Grieg Seafood (Buy, TP: NOK105.00) - Solid Q3 report
Q3 operating EBIT of NOK149m was ~37% above consensus, reflecting strong price realisation, especially in British Columbia (BC). Management guided for slightly lower costs in Rogaland and Finnmark in Q4, but cut the volume guidance by 1.5kt for both regions. The company reiterated a positive market outlook, particularly in the US in 2022. We have raised our 2021e EPS on the solid Q3 beat, but have lowered our 2022–2023e EPS by 5–6% on higher feed cost estimates. We reiterate our BUY and have raised our target price to NOK105 (100) on stabilising operations and reduced financial risk.Greig Seafood is a fish farming group, based in Norway, that specialized in salmon and trout. Co. is the parent company of the Greig Seafood Group. Co. is engaged in the production and sale of seafood, and naturally related activities to the sale of seafood. Co. is predominately engaged in the production of farmed salmon and trout, with a production capacity of around 95,00 tons gutted weight annually. Co. has 100 licences for salmon production and five licences for smolt production. Co. has operations in Finnmark and Rogaland in Norway, British Columbia in Canada, and Shetland (the U.K.).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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