GRIEG MATURITAS - WE ARE GRIEG
Annual Report 2021
GRIEG MATURITAS | ANNUAL REP ORT 2021
Content This is Grieg Reflections From our Chair
4
Our History
8
Our Organization
10
Sustainability
18
Covid-19
22
Our companies Grieg Maritime Group
26
Grieg Shipbrokers
32
Grieg Logistics
36
Grieg Seafood
44
Grieg Investor
48
Grieg Kapital
52
Grieg Group Resources
54
From the Boardroom Directors Report & Group Result 2021
60
Annual Accounts
74
Notes
83
Auditors Report
120
2—3
Elisabeth Grieg C H A I R O F T H E B OA R D
GRIEG MATURITAS | ANNUAL REPORT 2021
REFLECTIONS FROM CHAIR
Dear Colleagues, Stakeholders, Partners, and Others
When writing this, Ukraine has been at war with Rus-
GRIEG MARITIME GROUP
sia for over four weeks. Three million refugees have es-
Early in 2021, Grieg Star Group renamed its Group of
caped to Europe, and the uncertainty they are facing
companies to Grieg Maritime Group. Grieg Green was
is unbearable. The invasion of Ukraine is deeply sad-
reorganised, tied closer to Grieg Maritime Group, and
dening, and our thoughts go to all innocent people who
Grieg Edge has further strengthened its position, in-
are and will be affected by the invasion and its conse-
vesting in maritime start-ups, and developing ongoing
quences. We trust the international community to find
projects such as M/S Green Ammonia together with
a solution to the crisis. I’m proud that we in times like
Wärtsila. 2021 did not only mark a new group set up,
these contribute, both financial and as neighbors in
but the company also delivered its most significant fi-
Bergen to Ukrainian refugees.
nancial result in a decade.
For the Grieg Group, the war affects us in many ways.
GRIEG SEAFOOD
Operational costs increase as oil prices continue to
Struggle and hardship defined the beginning of 2021,
surge. For other parts of the Group, economic sanc-
and with Covid-19 and high operational costs, Grieg
tions influence operations. Finally, the uncertainty of
Seafood performed below expectations. At the end of
the world markets affects us all, and we are monitoring
2021, with nearly all Covid-19 restrictions lifted, the
the situation closely through the Grieg Group Emer-
company could release a harvest number they have
gency Response Group.
never reached before. Grieg Seafood has managed to
2021 IN THE GRIEG GROUP
turn the company around, reaching several goals of the company’s 2025-strategy.
2021 was a record year overall for the Grieg Group. Even though the pandemic still affected us throughout the
GRIEG INVESTOR
year, all businesses have performed very well. It is safe
Grieg Investor reached a true milestone the past year,
to say that when leaving 2020 behind, these results
securing over 110 billion under advisement across 130
were not at all on our minds. Luckily, markets have im-
customers. A large capital base provides the company
proved, and operations are more streamlined, securing
with highly skilled leadership and reasonable pric-
solid financial results across all companies in the Grieg
ing-benefits for their customers. A strong focus on
Group. Thanks to our dedicated colleagues, we face a
sustainability and, at the same time, generating a good
future of development and financial performance fol-
return on investment is Grieg Investor’s main priority.
lowing our Group strategy. THIS IS GRIEG
4—5
GRIEG MATURITAS | ANNUAL REPORT 2021
2021 has proven another successful year across the en-
step of the way, I’m confident that we all contribute to
tire organisation. It is safe to say that we are proud.
delivering on strategic priorities for the future. Luckily, we are well set for the days to come.
GRIEG LOGISTICS The New CEO, Stig Trygve Andersen, has worked with
SUSTAINABILITY – LICENSE TO OPERATE
a new organisational setup to restructure the business
Climate change is threatening nature, wildlife, and
to secure digitalisation and technology as a foundation
humans. If we are to reach the 2030-agenda, we are in
for future business. As a result, Grieg Connect has se-
a hurry. We believe we are part of the solution in the
cured essential projects throughout the year and is now
maritime industry, but we need partnerships to suc-
controlling 80 percent of Norwegian ports and termi-
ceed. We are dependent on innovating sustainable
nals. Grieg Logistics delivers a net-zero result, focusing
solutions together with our partners. Authorities must
on further investments in Grieg Connect to ensure an
support these partnerships and drive change through
even more robust technical approach to the company.
regulations and sector-specific initiatives nationally and globally.
GRIEG KAPITAL Grieg Kapital has, since its establishment in 2018,
We need clear national and international targets. We
worked to ensure a solid financial position for the years
need national and international politicians who are
to come, and its success has been an impressive jour-
bold enough and willing to use all tools available, in-
ney. In 2021 we strengthened the team by hiring a new
cluding support for innovation, green funding, and
investment manager and secured solid earnings from
sector-specific innovation.
our investments and funds. In addition, Grieg Maturitas is hiring a new Chief Investment Officer who will
OUTLOOK
also be the managing director of Grieg Kapital.
It is impossible to predict the future, but we know uncertainties will continue to arise worldwide. The war
GRIEG SHIPBROKERS
in Ukraine affects markets and operations, but, at the
For the first time in a very long time, Grieg Shipbrokers
same time, there is no doubt that some of our compa-
can proudly present outstanding numbers. In 2021,
nies are witnessing increased income as markets are
the company restructured its Asia activities, and along
under much pressure.
with good markets in both bulk and container, 2021 became an excellent year for Grieg Shipbrokers. The new
I genuinely believe our people are essential in building
management team has proven worthy by turning the
our success. On behalf of the Grieg Maturitas board,
company around with dedicated colleagues in Oslo,
I want to sincerely thank everyone who impacts our
London, and Bergen.
joint accomplishment every day. I am grateful for all our dedicated colleagues across companies, all set to
Witnessing strong companies aiming to improve every
THIS IS GRIEG
seize the opportunities ahead of us.
6—7
Our History Grieg Group The Grieg Group derives from a long and proud maritime tradition.
In 1884, Joachim Grieg established a shipbroking firm
ment Goals in our business strategy and revised our
in Bergen, where the company continued to develope
business strategy to meet the future as more resilient,
during the two world wars. In 1960 Per Grieg sr. joined
more innovative and more sustainable. The ocean con-
the company and organized it into a specialized busi-
nects our businesses, our people, our future, and our
ness. Today the Group is owned and led by 4th and 5th
past. For more than 137 years, we have lived by and
generation Grieg and consists of several companies
with the ocean.
worldwide. Our people are our most valuable resource, and we The Grieg Group operates within seafood, shipping,
believe they are essential to building our success. Our
shipbroking, maritime innovation, logistics, and in-
1649 employees operate in 8 countries, from Norway
vestments. Across all businesses, we shall create last-
(headquarter) to the rest of Europe, USA, Canada and
ing value through competence, experience and com-
Asia.
mon efforts. The Grieg family owns the Grieg Group through their Our mission is to restore our oceans, and we are com-
holding company, Grieg Maturitas (75%), and the Grieg
mitted to the UN Sustainable Development Goals. In
Foundation’s nonprofit organization (25%). Operating
2019 we incorporated the UN’s Sustainable Develop-
revenue in 2021 was MNOK 7392.
1884
Joachim Grieg establishes ship broker business in Bergen.
1961
1969
Grieg Logistics established as a separate business unit.
AS Star Shipping established.
1984
1992
100 years! Restructured as the Grieg Group.
GRIEG MATURITAS | ANNUAL REPORT 2021
1998
Grieg Seafood established.
2002
Grieg Investor established.
1994
Grieg International established.
Grieg Foundation established.
1999
4th generation Grieg take over.
2008
Star Shipping becomes Grieg Star Shipping and joins the Grieg Group.
2007 Grieg Seafood gets listed on the Oslo Stock exchange.
THIS IS GRIEG
2010 Grieg Green established.
2014
The Grieg Group celebrates 130 years anniversary!
2017
2020
2018 Grieg Kapital established.
G2Ocean established, joint venture between Grieg Star and Gearbulk.
Grieg Star Group reorganized into Grieg Maritime Group.
2019
Grieg Connect established.
2021
Grieg Group spoke on plastic reductions at UN Roundtable
8—9
Our Organization
1 649
7 392
1 234
31 .1 2 . 2021
2021 · MNOK
2021 · MNOK
Employees
Operating Revenue
O P E R AT I N G R EV E N U E 2021 BUSINESS AREAS
Profit after tax
T U R N OV E R B A S E D O N O W N E R S H I P 2021 BUSINESS AREAS
Grieg Maritime Group
Grieg Seafood
Grieg Maritime Group
Grieg Seafood
Grieg Shipbrokers
Grieg Investor
Grieg Shipbrokers
Grieg Investor
Grieg Logistics
Grieg Kapital
Grieg Logistics
Grieg Kapital
GRIEG MATURITAS | ANNUAL REPORT 2021
PURPOSE
We will restore our oceans
VISION
Create lasting value through competence, experience and our common efforts
O U R VA L U E S
Solid
Proud
Open
Commited
We contribute to a stable economic foundation and thus ensure business continuity.
We contribute to the welfare of our society, nationally and internationally.
We are honest, exchange ideas and seek to understand and learn from our colleagues.
We care about the job we do, work environment and the people around us.
OUR CORE BUSINESSES
Shipping
THIS IS GRIEG
Aqua
Investment
Management
10 — 11
Board of Directors
Elisabeth Grieg
Per Grieg jr.
CHAIR
B OA R D M E M B E R
Long-term leadership experience from the private
MBA from INSEAD and a master’s degree in marine
sector and other organizations. Holds a degree from BI
technology from NTNU. Several years of experience
Norwegian Business School and the University of San
from the maritime sector and founded Grieg Seafood
Franscisco. Chair of the board at Norled, and member
ASA in 2002. Holds the position as Chair of the board
of the board at Talent Norge, Grieg Foundation, G2
at Grieg Seafood. Board member of Bergen Chamber of
Ocean and Grieg Maritime Group. First female presi-
Commerce and Industry and Proximar Seafood.
dent at the Norwegian Shipowner’s Association.
Camilla Grieg
Elna-Kathrine Grieg
B OA R D M E M B E R
B OA R D M E M B E R
MBA with a major in finance from the University of San
Degree from BI Norwegian Business School and
Francisco and is a Certified Financial Analyst (CFA).
has several years of experience from the maritime
She is Chair of the board at Grieg Maritime Group and
industry. Holds different board positions within
has several years of experience from shipping and the
the Grieg Groupsuch as Chair of the board at Grieg
maritime industry. Chair of the board at GC Rieber and
Foundation, and as board member of Grieg Kapital and
leader of the election committee at DnB.
Grieg Logistics. She is also a board member of Family Business Norway.
GRIEG MATURITAS | ANNUAL REPORT 2021
Nicolai Hafeld Grieg
Nina Willumsen Grieg
B OA R D M E M B E R
B OA R D M E M B E R
Degree in International Business from the University
Holds a degree in Industrial Economy and Technology
of Edinburgh and the University of Hong Kong. Has several years of experience within shipping and logistics. He is head of Grieg Edge, part of Grieg Maritime Group, and board member at Grieg Foundation, Grieg Investor and Rem Nor AS.
Management from NTNU. Several years of experience from the maritime sector, specializing in seafood and shipping. She works in Grieg Seafood as Regional Director Grieg Seafood Rogaland, and holds the position as board member at Ystholmen Felles.
Knut Nesse
Rolv-Erik Spilling
B OA R D M E M B E R
B OA R D M E M B E R
MBA from Norwegian School of Economics and is
Holds a degree in Mathematics from NTNU, and is a
CEO at Akva Group. Has several years of experience
senior executive, venture investor, and serial entre-
from the maritime sector specializing in aquaculture.
preneur. Co-founder of the SW company Gture and
Joined the board of Grieg Maturitas in 2019. Holds
co-founder and Chair of the board at the early phase
several other board positions, and is Chair of the board
investment company Gvalueinvest. Joined the board
at Desert Control AS and Helgeland Plast AS.
of Grieg Maturitas in 2019.
THIS IS GRIEG
12 — 13
The Owner Company Grieg Maturitas Grieg Maturitas is ensuring the owners’ short- and long-term interest in the Grieg Group.
Administration
Elisabeth Grieg
Wenche Kjølås
CHAIR
CHIEF FINANCIAL OFFICER
Long-term leadership experience from the private
MSC in Business Administration and Economics
sector and other organizations. Holds a degree from BI
from Norwegian School of Economics. Experienced
Norwegian Business School and the University of San
CEO and CFO with a demonstrated history of working
Franscisco. Chair of the board at Norled, and member of
with logistics, shipping, seafood and supply chain
the board at Talent Norge, Grieg Foundation, G2 Ocean
industry. Chair of the board at Keolis Norge AS and
and Grieg Maritime Group. First female president at the
MagseisFairfiled ASA, and board member at Slettvoll
Norwegian Shipowner’s Association. Since August 2021,
AS and Grieg Logistics AS.
she has been the CEO of Grieg Maturitas after Sirine Fodstad left the position.
GRIEG MATURITAS | ANNUAL REPORT 2021
Gry Larsen
Marte Leirvåg
L EA D E R S U STA I N A B I L I T Y A N D P U B L I C A F FA I RS
C O M M U N I C AT I O N S M A N AG E R
Former Secretary General at CARE Norway. Several years
BA in Political Science from the University of Bergen and
of experience from Norwegian Politics, serving as both
NTNU. Specialized in foreign policy, organizational de-
president of the Norwegian Labour Youth, State Secretary
velopment and communications. Elected representative
in the Ministry of Foreign Affairs and Political Advisor to
in the City Council of Bergen and has years of experience
the Foreign Minister from 2005-2013. Board member at
working as a Communications Advisor with companies
Grieg Foundation..
across several industries.
THIS IS GRIEG
14 — 15
A Tradition of Giving Back Grieg Foundation Grieg Foundation is a celebration of our responsibility to create a more compassionate society. Our way of saying that there is more to life than business.
Our foundation was established in 2002. Grieg Foundation owns 25% of the Grieg Group. For generations, the Grieg family has wanted to create strong, meaningful change by giving back, by supporting humanitarian, social and cultural aspects of life, and by working in partnerships, encouraging and supporting innovative projects. OUR PRIORITY All
our
work
is
anchored
in
the
Sustainable
Development Goals. In 2020, Grieg Foundation distributed NOK 47 859 800,- and allocated NOK 84 199 800,-. I N G V I L D H E STA D, M A N AG I N G D I R E C TO R
We believe that local engagement sparks improvement in people’s lives. Our role is to empower visionaries, talents and individuals with ideas and a strong sense of purpose and commitment.
Access to quality education is our main priority. SDG 4, inclusive and equitable quality education, and SDG 5, gender equality is at the heart of our purpose. In addition to education projects in Zambia, Malawi, Rwanda, Eswatini, Costa Rica and Brazil, Grieg Foundation prioritised support to several projects in Bergen that help young people with multicultural backgrounds as well as school dropouts to get an education, find work and become active members of society. THE OCEAN The ocean connects our businesses, our people, our future and our past.In line with SDG 14 to sustainably manage and protect marine and coastal ecosystems
GRIEG MATURITAS | ANNUAL REPORT 2021
from pollution, our main project is “Clean ports, clean
patients with high-risk breast cancers and improve
oceans” with WWF. The three-year project aims to
survival outcomes. In 2021, we funded a research
reduce the flow of plastic waste in the Philippines by
project that conducted whole genome analysis of the
improving waste management in ports. The Grieg
tumour tissue from a selected group of patients to
Group companies will contribute with their cutting-
identify specific gene mutations that predict response
edge expertise in this vital project. Grieg Foundation
or lack of response to anti-hormonal treatment before
also completed our project with the Norwegian Refugee
starting therapy at Haukeland University Hospital.
Council to create a green shift in humanitarian aid. We are a small foundation with big ambitions. The HEALTH Grieg
Foundation
employees within the Grieg Group are our most medical
valuable resource. Their hard work and daily efforts
research that can have a wide-reaching impact. We
make it possible for Grieg Foundation to make a
are aligned with SDG 3 to ensure healthy lives and
difference. Together we create change. This is our
focus on women’s health, cancer and cardiac disease.
joint accomplishment. We do not believe profit builds
Biomarker analysis can reduce chemotherapy for
success. People do.
