax deductions
1 000
1 000
Other cash and bank deposits
201 979
215 318
Total
202 979
216 318
The Group has two multi-currency group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company, is the
legal account holder. One of the cash-pool agreements do have a multi-currency overdraft facility of NOK 200 million, which is utilized
with NOK 0 (2023: NOK 63 million) at year-end 2024. See Note 27 for more information. The subsidiaries that are part of the agreement
can utilize the group cash pool arrangement provided that the arrangement without overdraft cannot be net negative, and that the
arrangement with overdraft facility can not exceed negative NOK 200 million. 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. The company considers each multi-currency group account scheme as one financial instrument. The net deposit is presented
as bank deposits, also if one of the currencies has a negative balance. Cash and cash equivalents include the currency exposure in
the group account scheme. At 31 December 2024, the net amount of bank deposits in the group account scheme amounted to NOK 87
million (2023: NOK 26 million). At the same time, unutilized overdraft facility was NOK 200 million (2023: NOK 137 million), in addition to
unutilized revolving credit facility of NOK 620 million (2023: NOK 750 million).
See Note 4 for a specification of the carrying value per currency. See Note 27 for information on the Group’s available credit facilities.
NOTE 24 SHARE CAPITAL AND SHAREHOLDER INFORMATION
As at 31 December 2024, 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
31.12.2024
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
4.00
453 788
113 447 042
Holdings of treasury shares
4.00
-4 812
1 203 089
Total excl treasury shares
4.00
448 976
112 243 953
Treasury shares
Grieg Seafood ASA hold treasury shares in connection to its share saving program for employees. The latest sale of treasury shares from
the company to employees was in December 2024, as 110 565 treasury shares was sold through the share saving program at an average
price of NOK 60.44. As at 31 December 2024, the company has 1 203 089 treasury shares.
In 2023, 107 473 shares was sold to employees through the share savings program at an average price of NOK 65.89. In December 2022,
Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76 per share of which
314 980 has been settled within year-end 2022 and the remainder was settled in January 2023.
NO. OF SHARES
SHAREHOLDING
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
31.12.2024
31.12.2024
Grieg Aqua AS
56 914 355
50.17%
OM Holding AS
6 139 076
5.41%
Ystholmen Felles AS
1 923 197
1.70%
Beck Asset Management AS
1 450 000
1.28%
Clearstream Banking S.A. (Nominee)
1 380 847
1.22%
Skandinaviska Enskilda Banken AB (Nominee)
1 309 080
1.15%
Grieg Seafood ASA
1 203 089
1.06%
Riiber Holding AS
1 050 000
0.93%
Kvasshøgdi AS (Per Grieg)
996 772
0.88%
Bank Pictet & Cie (Europe) AG (Nominee)
985 544
0.87%
HMH INVEST AS
781 455
0.69%
Frøy Kapital AS
737 996
0.65%
J.P. Morgan (Nominee)
702 153
0.62%
Intertrade Shipping AS
600 000
0.53%
Six Sis AG (Nominee)
577 749
0.51%
Folketrygdfondet
567 502
0.50%
State Street Bank and Trust Comp (Nominee)
500 472
0.44%
Nyhamn AS
500 000
0.44%
Furberg & Sønn A/S
450 000
0.40%
PRO AS
413 406
0.36%
Total 20 largest shareholders
79 182 693
69.80%
Total others
34 264 349
30.20%
Total number of shares
113 447 042
100.00%
112
NO. OF SHARES
SHAREHOLDING
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
31.12.2023
31.12.2023
Grieg Aqua AS
56 914 355
50.17%
OM Holding AS
5 160 982
4.55%
Folketrygdfondet
2 419 585
2.13%
Ystholmen Felles AS
1 923 197
1.70%
Clearstream Banking S.A. (Nominee)
1 615 271
1.42%
State Street Bank and Trust Comp (Nominee)
1 512 715
1.33%
State Street Bank and Trust Comp (Nominee)
1 435 586
1.27%
Grieg Seafood ASA
1 313 654
1.16%
BNP Paribas (Nominee)
1 192 532
1.05%
JPMorgan Chase Bank, N.A., London (Nominee)
1 171 727
1.03%
Sparebank 1 Markets AS
1 159 872
1.02%
Frøy Kapital AS
1 116 323
0.98%
J.P. Morgan SE (Nominee)
1 105 349
0.97%
State Street Bank and Trust Comp (Nominee)
1 078 185
0.95%
Kvasshøgdi AS
996 772
0.88%
Bank Pictet & Cie (Europe) AG (Nominee)
921 918
0.81%
Six Sis AG (Nominee)
853 102
0.75%
BNP Paribas (Nominee)
842 579
0.74%
Skandinaviska Enskilda Banken AB (Nominee)
800 350
0.71%
State Street Bank and Trust Comp (Nominee)
753 837
0.66%
Total 20 largest shareholders
84 287 891
74.30%
Other shareholders
29 159 151
25.70%
Total shares
113 447 042
100.00%
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
SHARES CONTROLLED DIRECTLY AND INDIRECTLY BY THE BOARD OF
DIRECTORS AND GROUP MANAGEMENT
31.12.2024
31.12.2024
31.12.2023
31.12.2023
BOARD OF DIRECTORS
Per Grieg *
2 877 206
2.54%
2 877 206
2.54%
Nicolai Hafeld Grieg *
2 463 056
2.17%
2 117 289
1.87%
Marit Solberg (board member from 19 of June 2024)
—
—%
n/a
n/a
Silje Remøy (board member from 19 of June 2024)
—
—%
n/a
n/a
Paal Espen Johnsen (board member from 19 of June 2024)
—
—%
n/a
n/a
Tore Holand (until 19 of June 2024) **
—
—%
3 160
0.00%
Marianne Ribe (until 19 of June 2024)
—
—%
—
—%
Katrine Trovik (until 19 of June 2024)
—
—%
—
—%
Ragnhild Janbu Fresvik (until 19 June 2024)
—
—%
—
—%
GROUP MANAGEMENT
Andreas Kvame (Chief Executive Officer) ***
44 372
0.04%
44 372
0.04%
Atle Harald Sandtorv (Chief Financial Officer) ***
28 015
0.02%
28 015
0.02%
Alexander Knudsen (Chief Operating Officer Farming Norway)
25 099
0.02%
24 272
0.02%
Grant Cumming (Chief Operating Officer Farming Canada)
9 857
0.01%
9 857
0.01%
Erik Holvik (Chief Commercial Officer)
11 962
0.01%
11 135
0.01%
Knut Utheim (Chief Technology Officer)
26 441
0.02%
25 614
0.02%
Kathleen O. Mathisen (Chief Human Resource Officer)
16 660
0.01%
15 833
0.01%
Nina Stangeland (Chief Strategy Officer)
—
—%
—
0.00%
Kristina Furnes (Chief Communications Officer)
5 167
0.00%
5 167
0.00%
*Per Grieg and Nicolai Hafeld Grieg both own indirectly in Grieg Seafood ASA through their indirect ownership in Grieg Maturitas II AS (see Note 1). Grieg Maturitas II AS owns 100% of Grieg Aqua
AS, which is the largest shareholder in Grieg Seafood ASA representing 50.17% of the shares. Furthermore, Nicolai Hafeld Grieg is represented in the Board of Directors of Grieg Maturitas II AS and
in the Board of Directors of Grieg Aqua AS. Hence, Nicolai Hafeld Grieg represented, through his indirect ownership and Board representation in Grieg Maturitas II AS, 50.17% of the shares in Grieg
Seafood ASA. Per Grieg has additional ownership interests in Grieg Seafood ASA through Kvasshøgdi AS 0.88%, bringing the total percentage of shares in Grieg Seafood ASA represented by Per
Grieg to 51.06%. **Tore Holand owns shares in Grieg Seafood ASA through shares invested in Skippergata 24 AS. *** Atle Harald Sandtorv steps down at 5th of February 2025. Magnus Johannesen
acts as CFO from the same date. Andreas Kvame steps down at 30th of March 2025.
113
NOTE 25 CONTINGENT CONSIDERATION, OTHER EQUITY AND RETAINED EARNINGS
CONTINGENT CONSIDERATION
ACCOUNTING POLICIES
Equity-classified contingent consideration is measured initially at fair value on the acquisition date and is not remeasured subsequent
to initial recognition. Settlement of the equity-classified contingent consideration is accounted for within equity.
On 15 April 2020, Grieg Seafood ASA completed the acquisition of Grieg Seafood Newfoundland AS, which is the holding company for
the farming operations in the Newfoundland region. On the date the acquisition was completed, 99% of the shares in Grieg Seafood
Newfoundland AS were transferred, while the remaining 1% is subject to a put/call option accounted for and included in the contingent
consideration (classified as equity) of the acquisition.
Through the acquisition, a contingent consideration of NOK 702 million was recognized. Depending on the planned production volume
within the first 10 years following the transaction, additional payments may be triggered. The additional amount becomes unconditional
when Newfoundland has reached an annual harvest volume of 15 000 tonnes, and the amount increases with planned volume until an
annual harvest volume of 33 000 tonnes. The amount due is NOK 43 per kg for volumes between 15 000 and 20 000 tonnes, and NOK
55 per kg for volumes between 20 000 and 33 000 tonnes, with a 4% per annum inflation adjustment from the calendar year 2024. The
estimated harvest volume in Newfoundland for 2025 is currently 10 000 tonnes.
The contingent consideration is classified as equity. It is in Grieg Seafood’s sole discretion to decide when to make the expansion
investments and increase production.
OTHER EQUITY
SPECIFICATION OF ACCUMULATED OTHER COMPREHENSIVE INCOME
NOK 1 000
CHANGES IN
FAIR VALUE
OF EQUITY
INSTRUMENTS
CURRENCY
EFFECT ON
LOANS TO
SUBSIDIARIES
CURRENCY
EFFECT ON
INVESTMENT IN
SUBSIDIARIES
TOTAL
Book value at 01.01.2023
-37
-9 672
206 888
197 179
Changes in 2023
—
22 451
98 316
120 767
Book value at 31.12.2023
-37
12 779
305 204
317 947
Changes in 2024
—
12 124
10 841
22 965
Book value at 31.12.2024
-37
24 903
316 045
340 912
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 2023 and 2024 are presented in the table
below.
CURRENCY EFFECTS ON LOANS TO SUBSIDIARIES NOK 1 000
2024
2023
Currency effect
15 544
28 784
Tax effect (22%)
-3 420
-6 332
Net effect recognized in equity through OCI
12 124
22 451
RETAINED EARNINGS
SPECIFICATION OF RETAINED EQUITY NOK 1 000
EFFECT OF
SHARE-BASED
REMUNERATION
PURCHASE/
SALES OF
TREASURY
SHARES *
ACCUMULATED
INCOME LESS
ACCUMULATED
DIVIDEND
TOTAL
Book value at 01.01.2023
1 094
-24 249
5 161 767
5 138 612
Changes in 2023
—
6 912
55 631
62 543
Book value at 31.12.2023
1 094
-17 337
5 217 398
5 201 154
Changes in 2024
—
6 243
-2 646 868
-2 640 625
Book value at 31.12.2024
1 094
-11 094
2 570 530
2 560 530
* The amount classified under "purchase of treasury shares" equals the cost price in excess of nominal value.
NOTE 26 EARNINGS PER SHARE AND DIVIDEND PER SHARE
CALCULATION OF EARNINGS PER SHARE
2024
2023
Profit / loss after tax (majority share) NOK 1 000
-2 450 507
559 750
SPECIFICATION NUMBER OF SHARES AT 31.12:
Number of shares
113 447 042
113 447 042
Number of treasury shares
1 203 089
1 313 654
Number of outstanding shares
112 243 953
112 133 388
Weighted average number of outstanding shares
112 142 173
112 034 001
Diluted average number of outstanding shares
112 142 173
112 034 001
Earnings per share (NOK)
-21.9
5.0
Diluted earnings per share (NOK)
-21.9
5.0
ACCOUNTING POLICIES
Earnings per share are calculated by allocating the profit for the year to the company’s shareholders based on a weighted average 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.
DIVIDENDS
2024
2023
Proposed dividend per share (NOK)*
0.00
1.75
Distributed dividend to owners during the year per share (NOK)
1.75
4.50
*Proposed dividend per share (NOK) by the Board of Directors. Per the date of this Annual Report - not yet approved by the Annual General Meeting.
ACCOUNTING POLICIES
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 annual general meeting of Grieg Seafood ASA.
114
NOTE 27 BORROWINGS
ACCOUNTING POLICIES
Borrowings are initially recognized at fair value when the funds are received, net of transaction costs incurred. Borrowings are
subsequently stated at amortized cost applying the effective interest method. Any difference between the proceeds (net of transaction
costs) and the redemption value is recognized in the income statement over the period of the borrowings. Borrowings are classified
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.
Grieg Seafood ASA has a syndicated, secured loan provided by DNB and Nordea. The syndicated financing consists of an aggregate of
NOK 4 950 million in five-year senior secured sustainability-linked loans and credit facilities with maturity date in 2027, including a NOK
750 million bridge term loan facility with the syndicated lenders.
