Grieg Seafood (Buy, TP: NOK90.00) - Q1 beat, but soft 2023 guidance
Q1 operating EBIT was NOK385m, 6–14% above our forecast and consensus. The beat versus our estimate was driven by a stronger than expected realised price in Rogaland and lower eliminations, making it of lower quality. The 2023 harvest guidance was cut by 2kt (due to Finnmark) to 80kt versus our estimate of 81kt. The Q2 contract share was guided at 12% of Norwegian volumes, with 2023 at 15%. Strong 2023 guidance for Rogaland was offset by soft guidance for Finnmark and BC, meaning we expect only minor consensus 2023 EPS changes, with the shares to end the day 1–3% higher.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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