THIS IS GRIEG
supports
innovative
16 — 17
Sustainability at Grieg We Will Restore our Oceans
At the Group level, we have defined SDG 8, 16, and 17 as our license to operate or foundation. These goals represent the groundwork for how we run our businesses, focusing on employee health and wellbeing, inclusive economic growth, transparency, and accountability, and partnering to achieve a greater impact on the sustainability challenges facing the industries in which we operate. In addition to this foundation, we have set ourselves five impact goals, or stretch goals, relating to the areas where we can make a difference and to help us focus our efforts in areas relevant to our business and our stakeholders. These goals relate specifically to SDG 4, 5, 9, 13, and 14. G RY L A R S E N L E A D E R S U STA I N A B I L I T Y A N D P U B L I C A F FA I R S
We have set clear ambitions for all our prioritised SDGs. In 2021 we revised our objectives and KPIs at the Group level. This was done in an inclusive process through the Grieg Group Sustainability Advisory Committee (SAC),
In the Grieg Group sustainability and our commitment
consisting of members of the top management team
to the SDGs is integrated into our business strategy.
from each Grieg company. The Grieg Group companies
For us, the 17 SDGs are interdependent and equally
were also consulted individually. In December, the
important. However, some of the sustainability themes
Board of Grieg Maturitas approved the new objectives
are more relevant to the businesses we operate within,
and KPIs. The operationalising of the objectives and
and it has therefore been natural for us to choose SDGs
KPIs is delegated largely to each company. At the
where we can have the most significant impact and
Group level, the strategy and sustainability objectives
where we also have the largest challenges at an industry
are monitored by the Board, which has the overall
level.
responsibility for ensuring strategic objectives are met. Progress is presented annually.
GRIEG MATURITAS | ANNUAL REPORT 2021
Doing good is the obvious business opportunity Using the UN Sustainable Development Goals (SDG’s) as our framework, we have revised our business strategy to meet the future as a more resilient, innovative and collaborative group of companies.
Another important priority in the Grieg Group in
level. Partnerships between businesses, governments,
2021 was establishing a Human Rights Policy. Our
NGOs, and civil society are equally important in
commitment to respecting international human
ensuring sustainable development and shared value.
rights is anchored in international human rights and
In 2021 several existing and new partnerships have
labour standards, including those expressed in the
been developed. Our membership in the UN Global
International Bill of Human Rights and the Declaration
Compact is of great value. The Grieg Group is also a
on Fundamental Principles and Rights at Work. We are
signatory of the UN Global Compact’s Ocean Principles.
committed to the OECD’s guidelines for Multinational
In 2021 we were part of several initiatives in the UN
Enterprises and the UN Guiding Principles on Business
Global Compact, including the Young Sustainable
and Human Rights (UNGP). Respecting, promoting,
Innovators Program. Over a ten months period, young
and supporting human rights is fundamental to how
professionals worldwide participated in the program
all companies conduct their business within the Grieg
and developed solutions to unique SDG-related
Group, and the policy outlines our commitment, our
challenges within their companies. Kjerstin Hernes
approach, and our responsibility in respecting human
and Ragnhild Høvik from Grieg Maritime Group were
rights in our operations, our value (supply) chain, and
selected to showcase their solutions to an international
in the communities where we operate.
panel. You can read more about our commitment to the UN Global Compact’s ten principles in our
In our sustainability work, partnership is key. We will
Communication of Progress report.
not reach the ambitious targets of the 2030 Agenda without working together internally in the Grieg
One of the main priority areas for our work on SDG 14
Group, with stakeholders along the value chain, across
is contributing to stopping plastic pollution. Within
industries and on a local, national, and international
the Group and in the companies, we work on reducing
THIS IS GRIEG
18 — 19
plastic pollution in different ways. In December 2020,
OUTLOOK: 2021 AND FORWARD
we decided to sign the Business call for a UN treaty
We will continue our journey to ensure sustainability is
on plastic pollution. We believe that by harmonising
firmly embedded at the core of our business across the
regulatory standards, mandating the development of
Group. Our sustainability agenda has been a successful
national targets and action plans, defining common
catalyst for collaboration internally between Grieg
metrics and methodologies, and supporting innovation
companies and externally with partners who share our
and infrastructure development, a UN treaty on plastic
commitment to sustainability. To further strengthen
pollution can help drive the transition to a circular
our work, we will strengthen our internal reporting and
economy for plastic — at speed and scale. Furthermore,
further develop our internal and external partnerships
we continued our three-year partnership with WWF
to take further steps in the realisation of our ambitions.
through Grieg Foundation to identify ways to reduce
A critical part of our work will be to continuously
plastic pollution globally. The project aims to reduce
innovate to meet the challenges of the SDGs.
waste by 50% in three ports in the Philippines, identify ways of scaling efforts globally, as well as identify new
Climate change is the biggest challenge of our time.
business opportunities and partnerships.
At the Grieg Group we will contribute to achieving the goals set out in the Paris Agreement. We will do this by reducing emissions from our businesses and by innovating new solutions that contribute to lower emissions and zero emissions. Reducing our own emissions will continue to be a key priority for the Grieg Group and our companies.
Grieg Group Sustainbility Foundation Goals Be in the lead of the industries in which we operate by: • Fostering a great, inclusive working-environment, with sound economic growth • Creating an inviting, open-minded, transparent and inclusive business-spirit utilizing the strengths of our core business and competency, be an engaged and committed enabler of the SDG 8. Grieg Group´s shared value approach defines the compass by which we navigate when doing business across the world. By spreading these in the areas we work we will continue to enable inclusive, just and accountable business relations and advocate for strong societies and institutions.
We will strive to be innovative to meet the challenges of the SDGs, through new partnerships and cross sector cooperation. We will do this by being honest, exchange ideas and seek to understand and learn from our surroundings. We have an open-minded business approach and strive to create room for action and possibilities, which will enable strong partnerships with both public and private parts of society.
GRIEG MATURITAS | ANNUAL REPORT 2021
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Grieg Group Sustainbility Stretch Goals Employees shall be provided with learning opportunities that promote competence and are aligned with their personal career goals. Each employee should possess the skills and knowledge required to enable Grieg to be in the forefront of the industries in which we operate. Our strategy for competence development shall be aligned with company level business strategies and be based on market trends and customer expectations. We will strive to be in the forefront on diversity within the businesses we operate. We will work towards gender parity at all levels of the organizations in the Group, both for onshore and offshore operations. And we will also promote gender equality and diversity towards business and supply chain partners.
To become a positive driving force for sustainable development we must think big and bold and create a purpose-driven organization with a culture of innovation. To achieve this, we will promote collaboration within and across all companies in The Grieg Group, inspiring, challenging and learning from each other. We will also seek cooperation both among our competitors and our existing partners. We have a vision of zero net emissions operations in all industries in which we operate. We will also continue to be an advocate for zero emissions operations in all relevant industries and increase awareness internally and in dialogue with key stakeholders.
As with climate action, we will work towards a zero-effluent vision. All companies within the Group will work towards this target, but businesses in certain industries will be expected to take greater steps where the impact is greater. Our impact on marine resources will be carefully managed and we will be open and transparent about this impact, as well as the results from the efforts we make to reduce it.
THIS IS GRIEG
20 — 21
Working Together in Times of Unprecedented Change At the beginning of the Covid-19 pandemic in 2020, the Grieg Group successfully formed an Emergency Response Team with members from all Grieg Group companies.
C H E R I N V E RV I K LAWYER, GRIEG GROUP RESOURCES, AND LEADER OF THE EMERGENCY R ES P O N S E T E A M
M A RT E L E I RVÅG C O M M U N I C AT I O N S M A N AG E R
GRIEG MATURITAS | ANNUAL REPORT 2021
“As a result of the Covid-19 pandemic, the Grieg Group has established a strong Emergency Response Team that will be ready to handle other potential challenges that we may meet in the future. In addition, the pandemic has strengthened the bond across the Group, showing us all that we are stronger when we work together, sharing our competence and skills across companies.”
The team continued their work in 2021 and met reg-
monitor the situation in Europe, taking on a different
ularly to provide leaders and CEOs within the Grieg
role than the team had during the pandemic but still
Group with necessary communication and guidance.
doing widely important work. The crisis, which main-
Today and in the future, the team remains prepared to
ly affects our shipping activities through Grieg Mari-
guide us through unforeseen situations that affect the
time Group and has a significant impact on both Grieg
world and our businesses.
Shipbrokers and Grieg Seafood. Moving forward, we will follow the situation closely, and do our very best
As covid restrictions lifted, the focus of the team shift-
to help where we can, and to solve the challenges the
ed from managing the pandemic to considering all the
situation imposes on our different business areas.
knowledge we have gained and using it as inspiration for how we want to work moving forward. We have in-
Although the pandemic taught us alternative ways
creased our collaborative skills and found new ways of
of working, we are delighted to finally see each oth-
working together and communicating even though we
er, have physical meetings, share lunches and laughs
work from home, from different offices, cities, or coun-
and to once again have a coffee break together with a
tries.
colleague. The past two years of crisis have taught to us that things may change in an instant, and that al-
Just as we thought the GG Emergency Response Group
ternative solutions always exist when you need them.
could take a well-deserved break, the world faced a new
Having the Grieg Group Emergency Response team to
crisis. The war in Ukraine has impacted all of us, affect-
guide us, and working together across companies will
ing businesses and operations. The GG Emergency
be a great asset in the future.
Response Group is once again meeting regularly to
THIS IS GRIEG
22 — 23
Group Structure
Grieg Maturitas AS
Grieg Maturitas II AS
Grieg Foundation
Grieg Kapital
Grieg Aqua
Grieg Group Resources
Grieg Investor Grieg Investor Holding AS Grieg Investor AS
Grieg Kapital AS
Grieg Aqua AS
Grieg Holding II AS Rensefiskgruppen AS Grieg Gaarden AS Grieghallen Parkering II AS
Grieg Seafood
Silves Odissey Lda AS Nestun Uldvarefabrik
Grieg Seafood ASA Grieg Seafood Rogaland AS Grieg Seafood Canada AS Grieg Seafood Finnmark AS Grieg Seafood Hjaltland UK Ltd2 Grieg Newfoundland AS Grieg Seafood Norway AS
GRIEG MATURITAS | ANNUAL REP ORT 2021
Grieg Shipbrokers Grieg Shipbrokers KS
Grieg Logistics Grieg Logistics AS
Grieg Maritime Group Grieg Maritime Group AS
Grieg Shipbrokers
Scandinavian Harbour
Grieg Edge AS
Valuation Services AS
Service AS
Grieg Green AS
Grieg Shipbrokers Ltd
Mosjøen Industriterminal AS
Grieg Shipholding AS
Grieg Shipbrokers Asia AS
Grieg Strategic Services AS
Grieg Shipowning AS
Grieg Connect AS
Grieg Star AS
AS Joachim Grieg & Co
Grieg Star 2017 AS Grieg Star Bulk AS Grieg Star Bulk Oh Pool AS Grieg Star Bulk Pool AS GriegMaas AS G2Ocean Holding AS1
G2Ocean Holding AS is owned 35% of the Grieg Group Grieg Seafood Hjaltland UK Ltd was sold December 2021 For more information see note 8 and 9 1
2
THIS IS GRIEG
24 — 25
Grieg Maritime Group CEO Comment
Whilst the conflict has not directly affected our business operations, we are concerned about the effects of energy prices and the destabilisation of Europe from a broader perspective in 2022 and beyond. We continue to monitor this situation closely. Casting our gaze back to 2021, it has been another eventful year. We have dedicated ourselves and our strategy to support the UN Sustainability Goals for some years now. We saw an opportunity to reshape our business and widen our scope through this sustainability-based strategy work. 2021 was the first full year since we renamed the comM AT T H E W D U K E C E O, G R I E G M A R I T I M E G R O U P
In this annual report, we naturally focus on 2021. However, in writing this in March of 2022, we are deeply saddened to see war in Europe, with a shocking humanitarian crisis unfolding in Ukraine. We sincerely hope a peaceful solution will be found soon.
pany “Grieg Maritime Group”, and we have worked systematically to strengthen each of our business units. To deliver on our strategy, we need to have the best talent. So we have focused on strengthening our people and culture, following a pioneering “Sustainable Coworkership” program. In a world of rapid change, we need to make the right decisions and learn quickly from our mistakes. We believe that having a diverse culture that encourages debate and positively challenges the best solutions and business opportunities is better than a pure command-and-control structure. 2021 was a strong year with solid performance across the group. We saw a strengthening of our core Open Hatch market through our Joint Venture, G2 Ocean. In addition, we successfully reorganised Grieg Green
GRIEG MATURITAS | ANNUAL REPORT 2021
to account for changing market conditions. Grieg
The general availability and costs of spare parts push
Star provided world-class Ship Management services,
our OPEX upwards. Every step of the way, our team
bringing several vessels back under internal manage-
work hard to find the best possible and most effective
ment.
solutions.
Grieg Edge successfully signed multiple new business
Typhoon Rai hit the Philippines at the tail end of the
contracts and has been awarded green funding. Our
year and caused significant harm to people and their
Ship Owning team timed the exit of our conventional
homes. Our employees and the business have provided
bulk investments to deliver profit. With excellent sup-
direct support to the communities affected. A special
port from our corporate team & IT, we have modern-
fund has been utilised to provide extra support to our
ised and digitalised several critical lines of business
crew and their families.
applications. As a result, we are making great strides towards being a truly data-driven business.
In this background and continuing challenges from the pandemic, we thank the professional dedication of our
This performance is also reflected in our financial
employees, partners, board and owners.
results. Grieg Maritime Group’s operating profit increased to USD 53.7m in 2021, with a profit after tax
Together, we have led Grieg Maritime Group back into
of USD 38.0m. This is our strongest performance for
profitability and provided an exciting opportunity for
many years, and we use the opportunity to strengthen
further delivering on our strategy in 2022: Build new
our foundations, providing a solid platform for future
sustainable business, ensure world-class operations,
growth.
take a leading role in the maritime green shift, and implement clear ownership strategies.
Despite a commendable performance, there remained plenty of unpredictability and surprises in 2021. We
Together, those four pillars support our end goal: To
continue to face Covid related challenges on our ships
create maritime solutions for a better future.
and are grateful that the vast majority of the crew are now fully vaccinated. Crew changes remain expensive, complex and tiring for our loyal sailors. We face off-hire situations in port operations and when waiting for Dry Docking. Our companies
26 — 27
People at Grieg Vilde M. Lyngstad Hageselle
GRIEG MATURITAS | ANNUAL REPORT 2021
If someone asked Vilde Hageselle five years ago what her dream job was, the answer would be working with sustainability in the shipping industry. Today that is exactly what she does – and she has been named one of this year’s 10 Women to Watch in Shipping for doing so.
“IF YOU WORK HARD ENOUGH, YOU CAN ACHIEVE ALMOST ANYTHING” “After studying marine biology and then working a few years in a shipping company, I had my eye on Grieg Green. I’ve always thought that if you work hard enough for something, you can achieve almost everything. So I put my effort into it, and here I am,” says Vilde. As a Market and Environmental Analyst at Grieg Green, her job entails, among other things, analysing the market, researching new services for the company, and staying updated on the sustainability field. “It’s an exciting and rewarding job. I get to work with highly skilled people, and I gain insight into the environmental issues we as a society are up against. Currently, she is contributing to a collaborative project between the Grieg Foundation and the World Wide Fund for Nature (WWF), entitled “Clean ports, clean oceans. Improving port waste management in the Philippines”. The project aims to reduce plastic waste by 50% in at least three Philippine ports by 2023. THE RIGHT SPIRIT Speaking with Vilde, it doesn’t take long before you pick up on her energy level. She describes herself as a morning person, often getting up before 6 AM to get the most out of the day.
Off-topic My role model: It’s a bit cliché, but I have to say my mum and dad. It’s because of them I have an interest in the maritime industry. The most important advice I’ve received: Just do your best – and even if you screw up, no one will die. A colleague gave me that advice, and I use it to remind myself that it’s ok to make mistakes. Gadget or app I can’t live without: Spotify – I listen to music constantly. Favorites are Rüfus Du Sol and Dagny. If I was prime minister for a day: I would give students more money, increase the penalty for animal abuse, and invite myself to visit Angela Merkel. If I could live another person’s life, it would be: I’d like to be a cancer researcher. Molecular cell biology was my favorite subject in university, and I think it would be a challenging but rewarding job.
But in addition to getting in the hours of the day, she seems to have an unusually high work capacity. So, what’s the secret? “My attitude has always been that working hard and having the right spirit and work ethic will get you where you want to be. I get my drive and energy by
Vilde M. Lyngstad Hageselle
being open and sharing of myself, and I try to provide
• 28 years old
some fun and humor during the workday. I think I’m able to motivate others and contribute to a good work environment.”
