Quarterly report 4th quarter 2007

Bergen, NORWAY

Grieg Seafood ASA - 4th quarter 2007
The financial result for the period was not satisfactorily. The first half of 2007 had good progress in the seawater production in all four regions, whereas particularly 3rd quarter gave us some set backs that financially will influnce  negatively  the 4th and the first two quarters of 2008.
In British Columbia, performance had a very strong rebound after the 3rd quarter, with a good profitability of EBIT 6,5 NOK pr kg . In the other regions the picture is very mixed, with some heavy losses and non reoccuring costs in Finnmark at the other end of the scale. The four months close down of the harvest plant in Finnmark had a significantly negative impact on the 4th quarter result for this region.
In Rogaland, we harvested the largest ever spring generation at an average weight of 6,6 kg, but unfortunately, the market for these sizes  was very soft due to the generally good results on this generation also for other Norwegian fish farmers .The production cost of smolt in Rogaland below NOK 5 pr fish was an encouraging development. The Pancreas Disease situation still influences negatively the results, but the outbreaks have now stopped on our farms.
The situation in Shetland is also mixed. At the one hand, our company achieves among the best results in the Scottish industry for the year, on the other hand, there are still concerns related to sealice and algae. The new VAP and smoking plant is scheduled to open in April opening a new market for our products.
The shortfall of harvesting this year is partly pushed into next year, but the production in sea was reduced by about 9.000 tons live weight compared to plans. The plans for this year have been adjusted to the present biomass, and we forecast harvest of 60.000 tons during 2008, whereof 4.000 tons are moved forward from 2007.
A new financing agreement for the company is signed, giving a sound financial basis for carrying out the next three years investment and growth program. The company now has additional credit facilities of about NOK 300 mill.
In general, the long term plans are on track to reach our production and financial goals, based on approximately  80.000 tons of harvest during 2010.
            For further information, please contact
Eirik Bloch Haugland, Chief Financial Officer,      mobile +47 95 90 31 50
Per Grieg jr, Chief Executive Officer,                   mobile +47 90 83 16 48
Grieg Seafood ASA


GSF Q4 2007 report