The debt structure comprises term loans in NOK, incl. the bridge loan, in the aggregate of NOK 2 000 million (outstanding NOK 1 823
million), an EUR 75 million term loan (outstanding EUR 59 million), two revolving credit facilities int the aggregate of NOK 2 000 million
(NOK 620 million undrawn) and a NOK 200 million overdraft facility (NOK 200 million undrawn). At the the end of 2024, the undrawn
amount on the credit facilities was NOK 820 million (2023: NOK 887 million). Of the syndicated debt, NOK 178 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 1 380 million at the end of 2024. The total bond issue in 2020 was NOK 1 500 million, and
since the bond issue, Grieg Seafood has repurchased NOK 107 million. 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 2024. At 31 December 2024, the Group had an equity
ratio of 31% (2023: 49%) while the equity ratio according to financial covenant was 34%, compared to 53% at 31 December 2023. In 2025
we completed a new perpetual green hybrid bond issue, which will further strengthen our equity.
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.
NON-CURRENT LIABILITIES NOK 1 000
2024
2023
NON-CURRENT BORROWINGS
Green bond loan
—
1 392 500
Non-current syndicated term-loan
2 345 359
1 261 155
Non-current syndicated revolving credit facility
1 380 000
750 000
Other non-current liabilities*
64 253
105 067
Non-current interest-bearing borrowings and provisions
3 789 613
3 508 722
Amortization effect of loans
-10 917
-16 742
Non-current borrowings according to the statement of financial position
3 778 696
3 491 980
NON-CURRENT LEASE LIABILITIES
Non-current lease liabilities according to the statement of financial position
1 100 724
1 111 049
TOTAL NON-CURRENT BORROWINGS INCL AMORTIZED LOAN COSTS AND LEASE LIABILITIES
Total non-current liabilities
4 879 420
4 603 028
*Includes this years Asset retirement obligation. See note 30.
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
2024
2023
CURRENT BORROWINGS
Current portion of non-current syndicated term-loan
177 885
132 753
Overdraft facilities*
—
63 113
Green bond
1 392 500
—
Current portion of other non-current liabilities
14 444
12 469
Current portion of borrowings according to the statement of financial position
1 584 830
208 335
Amortization effect of loans
-3 756
—
Current portion of borrowings
1 581 075
208 335
CURRENT LEASE LIABILITIES
Current portion of leasing liabilities according to the statement of financial position
322 603
299 626
TOTAL CURRENT BORROWINGS AND LEASE LIABILITIES
Total current liabilities
1 903 678
507 960
*The Group has two multicurrency cash pool schemes, held at two different banks. One of the cash pool schemes has a multi-currency overdraft facility. NOK 200 million. As at year-end 31.12.2023,
the cash pool scheme with the overdraft engagement had a net negative cash position, classified as overdraft facility at year-end. For more information on the Group's cash and cash equivalents,
see Note 4 and 23.
NET INTEREST-BEARING LIABILITIES NOK 1 000
2024
2023
Total non-current interest-bearing liabilities*
4 890 337
4 619 770
Total current interest-bearing liabilities*
1 907 433
507 960
Gross interest-bearing liabilities
6 797 770
5 127 730
Loans to associated companies
-36 208
-32 529
Investment in money market fund
—
—
Cash and cash equivalents
-202 979
-216 318
Net interest-bearing liabilities
6 558 583
4 878 884
Lease liabilities for contracts classified as operating lease for the lessor
-917 700
-1 005 714
Net interest-bearing liabilities ex. the effect of IFRS 16
5 640 883
3 873 170
Lease liabilities for contracts classified as operating lease for the lessor, corresponds to leases under the previous IFRS accounting
standard IAS 17’ definition of operational leases. These lease liabilities (NOK 918 million in 2024 and NOK 1 006 million in 2023), also
referred to as “the effect of IFRS 16”, are not included in the financial covenant’s definition of net interest-bearing liabilities.
The Group monitors leverage by assessing both the net interest-bearing liabilities including the effect of IFRS 16, totalling NOK 6 559
million (2023: NOK 4 879 million) and net interest-bearing liabilities ex. the effect of IFRS 16, totalling NOK 5 641 million (2023: NOK
3 873 million). In this Note, the lease liabilities are reported in aggregate. See Note 28 for a specification of the Group’s lease liabilities,
separated into lease liabilities for contracts classified as financial lease for the lessor (which corresponds to leases under the previous
IFRS accounting standard IAS 17’ definition of financial leases) and lease liabilities for contracts classified as operating lease for the
lessor (which corresponds to leases under the previous IFRS accounting standard IAS 17’ definition of operational leases).
*Not including amortization effect of loans
Loans to associated companies, investment in money market funds, cash and cash equivalents and lease liabilities for contracts classified as operating lease for the lessor are presented by their
inverted figure in the table above.
115
31.12.2024
MATURITY PROFILE INTEREST-BEARING LIABILITIES NOK 1 000
2025
2026
2027
2028
2029
LATER
TOTAL
Green bond loan
1 392 500
—
—
—
—
—
1 392 500
Syndicated term-loan
177 885
927 885
1 417 474
—
—
—
2 523 245
Syndicated revolving credit facility
—
—
1 380 000
—
—
—
1 380 000
Overdraft facility
—
—
—
—
—
—
—
Lease liabilities (book values)*
322 603
336 641
265 734
167 597
127 489
203 263
1 423 327
Other non-current liabilities**
14 444
13 491
12 113
11 980
11 980
14 689
78 698
Total
1 907 432
1 278 017
3 075 321
179 578
139 469
217 952
6 797 770
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
31.12.2023
NOK
GBP
EUR
USD
CAD
OTHER
Green bond loan
1 392 500
1 392 500
—
—
—
—
—
Syndicated term-loan
1 393 908
656 250
—
737 658
—
—
—
Syndicated revolving credit facility
750 000
750 000
—
—
—
—
—
Overdraft facility
63 113
79 924
-16 068
-87 393
-52 476
140 824
-1 698
Lease liabilities
1 410 674
870 850
—
—
—
539 824
—
Other non-current and current liabilities
117 535
—
—
—
—
117 535
—
Amortization effect of loans
-16 742
-16 742
—
—
—
—
—
Total
5 110 989
3 732 782
-16 068
650 265
-52 476
798 184
-1 698
BOOK VALUE
FAIR VALUE
BOOK VALUE AND FAIR VALUE OF BORROWINGS NOK 1 000
2024
2023
2024
2023
Green bond loan
1 392 500
1 392 500
1 399 463
1 404 684
Borrowings (non-current syndicated loan and revolver credit facility, incl. current part of
the non-current liability and overdraft facility)
3 903 245
2 207 021
3 903 245
2 207 021
Total
5 295 745
3 599 521
5 302 708
3 611 705
*See Note 4 for a specification of the nominal payments for the lease component of the contractual liability
**NOK 64.3 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.
31.12.2023
MATURITY PROFILE INTEREST-BEARING LIABILITIES NOK 1 000
2024
2025
2026
2027
2028
LATER
TOTAL
Green bond loan
—
1 392 500
—
—
—
—
1 392 500
Syndicated term-loan
132 753
132 753
132 753
995 648
—
1 393 908
Syndicated revolving credit facility
—
—
—
750 000
750 000
Overdraft facility
63 113
—
—
—
63 113
Lease liabilities (book values)*
299 626
249 578
236 302
206 866
133 219
285 083
1 410 674
Other non-current liabilities**
12 468
9 355
12 151
12 223
12 543
58 796
117 535
Total
507 960
1 784 186
381 206
1 964 738
145 762
343 879
5 127 730
*See Note 4 for a specification of the nominal payments for the lease component of the contractual liability
**NOK 117.6 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.
LIABILITIES SECURED BY MORTGAGES/CHANGES ON ASSETS NOK 1 000
2024
2023
Liabilities secured by mortgages/charges on assets
4 408 872
2 642 413
ASSETS PLEDGED AS SECURITY NOK 1 000
2024
2023
Licenses
1 171 480
1 489 798
Property, plant and equipment (excl. the effect of IFRS 16 / prior IAS 17 operational leases)
4 572 554
4 112 535
Trade receivables
285 603
327 160
Inventories and biological assets excl. fair value of biological assets
4 421 356
3 966 011
Total assets pledged as security
10 450 993
9 895 503
Pledges also include shares in subsidiaries in addition to charges directly on assets. The book value of these shares is NOK 0 for the Group, as such shares according to the consolidation method
of subsidiaries are eliminated in the Group. See Note 13 in the financial statement of the parent, Grieg Seafood ASA.
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
31.12.2024
NOK
CAD
EUR
USD
GBP
OTHER
Green bond loan
1 392 500
1 392 500
—
—
—
—
—
Syndicated term-loan
2 523 245
1 822 917
—
700 328
—
—
—
Syndicated revolving credit facility
1 380 000
1 380 000
—
—
—
—
—
Overdraft facility*
—
—
Lease liabilities
1 423 327
899 242
—
—
—
524 085
—
Other non-current and current liabilities
78 698
—
—
—
—
78 698
—
Amortization effect of loans
-14 672
-14 672
—
—
—
—
—
Total
6 783 098
5 479 987
—
700 328
—
602 783
—
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
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 100.88% of par value at year-end 2023 (2022: 99.37%).
AVERAGE INTEREST RATE ON BANK- AND BOND LOAN
2024
2023
Average interest rate (NOK)
7.20%
6.62%
Average interest rate (EUR)
5.20%
4.15%
CHANGE IN LIABILITIES ARISING FROM FINANCING
ACTIVITIES NOK 1 000
31.12.2023
CASH INFLOW
CASH
OUTFLOW
CASH FLOW
NON-CASH
MOVEMENTS
31.12.2024
Green bond loan
1 392 500
—
—
-1 392 500
—
Syndicated term-loan
1 393 908
1 250 000
-142 785
1 107 215
22 122
2 523 245
Syndicated revolving credit facility
750 000
630 000
630 000
—
1 380 000
Other interest-bearing liabilities
117 535
-64 124
-64 124
25 286
78 697
Long-term int.-bearing liabilities excl leases
3 653 943
1 880 000
-206 909
1 673 091
-1 345 092
3 981 943
Green bond loan
—
—
—
—
1 392 500
1 392 500
Overdraft facility
63 113
—
-63 113
-63 113
—
—
Short-term int.-bearing liabilities excl leases
63 113
—
-63 113
-63 113
1 392 500
1 392 500
Amortized loan costs
-16 742
—
2 070
-14 672
Total borrowings
3 700 314
1 881 536
-371 932
1 509 604
149 852
5 359 771
Lease liabilities
1 410 674
—
-332 841
-332 841
345 494
1 423 327
Total borrowings and lease liabilities
5 110 988
1 881 536
-704 773
1 176 763
495 346
6 783 098
116
CHANGE IN LIABILITIES ARISING FROM FINANCING
ACTIVITIES NOK 1 000
31.12.2022
CASH INFLOW
CASH
OUTFLOW
CASH FLOW
NON-CASH
MOVEMENTS
31.12.2023
Green bond loan
1 423 500
-56 000
-56 000
25 000
1 392 500
Syndicated term-loan
1 474 429
-133 275
-133 275
52 753
1 393 908
Syndicated revolving credit facility
—
750 000
750 000
—
750 000
Other interest-bearing liabilities
107 900
4 379
-4 242
137
9 498
117 535
Long-term int.-bearing liabilities excl leases
3 005 830
754 379
-193 517
560 862
87 252
3 653 943
Overdraft facility
—
63 113
63 113
—
63 113
Short-term int.-bearing liabilities excl leases
—
63 113
—
63 113
—
63 113
Amortized loan costs
-25 053
—
8 311
-16 742
Total borrowings
2 980 777
817 492
-193 517
623 975
95 563
3 700 314
Lease liabilities
880 560
—
-279 830
-279 830
809 944
1 410 674
Total borrowings and lease liabilities
3 861 337
817 492
-473 347
344 145
905 507
5 110 988
SPECIFICATION OF NON-CASH FLOW MOVEMENTS
FOR 2023 NOK 1 000
NEW LEASES
OTHER
CHANGES
AMORTIZED
LOAN COSTS
FOREIGN
CURRENCY
TRANSLATION
NON-CASH
MOVEMENTS
Green bond loan
25 000
25 000
Syndicated term-loan
52 753
52 753
Syndicated revolving credit facility
—
Other interest-bearing liabilities
3 772
5 726
9 498
Long-term int.-bearing liabilities excl leases
—
28 772
—
58 479
87 252
Overdraft facility
—
Short-term int.-bearing liabilities excl leases
—
—
—
—
—
Amortized loan costs
8 311
8 311
Total borrowings
—
28 772
8 311
58 479
95 563
Lease liabilities
708 349
87 751
—
13 844
809 944
Total borrowings and lease liabilities
708 349
116 523
8 311
72 323
905 507
NOTE 28 LEASES
ACCOUNTING POLICIES
The Group as a lessee
The Group acts primarily as a lessee as the Group do not have any business directed toward a role as a lessor. However, from time to
time, when overcapacity on operational assets (e.g. well-boats), leased assets may be subleased by the Group.