• Bachelor’s degree in Marine biology from Heriot-Watt University in Edinburgh • Grieg Green, located in Oslo
10 WOMEN TO WATCH IN SHIPPING Vilde’s skills and spirit are being noticed. This year, she has been named one of 10 Women to Watch in Ship-
Our companies
28 — 29
ping – an award hosted by Nor-Shipping, YoungShip,
Here, she is responsible for the organisation’s social
and WISTA (Women’s International Shipping & Trad-
media, sponsorships, and branding. She has also start-
ing Association).
ed a monthly column called “Friday cuppa coffee,” where she invites leaders from different areas in the
Among the criteria for the nomination are ambition
industry to participate.
and passion for the maritime industry and its future development, having demonstrated the ability to in-
“I consider myself very lucky getting to know so many
spire others, and a willingness to teach and share
talented and accomplished people and contributing to
knowledge with others.
exciting content and engagement for YoungShip. It’s a good feeling, helping to create a platform for young
Vilde is also the Head of Communication in Young-
people where they can meet like-minded people, build
Ship, a professional non-profit organisation for young
a network, and get friends and memories for life.”
people working within the global maritime industry – for which Grieg Group has sponsored several events.
GRIEG MATURITAS | ANNUAL REPORT 2021
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30 — 31
Grieg Shipbrokers Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. We provide a full range of services, covering every aspect of vessel financing, contracting, sale and purchase, chartering and operations, backed by rigorous research and analysis.
Grieg Shipbrokers achieved a solid financial performance in 2021 thanks to our dedicated colleagues and strong shipping markets. With revenue growth of more than 60% last year turned out to be our most profitable year in the company’s 138 year-long history. The company is well-positioned for sustainable growth within our core segments. We continue our endeavors to build a strong organization and remain committed to attracting talented individuals who will complement our existing teams. I am confident that Grieg Shipbrokers is in a good position, both financially and organizationally, to continue M O RT E N M Ü L L E R CEO GRIEG SHIPBROKERS
GRIEG MATURITAS | ANNUAL REPORT 2021
to provide value-added shipbroking and financing services for the coming years.
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32 — 33
People at Grieg Marit Eiken Fosse
HOPING TO INSPIRE WOMEN TO CHOOSE THE MARITIME INDUSTRY “Coming from Ulsteinvik, a town more or less built on the shipyard industry, the maritime industry has al-
Despite it being an extremely male-dominated business, Marit knew early on that she wanted to be a shipbroker. Last summer, she landed her dream job and is the only woman in her department.
GRIEG MATURITAS | ANNUAL REPORT 2021
ways been an obvious career option. But the engineering jobs, like ship design, were never really something I considered: I love working with people, and I love negotiating,” says Marit Fosse. Already at the start of her shipping management studies, she had decided that being a shipbroker was what she wanted.
When mentioning her ambitions to a school friend who happened to work at Grieg Logistics, she informed her about an open position at Grieg Shipbrokers. In June last year, Marit started her new job. “This early in my career, it’s all about building trust and a network, and I definitely feel like I’m well on my way. I love the fact that we operate in an ever-changing market, and that every day is different.” INSPIRING DIVERSITY Marit hopes that she can inspire more women to choose a job in the maritime industry, especially as shipbrokers. Out of about 40 employees in Grieg Shipbrokers, only three are women. But she emphasises that it’s not because the company doesn’t focus on diversity. “I definitely get the impression that Grieg has equality and diversity on the agenda and wants to recruit more women. And the work environment here is great – we’re a very close-knit group, and I really feel welcome and that I fit in,” she says. TRAINEE BLUE SEA Outside of work, Marit is a part of the network Trainee Blue Sea, arranged by the foundation Maritime Bergen, of which several of Grieg Group’s subsidiaries are members. The network aims to lower the threshold for maritime companies to hire new graduates by assisting with recruitment and offering a 12-month tailor-made
Off-topic My role model: My mom. She’s hardworking and doesn’t give up until she’s achieved the optimal result. She’s imprinted in me to never do anything half-heartedly. The most important advice I’ve received: Go hard or go home. I used to be a gymnast, and that’s a common expression in the community. Gadget or app I can’t live without: Snapchat. That’s where I keep in touch and stay updated on my family and friends that live far away. If I was prime minister for a day: I would implement measures for making Norwegian shipyards more globally competitive. If I could live another person’s life, it would be: Queen Sonja. Because King Harald’s mother died quite young, Queen Sonja shaped her own role as Crown Princess. I think that’s pretty cool. She also gets to see and experience Norway and our culture, politics, and people in a unique way.
trainee program. The network also has regular events for the trainees, covering different topics within the industry, such as sustainability and the green transition in the maritime sector. “The Trainee Blue Sea network gives new graduates and newly-hired a platform for exchanging knowledge and experience and learning about career possibilities and the different maritime companies in the area. And not least, you meet other young people in the industry and get new friends and business contacts. It’s so val-
About Marit Eiken Fosse • 26 years old • Bachelor’s degree in shipping management from NTNU Ålesund • Grieg Shipbrokers, located in Bergen
uable!”
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34 — 35
Grieg Logistics Grieg Logistics is an international provider of ships services, advanced digital systems, and industrial terminal operations in Norway and other countries. They operate within energy, shipping, maritime and general industries.
We have made some strategic changes in our company. To maintain our status as a national maritime technology provider to ports and terminals, we have decided to rearrange our business to meet the future as more robust and current. Grieg Connect, the vital core of our overall business, is now in a scale-up position, and we have invested both capital and time in the respected company during 2021. Grieg Connect is now at the core of our business, ensuring that we apply technology to every delivery from Grieg Logistics. The foundation of our business strategy is embedded in the UN Sustainable Development Goals. However, in addition to the Grieg Groups’ foundation and stretch ST I G T RYG V E A N D E R S E N C E O, G R I E G LO G I S T I C S
In 2021, several changes had an impact on our company. First, Michelle Williams stepped down as CEO in August to pursue other challenges outside the Grieg Group, and I was lucky enough to take over the vital role of CEO of Grieg Logistics.
goals, goals number 4 – quality education, 5 – gender equality, 9 –industry, innovation, and infrastructure, and 11 - sustainable cities and communities, are the most important ones. In Grieg Logistics, we highly rely on customer relations and essential partnerships. It is delightful to witness that we create value for all customers, such as Alcoa in Mosjøen (Mosjøen Industrial Terminal (MiT), and Hydro, being the largest ones. We also cooperate closely with Inchcape Shipping Services, a world-leading marine services and supply logistics provider. It is also a pleasure to watch how Grieg Connect plays a crucial role in almost every port and terminal throughout Norway. Vidar Fagerheim and his team have secured new
GRIEG MATURITAS | ANNUAL REPORT 2021
partnerships during 2021, the port of Oslo and their
platform is designed to remove complexity and create
digitalisation project being the largest one
a level playing ground for everyone obliged to report their emission in Norwegian waters. The digital plat-
The dawn of the 2-year long pandemic has been essen-
form is available to all Norwegian shipping companies.
tial for Grieg Strategic Services. The Norwegian Armed
In addition, international shipping companies will
Forces are their only client, and finally, operations and
gain access through their agents. GSS is the first ship
exercises can be carried out as planned. When writing
agent to use the platform, and we hope others will join
this, GSS is working hard to make sure everything goes
them.
smoothly at the Norwegian-led exercise Cold Response 2022.
Grieg Logistics will take an even more significant part in the crucial digital shift in the maritime industry, pro-
As for Grieg Logistics Shipservices, the market has fi-
viding advanced technology to partners and customers
nally stabilised and is now better than it has been for
across sectors and countries. Because of our dedicated
many years. Together with core operations, GSS has
colleagues, we are well on our way to our strategic time-
partnered with Yxney Maritime and Grieg Connect.
line and look forward to the future.
Considering the increased need for precision and transparency in emissions reporting, Grieg Connect
Our mission is to create results through innovative and
and VPS Yxney Maritime have developed NOxDigital –
sustainable logistics solutions for our customers.
a solution to make adherence to emission regulations less of a challenge for vessel owners and operators. The
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People at Grieg Hans Peter Kibsgaard
GRIEG MATURITAS | ANNUAL REPORT 2021
As the COO of Grieg Strategic Services (GSS), Hans Peter Kibsgaard gets to use both his military experience from the Special Forces and his middle school logistics experience as a chocolate milk salesman.
BRIDGING THE GAP BETWEEN THE MILITARY AND CIVILIANS “Joining the Armed Forces had always been a dream for me. I started as a paratrooper for a year, before joining the Naval Special Operations Commando, where I stayed for ten years. I loved that job, and I looked forward to every single day at work. But for me, it wasn’t very compatible with being a family man,” Hans Peter says. When looking for a more family-compatible job, Hans Peter knew he wanted something where he could tap into the knowledge and competence he built in the Armed Forces. When he learned about GSS, it didn’t take long to realise it was a good fit. “In the Special Forces, you learn how to be creative, to come up with plans the enemy doesn’t expect. You also need to be solution-oriented and structured and have the determination and discipline to follow through despite resistance. I get to use all that in my job in GSS.” COLLABORATING WITH THE MILITARY Grieg Strategic Services has a strategic agreement to provide logistics services to the Norwegian Armed Forces. The company has security-cleared project managers co-located with the National logistics operations centre, who use the Grieg Group’s expertise, resources, and network to deliver its services. By having
Off-topic My role model: My wife. She’s driven, warm, great at meeting and really seeing people, and she always has good reflections and arguments. The most important advice I’ve received: Every action has a reaction. My father gave me that advice. It’s about being conscious of every choice you make. Every choice has consequences – either for you or for others. Gadget or app I can’t live without: iPhone and podcasts. If I was prime minister for a day: I would build the Armed Forces without any district political ties. If I could live another person’s life, it would be: The president of the United States. I assume that he learns and experiences a lot of exciting things, and he’s in a position to contribute to making the world a better place.
project managers with both civilian and military experience, the company has a unique ability to provide tailor-made solutions. In his position at GSS, one thing drives Hans Peter more than anything else: trying to optimise the collaboration between the military and civil society.
About Hans Peter Kibsgaard
Strategic partnerships between the Armed Forces and
• 36 years old
civilian companies started to gain traction in 2015, and still, only a few parts of the army are used to collaborating with civilians.
• Bachelor’s degree in Management from BI Norwegian Business School • Grieg Strategic Services, located in Oslo
“My goal is to build an assurance in the army that civilian companies can be a reliable resource and deliver high-quality services. To be cost-efficient, we have to
Our companies
38 — 39
make common use of available resources. I believe al-
In recent years, he has used his initiative to work for an
lowing civilians to support logistics, health, and other
association called Neste Steg (Next Step). The associa-
areas that don’t require military training, and letting
tion, of which Grieg Group is a partner, helps veterans
the Armed Forces focus on what they do best, is the
and retired professional athletes bridge their experi-
way to go.”
ence, knowledge, and competence from the military and athletic career to a civilian one.
CHOCOLATE MILK AND VETERANS There is little doubt that Hans Peter is a man of initia-
“Being in the military gives you so much experience.
tive. This was apparent already in middle school when
But the longer you’re in the military, the more adjusted
he was annoyed that the school cafeteria didn’t sell
to that world you become. Veterans tend to speak in a
chocolate milk. It didn’t take long before he organised
way that civilians don’t understand, making them feel
his own chocolate milk sale, with the profits contribut-
like they don’t have anything to contribute. But they
ing to financing a school trip.
possess so much knowledge. Next Step helps them build awareness of their own competence and poten-
According to him, that’s where he first discovered a knack for logistics.
GRIEG MATURITAS | ANNUAL REPORT 2021
tial,” Hans Peter explains.
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40 — 41
Cold Response: Ensuring a Smooth Operation for 30,000 Soldiers
GRIEG MATURITAS | ANNUAL REPORT 2021
Right now, thousands of soldiers are gathering in northern Norway for the military exercise Cold Response. But behind the scenes, Grieg Strategic Services (GSS) has already been working hard for months to make sure everything goes smoothly.
“While the exercise itself only lasts for a few weeks, the
it. Experiencing the other side of it in my job in GSS is
logistics required to transport and organise all person-
very interesting. And I think that having experienced
nel and materials is extensive. The first shipments ar-
both sides is definitely beneficial, knowing what is
rived before Christmas, and the last will leave in May,”
needed and what is noticed.”
Hans Peter Kibsgaard, COO of GSS, explains. Having signed the strategic agreement with the NorThe Norwegian-led exercise is held every second year.
wegian Armed Forces in 2017, this is the third Cold
Cold Response 2022 will test air, sea, and land elements
Response exercise GSS has contributed to. They also
and gathers more than 30,000 soldiers from 27 coun-
contributed during the 2018 Trident Juncture exercise,
tries. In addition to units from all the branches of the
which was NATO’s largest exercise since 2002, hosting
Norwegian Armed Forces, several civilian directorates,
50,000 participants from 31 nations.
units, and organisations are set to participate. SUPPORTING THE ARMED FORCES Making sure everyone arrives when and where they
However, GSS’ agreement with the Norwegian Armed
should and that they have the right equipment, accom-
Forces goes beyond exercises. The aim is to strengthen
modation, and food, is no small task. That means that
their operational capability and preparedness through
help from strategic partners, such as GSS, is crucial.
logistical support of operations and exercises nationally and internationally, including the support of allied
“A lot of our contributions are connected to maritime
forces.
activities, such as receiving, unloading, and loading vessels. For us, it’s important to help promote Norwe-
GSS will also provide civilian coordination and man-
gian interests and security. We benefit from having al-
agement of strategic logistical cooperation in peace,
lies here, training for efficient operations in our envi-
crisis, conflict, and war. In addition, they cover the
ronment. Contributing to facilitating that is in our best
Armed Forces’ need for support in planning and imple-
interest,” Hans Peter says.
menting maritime operations and maritime support for visiting units.
COMBINING CIVILIAN AND MILITARY EXPERIENCE
The company has security-cleared project managers
One of GSS’s strengths is having project managers
co-located with the Norwegian Joint Logistic Staff
with both civilian and military experience, providing a
Group, who use the Grieg Group’s expertise, resources,
unique ability to deliver tailor-made solutions.
and network to deliver its services.
As COO, Hans Peter oversees the strategic partner-
One of them is Odd Are Sletten, who has been leased
ship with the Armed Forces. He has spent more than
to the Armed Forces as acting Chief Planning and Pro-
ten years as a soldier in the Naval Special Operations
duction and Project Manager for all maintenance of
Commando and has participated in the Cold Response
the Navy’s surface vessels since June last year. You can
exercise several times.
read more about his experiences working in GSS and with the Armed Forces [here].
“I was used to just being served excellent logistics without even thinking about all the work that laid behind
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Grieg Seafood
At the end of the year, the pandemic was in a new phase, with eased restrictions and increased demand for salmon. The biological condition of our fish had improved significantly, with increased survival in all regions and better sea lice and disease control. Altogether, we harvested more fish than we have ever done before in a single year. I want to sincerely thank all of my Grieg Seafood colleagues for pulling together and turning the company around. During the year, we reached several milestones in our 2025 business strategy. With the sale of our Shetland operations, we narrowed the company’s focus to the production countries where we see the largest potenA N D R E A S KVA M E C E O, G R I E G S E A F O O D
2021 was a year of contrasts. At the beginning, we were still in the middle of the Covid-19 pandemic, with health and safety measures in place throughout our operations and markets in lockdown. We also experienced a challenging biological situation in several regions.
tial for profitable and sustainable growth: Norway and Canada. With a healthy balance sheet, we are well positioned to engage in growth opportunities in these regions. Last year, our internal global sales organization also became operational. We are now able to work fully integrated between farming and sales, allowing us to improve our performance in the market. We are also making progress on our downstream strategy, and we are currently delivering value added products from both our Norwegian and Canadian operations. This work will continue at full speed in 2022. In 2021, each region made progress towards our goals. Rogaland delivered strong biological results and continued to advance our post-smolt strategy, which reduces the time our fish spend in the ocean. For the first time, we harvested fish after only 10 months in the sea. Moreover, 40 percent of the pens harvested in Rogaland never needed any sea lice treatments, due to preventative measures. Finnmark significantly improved control over winter ulcers and disease through-
GRIEG MATURITAS | ANNUAL REPORT 2021
out the year, and delivered a solid performance in the
which rates global protein producers according to sus-
second half of 2021, marked by improved survival rates.
tainability, as well as an A list rating by CDP for climate
British Columbia made further progress in controlling
action. Still, the majority of the work is ahead of us. We
the impact of harmful algae blooms and low oxygen
must continue to roll up our sleeves and improve.
levels. With our locally developed mitigation systems, we reduced mortality caused by harmful algae from 3.4
It is when times are tough that the truth about who we
percent in 2019 to 0.4 percent in 2021. Newfoundland,
really are emerges. Despite challenging times in 2020
despite the postponed transfer of fish, is on track to
and the beginning of 2021, we carried on all the way
start sea operations in the coming spring.
to the other side without compromising on our values. That makes me proud, and I know it has made us
Our ambitions on sustainability remain steadfast.
stronger. While we cannot predict the future, we know
While food from the ocean has a good starting point,
that new uncertainties will continue to appear in a glo-
we have several challenges to solve to be a true solution
balized world. As I am writing this letter, a terrible and
in a future sustainable food system. Grieg Seafood is
heartbreaking war is unfolding in Ukraine, and Europe
committed to reducing our impact and improving fish
suddenly find ourselves in a new geopolitical situation.
welfare. During 2021, we made progress on certifying
What we least expected has sadly become a reality. In
our farms according to the Aquaculture Stewardship
2022, Grieg Seafood is in a better shape than ever to
Council (ASC) certification with 62 percent of our pro-
adapt to the unknowns, respond to changes and grasp
duction now certified. We were pleased to achieve sec-
the opportunities that lie ahead.
ond place on the Coller FAIRR Protein Producer Index,
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44 — 45
Grieg Seafood joins forces with 17 leading industry and research institutions in push to develop low-emission offshore aquaculture The consortium aims to reduce the environmental impact and improve fish welfare through innovations within offshore and closed technologies, biology, fish feed, electrification, digitalization and logistics. The project is granted 96 million NOK from the Norwegian Research Council.
