Grieg Seafood (Buy, TP: NOK90.00) - 16% below consensus on Q2e operational EBIT
Grieg Seafood’s trading update on 11 July revealed harvest volumes of 22.6kt, 6% above our 21.3kt estimate. Production costs in Finnmark were NOK61.2/kg (we forecast NOK64.5), NOK58.2/kg in Rogaland (we forecast NOK58.0), and CAD11.3/kg in Canada (we forecast CAD11.5). We do not consider our resulting estimate changes to be material, and have not changed our BUY recommendation or NOK90 target price. For the full Q2 results, due at 06:30 CET on 25 August, we expect operating EBIT of NOK451m, 16% below consensus of NOK537m.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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