Identifying a lease
The Group has several lease arrangements; various offices, equipment and vehicles. Contracts are engaged both with credit
institutions and external parties (where the material leases are mostly with well-boat and workboat providers).
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.
Lease payments
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 2024 ranged from 5.6% - 5.8% for buildings and properties, and 5.7% - 6.2% 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
lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use asset.
Extension options
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 376 million (NOK 357 million at 31 December 2023).
Practical expedient
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 considered low value leases. The Group has also applied the practical expedient for short-term leases. Short term is defined as a
lease 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.
Presentation
The Group presents its lease liability separately from other liabilities in the statement of financial position. The Group presents its
right-of-use assets on the financial statement line item “Property, plant and equipment incl. right-of-use assets”.
SPECIFICATION OF NON-CASH FLOW MOVEMENTS
FOR 2024 NOK 1 000
NEW LEASES
OTHER
CHANGES
AMORTIZED
LOAN COSTS
FOREIGN
CURRENCY
TRANSLATION
NON-CASH
MOVEMENTS
Green bond loan
-1 392 500
-1 392 500
Syndicated term-loan
22 122
22 122
Syndicated revolving credit facility
—
Other interest-bearing liabilities
14 420
10 866
25 286
Long-term int.-bearing liabilities excl leases
—
-1 378 080
—
32 988
-1 345 092
Overdraft facility
—
—
—
—
—
Short-term int.-bearing liabilities excl leases
—
1 392 500
—
—
1 392 500
Amortized loan costs
2 070
2 070
Total borrowings
—
117 020
2 070
30 762
149 852
Lease liabilities
320 907
12 356
—
12 231
345 494
Total borrowings and lease liabilities
320 907
129 376
2 070
42 993
495 346
117
RIGHT-OF-USE ASSETS 2024
NOK 1 000
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
TOTAL
Book value at 01.01.
64 048
303 108
66 039
1 063 884
1 497 079
Currency translation differences
815
—
—
15 106
15 921
Additions
1 229
—
59 024
166 957
227 210
Other changes in the right-of-use assets*
2 143
-24 600
-3 900
4 759
-21 598
Depreciation
-13 164
-20 514
-15 263
-271 578
-320 519
Book value at 31.12.
55 072
257 994
105 900
979 129
1 398 095
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
RIGHT-OF-USE ASSETS 2023
NOK 1 000
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
TOTAL
Book value at 01.01.
66 622
292 209
72 302
547 010
978 143
Currency translation differences
1 690
—
17
13 060
14 767
Additions
5 194
43 350
23 193
636 161
707 898
Other changes in the right-of-use assets*
3 520
-12 273
-14 734
68 335
44 848
Depreciation
-12 978
-20 179
-14 739
-200 681
-248 576
Book value at 31.12.
64 048
303 108
66 039
1 063 884
1 497 079
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
LEASE LIABILITIES NOK 1 000
2024
2023
Lease liabilities at 01.01.
1 410 626
880 560
New leases recognized during the year
320 907
708 349
Cash payments for the principal portion of the lease liability
-332 841
-279 830
Currency exchange differences
12 162
13 845
Other changes in the lease liabilities*
12 473
87 751
Total lease liabilities at 31.12.
1 423 327
1 410 674
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
See Note 4 for a maturity analysis for the contractual nominal amount (of the lease component in the contract) of the total lease liabilities.
SPECIFICATION OF LEASE LIABILITIES AT 31.12.2024
NOK 1 000
CLASSIFIED
AS FINANCIAL
LEASE FOR THE
LESSOR
CLASSIFIED
AS OPERATING
LEASE FOR THE
LESSOR
TOTAL LEASE
LIABILITY
Non-current portion
423 808
676 916
1 100 724
Current portion
81 819
240 784
322 603
Total lease liabilities included in the statement of financial position at 31.12
505 627
917 700
1 423 327
SPECIFICATION OF LEASE LIABILITIES AT 31.12 .2023
NOK 1 000
CLASSIFIED
AS FINANCIAL
LEASE FOR THE
LESSOR
CLASSIFIED
AS OPERATING
LEASE FOR THE
LESSOR
TOTAL LEASE
LIABILITY
Non-current portion
329 013
782 036
1 111 049
Current portion
75 948
223 678
299 626
Total lease liabilities included in the statement of financial position at 31.12
404 960
1 005 714
1 410 674
AMOUNTS RECOGNIZED IN THE INCOME STATEMENT NOK 1 000
2024
2023
Interest on lease liabilities
-84 559
-55 765
Foreign currency effect
2 732
1 142
Depreciation right-of-use assets
-320 518
-248 576
Income from subleasing of right-of-use assets
11 726
8 801
Expenses relating to short-term leases
-22 846
-23 176
Expenses relating to leases of low-value assets, excl. short-term leases of low-value assets
-4
-1
Total amounts recognized in the income statement
-413 469
-317 576
NOK 1 000
2024
2023
Total cash outflow for leases
417 400
335 596
NOTE 29 OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES NOK 1 000
2024
2023
Accrued expenses1
351 907
166 326
Production fee (Norway)2
14 767
11 137
Realized gain/loss on fixed-price contracts3
—
8 424
Other current liabilities
-25 455
49 697
Other current liabilities
341 218
235 584
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 0.56/kg for harvested volume (gutted weight) during the first half of 2023, and NOK 0.90/kg for harvested volume (gutted weight) during the second half of 2023 in
Rogaland and Finnmark in Norway. 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 32.
118
NOTE 30 ASSET RETIRMENT OBLIGATION
ACCOUNTING POLICY
The company recognizes a provision for asset retirement obligation with effective date 31.12.24. As part of the regulation of sea based
fish farming (licenses and other permits), the company is required to remove all operational equipment. The equipment must be removed
when it is replaced with new equipment. If the company decides to terminate operations at a location, all equipment must be removed.
Based on the current regulation, the company is not obliged to remove biological waste. Biological waste is handled through the
production plan that includes fallowing periods. Throughout these periods we allow for restoration through natural processes, which the
company monitors closely.
The recognized obligation is based on updated estimates of the future cash outflows. The obligation has been deemed immaterial in prior
periods. The obligation is measured at the present value of the estimated future expenditures determined in accordance with the current
technology, local conditions, risks and uncertainties, and prior knowledge. The timing of the estimated cash flows are based on when the
equipment is planned to be replaced or removed. The estimates are based on the obligations that the company has under the current
regulations. If future regulations impose new requirements additional provisions must be made. If the company decides to terminate
operations at a site, the timing of the cash flows will change, also increasing the provision.
When a provision for asset retirement obligation is recognized, a corresponding amount is recognized as an increase in PPE, and
subsequently depreciated over its useful life, which is set between 4-50 years depending on the expected useful life of the operational
equipment. Licenses themselves have an expected useful lifetime beyond 50 years, unless renewed otherwise. Change in the
measurement of the liability that result from changes in the estimated timing or amount of the future outflows, or a changes in the
discount rate, is accounted for as a an adjustment of the cost of the related item of PPE. The discount rate is a market based risk free
rate, based on the applicable currency and time horizon.
Asset Retirement obligation
2024
2023
New provision at 01.01.2024
—
—
Additions
—
Changes in estimates
-60 703
—
Effects of change in discount rate
—
—
Reduction due to changed operations
—
—
Accretion expense
—
—
Foreign currency translation effects
—
—
Provision as of 31.12.2024
-60 703
—
Non current portion as of 31.12.2024
-60 703
—
Current portion as of 31.12.2024
—
—
The obligation is calculated using a market-based risk free rate in the range of 3.3% - 3.9%, based on applicable currencies, and a
2% inflation rate in future years. Actual costs will ultimately depend upon future market prices for necessary work needed for asset
replacement or removal of sites. Sites vary in complexity in regard to location, and may be subject to change in regulatory and
technological development. The sensitivity in regards to our assumptions has no material effect upon the estimate. Since replacement or
removal activities are far into the future, they will require revisions, see note on intangibles for lifetime. There is no accelerated change
or removal triggered due to climate related risks.
NOTE 31 RELATED PARTIES
2024 NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
Total related parties as shareholders
—
11 921
—
-6 489
Total related parties as associates
1 282
435 406
6 000
-357 482
Total
1 282
447 327
6 000
-363 971
2023 NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
Total related parties as shareholders
—
22 797
—
-5 039
Total related parties as associates
—
174 380
41 129
-182
Total
—
197 177
41 129
-5 221
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 Maturitas II 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.
• The regions purchased cleaner fish from Rensefiskgruppen AS
including subsidiaries, a company owned by Grieg Kapital AS.
Furthermore, the Group 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 45.79% 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. During 2024 we sold shares related to
NextSeafood, and the loan was repaid. NextSeafood AS is now
named Fishglobe Technologies AS.
• Fuel is purchased from Eidsvaag AS, which is affiliated with
Grieg Seafood through a board member of Grieg Seafood being
the Chair of the Board of Directors of the affiliated company.
• Algae monitoring services are purchased from Blue Planet
AS, which is affiliated with Grieg Seafood through the Chief
Operating Officer Norway of the Group 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
performed on behalf of the subsidiaries of the Group. Grieg
Seafood ASA is set up with facility agreements with external
parties incl. banks, and lend out funds 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
8 on share-based options and Note 24 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.
119
NOTE 32 FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT
ACCOUNTING POLICIES
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument 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.
Ordinary purchases and sales of investments are recognized on the trade-date, the date on which the Group commits to purchase
or sell the asset. All financial assets that are not stated at fair value through profit or loss are initially recognized at fair value plus
transaction costs.
FINANCIAL ASSETS
Financial assets are initially recognized at fair value when Grieg Seafood becomes party to the contractual provision of the asset.
The subsequent measurement of the financial asset depends on which category the asset have been classified into at inception of the
contract. The classification is based on an evaluation of the contractual terms and the business model applied.
The Group does not have financial assets with fair value measured through other comprehensive income. As such, the Group’s
categories of financial assets range from amortized cost and fair value through profit and loss.
Financial assets at amortized cost
The Group’s financial assets measured at amortized cost includes trade receivables and other short-term deposits. The Group does
not normally have, and has not had at year date of the reporting year nor in the comparable period, trade receivables that contain
a significant financing component. Financial assets at amortized cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value, with net changes
in fair value recognized in the income statement. Derivatives are initially recognized at fair value on the date a derivative contract is
entered into, and are subsequently stated at fair value on an ongoing basis. The category also include the Group’s investments in debt
instruments and money market funds.
Impairment of financial assets
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit
or loss. ECLs are based on the difference between the 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. See Note 20 for more
information concerning trade receivables.
FINANCIAL LIABILITIES
Financial liabilities are classified, at initial recognition, as amortized cost (loans and borrowings), or as financial liabilities at fair value
through profit or loss.
Financial liabilities at amortized cost (loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method.
Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortization is included as finance costs in the income statement.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial derivative contracts. Derivatives are initially recognized at fair
value on the date a derivative contract is entered into, and are subsequently stated at fair value on an ongoing basis.
31.12.2024
FINANCIAL INSTRUMENTS NOK 1 000
FVPL 1
AMORTIZED COST
FVOCI 2
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
—
37 036
37 036
Trade receivables
—
285 603
—
285 603
Other current receivables
—
8 024
—
8 024
Derivatives5
1 759
—
—
1 759
Cash and cash equivalents
—
202 979
—
202 979
Total financial assets
1 759
533 643
—
535 401
FINANCIAL LIABILITIES
Borrowings
—
5 359 771
—
5 359 771
Lease liabilities
—
1 423 327
—
1 423 327
Share-based payments6
12 997
—
—
12 997
Derivatives5
11 516
—
—
11 516
Trade payables
—
1 054 706
—
1 054 706
Other current liabilities
—
24 709
—
24 709
Total financial liabilities
24 513
7 862 513
—
7 887 026
31.12.2023
FINANCIAL INSTRUMENTS NOK 1 000
FVPL 1
AMORTIZED COST
FVOCI 2
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
131
41 129
271
41 531
Trade receivables
—
327 160
—
327 160
Other current receivables
—
20 292
—
20 292
Derivatives5
35 164
—
—
35 164
Cash and cash equivalents
—
216 318
—
216 318
Total financial assets
35 295
604 899
271
640 466
FINANCIAL LIABILITIES
Borrowings
—
3 491 980
—
3 491 980
Lease liabilities
—
1 410 674
—
1 410 674
Share-based payments6
7 566
—
—
7 566
Derivatives5
1 709
—
—
1 709
Trade payables
—
760 753
—
760 753
Other current liabilities
—
15 667
—
15 667
Total financial liabilities
9 275
5 679 075
—
5 688 349
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. Loans to associated companies at amortized cost.
4 Investments in money market funds. Measured at level 2. See Note 22 for more information.
5 Forward currency contracts, interest rate swap and financial salmon price contracts. Measured at level 2. See below for specification. The purpose of the derivatives is to reduce the Group´s
exposure to changes in floating interest rates, exchange rates and fluctuations in the salmon sales price.