“Offshore aquaculture has the potential to be a solution in a more sustainable global food system. However, there are many challenges to address before we get there. Industry and research institutions are now launching the largest ever effort to develop these solutions,” says Ragnar Tveterås, professor at the University of Stavanger, who coordinates the consortium. The aim of the project Low-emission value chains for ocean-based aquaculture is to deliver new knowledge and innovations enabling offshore aquaculture to contribute to lower carbon emissions, reduce the environmental footprint to protect marine biodiversity and optimize fish welfare. Offshore aquaculture also entails R AG N A H E G G E B Ø G LO B A L R & D M A N AG E R O F G R I E G S E A FO O D A S A
GRIEG MATURITAS | ANNUAL REPORT 2021
new challenges that must be solved, such as farming in harsh weather conditions.
Specifically, the project aims to deliver innovations in
as The Norwegian Veterinary Institute, The Institute
the following areas:
of Marine Research, NORCE, Norwegian University of Life Sciences, Norwegian University of Science and
• Sustainable feed for underwater feeding offshore
Technology, University of Bergen, University of Sta-
• Robust post-smolt in closed-containment facilities
vanger, Western Norway University of Applied Scienc-
at sea • Electrification of offshore farming
es, Simula, University of Melbourne and University of Florida.
• Control systems for semi-autonomous offshore fish farms
“To Grieg Seafood, it is evident that our industry must
• Better fish welfare and increased survival
reduce our footprint and improve fish welfare if we
• Improved logistics at sea
are to realize the growth potential we have in Norway
• Improved competence, knowledge and technology
through new areas and production methods. A major
to develop environmentally, economically and so-
push like this project, where research institutions and
cially sustainable value chains for offshore aquacul-
industry collaborate to find solutions, is exactly what
ture
we need. Grieg Seafood look forward to contributing
Grieg Seafood provides its leading expertise within digital aquaculture to the project.
with our leading expertise within digitization, but also to learning from other partners. Together, we will realize the potential inherent in offshore aquaculture,”
Parties engaged also include companies like Skretting,
says Ragna Heggebø, Global R&D Manager of Grieg
SalMar Ocean, Moreld Aqua, FishGlobe, Hauge Aqua
Seafood ASA.
and Blue Planet, as well as research institutions such Our companies
46 — 47
Grieg Investor
A year unlike most others Last year, we named 2020 “The Different-Year.” If only we had known. When 2021 began with the storming of the US Congress, incited by the outgoing president, we could hardly believe the scenes that unfolded. Later in the year, Angela Merkel stepped down after 16 years as one of Europe’s most powerful politicians, while Jonas Gahr Støre won the election and took over as Norway’s Prime Minister after Erna Solberg. ABBA released a new album, which was completely overshadowed by the pandemic that flared up again, with all the challenges it brought the world that thought the worst was over. 2021 has in every way been an eventful year. T I R I L J A KO B S E N C E O, G R I E G I N V E S TO R
Despite many uncertainties last year, the stock market proved highly robust in 2021. It has been a formidable stock market year where both global equities and Nor-
When summarising the year that has passed and looking towards the one to come, a picture of several games of tug-of-war pulling in different directions emerges. Infection versus vaccine, economic fundamentals versus speculative trends, increased interest rates versus increased stock prices, transitory versus persistent inflation, and central banks as tailwinds or headwinds.
GRIEG MATURITAS | ANNUAL REPORT 2021
wegian equities were up well over 20% in Norwegian kroner. However, if we dig a little deeper into the figures, we see that the stock market in 2021 differs significantly from that of 2020. What has done well and what has done poorly has been turned upside down. WINNERS AND LOSERS The energy sector emerged victorious in the past year, with a return of just over 40% in Norwegian kroner. This is perhaps not so strange, given the galloping energy prices. In addition, bank and financial shares have risen due to higher interest rates. There has also been a power struggle between value and growth shares throughout the year. It almost ended in a draw, but value stocks took a narrow victory for the first time since 2016. IT stocks have continued to do well, but it was
MOVING CAPITAL CAN CHANGE THE WORLD Our companies
48 — 49
not enough to land the victory for the growth stocks.
ers choose not to invest as the regulatory uncertainty is
It is also observed that in periods when interest rates
still very high.
increase on long-term bonds, value stocks tend to do well.
2021 was also a weak year for fixed income investments with a negative return for both global and Norwegian
At the bottom, we find cyclical consumption. This sec-
bonds. With largely stable credit margins, increased
tor has been a winner from 2017 to 2020, with compa-
government interest rates were decisive in pushing the
nies such as Amazon, Alibaba, and Tesla. The USA be-
return on safe bonds in the red. On the other hand, it
came the best region, while Europe fell behind when,
was a strong year overall for more risky bonds. As in
among other things, the German market developed
the stock market, the big disappointment was emerg-
relatively weakly. However, the biggest disappoint-
ing markets, where dollar bonds fell, driven by Chinese
ment on a regional basis in 2021 was emerging mar-
bonds in the real estate sector.
kets, where Brazilian and Chinese stock markets fell sharply. China was hit from several angles: a weaker
And precisely because 2021 was a year that few could
economy and real estate sector, investors’ concern for
have imagined, it is all the more gratifying to be able to
increased regulations, and not least, the ban on private
report that our customers had a year with an excellent
education companies making money on large parts of
return. Together, our customers had a return of just un-
their businesses, in essence wiping out several players
der NOK 10 billion in 2021.
at the stroke of a pen. At the beginning of 2022, China is thus an unloved market, where several fund manag-
GRIEG MATURITAS | ANNUAL REPORT 2021
WE WILL BE NORWAY’S LEADING ADVISOR IN
TECHNOLOGY, PEOPLE, AND CULTURE
SUSTAINABLE INVESTMENTS
There is no doubt that in the years to come, we will
The world faces significant sustainability challenges,
experience both “different-years” and years unlike
which create both risk and opportunities for investors.
other years, or that we must agree with folk singer
Our job is to help our customers navigate this troubled
Øystein Sunde that it was an extra steep year. I am
landscape. But our work with sustainability is not just
also convinced that we at Grieg Investor have chosen
about what footprint you leave behind as an investor.
the right strategy for success, no matter what year we
It is about understanding how to best position yourself
enter. Our ambition is to be the best in our class and
for return. It is possible to combine a positive contri-
to be able to give our clients wise, sustainable, and
bution to sustainability and at the same time generate
profitable advice. Our dedication over several years
a good return – and this is where we provide the best
to combining technology with skilled employees and
advice.
a clearly defined internal culture is what will make us succeed. This is not about reaching a goal that will ever
The ambition to be Norway’s leading advisor in sus-
be achieved. It is something that must be done every
tainable investments has been rooted in our overall
single day, every single year, and by every single one of
business strategy for many years. This requires contin-
us. And luckily, it is something we enjoy doing.
uous investments and a clear focus in our organisation and is integrated into all four of our core deliveries: investment strategy, manager selection, transactions, and reporting.
Our companies
50 — 51
Grieg Kapital Grieg Kapital is a unifying investment and asset management company within the Grieg Group. The company’s mandate is to preserve and strengthen the Groups financial assets as well as invest in companies and sectors of interest to the Group.
Grieg Kapital is invested directly in early-stage growth companies within technology, aquaculture and the maritime industry. GRIEG KAPITAL INVESTMENTS Being the Grieg Group’s financial company, Grieg Kapital ensures the Group’s financial assets. Despite many uncertainties during the year, the stock market has proved highly robust in 2021. It has been a formidable year for financial markets where global and Norwegian equities were up well over 20 % in Norwegian kroner. Grieg Kapital exposed over 350 million NOK in the financial markets through its liquidity portG R I E G K A P I TA L I N V E ST M E N T S
Grieg Kapital is the Grieg Group’s investment company, that owns (among other things) Grieg Gaarden, parts of Grieghallen Parkering, and parts of Rensefiskgruppen.
folio during the year and assured high returns through our collaboration with Grieg Investor. OUTLOOK: Witnessing a war in Europe is shocking to us all. The war affects the international community the economy and the capital markets in different ways, and we expect the markets to cool off as energy prices rise, along with oil prices. At Grieg Kapital, we have just hired a new financial manager and expect a new CIO to move the company forward, in alignment with the company’s strategy to invest more and secure a higher revenue for our owners.
GRIEG MATURITAS | ANNUAL REPORT 2021
DOING GOOD IS THE OBVIOUS BUSINESS OPPORUNITY
Our companies
52 — 53
Grieg Group Resources Grieg Group Resources AS is a shared service center for the companies within the Grieg Group. They represent an important support function for the Grieg Group, delivering services such as ICT, HR and personnel, operations, procurement, insurance, finance, accounting legal and compliance.
Other challenges are now facing us, as we see an increased frequency of cyber-attacks and a demand for an even more digitalised work environment. I want to highlight two projects that have been critical for us in the past year. The first one is Grieg Digital, a financial reporting system for all Grieg Group companies, developed in 2021. The project is steadily led by our Finance Manager Christian Sandquist Smith and his team, and is now facing the end of development. The goal is to provide stakeholders and board members with a better foundation when making decisions. Another vital project developed in Grieg Group ReW E N C H E KJ Ø L Å S CEO
sources is the compliance project led by Cherin Myrdal Vervik, our lawyer. Facing strong regulations and the endless need to be in front, the Grieg Group has man-
Grieg Group Resources acts on behalf of the Group and helps with coordination and fulfillment of joint meas-
aged to secure up-to-date compliance regulations and policies that apply to all Grieg Group companies. One
ures and specific projects.
example is the upcoming Equality and Diversity Policy
At the beginning of 2021, we still had to live with un-
Public Affairs.
certainties for the year ahead. The pandemic still challenged us, working remotely and not being able to see our colleagues for a long time. Luckily, society reopened gradually, together with our offices and social events. In Grieg Group Resources, being able to meet colleagues again and discuss issues and solutions, is a vital part of our day-to-day work.
developed by Gry Larsen, Leader of Sustainability and
We strive to ensure the best deliveries to our customers. With several new recruitments coming up, such as our new CISO – Chief Information Security Officer, and Administrative Coordinator, I believe we are well set for the days to come. Grieg Group Resources are also operating Grieg Gaarden in Bergen.
GRIEG MATURITAS | ANNUAL REPORT 2021
Our companies
54 — 55
People at Grieg Jan Inge Krokeide There are many people working behind the scenes to make the Grieg Group’s systems work as smoothly as possible. One of them is Jan Inge Krokeide (38): –Technology is at its best when no one notices it.
A KEYMAN IN AN “INVISIBLE” JOB – Our job is to make it easier for our colleagues to do their job, says Jan Inge Krokeide. At the head office in Bergen, he plays a key role at the Grieg Group’s IT department. From here, servers and networks are operated, and support systems and equipment are updated. BEYOND ROUTINE TASKS The days start with a brief, planning routine tasks together with the other IT colleagues in their corner on the sixth floor. But these plans are often replaced by the need to solve unforeseen problems. He thrives when the problem-solving leads to better everyday lives for the employees.
GRIEG MATURITAS | ANNUAL REPORT 2021
– It can be as simple as helping someone who has an
SMALL TALK IS KEY
impractical desk setup. By giving some tips or setting
Jan Inge describes himself as a technologist - a fan of
aside five minutes to help them optimize their desktop,
everything that runs on electricity. But that does not
I might save them hours of frustrations.
mean he sets technology over people.
At the other end of the scale, it could mean going
– When everyone worked from home, the meetings
to work on a Saturday because a power outage has
became more efficient, and small talk came down to a
knocked out half of the infrastructure, and it needs to
bare minimum. But I feel it is an important part of work
be sorted out before Monday morning.
life. If you are going to have a good working relationship with your colleagues, you need to know a little bit
Jan Inge loves these unforeseen days, but with the co-
about how they are doing and what they do outside of
rona pandemic, everyday work changed overnight.
work.
– It was hectic for the first two weeks, then everything
He praises the good unity between the colleagues in
started working out. People adapted quickly and our
Bergen.
core systems did exactly as we hoped. Solved problems instead of causing them. In the last lockdown it almost
– There was never any question of whether my col-
got boring.
leagues in Grieg Group Resources wanted to work mostly from home or the office after the close-down.
System updates and planned changes were put on hold
Everyone wanted to return to the office, and that says
to prevent us from ruining the flow of people in the
a lot.
home office. THE ANNUAL 800 STEPS – I really missed the buzz and the everyday challenges
With a challenging job, it’s important to be in good
at the office.
physical shape. There are a lot of active people in the
INCREASED THREAT PICTURE
Grieg Group, and there’s a long tradition of corporate sports.
During the corona pandemic, there were an ever-increasing number of cyber-attacks against the Grieg
In Bergen, Jan Inge is a facilitator for Grieg Team, mak-
Group. Fishing for employees’ usernames and pass-
ing physical activity a natural part of the work life.
words, to get access to sensitive information, is still a
Grieg Team has strength training and circuit training
big threat.
with an instructor twice a week, and several regular activities during the year.
– This is an important area of focus for us, together with our partner Visolit. Our systems stop many at-
In addition, he is the facilitator for Grieg Team’s reg-
tacks every day.
istration for the annual Stoltzekleiven Opp. The uphill race goes up to one of Bergen’s seven mountains, ap-
For the employees in the Grieg Group, this may mean
proximately 800 steps from the starting line.
extra authentication steps, but in Jan Inge’s experience, the colleagues have a great understanding of the
– Everyone dreads Stoltzen. No one looks forward to it.
importance of the security measures.
You just look forward to finishing.
– No one wants to be the one who lets someone into the
Nevertheless; a lot of people have stood on the starting
system - who sent money the wrong way or loses files,
line for the race from Grieg Team.
he says and continues:
– Many have a love / hate relationship with the race. We get something in common to train towards, to dread,
– If we can make the everyday life of a colleague as
and most importantly - to talk about in the hallways.
painless as possible, while taking care of safety - then we have done our job.
Our companies
56 — 57
Highlights From 2021 JANUARY
APRIL
The Brazilian soy suppliers to the salmon industry, CJ
We revisited our Brand, and released a Brand Centre,
Selecta, Caramuru and Imcopa, will implement a 100
along with updated brand guidelines in relation to the
percent deforestation and conversion free soybean val-
Grieg Group brand, which applies to all Grieg Group
ue chain with 2020 as their cut-off date. No soy grown
companies. In addition, we hosted our annual General
on land deforested after this deadline will be traded.
Meeting, and released our Annual Report for 2020.
This bold and historic move sets a new benchmark for global sustainable supply chains. This includes all of
MAY
Grieg Seafoods operations. Grieg Edge joins offshore desalination startup Ocean Oasis as partner and investor. Norwegian startup Ocean Oasis targets carbon-free freshwater production using innovative offshore technology. This is a perfect fit for Grieg Edge’ investment strategy.
JUNE For the first time, the Grieg Group marked its support to the international Pride-movement. Pride is an annual celebration, usually in June in the United States
FEBRUAR The pandemic still affects our businesses and our people. The Grieg Group Emergency Response Team organizes meetings and communications across the Grieg Group companies. Grieg Maritime Group signs declaration on Seafarer Wellbeing and Crew Change to support our seafarers facing the worldwide pandemic. Many countries deny seafarers entry or make it difficult for them to join or leave their vessel.
