Highlights - Second Quarter 2015

• EBIT of MNOK -21 in Q2 before fair value adjustment of biomass (MNOK 123 in 2014).
• BC encountered a low oxygen incident in Q2 resulting in a loss of 1 000 tons biomass.
• High costs in Shetland and Rogaland due to previous biological incidents.
• Low harvested volume in Finnmark.
• GSF extended its bank credit facility by MNOK 500 in order to refinance a bond loan of MNOK 400 which matures at the end of this year.
• Stable market in Europe. Weak prices in the American market.
• Production in Shetland is good, but weaker in Norway due to low sea temperatures. GSF reduces the guided volume for 2015 by 2 000 tons to 70 000 tons.
• The Board is not satisfied with the cost of operation in GSF. The new CEO, Andreas Kvame, will implement operative measures enabling the company to improve cost of operation in all areas of the value chain.

Second Quarter Results 2015

EBIT for the Group in Q2 before fair value adjustment of biomass was MNOK -21, against MNOK 123 in 2014. The harvested volume in Q2 2015 was 17 558 tons, against 18 950 in the same period last year. 

The accounts show a loss of MNOK 19 before tax and fair value adjustment of biomass, against a profit of MNOK 113 in Q2 2014.

Group sales revenues in Q2 was MNOK 1 171, an increase of 3.5% compared to Q2 2014. Volume is down 7.3%. Prices are down 3.9%. The increased sales revenue is attributable to changes in exchange rates.   

Low prices realised in some markets had a negative impact on the overall performance. The American market remains weak, and in Shetland a large proportion of small fish resulted in lower income. The level of fixed price contracts was low in Q2, the same can be expected for Q3.

The Q2 2015 result for GSF has also been affected by high costs. In both Rogaland and Shetland the cost level has been driven up by previous biological incidents, while in Finnmark low volume has resulted in higher costs per kilo. In BC, costs have been affected by a period of high mortality due to low oxygen levels.

In Norway, low temperatures have led to some reduction in sea production, while in BC and Shetland sea production has been promising.

Outlook

A cold summer in Norway has resulted in lower production than usual which will contribute to limited supply-side growth. The market is therefore expected to be strong in the period ahead, although there may be regional variations.

GSF reduces the 2015 harvest guiding by 2 000 tons to 70 000 tons. Volumes in Norway are reduced due to lower sea temperatures and resulting lower production. The corresponding harvest guiding for Shetland and BC is slightly increased.

The cost of fish harvested in the company's European regions is likely to be lower in Q3.

The process of stabilising the biological performance in each of the regions continues, and in the period ahead the GSF management will be focusing on biological risk management and operations.

Please find enclosed the company's Q2 2015 report and presentation.

For further information please contact:

- CEO Andreas Kvame (cell phone: +47 907 71 441)
- CFO Atle Harald Sandtorv (cell phone: +47 908 45 252)