6 Synthetic option scheme. Measured at level 3. See Note 8 for more information.
120
FAIR VALUE MEASUREMENT
ACCOUNTING POLICIES
The following of the Group’s financial instruments are not measured at fair value: cash and cash equivalents, accounts receivables,
other current receivables and payables, bank loans, bond loans and leasing liabilities.
The Group uses the following hierarchy of valuation techniques to determine and disclose the fair value of financial instruments:
• Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly
or indirectly
• Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.
For recurring level 3 measurements, transfers between the levels in the fair value hierarchy are evaluated when reassessing the
categories of the financial instruments at the end of the period. During the reporting period, there were no changes in the fair value
measurement which caused transfers between level 1 and level 2, and no transfers to or from level 3.
The information below describes valuation techniques for fair value measurement and estimation used by Grieg Seafood, including leases
and the fair value adjustment of biological assets.
(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 using
valuation techniques. 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 carrying value of derivatives and other financial instruments as at 31 December 2024 and 31 December 2023 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.
FAIR VALUE OF FINANCIAL DERIVATIVES NOK 1 000
NOTE
2024
2023
ASSETS
CURRENT
LIABILITIES
ASSETS
CURRENT
LIABILITIES
Forward currency contracts at fair value through profit or loss
4
—
8 480
11 852
—
Interest rate swap agreements
4
1 759
—
23 312
—
Financial salmon contract - sales contracts*
—
3 035
—
1 709
Total financial instruments at fair value
1 759
11 514
35 164
1 709
*In addition, as at year-end 2024, Grieg Seafood had NOK 0 million (2023: NOK 8 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 amount of the financial instrument (derivative contract).
(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 27.
(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 28.
(VI) BIOLOGICAL ASSETS
Fish in the sea is measured at estimated fair value. Consequently, the value of biological inventories is likely to vary more than the value
of inventories based on cost. The estimated fair value varies for a number of reasons, including volatility in the price of Atlantic salmon,
factors relating to production, changes in harvesting schedules and changes in the composition of inventories. See more information
concerning the fair value estimation of biological assets in Note 19.
NOTE 33 EVENTS AFTER THE REPORTING DATE
27 of February 2025 Grieg Seafood ASA has successfully completed a new perpetual green hybrid bond issue of NOK 2 000 million with
first call date after 4 years and a coupon of 3 months NIBOR + 575 bps. The issue amount is perpetual with no fixed maturity date, and
will have a step up in interest in March 2029. Interest payments may be deferred at the discretion of Grieg Seafood. Net proceeds from
the bond issue will be used for green projects as further defined by the Green Bond Framework, including by way of refinancing existing
debt originally incurred to finance such green projects. Grieg Seafood has performed a capital allocation of NOK 500 million towards the
bridge term loan facility. The hybrid bond will be accounted for as equity in the balance sheet and constitute subordinated obligations for
the Company.
An application will be made for the bonds to be listed on Oslo Stock Exchange.
The hybrid bond strengthens Grieg Seafood’s liquidity, equity and financial flexibility to pursue its ambitions for further investments and
development of the Norwegian fish farming assets while protecting the values and optionally in the Canadian assets base.
Grieg Seafood ASA has public memorandum for guidance on accounting treatment of issued Hybrid bond. See the stock exchange filings
on Grieg Seafood’s webside.
As at the publication date of this report, there is an ongoing tax audit of Grieg Seafood B.C. Ltd. conducted by the Canadian tax authorities
with a particular focus on withholding tax. Grieg Seafood is cooperating with the authorities regarding withholding tax payments and is
in dialogue with parties concerned in relation to transactions which might have triggered withholding tax without such withholding being
made. Grieg Seafood does not expect an adverse cash effect as such withholding tax may be deducted from the consideration due under
the respective agreements. The withheld amount can then be reclaimed by the respective third party in its Canadian tax filings. If the
audit concludes with that withholding tax payments should have been made by Grieg Seafood, it might, however, be subject to interest
due to delayed payment as well as potential penalties.
The 30th of March 2025 Grieg Seafood ASA announces that Andreas Kvame has agreed with the Board of Directors to step down as CEO
after 10 years in the position. The Board has initiated the search process for a new CEO. Nina Willumsen Grieg, Regional Director of Grieg
Seafood Rogaland, has been appointed interim CEO, with Andreas Kvame Supporting the CEO transition process.
In line with good corporate governance, Per Grieg steps down as Chair of the Board of the Company and takes the position as a regular
Board Member. The Vice-Chair of the Board, Paal Espen Johnsen, takes on the role as Chair of the Board until the next General Meeting.
There have not been any other significant events after the balance sheet date of 31 December 2024.
121
ASA ACCOUNTS
122
Income statement
123
Statement of financial position
124
Statement of changes in equity
124
Cash flow statement
NOTES
125
NOTE 1
Accounting policies
126
NOTE 2
Related parties
126
NOTE 3
Operating income
126
NOTE 4
Salaries, personnel and other operating expenses
128
NOTE 5
Financial income and financial expenses
128
NOTE 6
Income taxes
129
NOTE 7
Software, and property, plant and equipment
129
NOTE 8
Investments in subsidiaries
129
NOTE 9
Other current receivables
130
NOTE 10
Short-term investments and derivatives
130
NOTE 11
Cash and cash equivalents
131
NOTE 12
Share capital and shareholder information
132
NOTE 13
Net interest-bearing liabilities and pledges
133
NOTE 14
Share-based payments
135
NOTE 15
Other current liabilities
135
NOTE 16
Guarantees
135
NOTE 17
Events after the reporting date
122
INCOME STATEMENT
GRIEG SEAFOOD ASA NOK 1 000
NOTE
2024
2023
Other operating income
2/3
271 266
258 137
Total operating income
271 266
258 137
Salaries and personnel expenses
4/14
-94 596
-84 870
Depreciation and amortization
7
-3 375
-3 357
Other operating expenses
2/4
-2 358 538
-84 964
Total operating expenses
-2 456 509
-173 191
Operating profit (loss)
-2 185 243
84 946
Financial income
2/5
3 235 984
410 974
Financial expenses
2/5
-1 360 636
-285 218
Net financial items
1 875 348
125 756
Profit/Loss before tax
-309 895
210 702
Income tax expense/income
6
278 542
-51 593
Net profit/loss for the year
-31 353
159 109
APPROPRIATION OF PROFIT/LOSS FOR THE YEAR
Proposed dividend
—
196 233
Transferred from other equity
-31 353
-37 125
Total appropriations
-31 353
159 109
123
STATEMENT OF FINANCIAL POSITION
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2024
31.12.2023
ASSETS
Deferred tax assets
6
490 430
296
Software
7
6 045
7 265
Property, plant and equipment
7
845
1 209
Investments in subsidiaries
8
1 771 845
2 022 531
Loan to Group companies
2
817 238
810 459
Other non-current receivables
—
—
Investment in shares
169
169
Total non-current assets
3 086 572
2 841 929
Trade receivables from Group companies
2
30 175
131 650
Other receivables from Group companies
2
7 219 037
4 567 414
Other current receivables
2/9
12 084
10 445
Short-term investments and financial instruments
10
—
4 908
Cash and cash equivalents
11
88 480
27 194
Total current assets
7 349 776
4 741 610
Total assets
10 436 348
7 583 539
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2024
31.12.2023
EQUITY AND LIABILITIES
Share capital
12
453 788
453 788
Treasury shares
12
-4 812
-5 255
Other paid-in equity
229 742
228 593
Contingent consideration
701 535
701 535
Other retained earnings
1 575 804
1 602 064
Total equity
2 956 057
2 980 725
Share-based payments
14
12 997
8 178
Total provisions
12 997
8 178
Green bond loan
13
—
1 383 463
Non-current loan
13
3 714 442
2 003 450
Total non-current liabilities
3 714 442
3 386 913
Current portion of non-current loan
13
1 566 631
195 866
Share-based payments
14
—
833
Trade payables
2
11 477
9 910
Trade payables to Group companies
2
1 133
27 619
Current liabilities to Group companies
2
2 111 047
743 739
Tax payable
6
—
—
Public duties payable
5 543
5 530
Accrued dividend
—
196 233
Financial instruments
10
5 175
—
Other current liabilities
2/15
51 845
27 993
Total current liabilities
3 752 852
1 207 723
Total liabilities
7 480 292
4 602 814
Total equity and liabilities
10 436 348
7 583 539
BERGEN, 27 April 2025
The Board of Directors and CEO of Grieg Seafood ASA
PAAL ESPEN JOHNSEN
PER GRIEG
NICOLAI HAFELD GRIEG
Chair
Board Member
Board Member
MARIT SOLBERG
SILJE REMØY
NINA WILLUMSEN GRIEG
Board Member
Board Member
CEO (Interim)
This document is signed electronically and therefore has no hand-written signatures.
124
STATEMENT OF CHANGES IN EQUITY
GRIEG SEAFOOD ASA NOK 1 000
SHARE
CAPITAL
TREASURY
SHARES
OTHER PAID-IN
EQUITY
CONTINGENT
CONS.**
OTHER EQUITY
TOTAL
EQUITY
Equity at 01.01.2023
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
Profit for the year 2023
—
—
—
—
159 109
159 109
Sale of treasury shares to employees
—
433
1 116
—
5 517
7 065
Purchase of treasury shares
—
-280
—
—
280
—
Accrued dividend at year-end*
—
—
—
—
-196 233
-196 233
Equity at 31.12.2023
453 788
-5 255
228 593
701 535
1 602 064
2 980 725
Equity at 01.01.2024
453 788
-5 255
228 593
701 535
1 602 064
2 980 725
Profit for the year 2024
—
—
—
—
-31 353
-31 353
Sale of treasury shares to employees
—
442
1 150
—
5 093
6 685
Purchase of treasury shares
—
—
—
—
—
Accrued dividend at year-end*
—
—
—
—
—
—
Equity at 31.12.2024
453 788
-4 812
229 742
701 535
1 575 804
2 956 057
*Accrued dividend is allocated as at 31 December and not yet authorized by the Annual General Meeting (AGM)
** Contingent consideration related to the acquisition of Grieg Seafood Newfoundland AS. See Note 25 in the Group Accounts for more information.
CASH FLOW STATEMENT
GRIEG SEAFOOD ASA NOK 1 000
NOTE
2024
2023
Profit before tax
-309 895
210 702
Taxes paid
6
-5 516
-247 137
Impairment of investments in shares and receivables
8
3 131 505
—
Depreciation and amortization
7
3 375
3 357
Change in trade receivables
101 474
49 339
Change in trade payables
-24 919
23 571
Change in other accruals
37 896
-89 086
Items classified as investing or financing activities
289 666
227 007
Currency translation differences
15 344
40 201
Net cash flow from operating activities
3 238 931
217 955
Purchase of property, plant and equipment
7
-122
-674
Purchase of intangible assets
7
-1 670
-1 592
Payments/proceeds, loans to/from other companies
-1 333
—
Payments/proceeds, loans to/from Group companies
-4 830 816
-2 847 125
Group contribution from subsidiaries
—
995 290
Proceeds sale of shares
673
—
Investment in money market funds
10
—
1 041 914
Net cash flow from investing activities
-4 833 267
-812 187
Proceeds of long-term interest bearing debt
13
1 903 359
750 000
Repayment of long-term interest-bearing debt
13
-142 785
-164 275
Proceeds of short-term interest bearing debt
13
—
63 113
Repayment of short-term interest-bearing debt
13
-63 113
—
Change in loans to/from Group companies
437 378
178 892
Interest paid
5
-282 981
-221 467
Paid dividends
-196 233
-504 120
Repurchase of own shares
—
-5 540
Net cash flow from financing activities
1 655 624
96 603
Net change in cash and cash equivalents
61 287
-497 629
Cash and cash equivalents at 01.01.
27 194
524 823
Cash and cash equivalents at 31.12.
11
88 480
27 194
CASH AND CASH EQUIVALENTS AT 31.12. CONSISTS OF:
Restricted deposits
1 000
1 000
Other bank deposits
87 480
26 194
UNUTILIZED CREDIT FACILITIES AT 31.12:
Unutilized credit facilities at the year-end
820 000
886 887
125
NOTE 1 ACCOUNTING POLICIES
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
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
contributions materially exceed retained earnings received from
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
in a later period if the prerequisites for impairment are no longer
present (except for impairment of goodwill).
TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognized in the statement of
financial position at nominal value after a provision for bad debts.
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.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, bank deposits
and other short-term highly liquid investments with original
maturities of three months or less. The overdraft facility is
included in current borrowings in the statement of financial
position.
PENSIONS
The company’s pension schemes meet the requirements of
the Norwegian Mandatory Occupational Pensions Act. The
Company operates a defined contribution pensions scheme for
its employees. The pension premium is paid through operations
and is expensed on an ongoing basis. Social security costs are
charged based on the pension premium paid.