MARCH We celebrated the International Womens Day! Chair of the Board, Elisabeth Grieg participated in a panel both at the BI Norwegian Business School, and at an event hosted by The Norwegian Conservative Party (Høyre).
GRIEG MATURITAS | ANNUAL REPORT 2021
and sometimes at other times in other countries, of lesbian, gay, bisexual, transgender, and queer (LGBTQ) identity.
JULY Morten Müller was appointed as the new Managing Director for Grieg Shipbrokers, after serving as interim CEO since the fall of 2020.
AUGUST
OCTOBER
Grieg Connect, our leading technology solutions sup-
VP Shared Services at Grieg Star, Eli Vassenden, spoke
plier joins the ‘Norwegian Digital Port Infrastructure’
on behalf of Grieg Group during an IEAE round-table
project whose chief aim is to enhance the efficiency
conference – as one a very few representatives from the
and environmental footprint of ports throughout the
private sector.
country.
SEPTEMBER Grieg Seafood joins forces with 17 leading industry and research institutions in the push to develop low-emission offshore aquaculture.
NOVEMBER Grieg Investor was named this year’s Nordic Investment Consultancy, for the fourth consecutive year.
DECEMBER A part of the Grieg Group employees Christmas gift was donated to The Church City Mission in Bergen.
Our companies
58 — 59
GRIEG MATURITAS | ANNUAL REPORT 2021
GRIEG MATURITAS
Directors’ Report & Group Result 2021 In 2019 we incorporated the UN’s Sustainable Development Goals in our business strategy because doing good is the obvious business opportunity.
The Grieg Group derives from a long and proud mar-
ability and Public Affairs. We work together across
itime tradition, operating within seafood, shipping,
companies within the Group to achieve specific goals,
shipbroking,
especially following our commitment to the UN SDGs,
maritime
innovation,
technology,
logistics and investment services. Profitable growth
which we implemented as part of our strategic frame-
throughout our history has made us capable of build-
work in 2019. Facing the challenges of the pandemic
ing sustainable businesses and giving back to the soci-
has also brought us opportunities. With the demand
eties in which we operate.
for more digitalisation in the maritime sector, and futher efforts to deliver zero-emission solutions to the
2021 was a record year overall for the Grieg Group.
maritime industry, we genuinely believe we will play a
Even though the pandemic still affected us through-
crucial part in the future. Using the crisis as an oppor-
out the year, all businesses performed very well. It is
tunity is not new to us because it is part of our culture
safe to say that when leaving 2020 behind, these re-
to seek new opportunities which will have a better im-
sults were not at all on our minds. Luckily, markets
pact society.
have improved, and operations are more streamlined, securing solid financial results across all companies in
GRIEG MARITIME GROUP
the Grieg Group. Thanks to our dedicated colleagues,
The pandemic has been a challenge for the shipping in-
we face a future of development and financial perfor-
dustry, and many of the Grieg Star’s crew members had
mance following our Group strategy.
to stay onboard our ships for too long due to national and international restrictions in relation to Covid-19.
In 2021, Group turnover was MNOK 7 392, operating profit (EBIT) MNOK 896, and the profit after tax and
Grieg Maritime Group has been working continuously
discontinued operations MNOK 1 234. Versus a loss of
to try to solve this unprecedented situation, working
MNOK 1 107 in 2020.
to fulfil our commitment to the Neptune Declaration on Seafarer Wellbeing and Crew Change.
We believe our people are our most valuable resource, they are vital in building our success. Several new
In addition, Grieg Maritime Group established a fund
colleagues joined us in 2021, and with that, the Grieg
to provide salary to crewmembers who were banned
Group is well-positioned for the future. In 2021 we
from travel on board our ships due to local restrictions.
have further developed Grieg Maturitas, working with
Even though the pandemic has dawned for many of
strategic priorities within Communication, Sustain-
us, seafarers are still struggling with local restrictions
From the Boardroom
60 — 61
1 649 Employees 31 .1 2 . 2021
7 392 Operating Revenue 2021 · MNOK
and Covid-19 at sea.
1 234 Profit after tax 2021 · MNOK
though it is not yet visible in the financial accounts, as the company is still in a development phase.
Early in 2021, Grieg Star Group renamed its Group of companies to Grieg Maritime Group. Grieg Green was
The more challenging part of 2021, has been the re-
reorganised, tied closer to Grieg Maritime Group, and
structuring of Grieg Green, carving out a revised, but
Grieg Edge has further strengthened its position, in-
sustainable strategy to reflect the changing market
vesting in maritime start-ups, and developing ongoing
needs.
projects such as M/S Green Ammonia together with Wärtsila. They were recently granted approval from
Based on good overall results from the operational
DNV to build the vessel, and with that, we continue to
activities, topped with profit from the sale of dry bulk
move towards a green maritime shift together with im-
vessels, Grieg Maritime Group delivers a consolidated
portant industry partners.
profit before tax for 2021 of USD 38.0m (USD -105.1m). With improved asset values and strengthened liquidi-
2021 did not only mark a new group set up, but the
ty, the Group is well positioned in developing its busi-
company also delivered its most significant financial
ness activities for the coming year.
result in a decade. GRIEG SEAFOOD ASA Covid-19 continues to interfere with, and challenge the
Struggle and hardship defined the beginning of 2021,
daily operations of the Grieg Maritime Group. Howev-
and with Covid-19 and high operational costs, Grieg
er, the world’s return to a new normality and the ef-
Seafood performed below expectations during the first
fects of pent up demands, has brought strong market
quarters. Luckily, the last quarters looked completely
earnings to shipping activities, and has meant that
different. At the end of 2021, with nearly all Covid-19
the Grieg Maritime Group in 2021 managed to deliver
restrictions lifted, the company could release a har-
their strongest result in a decade.
vest number they have never reached before. Grieg Seafood has managed to turn the company around,
The rising call to action to move towards a zero-emis-
reaching several goals of the company’s 2025-strategy.
sion world brings green business opportunities to Grieg Edge, as it builds its reputation and partnerships. The
Grieg Seafood aims to harvest 130 000 tons in 2025 at
enterprise value of this is likely to be considerable, al-
a competitive cost level, and to evolve from purely a
GRIEG MATURITAS | ANNUAL REPORT 2021
commodity supplier to an innovation partner for se-
er possible, and business travel has been restricted.
lected customers. Sustainable farming practices are
Despite the challenging circumstances, Grieg Sea-
the foundation of Grieg Seafood’s operations. Achiev-
food has been able to maintain efficient operations
ing the lowest possible environmental impact and
throughout the year. The pandemic has impacted the
the best possible fish welfare is an ethical responsi-
salmon market in the last two years, with a significant
bility and a prerequisite for long-term profitability.
shift in demand away from hotels, restaurants, and
To achieve sustainable growth and improve competi-
catering (HoReCa), while the retail segment and home
tiveness, the Group focuses on reducing the time fish
consumption have been boosted. The overall demand
spend at sea, improving fish health and welfare, and
for Atlantic salmon has remained strong. Supply lines
providing digital decision-making support to its farm-
have remained largely open, though somewhat limited
ers.
availability has made airfreight expensive. The bulk of the salmon supplied by the Group has been shipped by
The average spot price for the period was NOK 57,3 per
truck from Norway to European markets, or from Can-
kg, compared to NOK 45,1 per kg at the start of 2021,
ada to the USA.
and up by NOK 3,6 per kg compared to the average spot price in 2020. The total harvest volume was 75 601 tons
The Group’s diversified geographical presence has
(ex Shetland). Despite being somewhat below the orig-
provided flexibility and reduced logistical challeng-
inal expectation of 80 000 tonnes for the year, due to
es. Due to higher market uncertainty, the risk of bad
biological challenges, the Board is pleased with this
debts increased during the pandemic. Grieg Seafood
performance.
has good routines for collecting and managing trade receivables and has had an open dialogue with cus-
In 2021, Grieg Seafood sold Grieg Seafood Shetland Ltd,
tomers. A significant portion of the sales volume has
which compromises the UK farming and sales opera-
been credit insured. The Group has not recorded any
tions (the Shetland assets), to Scottish Sea Farms Ltd.
consequential loss on receivables in 2021. Ensuring
The transaction was announced on the 29th of June
financial stability has been a priority for the Group.
2021, and approval was received from the relevant
No dividend was distributed in 2021 due to risk related
competition authorities in the UK in December 2021.
to the pandemic and commitments to growth invest-
The transaction was finalised on the 15th of Decem-
ments. At the beginning of 2022, the Group refinanced
ber 2021. However, the closing settlement is expected
its bank loans, and has a solid financial position. The
to be completed in Q2 2022. Grieg Seafood classified
Group did not receive any government grants or sup-
the Shetland assets as assets held for sale in 2020 and
port regarding Covid-19 in 2021.
throughout 2021 up until the sale. The operations in Shetland were presented as discontinued operations
Moving forward, Grieg Seafood scales its operations
in 2020 and have been presented as such throughout
towards 2025 globally, through M&A activity, with
2021 up until the sale.
costs at or below the industry average, with an ambition to reach 130 000 tons by 2025.
Since the outbreak of Covid-19, employee well-being has been the number one priority for Grieg Seafood. Crisis
GRIEG LOGISTICS
management teams have been operational at the head
Grieg Logistics Group has, among all other companies,
offices and in each region. The Group has followed the
been affected by the pandemic and the uncertain mar-
advice of the local authorities. Measures to lower the
ket situation. They have continued their investments
risk of transmission and safeguard business continuity
in Grieg Connect throughout the year, a company pro-
have been implemented. These include strict rules at
viding advanced technology to ports across Scandina-
production sites and harvesting facilities to limit phys-
via. In 2021, they secured more technological partner-
ical contact and encourage social distancing.
ships through Grieg Connect, such as Bergneset Havn and a national, digital project led by Oslo commune.
Working from home has been encouraged whenev-
From the Boardroom
And since the dawn of the 2-year pandemic is a fact,
62 — 63
the strategic military operations are back to normal,
Highlights 2021 Grieg Group spoke on plastic reductions at UN Roundtable
Grieg Investor was named this year’s Nordic Investment Consultancy
securing higher activities for Grieg Strategic Services. At Mosjøen Industrial Terminal, business continues as usual. Grieg Logistics’ partnership with Alcoa and Inchcape has continued to develop during the year, with both partners satisfied with the current agreement. Building on Grieg Logistics’ strategy, they will continue to develop their company towards a more digital and technology-driven future, aiming to provide more ports with advanced technology and solve obscure problems within the maritime and other industries.
Grieg Edge joined offshore desalination
During 2021, they developed their collaboration with
startup Ocean Oasis as partner and
Yxney Maritime, releasing NoX Digital, a platform
investor
in which shipping and other offshore companies can track their NoX emissions, making reporting seamless. Grieg Logistic’s Ship Agent Services are the first
Grieg Seafood joins forces with 17 leading
ship agents to use the solution, hoping others will fol-
industry and research institutions in the
low.
push to develop low-emission offshore aquaculture
Grieg Logistics’ focus is to build more scalable solutions that can be both profitable, valuable, and sustainable. In 2021 Grieg Logistics Group‘s results before
Grieg Maritime Group signs declaration on
tax are -5 MNOK, versus 0 last year.
Seafarer Wellbeing and Crew Change to support our seafarers facing the worldwide
GRIEG SHIPBROKERS
pandemic
Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. We provide a full range of services, covering every aspect of vessel financing, contracting, sale and purchase, chartering and operations, backed by rigorous research and analysis. Grieg Shipbrokers achieved a solid financial performance in 2021 thanks to our dedicated colleagues and strong shipping markets. With revenue growth of more than 50 % and the most profitable year in the company’s 138 year-long history, the company is well-positioned for sustainable development within our core segments. We continue our endeavours to build a strong organisation and remain committed to attracting talented individuals that will complement the existing teams. During the fall of 2020, Grieg Shipbroker’s long-time Managing Director, Finn Engelsen jr., stepped down. Since his resignation, Morten Müller (COO) and Ivar Sandvig Thorsen (CFO) have been leading interim
GRIEG MATURITAS | ANNUAL REPORT 2021
management, providing the company with the nec-
EU taxonomy, Grieg Investor are well set for the future,
essary stability. In July 2021, Morten Müller became
counting 26 employees in 2021. They were also named
the company’s CEO, securing owner interest and the
the Nordic Investment Consultancy of the Year, conse-
development of a solid organisation moving forward.
quently for the fourth time.
Grieg Shipbrokers marks its highest income ever in 2021, celebrating a turnover of MNOK 182. We are con-
GRIEG KAPITAL
fident that Grieg Shipbrokers is in a good position,
Grieg Kapital is a combined investment and asset
both financially and organizationally, to continue to
management company in the Grieg Group. The com-
provide value-added shipbroking and financing ser-
pany will partly run liquidity management as a buffer
vices in the years to come.
for its core business, as well as new business areas. In addition, Grieg Kapital manages a portfolio of direct
GRIEG INVESTOR
investments, including real estate and private equity.
2021 was Grieg Investor’s best year throughout histo-
Despite many uncertainties during the year, the stock
ry. For the first time, they managed assets of NOK 110
market proved highly robust in 2021. It has been a for-
billion for more than 130 clients, including founda-
midable year for financial markets where global and
tions, associations, family-owned companies, pension
Norwegian equities were up well over 20 % in Norwe-
funds, insurance companies and municipalities. Their
gian kroner. Grieg Kapital exposed over 350 million
continuous focus on digitalisation and efficiency has
NOK in the financial markets through its liquidity
made Grieg Investor a leader in key areas. Investment
portfolio during the year and assured high returns
in responsible and sustainable assets continues and is
through our collaboration with Grieg Investor.
a strong focus area both internally in our own organisation, towards customers, and towards the market in
Grieg Kapital has been facing overall satisfactory per-
general.
formance in the capital market in 2021, and they received a good return the past year, with a profit before
Responsible and sustainable investments will play an
tax of MNOK 57 in Grieg Kapital AS.
increasingly central role for the company’s customers in the future. Therefore, it is strategically essential for
BALANCE SHEET, FINANCIAL SITUATION AND
Grieg Investor to take a clear position in this market
CASHFLOW
and be perceived as a leading advisor with a high level
The Grieg Group has a strong financial position. Total
of trust. With the entrance of the EU Green deal and
current assets amount to 5 750 (MNOK 4 458), of which
O P E R AT I N G R EV E N U E MNOK 12 000 10 000 8 000 6 000 4 000 2 000 0 2013
From the Boardroom
2014
2015
2016
2017
2018
2019
2020
2021
64 — 65
MNOK 2 578 (MNOK 1 579) is made up of bank deposits,
with us all through 2021. Managing Covid-19 has been
market-based financial investments and other finan-
one of the true challenges in the Grieg Group’s history,
cial investments. Current liabilities total MNOK 1 690
and to everyone who has contributed across our com-
(MNOK 1 136), which gives positive working capital of
panies – we are truly grateful. In 2020 we established
MNOK 4 060 (MNOK 3 322). The Groups total fixed as-
an Emergency Response Team led first by our CEO
sets are MNOK 10 722 (MNOK 10 772), of which MNOK
and then by GGR Legal, consisting of all Grieg Group
6 108 (MNOK 7 552) is financed through loans from fi-
companies. We developed plans, discussed measures,
nancial institutions, financial leasing, and other long-
and communicated throughout the entire organisa-
term debt.
tion. The Emergency Response Team has met regularly since then, providing expertise and knowledge.
CASHFLOW
In addition, we support our CEOs and leaders with
In total, the Group had a positive cash flow of MNOK 1
necessary information to employees and offer digital
161 (MNOK 389) from operations. Due to investments
training sessions and social gatherings. The pandemic
in fixed and intangible assets, sales and the purchase
still affects us, but now we have embarked on a new
of shares, the net cash flow from investing activities is
normality.