GROUP ACCOUNT SCHEME – DEPOSITS AND LOANS
Grieg Seafood ASA operates as an internal bank for its
subsidiaries. Grieg Seafood ASA borrows funds from financial
institutions and then lends these funds to its subsidiaries. The
Company has set up two multi-currency group account (cash
pool) schemes in which Grieg Seafood ASA is the legal account
holder. Deposits and loans from/to the subsidiaries, which
are part of the cash pool, are recognized as intercompany
transactions. All subsidiaries that are part of the cash pool (not
all subsidiaries of the Group are part of the cash pool) are jointly
and severally liable to the financial institutions for the entire
amount of the commitment under the scheme.
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 the reporting date. Non-monetary items that are measured
at their historical price expressed in a foreign currency are
translated into NOK using the exchange rate applicable on the
transaction date. Non-monetary items that are measured at
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
occur during the accounting period.
SHARE-BASED PAYMENTS
The Company operates a share-based remuneration scheme
for the Group management of the Grieg Seafood Group. The
share-based option scheme is a synthetic option scheme with
settlement in cash. Each member of the scheme is 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.
DERIVATIVES
FORWARD CURRENCY CONTRACTS
Realized gains (losses) on forward currency contracts are
recognized in the income statement as a financial income
(financial cost). The fair value of a forward currency contract is
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
lowest of its acquisition cost and fair value at the reporting date.
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
year-end in the financial statements. Temporary differences,
both positive and negative, are offset within the same period.
Deferred tax assets are recognized in the statement of financial
position when it is more likely than not that the tax assets will
be utilized. Deferred tax assets and deferred tax liabilities are
presented net in the statement of financial position. Tax on group
contributions is recognized as an increase in the purchase price
of shares in other companies. Taxes payable and deferred taxes
are recognized directly in equity to the extent that they relate
to equity transactions (offset against tax payable if the group
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
indirect method. Cash and cash equivalents include cash, bank
deposits and other short-term highly liquid investments which
entail no appreciable exchange rate risk, and which mature
within three months of the purchase date.
126
NOTE 2 RELATED PARTIES
2024
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
267 233
10 371
-381 514
20 359
817 238
30 175
7 219 037
1 133
2 111 048
Total related
parties –
Shareholders
—
11 819
—
—
—
—
—
17
6 411
Total
267 233
22 190
-381 514
20 359
817 238
30 175
7 219 037
1 150
2 117 459
2023
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
257 719
9 601
269 057
35 373
810 459
131 650
4 567 414
27 619
743 739
Total related
parties –
Shareholders
—
14 561
—
—
—
—
—
4
5 000
Total
257 719
24 162
269 057
35 373
810 459
131 650
4 567 414
27 623
748 739
See Note 13 for information on assets pledged as security for financial liabilities.
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 - in addition to
Grieg Seafood ASA also prepares its own consolidated financial statement for the Grieg Seafood Group.
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 Maturitas II 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 performed on behalf of the subsidiaries of the Group. Grieg Seafood ASA is set up with facility agreements with external parties
incl. banks, and lend out funds 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. At the year-end Grieg Seafood ASA has write-
down outstanding trade receivables to Grieg Seafood Newfoundland Ltd with NOK 2 220 million. The write-down is including in other
operating expenses.
NOTE 3 OPERATING INCOME
OPERATING INCOME NOK 1 000
NOTE
2024
2023
Administrative services – Group companies
135 252
117 053
Royalty fee - Group companies
131 981
140 130
Other operating income - Group companies
—
536
Total operating income - group Group companies
2
267 233
257 719
Other operating income
4 033
418
Total operating income
271 266
258 137
NOTE 4 SALARIES, PERSONNEL AND OTHER OPERATING EXPENSES
SALARIES AND PERSONNEL EXPENSES NOK 1 000
2024
2023
Wages and salaries
54 069
53 995
Social security costs
9 305
9 384
Synthetic stock options for directors and key personnel (Note 14)
5 991
1 584
Pension costs – defined contribution scheme
2 899
2 561
Other personnel costs
22 332
17 346
Total
94 596
84 870
Average full time equivalents (FTE)
38
39
Pension scheme
The company has a defined contribution pension scheme covering all employees at 31 December 2024. 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 2024. 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 participating employees buy shares on a discount. The discount is recognized as a cost in the
income statement and included as other personnel cost as presented in the table above. The total costs related to the discount was NOK
2.0 million in 2024 (NOK 2.1 million in 2023). The purchase price and the number of shares acquired by the company will be reported in
accordance with the applicable regulations.
At 31 December 2024, loan to employees related to the share savings program equals NOK 4.7 million (2023: NOK 5.0 million). The total
shares sold to employees was 110 565 in 2024 (2023: 107 473). See also Note 12.
Management remuneration
The guidelines for management remuneration are available on Grieg Seafood ASA’s website. Not all members of the Grieg Seafood Group
Management Team are employed by Grieg Seafood ASA. For a specification of the remuneration to the Group’s Management Team, see
Note 7 of the Group Accounts. This Note provide the specification of remuneration of the members of the Group Management that are
employed by Grieg Seafood ASA.
127
REMUNERATION PAID TO MEMBERS OF GROUP
MANAGEMENT TEAM EMPLOYED BY GRIEG SEAFOOD
ASA IN 2024 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
TOTAL
Andreas Kvame (Chief Executive Officer)
3 993
—
—
—
553
4 546
Atle Harald Sandtorv (Chief Financial Officer)
2 981
—
407
—
133
3 521
Erik Holvik (Chief Commercial Officer)
2 456
—
499
—
137
3 092
Knut Utheim (Chief Technology Officer)
2 274
—
276
—
356
2 906
Kathleen O. Mathisen
(Chief Human Resource Officer)
2 229
—
—
—
156
2 384
Nina Stangeland (Chief Strategy Officer)
1 739
—
—
—
127
1 866
Kristina Furnes (Chief Communication Officer)
1 446
—
123
—
120
1 689
Total remuneration to member’s of Group Management
employed by Grieg Seafood ASA
17 116
—
1 306
—
1 582
20 004
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
.
REMUNERATION PAID TO BOARD MEMBERS IN 2024 NOK 1 000
TOTAL
Per Grieg 1)
556
Tore Holand (until 19 of June 2024) 2)
211
Marianne Ribe (until 19 of June 19 2024) 1)
171
Katrine Trovik (until 19 of June 2024) 2)
197
Nicolai Hafeld Grieg
322
Ragnhild Fresvik
157
Marit Solberg (from 19 of june 2024) 1)
203
Silje Remøy (from 19 of June 2024) 2)
207
Paal Espen Johnsen (from 19 of June 2024) 2)
199
Total remuneration
2 221
1 Payment for work performed on the Remuneration Committee is included in the remuneration paid.
2 Payment for work performed on the Audit Committee is included in the remuneration paid.
The amounts include social security costs.
REMUNERATION PAID TO MEMBERS OF GROUP
MANAGEMENT TEAM EMPLOYED BY GRIEG SEAFOOD
ASA IN 2023 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION*
TOTAL
Andreas Kvame (Chief Executive Officer)
4 003
454
4 457
Atle Harald Sandtorv (Chief Financial Officer)
2 885
136
3 021
Erik Holvik (Chief Commercial Officer)
2 435
139
2 574
Knut Utheim (Chief Technology Officer)
2 259
147
2 406
Kathleen O. Mathisen
(Chief Human Resource Officer)
1 833
152
1 985
Nina Stangeland (Chief Strategy Officer)
524
44
568
Kristina Furnes (Chief Communication Officer)
1 348
116
1 464
Total remuneration to member’s of Group Management
employed by Grieg Seafood ASA
15 286
—
—
—
1 187
16 473
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
Nina Stangeland was appointed as Chief Strategy Officer in Q3 2023.
REMUNERATION PAID TO BOARD MEMBERS IN 2023 NOK 1 000
TOTAL
Per Grieg1
542
Tore Holand2
422
Marianne Ribe1
342
Katrine Trovik2
394
Nicolai Hafeld Grieg
314
Ragnhild Fresvik (from 9 of June 2022)
314
Total remuneration
2 328
1 Payment for work performed on the Remuneration Committee of NOK 25 525 is included in the remuneration paid to Per Grieg 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 79 870.
The amounts include social security costs.
BREAKDOWN OF AUDITOR'S FEES NOK 1 000
2024
2023
Statutory audit
3 799
1 823
Other certification services
845
1 116
Tax advisory fee
—
—
Other services
2 658
459
Total
7 301
3 398
Other operating expenses
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the market for
spot sales of fresh, whole and gutted Norwegian farmed Atlantic salmon. On 25 January 2024, Grieg Seafood received a Statement of
Objections from the European Commission related to its investigation. The issuance of a Statement of Objections is a common and formal
step in the process, where the European Commission sets out its preliminary view in the matter. The Statement of Objections in no
way prejudices the final outcome of the European Commission's proceedings. Grieg Seafood has examined the Statement of Objections
carefully and replied to it. Grieg Seafood continues to fully cooperate with the European Commission's investigation.
Three claims for damages have been filed in the UK against, among others, Grieg Seafood ASA and Grieg Seafood UK Ltd arising from
alleged unlawful cartel arrangements in relation to the supply of farmed Atlantic salmon. Grieg Seafood rejects that there is any basis
for the alleged claims and considers the complaint to be entirely unsubstantiated. In general, Grieg Seafood denies any anti-competitive
conduct whether it is in regard to the EC investigation, the claims filed in the UK or any possible future claims related to this matter
subsequent to the issuance of the SO. Grieg Seafood will follow up all processes as it deems appropriate.
The three class-actions filed in Canada (none was certified as a class-action) were settled, even though Grieg Seafood considers the
complaints to be entirely without merit, as the costs of litigation in Canada can be substantial. The settlement agreement was approved
by the Federal Court in February 2024. The costs in the income statement in 2024 and 2023 are presented as a separate financial
statement line item - "Litigation and legal claims". In 2024 there has not been made any accrual for the class-actions.
128
NOTE 5 FINANCIAL INCOME AND FINANCIAL EXPENSES
FINANCIAL ITEMS NOK 1 000
NOTE
2024
2023
FINANCIAL INCOME
Interest income from Group companies
2
374 735
256 505
Group contributions from subsidiaries
2
2 730 634
—
Unrealized currency change, non-current loans from Group companies
2
6 779
12 552
Realized gain (loss) on investment in money market fund
10
—
41 461
Unrealized gain (loss) on investment in money market fund
10
—
-12 624
Realized gain/loss on interest rate swap contracts
10
27 801
26 703
Unrealized gains/losses FX contracts
10
—
4 341
Net realized currency gains
—
7 625
Net unrealized currency gains
95 878
73 015
Other interest income
10
—
Other financial income
147
1 396
Total financial income
3 235 984
410 974
FINANCIAL EXPENSE
Loan interest expenses
308 219
189 196
Interest expense to Group companies
2
20 359
35 373
Realized currency change, non-current EUR term loan
13 820
11 298
Unrealized currency change, non-current EUR term loan
22 122
41 430
Unrealized gains/losses FX contracts
10
6 562
—
Other interest expenses
2 181
5 214
Other financial expenses
2 584
2 708
Net realized currency gains
489
—
Write-down of shares
8
981 319
—
Total financial expense
1 360 636
285 218
Net financial items
1 875 349
125 756
NOTE 6 INCOME TAXES
BASIS FOR TAX PAYABLE NOK 1 000
2024
2023
Profit before tax
-309 895
210 702
Dividends recognized in profit or loss
-10
-10
Net other permanent differences
976 967
9 536
Other permanent differences from gain of sales of share
-107
—
Unrealized of adjustments of investment in money funds
—
—
Change in financial derivatives
9 517
-4 341
Change in temporary differences
2 222 711
-63 166
Group contribution received/provided
-2 730 634
—
Taxable income/loss
168 549
152 721
Group contribution - receivable
768 161
—
Basis for tax expense for the year
936 709
152 721
22% (22%) tax payable
206 076
33 599
Group contribution - liability
936 710
152 721
Tax of group contribution - liability
-206 076
-33 599
Tax payable after paid group contribution
—
—
BREAKDOWN OF DEFERRED TAX BASIS NOK 1 000
CHANGE
2024
2023
TEMPORARY DIFFERENCES
Non-current assets
-136
-3 835
-3 699
Profit and loss account
-65
260
325
Provisions for liabilities
—
—
—
Cash-based options
-3 986
-12 997
-9 012
Non-current debt/amortized cost
-2 070
14 672
16 742
Provision for losses on receivables
-2 220 293
-2 220 293
—
Discount bond loan
3 839
-1 861
-5 700
Net temporary differences
-2 222 711
-2 224 055
-1 344
Financial instruments
-5 175
—
Basis for deferred tax in balance sheet
-2 222 711
-2 229 230
-1 344
Deferred tax assets (-) /deferred tax liabilities (+) in the balance sheet
-490 134
-490 430
-296
BREAKDOWN OF TAX CHARGE
Tax payable
206 076
33 599
Change in deferred tax, 22% (22%)
-490 134
13 897
Tax effect of foreign tax not credited Norwegian tax
5 516
4 098
Tax expense in income statement
-278 543
51 593
RECONCILIATION OF TAX EXPENSE
Profit before tax
-309 895
210 702
Estimated tax 22% (22%)
68 176
-46 354
Tax expense in income statement
-278 542
51 593
Difference
-210 366
5 239
THE DIFFERENCE CONSISTS OF THE FOLLOWING:
22% of permanent differences
217 001
1 141
Financial instruments
-1 139
Group contribution received without tax effect
-431 744
Tax effect of foreign tax not credited Norwegian tax
5 516
4 098
Total reconciled difference
-210 366
5 239
129
NOTE 7 SOFTWARE, AND PROPERTY, PLANT AND EQUIPMENT
2024 NOK 1 000
SOFTWARE
OTHER EQUIPMENT
Book value at 01.01.
7 265
1 209
Additions
1 668
122
Amortization/depreciation
-2 889
-486
Book value at 31.12.
6 045
845
ACCUMULATED VALUES
Acquisition cost
58 140
18 722
Accumulated amortization/depreciation
-52 095
-17 876
Book value at 31.12.
6 045
845
Economic life (amortization/depreciation schedule)
3 - 10 years
3–5 years
2023 NOK 1 000
SOFTWARE
OTHER EQUIPMENT
Book value at 01.01.
8 357
1 207
Additions
1 592
674
Amortization/depreciation
-2 684
-672
Book value at 31.12.
7 265
1 209
ACCUMULATED VALUES
Acquisition cost
56 471
18 599
Accumulated amortization/depreciation
-49 206
-17 390
Book value at 31.12.
7 265
1 209
Economic life (amortization/depreciation schedule)
3 - 10 years
3–5 years
See Note 13 for information on assets pledged as security for financial liabilities.
The company has operating lease agreements, which are not recognized in the statement of financial position:
2024
ASSETS
DURATION
OPERATING LEASE EXPENSE
Buildings
Until 2028
4 661
Other equipment
3-5 years
36
Total lease amount charged
4 697
NOTE 8 INVESTMENTS IN SUBSIDIARIES
SUBSIDIARY
REGISTERED
OFFICE
COUNTRY
REGISTERED
OFFICE
LOCATION
OWNERSHIP/
VOTING
SHARE
EQUITY AT
31.12.2024
NOK 1 000
PROFIT/
LOSS 2024
NOK 1 000
BOOK VALUE
NOK 1 000
Grieg Seafood Rogaland AS
Norway
Bergen
100 %
543 526
272 148
223 497
Grieg Seafood Canada AS
Norway
Bergen
100 %
227 326
1
297 112
Grieg Seafood Finnmark AS
Norway
Alta
100 %
808 557
167 445
519 603
Grieg Seafood Norway AS
Norway
Bergen
100 %
530 228
-233 584
—
Grieg Seafood Sales AS
Norway
Bergen
100 %
68 966
141 137
731 634
Grieg Seafood Newfoundland AS
Norway
Bergen
99 %
-1 517 306
-1 676 232
—
Total
661 297
-1 329 085
1 771 845
Equity and profit/loss are based on provisional financial statements, which have been prepared in accordance with local accounting standards.
See Note 13 for information on assets pledged as security for financial liabilities. Book value of shares to Grieg Seafood Newfoundland AS has been written down in 2024. Total amount NOK 981
thousand. See also note 2 for information about write-down of internal current receivables.
NOTE 9 OTHER CURRENT RECEIVABLES
OTHER CURRENT RECEIVABLES NOK 1 000
2024
2023
Prepaid expenses
8 261
6 980
VAT *
1 558
1 797
Other current receivables
2 266
1 667
Total other current receivables
12 085
10 444
*Grieg Seafood ASA is the parent company in jointly registered VAT for the Norwegian entities of the Grieg Seafood Group.
130
NOTE 10 SHORT-TERM INVESTMENTS AND DERIVATIVES
SHORT-TERM INVESTMENTS AND FINANCIAL INSTRUMENTS NOK 1 000
2024
2023
Foreign exchange contracts
—
4 341
Other financial assets
—
566
Total
—
4 908
2024
2023
FINANCIAL DERIVATIVE INSTRUMENTS
FAIR VALUE
BOOK VALUE
FAIR VALUE
BOOK VALUE
Foreign exchange contracts
-2 194
-2 194
4 341
4 341
Interest rate swap contracts*
4 740
23 312
—
Interest rate collar *
-2 981
-2 981
Financial derivative instruments classified as current assets
4 740
—
27 653
4 341
Financial derivative instruments classified as current liabilities
-5 175
-5 175
—
—
*See specification below.
SPECIFICATION ON INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
MARKET VALUE
NOK 1 000
31.12.2024
MARKET VALUE
NOK 1 000
31.12.2023
Fixed rate paid - floating rate received
NOK 200 million
1.35
Nibor 3 months
04.03.2024
—
1 677
Fixed rate paid - floating rate received
NOK 200 million
1.07
Nibor 3 months
05.07.2024
—
5 391
Fixed rate paid - floating rate received
NOK 200 million
0.71
Nibor 3 months
18.12.2024
—
7 187
Fixed rate paid - floating rate received
NOK 200 million
0.72
Nibor 3 months
18.12.2024
—
7 181
Fixed rate paid - floating rate received
NOK 200 million
3.16
Nibor 3 months
30.08.2027
4 741
1 875
Interest collar
NOK 400 million
Collar
Nibor 3 months
19.04.2028
-1 315
Interest Collar
NOK 400 Million
Collar
Nibor 3 months
19.04.2028
-1 666
Total
1 759
23 312
CHANGES IN FINANCIAL INSTRUMENTS RECOGNIZED AS FINANCIAL ITEMS NOK 1 000
NOTE
2024
2023
Unrealized gain/loss on interest rate swaps
5
—
—
Unrealized gain/loss on foreign currency contracts
5
-6 536
4 341
Unrealized gain on money market funds
5
-12 624
Net unrealized gain/(loss) on financial instruments
-6 536
-8 283
Realized gain/loss on interest rate swap contracts
5
27 801
26 703
Realized gain/loss on cross-currency interest rate swap contract incl option
5
—
—
Realized gain/loss on investment in money market funds
5
—
41 461
Net realized gain/(loss) on financial instruments
27 801
68 164
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.
NOTE 11 CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS NOK 1 000
2024
2023
Restricted deposits relating to employees' tax deductions
1 000
1 000
Other bank deposits
87 480
26 194
Total
88 480
27 194
The Group has two multi-currency group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company, is the
legal account holder. One of the cash-pool agreements do have a multi-currency overdraft facility of NOK 200 million, which is utilized
with NOK 0 (2023: NOK 63 million) at year-end 2024. See Note 13 for more information. The subsidiaries that are part of the agreement
can utilize the group cash pool arrangement provided that the arrangement without overdraft cannot be net negative, and that the
arrangement with overdraft facility can not exceed negative NOK 200 million. 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 2024, the net
amount of bank deposits in the group account scheme amounted to NOK 87 million (2023: NOK 26 million). At the same time, unutilized
overdraft facility was NOK 200 million (2023: NOK 137 million), in addition to unutilized revolving credit facility of NOK 620 million (2023:
NOK 750 million).
See Note 13 for information on the company's credit facility and drawdown as at year-end 2024.
See Note 16 concerning guarantee for employee advance tax deduction.
131
NOTE 12 SHARE CAPITAL AND SHAREHOLDER INFORMATION
As at 31 December 2024, 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
31.12.2024
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
4.00
453 788
113 447 042
Holdings of treasury shares
4.00
-4 812
1 203 089
Total excl treasury shares
4.00
448 976
112 243 953
Treasury shares
Grieg Seafood ASA hold treasury shares in connection to its share saving program for employees. The latest sale of treasury shares from
the company to employees was in December 2024, as 110 565 treasury shares was sold through the share saving program at an average
price of NOK 60.44. As at 31 December 2024, the company has 1 203 089 treasury shares.
In 2023, 107 473 shares was sold to employees through the share savings program at an average price of NOK 65.89. In December 2022,
Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76 per share of which 314 980 has been settled within
year-end 2022 and the remainder was settled in January 2023.
NO. OF SHARES
SHAREHOLDING
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
31.12.2024
31.12.2024
Grieg Aqua AS
56 914 355
50.17%
OM Holding AS
6 139 076
5.41%
Ystholmen Felles AS
1 923 197
1.70%
Beck Asset Management AS
1 450 000
1.28%
Clearstream Banking S.A. (Nominee)
1 380 847
1.22%
Skandinaviska Enskilda Banken AB (Nominee)
1 309 080
1.15%
Grieg Seafood ASA
1 203 089
1.06%
Riiber Holding AS
1 050 000
0.93%
Kvasshøgdi AS (Per Grieg)
996 772
0.88%
Bank Pictet & Cie (Europe) AG (Nominee)
985 544
0.87%
HMH INVEST AS
781 455
0.69%
Frøy Kapital AS
737 996
0.65%
J.P. Morgan (Nominee)
702 153
0.62%
Intertrade Shipping AS
600 000
0.53%
Six Sis AG (Nominee)
577 749
0.51%
Folketrygdfondet
567 502
0.50%
State Street Bank and Trust Comp (Nominee)
500 472
0.44%
Nyhamn AS
500 000
0.44%
Furberg & Sønn A/S
450 000
0.40%
PRO AS
413 406
0.36%
Total 20 largest shareholders
79 182 693
69.80%
Total others
34 264 349
30.20%
Total number of shares
113 447 042
100.00%
NO. OF SHARES
SHAREHOLDING
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
31.12.2023
31.12.2023
Grieg Aqua AS
56 914 355
50.17%
OM Holding AS
5 160 982
4.55%
Folketrygdfondet
2 419 585
2.13%
Ystholmen Felles AS
1 923 197
1.70%
Clearstream Banking S.A. (Nominee)
1 615 271
1.42%
State Street Bank and Trust Comp (Nominee)
1 512 715
1.33%
State Street Bank and Trust Comp (Nominee)
1 435 586
1.27%
Grieg Seafood ASA
1 313 654
1.16%
BNP Paribas (Nominee)
1 192 532
1.05%
JPMorgan Chase Bank, N.A., London (Nominee)
1 171 727
1.03%
Sparebank 1 Markets AS
1 159 872
1.02%
Frøy Kapital AS
1 116 323
0.98%
J.P. Morgan SE (Nominee)
1 105 349
0.97%
State Street Bank and Trust Comp (Nominee)
1 078 185
0.95%
Kvasshøgdi AS
996 772
0.88%
Bank Pictet & Cie (Europe) AG (Nominee)
921 918
0.81%
Six Sis AG (Nominee)
853 102
0.75%
BNP Paribas (Nominee)
842 579
0.74%
Skandinaviska Enskilda Banken AB (Nominee)
800 350
0.71%
State Street Bank and Trust Comp (Nominee)
753 837
0.66%
Total 20 largest shareholders
84 287 891
74.30%
Other shareholders
29 159 151
25.70%
Total shares
113 447 042
100.00%
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
SHARES CONTROLLED DIRECTLY AND INDIRECTLY BY THE BOARD OF
DIRECTORS AND GROUP MANAGEMENT
31.12.2024
31.12.2024
31.12.2023
31.12.2023
BOARD OF DIRECTORS
Per Grieg *
2 877 206
2.54%
2 877 206
2.54%
Nicolai Hafeld Grieg *
2 463 056
2.17%
2 117 289
1.87%
Marit Solberg (board member from 19 of June 2024)
—
—%
n/a
n/a
Silje Remøy (board member from 19 of June 2024)
—
—%
n/a
n/a
Paal Espen Johnsen (board member from 19 of June 2024)
—
—%
n/a
n/a
Tore Holand (until 19 of June 2024) **
—
—%
3 160
0.00%
Marianne Ribe (until 19 of June 2024)
—
—%
—
—%
Katrine Trovik (until 19 of June 2024)
—
—%
—
—%
Ragnhild Janbu Fresvik (until 19 June 2024)
—
—%
—
—%
GROUP MANAGEMENT
Andreas Kvame (Chief Executive Officer)
44 372
0.04%
44 372
0.04%
Atle Harald Sandtorv (Chief Financial Officer) ***
28 015
0.02%
28 015
0.02%
Alexander Knudsen (Chief Operating Officer Farming Norway)
25 099
0.02%
24 272
0.02%
Grant Cumming (Chief Operating Officer Farming Canada)
9 857
0.01%
9 857
0.01%
Erik Holvik (Chief Commercial Officer)
11 962
0.01%
11 135
0.01%
Knut Utheim (Chief Technology Officer)
26 441
0.02%
25 614
0.02%
Kathleen O. Mathisen (Chief Human Resource Officer)
16 660
0.01%
15 833
0.01%
Nina Stangeland (Chief Strategy Officer)
—
—%
—
—%
Kristina Furnes (Chief Communications Officer)
5 167
0.00%
5 167
0.00%
*Per Grieg and Nicolai Hafeld Grieg indirectly own shares in Grieg Seafood ASA through their indirect ownership in Grieg Maturitas II AS (see Note 1). Grieg Maturitas II AS owns 100% of Grieg
Aqua AS, which is the largest shareholder of Grieg Seafood ASA representing 50.17% of the shares. Furthermore, Nicolai Hafeld Grieg is represented in the Board of Directors of Grieg Maturitas II
AS and in the Board of Directors of Grieg Aqua AS. Hence, Nicolai Hafeld Grieg represented, through his indirect ownership and Board representation in Grieg Maturitas II AS, 50.17% of the shares
in Grieg Seafood ASA. Per Grieg has additional ownership interests in Grieg Seafood ASA through Kvasshøgdi AS 0.88%, bringing the total percentage of shares in Grieg Seafood ASA represented
by Per Grieg to 51.06%. **Tore Holand owns shares in Grieg Seafood ASA through shares invested in Skippergata 24 AS. *** Atle Harald Sandtorv stepped down at 5th of February 2025. Magnus
Johannesen acts as CFO from the same date. Andreas Kvame stepped down at 30 March 2025.