MNOK 1 924 (vs negative of MNOK 1 265). The net cash flow from financing activities is negative at MNOK
As the restrictions and pandemic were coming to an
2 053 (MNOK 802), due to loan repayment (MNOK 1
end, a new crisis came upon us. The tragic Russian in-
588), dividends and discontinued operations. In total,
vasion in Ukraine affects us all, and we are sadly wit-
the Group had a positive cashflow of MNOK 1 032 vs
nessing innocent people being affected.
negative cashflow of MNOK 74 in 2020. In response to the crisis, the US, the UK, the European FINANCIAL RISK AND RISK MANAGEMENT
Union (and others) have imposed wide-ranging polit-
When operating in a global market across different
ical and economic sanctions against Russia. Sanc-
business areas, the companies of the Grieg Group are
tions might impose international operations affecting
exposed to several types and degrees of risk, ranging
the Grieg Group in one way or the other. Tensions are
from market operations and financial risk to compli-
likely to increase, and sanctions against Russia are in-
ance and regulatory frameworks. Risk management
creasing every day. However, at this point, Russia does
is a continuous process and an integrated part of the
not want the armed conflict with Ukraine to spread to
Group’s governing model. Thus, we are constantly fo-
NATO countries and other parts of the EU. Currently,
cusing on how to identify and monitor the risk areas
the threats from western allies are economical, only.
in the Group companies, as well as developing strategies to mitigate such risks. For further information
As a significant deep-sea Open Hatch-actor, Grieg
concerning financial risk, see note 17 to the Group ac-
Maritime Group has an essential role in transporting
counts and risk management: Covid-19 and the War in
critical goods. According to the latest intelligence re-
Ukraine.
ports, company procedures, and rules, GMG shall continually evaluate emerging risks and perform its busi-
The members of the Board of Directors and the CEO
ness safely.
are insured. The insurance provides liability cover for members of the Board of Directors and the CEO with
In the short term, Grieg Maritime Group does not have
respect to claims arising from decisions or actions
any trades in or out of Ukraine, so their immediate
they may take on behalf of Grieg Maturitas.
business is not affected. However, they do see a dramatic increase in energy prices, which will affect bun-
RISK MANAGEMENT: COVID-19
kers. GMG’s team is constantly working with partners
Even though we are well prepared as a group for uncer-
like “Den Norske Krigsforsikring for Skib (DNK)” and
tain times; we had no chance to prepare for the chal-
the Norwegian Shipowner’s Association to review the
lenges following the pandemic that hit us both organ-
operational safety of their crew and assets.
isationally and financially in March 2020, continuing GRIEG MATURITAS | ANNUAL REPORT 2021
Grieg Logistics provides ship agent services, terminal
policy. Grieg Shipbrokers have one Russian national
operations, and digital infrastructure to support Nor-
working from the Bergen office.
wegian ports and terminals. In addition, they have a strategic collaboration with the Norwegian Armed Forces both in peace, crisis, and war. Following their cooperation with the Army, Grieg Logistics monitors the situation closely, providing company management and board with up-to-date risk analysis following the war in Ukraine. Their agreement with the Army does not include international operations, which means that no personnel from Grieg Logistics will be deployed outside the Norwegian border. Grieg Logistics
Our people are our most valuable resource. Performing competitively in our business areas requires competent and empowered people working safely together across the Grieg Group companies.
personnel contribute to the NATO exercise “Cold Response,” which takes place in March 2022.
ORGANISATION AND WORKING ENVIRONMENT
Grieg Seafood trades salmon globally but has not since
ing competitively in our business areas requires com-
2014 sold salmon to Russia. They have ongoing sales
petent and empowered people working safely together
operations with Ukraine, but due to the war, cancel-
across the Grieg Group companies. Sustainability De-
lation of planned sales operations is a fact. There are
velopment Goal (SDG) 4, Quality education, is one of
no employees in Grieg Seafood directly affected by the
the Grieg Groups’ stretch goals.
Our people are our most valuable resource. Perform-
conflict. The total number of employees in 2021 was 1 664. Russia has closed its stock exchange, RTS, and conse-
Their qualifications constitute a substantial part of
quently, businesses with assets at RTS will not be able
the business capital. Keeping a diverse workforce and
to sell stocks or funds. In addition, the Russian Central
providing our employees with learning opportunities
Bank has signalised that the stock market trading on
that promote competence aligned with their personal
the Moscow Exchange will be further suspended when
career goals, will ensure that we always have the best
this is written. Grieg Kapital no longer has any assets
hands and minds on board.
at the RTS. Grieg Investor advises on a portfolio at the amount of NOK 110 billion. Considering Grieg Investor’s portfolio, the company has no ties to the RTS (Russia Trading System) or other Russian economic interests. Grieg Shipbrokers has a global client base, and their clients’ vessels trade worldwide except in war risk or sanctioned areas. Grieg Shipbrokers have carefully reviewed all business activities that may be affected by the current invasion of Ukraine and will continue to monitor the situation closely. There is no ongoing business with any customers based in Russia, and the company will not negotiate new contracts with Russian registered companies. Furthermore, if any companies outside Russia are affected by sanctions, any business will cease if the entity remains on a sanction list. It follows the company will perform due diligence on a new customer in line with their standard KYC
From the Boardroom
66 — 67
DIVERSITY AND GENDER EQUALITY
HUMAN RIGHTS
We believe that a diverse and balanced working en-
We are committed to respecting internationally recog-
vironment is paramount for success, and we strive to
nised human rights in our operations, our value (sup-
be at the forefront of diversity within the businesses
ply) chain, and in the communities where we operate.
we operate. That is why we have chosen SDG 5 Gender
Our commitment to respecting international human
Equality as a Stretch goal in our business strategy. We
rights is anchored in international human rights and
are committed to work towards gender parity at all lev-
labour standards, including those expressed in the In-
els of the organisation, and we promote gender equal-
ternational Bill of Human Rights and the Declaration
ity and diversity among business and supply chain
on Fundamental Principles and Rights at Work. We are
partners.
committed to the OECD’s guidelines for Multinational Enterprises and the UN Guiding Principles on Busi-
Gender equality, non-discrimination and inclusion
ness and Human Rights (UNGP).
are internationally recognised human rights and fundamental to achieve a just and sustainable soci-
By respecting human rights, we shall
ety. Therefore we developed a new policy on Human
• not infringe on the human rights of others,
Rights in the Grieg Group in 2021.
• address adverse human rights impacts and, • ensure measures to prevent, mitigate and remedi-
We still have work to do in several Grieg Group com-
ate such impacts.
panies. In total, only 19 % of our employees worldwide are women. Counting only Norway, 25,06 % of the em-
In 2021 the Board of Grieg Maturitas adopted a Human
ployees in total are women. Moving to the CEO level,
Rights Policy. The policy outlines the Grieg Group’s
37,5 % of all CEOs within the main companies in the
commitment, approach, and responsibility to respect
Grieg Group (only counting Norway) are women. In
human rights. The human rights policy interlinks with
these companies 41 % of all board members are wom-
other policy documents such as our Ethical guide-
en.
lines, our Supplier Code of Conduct, and our grievance mechanisms. The companies within the Grieg Group
The level of success in our work for gender equality is
ensure that human rights are respected in accordance
defined by the work in the different companies. All our
with the expectations outlined in the policy.
companies measure gender balance and are committed to improving the gender balance among all em-
HEALTH AND SAFETY
ployees. Similarly, all companies have a written policy
The Grieg Group companies continuously focus on
against workplace discrimination. Transparency is
training and facilitating a safe working environment
key to success in reaching our goals. The Grieg Group
for all employees by identifying and evaluating poten-
companies use the SHE Index as a reporting tool on
tial risks on an ongoing basis.
gender equality. The SHE Index consists of six categories focused on different aspects of gender equality;
In Grieg Maritime Group, records show no (0) injuries
actual gender balance, policies and targets, action,
onshore in 2021. For the tenth year, there were no fatal
gender pay gap, talent and recruitment and general di-
accidents at sea, but there were 33 (40) crew injuries of
versity and inclusion.
which two (0) serious, leading to repatriation due to rib
Grieg Maturitas II employed six women and one man.
contusion and hand injury. In Grieg Seafood, absence
The board consists of four men and four women. The
rates are mainly related to long-term sickness. Work-
Chair /CEO is female.
ing-related injuries are a total of 48 cases.
GRIEG MATURITAS | ANNUAL REPORT 2021
From the Boardroom
68 — 69
The sick leave percentage is still low overall in the
digitalise our tools and working methods. In 2021 the
Grieg Group. In 2021 the sick-leave percentage was at
group has been working with a new financial reporting
2,32 %*. We focus on preventing sick-leave by creating
system called “Grieg Digital”, a tool for Group financial
a good working environment and conducting close fol-
reporting and securing a sound basis for financial de-
low-ups with our employees, also during this year with
cision-making.
people working from home. The Group also facilitates participation in physical activities and are a long-term
To become a driving force for sustainable develop-
supporter of Aktiv mot Kreft and “Aktivt Kontor”.
ment, we must create a purpose-driven organisation embedded in an innovative culture. Within the Grieg
INNOVATION
Group, we strive to collaborate across all companies in,
Innovation, our stretch goal SDG 9, is vital to becom-
inspiring, challenging and learning from each other.
ing sustainable. The Grieg Group companies engage
In addition, we believe sustainable business develop-
in several research initiatives, especially in the ship-
ment only can derive from partnerships across sec-
ping and seafood industries. In 2021, Grieg Maritime
tors, companies, and industries, and hence SDG num-
Group continued its work with maritime innovation
ber 17 (partnership for the goals) is the most important
through the establishment of Grieg Edge in 2020, and
one to us.
the participation in the ZEEDs initiative. In addition, they have invested in the offshore desalination start-
SUSTAINABILITY, CLIMATE AND ENVIRONMENT
up Ocean Oasis as a partner and investor, and contin-
In the Grieg Group, sustainability and our commit-
ued their work with M/S Green Ammonia, which was
ment to the SDGs is integrated in our business strategy.
named “Best of What’s New” in 2021 by Popular Sci-
For us, the 17 SDGs are interdependent and equally im-
ence Magazine. In early 2022 the M/S Green Ammonia
portant. However, some of the sustainability themes
was granted Approval in Principal from DNV.
are more relevant to the businesses we operate within, and it has therefore been natural for us to choose SDGs
Grieg Connect, the technology company of Grieg
where we can have the greatest impact and where we
Logistics, has reached several milestones through-
also have the largest challenges at an industry level.
out the year, joining the ‘Norwegian Digital Port Infrastructure’ project, whose chief aim is to enhance
At the Group level, we have defined SDG 8, 16, and 17 as
the efficiency and environmental footprint of ports
our license to operate, or our foundation. These goals
throughout Norway. In addition, NoX Digital, a digital
represent the groundwork for how we run our busi-
emission reporting infrastructure for Norwegian and
nesses, with a focus on employee health and wellbe-
international shipping companies, was launched in
ing, inclusive economic growth, transparency, and ac-
September 2021. The platform has been developed by
countability, and partnering to achieve greater impact
Grieg Connect and Yxney Maritime, in close collabo-
on the sustainability challenges facing the industries
ration with the NOx Fund. The solution will automati-
in which we operate.
cally detect if a vessel operates in taxable waters. Data on energy consumption and AIS data completes the
In addition to this foundation, we have set ourselves
picture, and everything becomes visible on a digital
five impact goals, or stretch goals, related to the areas
platform for each user.
where we can make a difference, and to help us focus our efforts in areas that are relevant for our business
Grieg Seafood is also leading in several innovation
and our stakeholders. These goals relate specifically to
projects within the industry, focusing on technology
SDG 4, 5, 9, 13, 14. We have set clear ambitions for all
to improve biology and fish welfare, reducing their im-
our prioritised SDGs.
pact and contributing to a better society. They ranked 2nd on the international FAIRR Protein Producer In-
In 2021 we revised our objectives and KPIs at Group-lev-
dex, and
el. This was done in an inclusive process through the
The Grieg Group is constantly working to improve and
Grieg Group Sustainability Advisory Committee (SAC),
*Norwegian employees at the Grieg Group companies
GRIEG MATURITAS | ANNUAL REPORT 2021
consisting of members of the top management teams
food’s greenhouse gas emission targets are classified
from each Grieg company. The Grieg Group compa-
as well below 2 C and 1,5 C (2050), aligned with the
nies were also consulted individually. In December,
Paris agreement. Their emission targets have been
the Board of Grieg Maturitas approved the new objec-
approved by the Science Based Targets Initiative. For
tives and KPIs. The operationalising of the objectives
2021, the CDP awarded Grieg Seafood an “A” score for
and KPIs is delegated largely to each company. At the
their climate disclosures and efforts to transition to a
Group level, the strategy and sustainability objectives
low-carbon future.
are monitored by the Board, which has the overall responsibility for ensuring strategic objectives are met.
Transporting about 90% of world trade, shipping is sta-
Progress is presented annually.
tistically the least environmentally damaging mode of transport when taking productivity into the equa-
The Grieg Group is a member of the UN Global Com-
tion. Still, its emissions of greenhouse gases (GHG)
pact, and we are committed to the ten principles of the
constitute about 2.5% of global emissions. In addition
UN Global Compact. We report annually on our pro-
to compliance with the requirements of the Interna-
gress, and our “Communication of Progress” is pub-
tional Maritime Organisation, Grieg Maritime Group
licly available. We are also a member of UNGC Action
intends to reduce GHG emissions per transported unit
Plattform for Sustainable Ocean Business.
by a minimum of 40% by 2030 from 2008 levels. The ambition is to be net-zero by 2050. Over the course of
The ocean connects our people, our businesses, our
2021, a significant amount of work has been put into
future, and our past. Recognising that nature must be
increasing awareness and competence for creating
managed on behalf of future generations, we were ear-
a decarbonisation road map for the Grieg Maritime
ly movers making sustainability part of our strategy.
Group’s vessels, moving the organisation from under-
On top of this, SDG 13, Climate Action, and SDG 14, Life
standing the challenge to ideating solutions. Among
Below Water, are our stretch goals. We have a vision
specific actions is the preparation of individual carbon
of zero net emissions operations in all industries we
improvements plans (SEEMP) for each ship on how
operate. We will continue to advocate for zero-emis-
to keep their carbon intensity (CII) within gradually
sions operations in all relevant industries and increase
stricter limits after 2023. Defining various measures
awareness internally and in dialogue with key stake-
to reduce emissions are considered on a broad basis, of
holders.
which several will need qualified testing. For example, the planning for testing biofuel as an alternative fuel
Though Grieg Seafood has made progress in find-
for vessel propulsion started, with physical testing to
ing more sustainable fish farming methods in recent
be carried out on one of the open hatch vessels in early
decades, many challenges remain to be solved. For
2022.
farmed salmon to be part of a sustainable global food system, they must keep improving to ensure co-ex-
Grieg Investor has, in 2021, continued to develop Enig-
istence with nature and other species, improving fish
ma with a completely new transillumination module
welfare, finding sustainable feed ingredients, cutting
for climate risk and the UN Sustainability Goals. It
carbon emissions, recycling resources and promot-
is important for Grieg Investor to understand how to
ing human rights. While farmed salmon has a low
best can navigate in terms of both opportunities and
carbon footprint compared to other animal proteins,
threats, to take their work to the next level and ensure
the salmon industry must do its part to achieve the
that customers have the necessary insight to be able
Paris Agreement. New solutions must be developed
to make informed choices and act as one guarantor
to cut emissions in operations and along the value
against greenwashing.
chain. Direct emissions from Grieg Seafood’s production (Scope 1 and 2) account for less than 10% of their
In 2021 we have continued our partnership with WWF
total emissions. More than 90% of their emissions
and Grieg Foundation to reduce plastics pollution in
originate from their value chain (Scope 3). Grieg Sea-
the Philippines. To solve one of the world’s biggest
From the Boardroom
70 — 71
challenges related to the Oceans, biodiversity and cli-
GOING CONCERN
mate, we must provide solutions where the problem is
The Board of Directors confirms that the annual ac-
at its largest. Due to this, we have set a clear ambition:
counts have been prepared on a going concern ba-
50 per cent reduction of plastic pollution in three Phil-
sis, and that this assumption is valid, based on the
ippine port cities by 2023.
Group’s solid financial position and expectations of future profits. The Board believes that the submitted
Our main office building, Grieg-Gaarden, is also certi-
annual accounts give a correct picture of the result,
fied as an Eco-lighthouse office building.
cash flow and economic situation. No events have tak-
CORPORATE GOVERNANCE
en place after the balance sheet date that could materially affect the accounts. We expect that COVID-19
The Grieg Group always strive to do business in a fair
won’t influence the 2022 figures in the future, but the
and proper way. We apply the Norwegian Recommen-
uncertainties in the world markets due to the crisis in
dation on Corporate Governance to ensure that the
Ukraine are affecting us all.
responsibility and roles between administration, the Board of Directors and the General Meeting are based
OUTLOOK
on sound practice. Deviation may arise given the fact
When writing this, Ukraine has been at war with Rus-
that the Group is privately owned.
sia for over six weeks. Even though the 2-year pandemic has dawned, shipping rates are moving upwards,
Our SDG goals within corporate governance are SDG 8
and seafood prices are increasing, the effect of the war
(Decent work and economic growth), SDG 16 (Peace,
in Ukraine brings uncertainty across the entire inter-
justice, and strong institution) and SDG 17 (Partner-
national community.
ships for the goals). In 2021 the Grieg Group developed its partnership with the UN Global Compact, and we com-
Now, all companies within the Grieg Group are per-
ply with the UN Global Compact principles in human
forming well end beyond expectations. Forecasts in
rights, labour, the environment, and anti-corruption.
the salmon industry indicate levels, where profit is reasonable and in addition, consumption and demand
We will strive to be innovative to meet the challenges of
for salmon, are growing since all Covid-19 measures
the SDGs, through new partnerships and cross-sector
have been lifted.
cooperation. We do this by being honest, exchanging ideas and by seeking to understand and learn from
The uncertainties in global markets affect our busi-
our surroundings. We have an open-minded business
nesses overall, even though we see increased demands
approach and strive to create room for action and pos-
for the transportation of goods, and the salmon export
sibilities, which will enable strong partnerships from
worldwide. For Grieg Investor, changes in the financial
both public, and private parts of society.
markets will impact turnover, but as of now, international sanctions affect the company in a smaller man-
Through Grieg’s more than 138 years of history, it is our
ner. The same applies to Grieg Shipbrokers and Grieg
capacity to manage the challenges of the times, and to
Logistics.
innovate and adapt, that has put us in the position to drive the changes we want to see in the world today.