132
NOTE 13 NET INTEREST-BEARING LIABILITIES AND PLEDGES
Grieg Seafood ASA has a syndicated, secured loan provided by DNB and Nordea. The syndicated financing consists of an aggregate
of NOK 4 200 million in five-year senior secured sustainability-linked loans and credit facilities with maturity date in 2027. The debt
structure comprises term loans in NOK, incl. the bridge loan, in the aggregate of NOK 2 000 million (outstanding NOK 1 823 million), an
EUR 75 million term loan (outstanding EUR 59 million), two revolving credit facilities in the aggregate of NOK 2 000 million (NOK 620
million undrawn) and a NOK 200 million overdraft facility (NOK 200 million undrawn). At the end of 2024, the company has NOK 820
million (2023: NOK 887 million) available on the revolving credit facility and overdraft facility. Of the syndicated debt, NOK 178 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 company also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025
and is classified as a current liability in the balance sheet. The outstanding amount of the bond loan was NOK 1 393 million at the end of
2024. The total bond issue in 2020 was NOK 1 500 million, and since the bond issue, Grieg Seafood has repurchased NOK 107 million. 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% for the consolidated Grieg Seafood Group, 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 2024. At 31 December 2024, the Group had an equity
ratio of 31% (2023: 49%) while the equity ratio according to financial covenant was 34%, compared to 53% at 31 December 2023.
NON-CURRENT LIABILITIES NOK 1 000
2024
2023
NON-CURRENT LIABILITIES (INTEREST-BEARING)
Green bond loan
—
1 392 500
Non-current syndicated term-loan
2 345 359
1 261 155
Non-current syndicated revolving credit facility
1 380 000
750 000
Total non-current interest-bearing liabilities
3 725 359
3 403 655
Amortization effect of loans*
-10 917
-16 742
Total non-current liabilities
3 714 442
3 386 913
*Amortization effect on green bond loan and non-current syndicated term-loan.
CURRENT INTEREST-BEARING LIABILITIES NOK 1 000
2024
2023
Green bond loan including amortization effect
1 388 745
Current portion of non-current syndicated term-loan
—
132 753
Overdraft facility*
177 885
63 113
Total current interest-bearing liabilities
1 566 631
195 866
*The Company has two multi-currency cash pool schemes, held at two different banks. One of the cash pool schemes has a multi-currency overdraft facility of NOK 200 million. As at year-end
31.12.2024, the cash pool scheme with the overdraft engagement had a net negative cash position, classified as overdraft facility at year-end. For more information on the Group's cash and cash
equivalents, see Note 11.
NET INTEREST-BEARING LIABILITIES NOK 1 000
2024
2023
Gross interest-bearing liabilities
5 295 743
3 599 521
Loans to subsidiaries
-4 191 965
-5 331 016
Other non-current receivables
-1 333
—
Cash and cash equivalents
-87 480
-26 194
Net interest-bearing liabilities
1 014 965
-1 757 689
Loans to subsidiaries, investment in money market funds and cash and cash equivalents are presented by their inverted figure in the table above.
MATURITY PROFILE
INTEREST-BEARING LIABILITIES NOK 1 000
31.12.2024
2025
2026
2027
2028
2029
LATER
TOTAL
Green bond loan
1 392 500
—
—
—
—
1 392 500
Syndicated term-loan
177 885
927 885
1 417 473
—
—
2 523 243
Syndicated revolver credit facility
—
1 380 000
—
—
—
1 380 000
Overdraft facility
—
—
—
—
—
—
Total
1 570 385
927 885
2 797 473
—
—
—
5 295 743
MATURITY PROFILE
INTEREST-BEARING LIABILITIES NOK 1 000
31.12.2023
2024
2025
2026
2027
2028
LATER
TOTAL
Green bond loan
—
1 392 500
—
—
—
—
1 392 500
Syndicated term-loan
132 753
132 753
132 753
995 648
—
—
1 393 908
Syndicated revolver credit facility
—
—
—
750 000
—
—
750 000
Overdraft facility
63 113
—
—
—
63 113
Total
195 866
1 525 253
132 753
1 745 648
—
—
3 599 521
Figures included in the maturity profile tables are nominal figures. Amortized cost is not included.
LIABILITIES SECURED BY MORTGAGE NOK 1 000
2024
2023
BOOK VALUE OF LIABILITIES SECURED BY MORTGAGE
Liabilities to credit institutions
3 903 244
2 143 908
Total liabilities
3 903 244
2 143 908
BOOK VALUE OF ASSETS PLEDGED AS SECURITY
Shares in subsidiaries
1 771 845
2 022 531
Property, plant and equipment
845
1 209
Trade receivables
30 175
131 650
Loans to subsidiaries*
4 191 965
5 331 016
Total assets pledged as security
5 994 830
7 486 406
*The subsidiaries and the parent company have a joint and several liability against the credit institutions. See the consolidated financial statements Note 27 for further information about liabilities
secured by mortgage.
2024
2023
TYPE OF LIABILITY NOK 1 000
CURRENCY
INTEREST
RATE
MATURITY
CURRENT
PART
NON-
CURRENT
PART
CURRENT
PART
NON-
CURRENT
PART
Green bond loan
NOK
Floating
06/2025
1 392 500
—
—
1 392 500
Syndicated term-loan
NOK
Floating
03/2027
104 167
1 718 750
62 500
593 750
Syndicated term-loan
EUR
Floating
03/2027
73 719
626 609
70 253
667 405
Syndicated revolving credit facility
NOK
Floating
03/2027
—
1 380 000
—
750 000
Overdraft facility
Multiple
Floating
—
63 113
—
Total
1 570 386
3 725 359
195 866
3 403 655
133
CURRENCY EXPOSURE ON LOANS TO CREDIT
INSTITUTIONS NOK 1 000
31.12.2024
NOK
CAD
EUR
USD
GBP
OTHER
Green bond loan
1 392 500
1 392 500
—
—
—
—
—
Syndicated term-loan
2 523 245
1 822 917
—
700 328
—
—
—
Syndicated revolving credit facility
1 380 000
1 380 000
—
—
—
—
—
Overdraft facility
—
—
—
—
—
—
—
Total
5 295 745
4 595 417
—
700 328
—
—
—
CURRENCY EXPOSURE ON LOANS TO CREDIT
INSTITUTIONS NOK 1 000
31.12.2023
NOK
CAD
EUR
USD
GBP
OTHER
Green bond loan
1 392 500
1 392 500
—
—
—
—
—
Syndicated term-loan
1 393 908
656 250
737 658
Syndicated revolving credit facility
750 000
750 000
Overdraft facility
63 113
79 924
140 824
(87 393)
(52 476)
(16 068)
(1 698)
Total
3 599 521
2 878 674
140 824
650 265
(52 476)
(16 068)
(1 698)
AVERAGE INTEREST RATE ON BANK AND BOND LOAN
2024
2023
Average interest rate (NOK)
7.20%
6.62%
Average interest rate (EUR)
5.20%
4.15%
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
NOTE 14 SHARE-BASED PAYMENTS
Grieg Seafood ASA operates a share-based remuneration scheme with settlement in cash for the management team of the Group.
Members of the management team not employed in Grieg Seafood ASA are also included in the option program. The options’ strike price
is the stock market price on the date of issue, rising by 0.5% per month until the exercise date. The most recent allocation was in 2023,
totalling 2 680 000 options. The final exercise date is 31 May 2026. 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 value of the synthetic stock options settles in cash is recognized as a salary and personnel cost in income statement (see Note 4) and
as a liability in the statement of financial position.
The cost of the executive management synthetic option scheme is expensed over the average vesting period. The liability is measured at
fair value at each balance sheet date until settlement, and changes in the fair value are recognized in profit and loss. Social security tax
on options is recorded as a liability and is recognized over the estimated vesting period.
The Black and Scholes option pricing model is used for valuation. A brokerage firm is used to perform the fair value calculation. The
following table shows the movement in outstanding options in 2024 and 2023.
OVERVIEW 2024
(TOTAL OPTIONS)
OUTSTANDING
OPTIONS AT
31.12.2023
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2024
Andreas Kvame (Chief Executive Officer)
550 000
—
—
170 000
380 000
Atle Harald Sandtorv (Chief Financial Officer)
330 799
—
—
80 799
250 000
Knut Utheim (Chief Technology Officer)
185 000
—
—
85 000
100 000
Kathleen O. Mathisen (Chief Human Resource Officer)
149 011
—
—
49 011
100 000
Kristina Furnes (Chief Communication Officer)
139 262
—
—
39 262
100 000
Alexander Knudsen (Chief Operating Officer Farming Norway)
255 000
—
—
85 000
170 000
Grant Cumming (Chief Operating Officer Farming Canada)
170 000
—
—
—
170 000
Erik Holvik (Chief Commercial Officer)
235 788
—
—
65 788
170 000
Nina Stangeland (Chief Strategy Officer)
100 000
—
—
—
100 000
Others
1 275 257
—
—
385 258
890 000
Total
3 390 118
—
—
960 118
2 430 000
OVERVIEW 2023
(TOTAL OPTIONS)
OUTSTANDING
OPTIONS AT
31.12.2022
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2023
Andreas Kvame (Chief Executive Officer)
229 764
380 000
—
59 764
550 000
Atle Harald Sandtorv (Chief Financial Officer)
80 799
250 000
—
—
330 799
Knut Utheim (Chief Technology Officer)
88 302
100 000
—
3 302
185 000
Kathleen O. Mathisen (Chief Human Resource Officer)
49 011
100 000
—
—
149 011
Kristina Furnes (Chief Communication Officer)
39 262
100 000
—
—
139 262
Alexander Knudsen (Chief Operating Officer Farming Norway)
86 832
170 000
—
1 832
255 000
Grant Cumming (Chief Operating Officer Farming Canada)
—
170 000
—
—
170 000
Erik Holvik (Chief Commercial Officer)
65 788
170 000
—
—
235 788
Nina Stangeland (Chief Strategy Officer)
—
100 000
—
—
100 000
Others
135 260
1 140 000
—
—
1 275 257
Total
775 016
2 680 000
—
64 898
3 390 118
OUTSTANDING OPTIONS
TOTAL
OUTSTANDING OPTIONS
VESTED
ALLOCATION:
YEAR - MONTH
EXPIRY DATE:
YEAR - MONTH
STRIKE PRICE NOK
PER SHARE AT
31.12.2024
STRIKE PRICE NOK
PER SHARE AT
31.12.2023
2024
2023
2024
2023
2020 - 12
2023 - 05
—
—
—
—
—
2020 - 12
2024 - 05
0.00
94.03
—
710 118
—
710 118
2023 - 12
2026 - 05
83.95
79.20
1 215 000
1 340 000
1 215 000
—
2023 - 12
2027 - 05
83.95
79.20
1 215 000
1 340 000
—
—
Total
2 430 000
3 390 118
1 215 000
710 118
2024
2023
Cash-based options available for settlement
2 430 000
3 390 118
Weighted average exercise price on outstanding options (NOK per option)
75.93
76.56
134
NOK/OPTION
AMOUNTS IN NOK 1 000
2024
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2024
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2024
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2024
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2024
Former employees with expired
options**
—
—
—
—
—
—
6 887
—
Andreas Kvame (Chief
Executive Officer)
75.93
4.08
1 552
803
589
—
—
1 392
Atle Harald Sandtorv (Chief
Financial Officer)
75.93
4.48
1 119
519
484
—
—
1 003
Knut Utheim (Chief Technology
Officer)
75.93
6.41
641
390
180
—
—
570
Kathleen O. Mathisen (Chief
Human Resource Officer)
75.93
5.94
594
320
209
—
—
529
Kristina Furnes (Chief
Communication Officer)
75.93
5.22
522
258
208
—
—
466
Alexander Knudsen (COO
Farming Norway)
75.93
5.16
878
453
331
—
—
785
Grant Cumming (COO Farming
Canada)
75.93
4.27
725
497
154
—
—
650
Erik Holvik (Chief Commercial
Officer)
75.93
5.14
874
443
338
—
—
781
Nina Stangeland (Chief Strategy
Officer)
75.93
6.03
603
306
231
—
—
537
Other options allocated in 2024
75.93
4.65
4 136
2 877
1 620
—
—
4 200
Total
11 644
6 867
4 343
—
6 887
10 914
*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.