We feel terrible when reading about the dreadful things happening in Ukrain at the moment. In light of the situation we have implemented the necessary measures, moving forward in all Grieg Group companies and at Group level, to secure employees, the financial situation, our customers, and our partners.
GRIEG MATURITAS | ANNUAL REPORT 2021
To become a positive driving force for sustainable
and our cash situation will be given the highest pri-
development, we must think big and bold and create
ority. But we still think supporting new business ide-
a purpose-driven organisation with a culture of inno-
as and facilitating innovation initiatives within the
vation. To achieve this, we will continue promoting col-
Group is of even more importance. We are still using
laboration within and across all companies in the Grieg
the UN Sustainable Development Goals (SDG) as our
Group, inspiring, challenging and learning from each
framework for our strategy, and we firmly believe that
other. We will also seek cooperation both among our
we will act as an inspiration to other companies, or-
competitors and our existing partners, the ZEEDs initi-
ganisations, partners, and the rest of the community
ative being a good example, and the newly established
to join our pledge: We will restore our oceans.
company North Ammonia, a collaboration between Grieg Maritime Group and Arendals Fossekompani.
The Board of Directors would like to express our thanks to all employees in all our companies for their
As we advance, we will continue focusing and adapt-
solid dedication and contribution to the Grieg Group,
ing to changing markets and pursue opportunities as
especially during these challenging times.
they arise, given the uncertainty in the global economy. Securing our businesses, our employees’ health
Bergen, 21st of April, 2022 The Board of Directors of Grieg Maturitas AS
Elna-Kathrine Grieg Board Member
Camilla Grieg Board Member
Knut Nesse Board Member
From the Boardroom
Elisabeth Grieg Chair & CEO
Nina W. Grieg Board Member
Per Grieg jr. Board Member
Nicolai H. Grieg Board Member
Rolv-Erik Spilling Board Member
72 — 73
GRIEG MATURITAS | ANNUAL REPORT 2021
Annual Accounts Annual Accounts Profit and loss statement
76
Balance sheet
77
Cashflow statement
81
Notes 1
Accounting principles
83
2
Segment information
87
3
Other operating expenses
88
4
Payroll costs, number of employees, remuneration etc.
89
5
Pensions and pension commitments
90
6
Fixed assets
92
7
Fixed intangible assets
94
8
Investments in subsidiaries
95
9
Investments in associated companies and joint ventures
99
10
Financial items
100
11
Sharehildings and other investments
101
12
Inventories and biological assets
102
13
Recievables due in more than one year
102
14
Market based financial investments
103
15
Debt, payable after 5 years
103
16
Mortgages/Guarantee liability/restricted funds
104
17
Financial risk
106
18
Contingencies and subsequent events
107
19
Taxes
108
20
Equity
110
21
Share capital and share information
111
22
Related parties
112
23
Remuneration to auditor
113
24
Business Combinations
114
25
Assets held for sale and discontinued operations
118
74 — 75
PROFIT AND LOSS STATEMENT
Amounts in NOK 1 000
GRIEG MATURITAS AS 2020
2021
-
-
Note 2
Operating Revenue
GRIEG GROUP 2021
2020
7 392 301
6 764 636
Operating Costs -
-
4,5
Payroll and social security costs
-1 011 851
-892 377
-
-
6,7
Depreciation
-628 417
-707 441
-
-
6
Write-down
35 770
-789 612
-
-
3
Operating costs - shipping
-951 048
-994 195
-
-
3
Cost of sales - fish farming
-1 722 444
-1 724 466
-216
-551
3,23
Other operating expenses
-2 218 114
-2 211 126
-216
-551
Total operating expenses
-6 496 105
-7 319 217
-216
-551
896 195
-554 581
-
-
258 151
71 437
2
Operating profit - EBIT Financial items
90 000
506 250
8
Income from investments in subsidiaries
169
96
10
Other Financial income
-
-
14
Change in value of market based assets
7 536
62 422
-1 486
-2 932
-410 157
-454 222
-
-
9
Results of investments in associated companies
-3
-18
10
Other Financial expenses
90 166
506 328
2
Net financial items
-145 956
-323 295
89 950
505 777
2
Profit before tax
750 239
-877 876
-478
-
19
Tax
-119 781
-86 473
89 472
505 777
20
Profit for the year from continued operations
630 458
-964 349
-
-
25
Net profit for the year from discontinued operations
603 746
-142 568
-
-
Net profit and loss for the year
1 234 204
-1 106 917
-
-
To minority interests
606 739
-351 222
-
-
Majority proportion
627 466
-755 695
GRIEG MATURITAS | ANNUAL REPORT 2021
BALANCE SHEET
Amounts in NOK 1 000
GRIEG MATURITAS AS 2020
2021
Note
GRIEG GROUP 2021
2020
Assets Fixed assets Intangible assets -
-
7
Goodwill
520 976
525 893
-
-
7
Licenses
1 587 545
1 559 423
-
-
7
Contracts
-
3 558
-
-
7
Other intangible assets
19 663
15 416
-
-
Total intangible assets
2 128 184
2 104 290
1 574 586
1 523 420
Tangible assets -
-
6
Land and real estate
-
-
6
Vessels
4 700 278
5 083 895
-
-
6
Vehicles, machinery and equipment
1 948 293
1 790 200
-
-
6
Total tangible assets
8 223 157
8 397 515
-
-
155 050
128 307
27 781
35 837
31 004
31 863
Long-term financial assets 4 021 796
4 021 796
8
Investments in subsidiaries
-
-
9
Investments in associated companies
-
-
13
Loans to associated companies
-
-
11
Shareholding and other investments
-
-
13
Other receivables
156 836
74 423
4 021 796
4 021 796
Total long-term financial assets
370 671
270 430
4 021 796
4 021 796
Total fixed assets
10 722 012
10 772 236
From the Boardroom
76 — 7 7
Amounts in NOK 1 000
GRIEG MATURITAS AS 2020
2021
Note
GRIEG GROUP 2021
2020
2 651 412
2 309 284
324 740
372 755
-
-
Current assets -
12
-
Inventory and biological assets Receivables
-
-
Accounts receivable
90 000
337 500
6
170
Other receivables
195 919
196 812
90 006
337 670
Total receivables
520 659
569 567
Receivables from subsidiaries
Financial Investments -
-
11
Shareholding and other investments
87 559
67 321
-
-
14
Market based financial investments
691 204
744 970
-
-
Total financial Investments
778 763
812 291
40 669
40 309
Cash and bank deposits
1 799 530
767 051
130 675
377 979
Total current assets
5 750 363
4 458 193
-
-
-
1 752 172
4 152 471
4 399 775
16 472 375
16 982 601
16
25
GRIEG MATURITAS | ANNUAL REPORT 2021
Assets held for sale
Total assets
BALANCE SHEET
Amounts in NOK 1 000
GRIEG MATURITAS AS 2020
2021
Note
GRIEG GROUP 2021
2020
1 124
1 124
Equity and liabilities Equity Paid-up equity 1 124
1 124
409 763
409 763
Share premium
409 763
409 763
410 887
410 887
Total Paid-up equity
410 887
410 887
21
Share capital
Retained earnings 3 651 581
3 651 108
Other equity
3 859 614
3 683 387
3 651 581
3 651 108
Total retained earnings
3 859 614
3 683 387
-
-
Minority interests
3 244 447
2 813 087
-
-
Minority interest contingent consideration
446 040
446 040
-
-
Total Minority interests
3 690 487
3 259 127
4 062 467
4 061 995
Total equity
7 960 988
7 353 402
From the Boardroom
20
78 — 79
Amounts in NOK 1 000
GRIEG MATURITAS AS 2020
2021
GRIEG GROUP
Note
2021
2020
53 139
57 209
660 219
607 266
Liabilities Provisions -
-
5
Pension liabilities
-
-
19
Deferred tax
-
-
Other provisions
326
1 074
-
-
Total provisions
713 684
665 549
5 244 386
6 603 767
8 137
1 693
Other long-term liabilities -
-
15,16
Liabilities to financial institutions
-
-
15
Other long-term liabilities
-
-
16
Lease liabilities
855 589
946 491
-
-
Total long-term liabilities
6 108 112
7 551 951
8 230
13 317
600 735
623 394
-
-
102 609
25 211
81 361
58 139
Dividend
464 199
123 273
Current liabilities -
-
-
236
4
45
-
-
-
-
90 000
337 500
-
-
Other current liabilities
432 458
292 634
90 004
337 781
Total current liabilities
1 689 591
1 135 968
-
-
-
275 731
90 004
337 781
8 511 388
9 629 199
4 152 471
4 399 775
16 472 375
16 982 601
16
Bank overdrafts Accounts payable Accounts payable group companies
19
Taxes payable Public duties payable
20
25
Liabilities associated with the assets held for sale Total liabilities Total equity and liabilities
Bergen, 21 of April, 2022 The Board of Directors of Grieg Maturitas AS st
Elna-Kathrine Grieg Board Member
Elisabeth Grieg Chair & CEO
Camilla Grieg Board Member
Nina W. Grieg Board Member
Knut Nesse Board Member
Rolv-Erik Spilling Board Member
GRIEG MATURITAS | ANNUAL REPORT 2021
Per Grieg jr. Board Member
Nicolai H. Grieg Board Member
CASHFLOW STATEMENT
GRIEG MATURITAS AS 2020
Amounts in NOK 1 000
2021
GRIEG GROUP 2021
2020
750 239
-877 877
-25 211
-222 632
-106 839
-
-
-
Cashflow from operations 89 950
505 777
-
-
Taxes paid
-
-
Gain/loss from sale of fixed assets
-90 000
-506 250
-
-
Ordinary depreciation
628 417
707 441
-
-
Write-down (reversal) of fixed assets
-35 769
789 612
-
-
Unrealised gain/loss market based investments
-7 536
-62 422
-
-
Change in inventory
-342 129
-67 824
-
-
Change in accounts receivable
33 751
172 956
-76
276
Change in accounts payable
-25 386
46 024
-241
-164
Change in accruals
-748
-8 063
-
-
Difference in expenses pensions and payment in/out
6 156
-5 073
-
-
Effect of change in exchange rate
1 339
12 044
-
-
Share of profit from associated companies (equity method)
1 486
2 932
-
-
Change in other provisions
237 749
-98 071
-
-
Gain/loss from sale of market based investments
-99 847
-3 316
-
-
Net cash flow from operating activites for discontinued operations
145 228
3 505
-367
-361
1 160 900
389 236
From the Boardroom
Profit before tax
Dividends receivable taken to income
Net cashflow from operations
80 — 81
GRIEG MATURITAS AS 2020
Amounts in NOK 1 000
2021
GRIEG GROUP 2021
2020
Cashflow from investing activities -
-
Sale of fixed assets
372 509
781
-
-
Purchase of fixed assets/newbuilding contracts
-606 117
-882 245
-
-
Purchase of intangible assets
-12 878
-164 233
-
-
Payments on business combinations
-
-70 935
-
-
Accumulated cash acquired in business combinations
-
30 628
-
-
Sale of subsidiary, deconsolidation of cash and cash equivalents
-
-84 754
-
-
Loan to associate
-
45 289
90 000
258 750
Payments from other group companies
-
-
-
-
Sale of shares
393 939
151 627
-
-
Purchase of shares and securities
-234 032
-169 900
-
-
Acquisition of shares in associated company
-30 845
-
-
-
Net cash flow from investing activites for discontinued operations
2 041 801
-121 537
90 000
258 750
Net cashflow from investing activities
1 924 377
-1 265 279
-5 087
-425 005
-1 588 393
-501 386
Cashflow from financing activities -
-
Net change in bank overdraft
-
-
Loan repayment (short/long-term)
-
-
Loan proceeds
39 147
1 977 750
-90 000
-258 750
Dividends paid
-352 629
-129 365
-
-
Net cash flow from financing activites for discontinued operations
-145 836
-120 161
-90 000
-258 750
-2 052 798
801 832
-367
-361
1 032 479
-74 211
41 035
40 669
767 051
842 161
-
-
-
898
40 669
40 309
1 799 530
767 051
Net cashflow from financing activities Net cashflow for the period Opening balance of cash and cash equivalents Cash postition in assets held for sale Cash and equivalents 31.12
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 1
Accounting principles
The Annual Accounts for Grieg Maturitas AS have been
OPERATING REVENUE
prepared in accordance with Norwegian Accounting
Operating revenues are entered as income at the time
Act and generally accepted accounting principles.
of delivery. The time of delivery is understood as the
GROUP ACCOUNTS
time of transfer of risk and control related to the delivery. Freight revenues from voyages are recognised
The consolidated accounts include the subsidiar-
on the basis of the number of days the voyage lasts.
ies specified in note 8 and shows the accounts of the
Revenue is shown, net of value added tax, returns and
parent company and the subsidiaries as a single eco-
discounts.
nomic unit. Shareholdings and investments in subsidiaries are eliminated on the basis of the acquisition
CLASSIFICATION OF ASSETS AND LIABILITIES –
method. The cost of shareholdings and investments in
MAIN RULE
subsidiaries is eliminated against the book equity of
Assets intended for long-term ownership or use are
the shares/investments at the date of acquisition. Any
classified as fixed assets. Other assets are classified as
difference arising is posted to the identifiable assets.
current assets. Receivables due within one year are
Any surplus value that cannot be attributed to specif-
classified as current assets. The corresponding criteria
ic assets, or the company’s own intangible assets, is
are applied to classify liabilities. Certain items are stat-
described as goodwill and is depreciated over its esti-
ed on the basis of special valuation rules, in accordance
mated lifetime. Intra-group transactions and internal
with accounting legislation, as detailed below. Other
balances are eliminated.
assets and liabilities are classified as fixed assets and long-term liabilities, respectively.
Companies that are bought or sold during the year, is included in the group accounts from the time of con-
INVENTORIES
trol arises or ceases.
Inventories are recognised at the lower of cost and fair value. Goods in progress, and finished goods are recog-
Changed owner share in subsidiaries, where the com-
nised at the lower of full cost and net sales value. The
pany after the transaction still is a subsidiary, is an eq-
net sales value of finished goods is calculated as sales
uity transaction for the Group. The income statements
value less sales costs. The stock of bunkers consists of
and balance sheets of the group entities that have a
fuel and diesel and are recognised at cost on the basis
functional currency different from the presentation
of the FIFO method.
currency are translated into the presentation currency as follows:
FOREIGN CURRENCY
(i) assets and liabilities are converted at the closing rate
Assets and liabilities denominated in foreign curren-
on the date of the balance sheet,
cies are stated at the year-end exchange rate. Agio,
(ii) income and expense items in the income state-
or disagio, on settlements or conversion of monetary
ment are converted at average exchange rates for
items in foreign currency on the day of balance is allo-
the period (unless this average is not a reasonable
cated. Transactions in foreign currencies is recalculat-
estimate of the cumulative effect of the rates pre-
ed to transaction rate.
vailing on the transaction dates, in which case income and expenses are translated on the dates of
Foreign exchange hedging derivatives purchased in or-
the transactions),
der to reduce the currency risk for the sub-group Grieg
(iii) translation differences are recorded against equity and specified separately. From the Boardroom
Maritime Group and Grieg Shipbrokers are recognised as hedging transactions. Gains/losses of foreign ex82 — 83
change contracts are therefore recorded in the same
are provided for in the accounts of the subsidiary. If the
period as the hedged transactions. Please refer to note
dividend exceeds the profit after the acquisition, the
17. Unrealized gain/loss on the hedging contracts is not
surplus amount represents repayment of the capital in-
posted on the balance sheet.
vestment and the distributions are deducted from the amount of the investment in the balance sheet.