NOK/OPTION
AMOUNTS IN NOK 1 000
2023
LISTED
PRICEON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2023
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2023
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2023
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2023
Former employees with expired
options**
—
—
—
—
—
—
6 887
—
Andreas Kvame (Chief
Executive Officer)
78.96
4.35
1480
1652
-1488
0
0
163
Atle Harald Sandtorv (Chief
Financial Officer)
78.96
6.34
1078
669
-589
0
0
81
Knut Utheim (Chief Technology
Officer)
78.96
5.82
989
663
-579
0
0
84
Kathleen O. Mathisen (Chief
Human Resource Officer)
78.96
7.20
720
442
-392
0
0
50
Kristina Furnes (Chief
Communication Officer)
78.96
6.04
604
354
-316
0
0
39
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
78.96
5.87
999
654
-570
0
0
84
Erik Holvik (Chief Commercial
Officer)
78.96
6.13
1042
606
-542
0
0
65
Other options allocated in 2020
78.96
7.04
3519
1469
-1334
0
0
135
Andreas Kvame (Chief
Executive Officer)
75.93
4.29
1632
0
803
0
0
803
Atle Harald Sandtorv (Chief
Financial Officer)
75.93
4.22
1055
0
519
0
0
519
Knut Utheim (Chief Technology
Officer)
75.93
7.97
797
0
390
0
0
390
Kathleen O. Mathisen (Chief
Human Resource Officer)
75.93
6.53
653
0
320
0
0
320
Kristina Furnes (Chief
Communication Officer)
75.93
5.26
526
0
258
0
0
258
Alexander Knudsen (COO
Farming Norway)
75.93
5.43
923
0
453
0
0
453
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
75.93
5.95
1 011
0
497
0
0
497
Erik Holvik (Chief Commercial
Officer)
75.93
5.30
901
0
443
0
0
443
Nina Stangeland (Chief Strategy
Officer)
75.93
6.24
624
0
306
0
0
306
Other options allocated in 2023
75.93
5.28
5 227
0
2 877
0
0
2 877
Total
23 777
6 510
1 056
—
6 887
7 566
*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.
135
RECOGNIZED LIABILITY, COSTS AND KEY ESTIMATES USED FOR THE FAIR VALUE CALCULATION OF OPTIONS
As at 31 December 2024, fair value of outstanding options with the right to cash settlement were NOK 10.9 million (2023: NOK 7.6
million). In addition, social security costs is included in the recognized liability in the statement of financial position, which totaled NOK
2.1 million (2023: NOK 1.4 million) bringing the total recognized liability to NOK 13.0 million (2023: NOK 9.0 million). See the table below
for specification of the liability as per the balance sheet date.
FAIR VALUE OF SYNTHETIC
OPTIONS
SOCIAL SECURITY COSTS
TOTAL RECOGNIZED LIABILITY
RECOGNIZED LIABILITY IN THE STATEMENT OF
FINANCIAL POSITION NOK 1 000
2024
2023
2024
2023
2024
2023
Non-current liabilities
10 913
6 867
2 084
1 312
12 997
8 178
Current liabilities
—
700
—
134
—
834
Total
10 913
7 566
2 084
1 445
12 997
9 012
COSTS RELATED TO CASH OPTIONS NOK 1 000
2024
2023
CLASSIFICATION IN FINANCIAL STATEMENTS
Change in provisions
4 343
1 056
Non-current provisions
Exercised options during the year
—
—
Salaries and personnel expense / cash
Total cost excl. social security costs
4 343
1 056
Social security costs
639
527
Public taxes payable
Total cost incl. social security costs
4 983
1 584
Salaries and personnel expense
The total cost incl. social security costs in 2024 totaled NOK 5.0 million (2023: NOK 1.6 million). These costs are recognized in the income
statement as an other personnel cost (see Note 4). Social security contributions are provided for on an ongoing basis based on the fair
value of the options.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
2024
2023
Anticipated volatility (%)
42.00%
45.63%
Risk-free rate of interest (%)
4.00%
4.00%
Estimated qualification period (years)
1.92
2.33
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.
NOTE 15 OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES NOK 1 000
2024
2023
Accrued interest
22 079
5 286
Other accrued expenses
29 547
22 686
Other current liabilities
219
22
Total other current liabilities
51 845
27 993
NOTE 16 GUARANTEES
Grieg Seafood ASA has a guarantee relating to employees’ tax deductions on total NOK 4.4 million (2023: 4.4 million) at the end of 2024.
Grieg Seafood ASA acted as a guarantor for Fiskehav SA. Total amount is NOK 7 million. The guarantee expires 9 September 2025. Grieg
Seafood ASA has a framework agreement for customs guarantee for the Group. The total limit is NOK 35 million.
NOTE 17 EVENTS AFTER THE REPORTING DATE
27 of February 2025 Grieg Seafood ASA has successfully completed a new perpetual green hybrid bond issue of NOK 2 000 million with
first call date after 4 years and a coupon of 3 months NIBOR + 575 bps. The issue amount is perpetual with no fixed maturity date, and
will have a step up in interest in March 2029. Interest payments may be deferred at the discretion of Grieg Seafood. Net proceeds from
the bond issue will be used for green projects as further defined by the Green Bond Framework, including by way of refinancing existing
debt originally incurred to finance such green projects. Grieg Seafood has performed a capital allocation of NOK 500 million towards the
bridge term loan facility. The hybrid bond will be accounted for as equity in the balance sheet and constitute subordinated obligations for
the Company.
An application will be made for the bonds to be listed on Oslo Stock Exchange.
The hybrid bond strengthens Grieg Seafood’s liquidity, equity and financial flexibility to pursue its ambitions for further investments and
development of the Norwegian fish farming assets while protecting the values and optionally in the Canadian assets base.
Grieg Seafood ASA has public memorandum for guidance on accounting treatment of issued Hybrid bond. See the stock exchange filings
on Grieg Seafood’s webside.
30 of March 2025 Grieg Seafood ASA announces that Andreas Kvame has agreed with the Board of Directors to step down as CEO after 10
years in the position. The Board has initiated the search process for a new CEO. Nina Willumsen Grieg, Regional Director of Grieg Seafood
Rogaland, has been appointed interim CEO, with Andreas Kvame supporting the CEO transition process.
In the line with good corporate governance, Per Grieg steps down as Chair of the Board of the Company and takes the position as a
regular Board Member. The Vice-Chair of the Board, Paal Espen Johnsen, takes on the role as Chair of the Board until the next General
Meeting.
There have not been any other significant events after the balance sheet date of 31 December 2024.
136
AUDITOR’S REPORT
137
AUDITOR’S REPORT
138
AUDITOR’S REPORT
139
AUDITOR’S REPORT
140
AUDITOR’S SUSTAINABILITY REPORT
141
AUDITOR’S SUSTAINABILITY REPORT
142
Alternative Performance
Measures
We believe that our financial statements only partially reflect the underlying performance of our operations, and as such some of the
financial information presented in the Annual Report 2024 contains alternative performance measures (APM). The APMs represented
are important key performance indicators for how the management of Grieg Seafood monitors operational and financial performance
on regional and group level. Therefore, we believe that the APMs disclosed provide additional, useful information when analyzing Grieg
Seafood and our business activity.
APMs are non-IFRS financial measures. These measures are not intended to substitute, or to be superior to, any measure of IFRS. The
APMs used by the Group have been defined by Grieg Seafood to supplement our financial reporting and the APMs could therefore deviate
from, or otherwise not being directly comparable to, similar APMs disclosed by other companies.
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 5), 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 5), and calculated using
solely figures included in the segment information. Operational EBIT
(and operational EBIT/kg) is defined by Grieg Seafood.
Operational EBIT and operational EBIT/kg are used by
management, analysts, investors and are generally considered
the industry-measures for profitability and are used to assess our
performance. Operational EBIT has been defined by Grieg Seafood
and exclude items as described below. 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. These items include
country-specific taxation on harvest, fair value on biological assets
(expected future (unrealized) gains or losses on fish not yet sold),
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. 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.
Operational EBIT%
Operating EBIT% is calculated by dividing operational EBIT by
sales revenue as reported in the segment reporting (see Note 5).
Operating EBIT% is reported per region, in addition to Group level of
Grieg Seafood.
Operating EBIT% is used by management to assess operational
performance per region as well as for the Group.
Operational EBITDA
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 5), where a
reconciliation with EBIT of the income statement is included.
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.
Operational
EBITDA%
Operating EBITDA% is calculated by dividing Operational EBITDA by
sales revenue as reported in the segment reporting (see Note 5).
Operating EBITDA% is reported per region, in addition to Group level
of Grieg Seafood.
Operating EBITDA% is used by management to assess operational
performance per region as well as for the Group.
143
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
ROCE
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 basis, 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.
Equity ratio
Equity ratio is calculated in two ways:
1.
Equity according to the Statement of Financial Position divided
by total equity and liabilities according to the Statement of
Financial Position.
2.
Equity according to loan agreements divided 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 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
Net interest-bearing debt (NIBD) comprises interest-bearing
loans and borrowings to financial institutions, lease liabilities and
other interest-bearing liabilities, after deducting cash and cash
equivalents. Amortized loan costs are not included in NIBD. NIBD is
calculated in two ways:
1.
NIBD includes all long-term and current debt to credit
institutions and other interest-bearing liabilities, incl. lease
liabilities for contracts classified as operating lease for the
lessor (which corresponds to leases under the previous IFRS
accounting standard IAS 17’ definition of operational leases).
This NIBD metric is disclosed in Note 27 to the Group Accounts.
This NIBD metric is included in the ROCE calculation.
2.
NIBD includes all long-term and current debt to 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 27 to
the Group Accounts, and excludes lease liabilities for contracts
classified as operating lease for the lessor, in addition to other
adjustments made according to the loan agreement.
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.
The metric is reported as a key figure of the Group, and also reported
in Note 27 to the Group Accounts.
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
NIBD/Harvest
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.
NIBD divided by actual harvest volume in kg gutted weight in
the last 12 months
2.
NIBD divided by guided full-year harvest volume in kg gutted
weight.
The metric is reported as a key figure 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
Gross investment is equal to the Group’s capital expenditures
(CAPEX) excluding lease liabilities for contracts classified as
operating lease for the lessor (which corresponds to leases
under the previous IFRS accounting standard IAS 17’ definition of
operational leases). 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 Group’s CAPEX monitoring shows that gross investments are
in line with the CAPEX monitoring of the Group. The accounting
impact of lease liabilities for contracts classified as operating lease
for the lessor (which corresponds to leases under the previous
IFRS accounting standard IAS 17’ definition of operational leases) is
excluded from gross investments, as such leases are not treated as
part of CAPEX.
Sales revenue/kg
(GWT)
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 and 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 5).
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 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.
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
Farming cost/kg
(GWT)
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 5).
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.
ownership and
headquarter costs/
kg (GWT)
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. The metric is calculated for the Group, and is reported in
the Group's segment information (see Note 5).
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.
144
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 3.23
GROSS INVESTMENTS (NOK MILLION)
SOURCE
2024
2023
Property, plant and equipment
Cash Flow Statement
1 208
790
Intangible assets
Cash Flow Statement
2
2
Additions according to the Cash Flow Statement
1 210
792
Finance leases according to IFRS in force prior to 1 January 2019
176
88
Gross investments
1 386
880
FIGURE 3.21
SALES REVENUE FARMING OPERATIONS, FARMING COST AND OPERATIONAL EBIT (NOK MILLION)
2024
SOURCE
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEWFOUNDLAND
GROUP
Sales revenue farming operations
Note 5
2 432
1 844
964
910
6 150
Elim/Other - revenue
Note 5
1 231
Sales revenue
Income Statement
7 381
Farming cost
Note 5
1 816
1 862
1 241
1 083
6 002
Elim/Other - cost
Note 5
0
1 371
Operating EBIT
Income Statement
8
Operational EBIT farming operations
Note 5
616
-18
-276
-173
148
2023
SOURCE
ROGALAND
FINNMARK
BRITISH
COLUMBIA NEWFOUNDLAND
GROUP
Sales revenue farming operations
Note 5
2 305
1 947
1 468
236
5 956
Elim/Other - revenue
Note 5
1 064
Sales revenue
Income Statement
7 020
Farming cost
Note 5
1 569
1 620
1 562
305
5 056
Elim/Other & Newfoundland - cost
Note 5
76
1 183
Operational EBIT
Income Statement
780
Operational EBIT farming operations
Note 5
736
327
-94
-146
823
FIGURE 3.22
NIBD ACCORDING TO METHOD 1 (NOK MILLION)
SOURCE
2024
2023
Borrowings
Statement of Financial Position
3 779
3 492
Lease liabilities
Statement of Financial Position
1 101
1 111
Non-current liabilities
4 879
4 603
Current portion of borrowings
Statement of Financial Position
1 581
208
Current portion of lease liabilities
Statement of Financial Position
323
300
Current liabilities
1 904
508
Loans to associates
Note 27
-36
-33
Cash and cash equivalents
Statement of Financial Position
-203
-216
Amortized loan costs
Note 27
15
17
NIBD (method 1)
6 559
4 879
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