FOREIGN EXCHANGE RATES (NOK)
INVESTMENTS IN LIMITED PARTNERSHIPS
01.01.2021
31.12.2021
Average 2021
1 EUR
10,47
9,99
10,16
1 USD
8,53
8,82
8,59
1 CAD
6,70
6,94
6,85
profits/contribution to cover losses from investments
1 GBP
11,65
11,89
11,82
in limited partnerships is taken to income/charged
Investments in limited partnerships are recorded on the basis of the cost method whereby the investment is stated at cost in the balance sheet. The distribution of
against profits under financial items. Profits from inINTEREST RATE HEDGING
vestments in limited partnerships are taxable in the
Interest rate hedging contracts are recognised and
hands of the respective participants.
classified in the same way as the related mortgage loan. The interest received/paid under the contract is there-
INVESTMENTS IN PORTFOLIO AND PRIVATE EQ-
fore recognised in the interest period in question and is
UITY COMPANIES
included in interest cost/income for the period. Unre-
A portfolio of investments are recorded as a current as-
alized gain/loss on the hedging contracts is not posted
set, and is valued at the lower of cost price and estimat-
on the balance sheet.
ed fair value for the portfolio as a whole when the intention behind the portfolio is to diversify the risk through
ACCOUNTS RECEIVABLE
a balanced portfolio with respect to time, branches and
Accounts receivable are stated at nominal value less
geography. For unlisted investments, with no observa-
provisions for expected losses. The loss provision is
ble price, the fair value is determined by recently third
based on an individual assessment of each accounts
party-trades, or with a reference to the fair value of
receivable.
similar investments. Investments with significant and permanent impairment is removed from the portfolio.
INVESTMENTS IN SUBSIDIARIES A company is defined as a subsidiary if the Group has
INVESTMENTS IN ASSOCIATED COMPANIES
a decisive influence on its operations. This is normal-
AND JOINT VENTURES
ly the case where the Group holds more than 50% of
An associated company is a company where the Group
the voting share capital. Subsidiaries are posted in the
has significant influence, but not control. Significant
company accounts applying the cost method. The in-
influence is deemed to exist for investments where the
vestment is stated at historical cost of the shares un-
Group has between 20% to 50% of voting capital. In-
less a write-down has been necessary. The investment
vestments in associated companies and joint ventures
is written down to fair value when the reduced value
are recorded on the basis of the equity method in the
is due to causes which are not deemed to be tempo-
consolidated accounts, unless the investment value
rary. Write-downs are reversed when the grounds for
is immaterial. Investments in 50/50% joint ventures
the write-down no longer exist. Dividends and other
are stated according to gross method. The share of the
distributions are recognised in the year in which they
results in associated companies is posted separately
GRIEG MATURITAS | ANNUAL REPORT 2021
under financial items. The investments in associated
impairment whenever events or changes in circum-
companies are posted as a financial asset. The Group’s
stances indicate that the carrying amount may not be
share of a loss is not posted in the income statements if
recoverable. An impairment loss is recognised for the
this means that value of the investment in the balance
amount by which the asset’s carrying amount exceeds
sheet becomes negative. Provisions will be made if the
its recoverable amount. The recoverable amount is the
Group has undertaken an obligation on behalf of the
higher of an asset’s fair value less costs to sell and value
associate.
in use. For the purpose of assessing impairment, assets
FIXED ASSETS
arately identifiable cashflows (cash-generating units).
are grouped at the lowest levels for which there are sepFixed assets are valued at acquisition cost, but are written down to fair market value where the decline
The Group’s open hatch vessels are sailing in a pool,
in value is not expected to be temporary. Fixed assets
which are market and operated by G2 Ocean AS. Also
with a limited economic lifetime are depreciated on a
for the bulk activities, consisting of cargo contracts,
straight-line basis over the expected lifetime of the as-
owned and chartered vessels, G2 Ocean AS markets
set. Long-term liabilities are stated in the balance sheet
and operates the vessels in Grieg Star Bulk and Grieg-
at the nominal amount on the establishment date. Cur-
Maas in a dry bulk supramax/ultramax pool.
rent assets are valued at the lower of acquisition cost and fair market value. Current liabilities are stated in
Having the vessels sail in a pool means that the oper-
the balance sheet at the nominal amount on the estab-
ational use of the vessels, including optimization of
lishment date. Periodic classification and maintenance
routes, is combined for the fleet. Earnings of each in-
costs are posted in the balance sheet and depreciated
dividual vessel is therefore affected by the earnings of
on a straight-line basis until the next planned docking.
other vessels in the pool. The open hatch fleet and the
The docking costs are included in the balance sheet
bulk fleet are therefore considered to be the respective
along with the value of the ship. The depreciation of
cash-earnings of other vessels in the pool. The open
docking costs is included in operating costs.
hatch fleet and the bulk fleet are therefore considered to be the respective cash-generating units.
INTANGIBLE ASSETS Goodwill is depreciated over its economic lifetime. The
Newbuilding contracts are included in the fleet impair-
surplus value attached to the fleet’s contracts of em-
ment and unpaid installments are deducted.
ployment and the company’s right to renominate Grieg Maritime Group tonnage is defined as “contracts” in
Non-financial assets other than goodwill which have
the balance sheet and is depreciated over 20 years. Li-
been impaired are reviewed for possible reversal of the
censes with unlimited economic lifespan is subject to
impairment at each date.
an annual impairment test. Licenses with limited economic lifespan is depreciated annually. Expenses relat-
PENSION COMMITMENTS
ed to the company’s own development are recorded in
Defined contribution plans
the balance sheet from the point when it is likely that
The Group’s main pension scheme is a defined contri-
the development work will result in an identifiable in-
bution plan, for which the companies pay contribu-
tangible asset.
tions to an insurance company. The companies have no further payment obligations once the contributions
ASSET IMPAIRMENTS
have been paid. Contributions are recorded as payroll
Assets that are subject to depreciation are reviewed for
expenses.
From the Boardroom
84 — 85
Defined benefit plan
of ownership to the lessee. All other leases are classi-
Some companies have defined benefit plans, including
fied as operational leases. When a lease contract is
AFP. A defined benefit plan is a pension scheme that
classified as a financial lease where the company is the
defines the pension payment an employee will receive
lessee, the rights and obligations relating to the leas-
on reaching retirement age. The pension payment nor-
ing contracts are recognised in the balance sheet as
mally depends on one or more factors, such as age, pe-
assets and liabilities. The interest element in the lease
riod of service with the company and salary level. The
payment included in the interest costs and the capital
pension commitment under defined benefit schemes
amount of the lease payment is recorded as repayment
posted in the balance sheet is the present value of the
of debt. The lease liability is the remaining part of the
defined benefit schemes at year-end less the fair value
principal. For operational leases, the rental amount is
of the pension fund assets, adjusted for unposted de-
recorded as an operating cost.
viations from estimate. The pension commitment is calculated annually by an independent actuary based
TAXATION
on a linear accrual of pension entitlements. Changes in
The tax charge in the profit and loss account consists
benefits under the pension plan are posted in the prof-
of the tax payable and the change in net deferred tax.
it and loss account on an ongoing basis. The pension
Taxes are charged when they arise. Deferred tax in the
schemes are funded through payments to insurance
balance sheet is calculated on the basis of timing dif-
companies or financed through operations. Post-em-
ferences between values for taxation and accounting
ployment benefit obligations associated with the early
purposes. Taxable and tax-deductible timing differ-
retirement pension (AFP), under the LO/NHO arrange-
ences which are reversed or can be reversed within the
ment, are a multi-employer defined benefit plan, but
same period are netted against each other and entered
the plan is recorded as defined contribution, as it is not
net. Some of the companies of the Group are subject
measurable.
to shipping taxation under the Norwegian tonnage tax system pursuant to chapter 8 of the Taxation Act.
MARKET BASED FINANCIAL ASSETS Short-term investments in shares and mutual funds
CASHFLOW STATEMENT
are regarded as part of the trading portfolio and are
The statement of cashflows is prepared on the basis of
stated at fair value at year-end. Dividends received and
the indirect method. Accordingly, the cashflows from
other distributions are entered as income under other
investment and financing activities are reported gross,
financial income.
while the accounting result is reconciled against the net cashflow from operations. Cash and cash equiva-
ESTIMATES
lents include cash, bank deposits and other short-term
When preparing the annual accounts in accordance
liquid investments that can immediately and with no
with good accounting practice, the management make
major exchange rate risk be converted into a known
estimates and assumptions which affect the profit and
amount and maturing less than three months from the
loss account and the valuation of assets and liabilities
transaction date.
as well as information about contingent assets and liabilities at year-end. Contingent losses which are likely and quantifiable are charged against income on an ongoing basis. LEASING The companies differentiates between financial leasing and operational leasing based on an evaluation of the lease contract at the time of inception. A lease contract is classified as a financial lease when the terms of the lease transfer substantially all the risk and reward
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 2
Segment information
GRIEG GROUP
Amounts in MNOK Operating revenue
Operating profit
Net financial Items
Profit before tax
2021
2020
2021
2020
2021
2020
2021
2020
4 663
4 408
422
205
-129
-227
292
-22
1 832
1 579
476
-762
-135
-181
341
-943
Grieg Logistics
519
482
-5
0
0
-0
-5
-0
Grieg Investor
125
103
41
28
0
0
41
28
Grieg Shipbrokers
182
119
49
-1
-3
-11
45
-12
Grieg Kapital
114
127
-18
-8
97
130
80
122
-43
-53
-69
-17
24
-33
-47
-51
7 392
6 765
896
-555
-146
-323
750
-878
-36
789
-36
789
861
234
715
-89
Grieg Seafood (NGAAP)/ Grieg Aqua2 Grieg Maritime Group
Other
1
Total - Grieg Group Write-down vessels in GMG Total - Grieg Group ex write-down
7 392
6 765
1
Other includes the Groups’s holding company, mangement service company and eliminations
2
For discontinued operations and held for sale assets, please refer to note 25 for information
From the Boardroom
-146
-323
86 — 87
Note 3
Other operating expenses
GRIEG GROUP
Amounts in NOK 1 000
Operating costs - shipping
2021
2020
Timecharter costs - shipping
293 421
356 788
Ship operating costs
657 628
637 407
Total operating costs - shipping
951 048
994 195
2021
2020
1 392 696
1 731 233
329 748
-6 767
1 722 444
1 724 466
Cost of sales - fish farming Cost of sales - fish farming Change in inventories Total cost of sales fish farming
Other operating expenses
2021
2020
385 539
339 760
Other operating expenses
1 832 575
1 871 365
Total other operating expenses
2 218 114
2 211 125
Freight and cost of services
The group has the following long term operating lease agreements related to chartering of vessels, offices, plant and machinery.
2021 Long-term time charter Bare-boat hire Other lease amount charged in the year
Duration
Number of vessels
Operating lease expense
2 - 5 years
4
167 682
6 - 12 years
6
125 547
2-10 years
116 797
Total lease amount charged
2020 Long-term time charter Bare-boat hire Other lease amount charged in the year Total lease amount charged
GRIEG MATURITAS | ANNUAL REPORT 2021
410 027
Duration
Number of vessels
Operating lease expense
0 - 5 years
6
254 751
1-12 years
4
104 344
2-10 years
118 830 477 925
Note 4
Payroll, employee and remuneration
The company had no employees in 2021. The Managing Director is employed in Grieg Maturitas II. There has been no remuneration to the Board of Directors in Grieg Maturitas. Total remuneration to the Managing Director and Board members from the Group is specified below.
GRIEG GROUP
Amounts in NOK 1 000 2021
2020
815 724
7 00 100
Social security costs
67 431
60 786
Pension costs
47 537
49 203
Other benefits
81 159
82 288
1 011 850
892 377
1 073
1 052
576
658
1 649
1 710
Payroll and social security costs Salaries
Total
Number of employees Number of sailing personnel1 Total
1
Salary costs are recognised in the P&L as operating costs - shipping.
REMUNERATION TO EXECUTIVES In 2021 totalt payments to salary, pension premium og other remuneration to present Managing Director was NOK 4,0 mill (of which NOK 0,9 mill is related to severance pay) and to present Board Members NOK 17,8 mill. (NOK 4 mill. are Board remuneration and NOK 13,8 mill. are salaries from companies in the group). Remuneration to the Board members and Managing Director is paid from the companies where the Director is employed or a member of the Board. Elisabeth Grieg, chair of the board, was registered as The Group CEO from desember 2021.
From the Boardroom
88 — 89
Note 5
Pensions and pension commitments
PARENT COMPANY
The company had no employees in 2021, and therefore no employees covered by pension schemes in 2021.
GRIEG GROUP
The Group companies in Norway have pension schemes which meet the requirements of the Act relating to compulsory occupational pension schemes. Most of existing employees in Group companies in Norway are now transferred from having a defined benefit based pension scheme to having a defined contribution based pension scheme. All new employees are offered a contribution based pension scheme. Most of the Group companies abroad have a defined contribution based pension scheme.
Amounts in NOK 1 000 Total pension costs distributed as follows Defined contribution pension Defined benefit pension, incl. AFP Pension costs - discontinued operations Total
2021
2020
45 815
45 900
1 722
2 119
-
1 183
47 537
49 203
DEFINED CONTRIBUTION BASED PENSION SCHEME The defined contribution based pension scheme covers full-time and part-time employees and amounts to between 2% and 20% of salary. The contribution charged in the accounts in 2021 amounted to NOK 45,8 million (excluding National Insurance Contributions). DEFINED BENEFIT BASED PENSION SCHEME Some companies in the Group have defined benefit pension scheme. The Group pension scheme is funded through the accumulation of pension fund assets in an insurance company or through operations. The scheme give an entitlement to defined future benefits. In 2021 a total of 73 persons (including pensioners and persons on early retirement) were covered by the benefits based scheme.
GRIEG MATURITAS | ANNUAL REPORT 2021
Net pension costs, including National Insurance Contribution
2021
2020
865
1 077
1 798
2 409
-2 129
-3 062
347
790
-
-
842
904
Pension costs for the year
1 722
2 119
Pension fund assets/liabilities
2021
2020
-143 974
-143 757
82 655
79 968
8 180
6 581
Net pension fund assets/(liabilities)
-53 139
-57 209
Of which unfunded obligations
-23 654
-30 896
2021
2020
Norway
Norway
Discount rate
1,90%
1,70 %
Anticipated rise in salaries
2,75%
2,25 %
Anticipated return on pension fund assets
3,10%
2,70 %
Anticipated increase of pensions
2,50%
2,00 %
Anticipated rise in pensions, regulation of National Insurance Base rate
3,10%
2,00 %
Present value of pension entitlements Interest expenses on pension entitlements Return on pension fund assets Accounting effect of estimate divergences and plan changes This year’s change, provision for undercoverage CPA Administration expenses
Calculated pension commitments Pension fund assets (at market value) Unposted effect of estimate divergences
Financial assumptions:
From the Boardroom
90 — 91
Note 6
Fixed assets
GRIEG GROUP Land and real estate
Vehicles, machinery and equipment
Vessels
Total
1 922 871
4 178 943
10 313 411
16 415 225
21 547
15 429
348 889
385 866
-88 910
0
0
-88 910
Additions
222 585
508 318
37 604
768 507
Disposals
-133 286
-30 514
-500 438
-664 238
1 944 808
4 672 176
10 199 467
16 816 450
-365 042
-2 681 274
-4 878 244
-7 924 561
-5 179
-42 608
-620 945
-668 732
1 574 586
1 948 294
4 700 278
8 223 157
42 983
257 738
284 604
585 326
0
0
-35 771
-35 771
Economic lifetime
20-50 years
3-20 years
25-30 years
Depreciation plan
Linear
Linear
Linear
-
419 017
514 866
Purchase cost at 01.01 Currency translation differences Grants received and other deductions to historic cost 1
Purchase cost at 31.12 Depreciation accumulated Write-down accumulated Balance sheet value at 31.12
Depreciation Write-down (reversal)
Book value of financial lease agreements included in the table above
“1
Amounts in NOK 1 000
933 882
Grants received and other deductions to historic cost related to the freshwater facility in Grieg Newfoundland. Investment tax credits are recognized when the qualifying
property, plant and equipment are available for productive use, and are recorded as a direct decrease in property, plant and equipment.
GRIEG MATURITAS | ANNUAL REPORT 2021
FIXED ASSETS Investments in 2021 relates primarily to Grieg Seafood ASA and the Grieg Newfoundland project and the RAS plant in BC, in addition to other growth- and maintenance-investments. The Newfoundland-project comprises licenses for fish farming, a high-end fresh and saltwater Recirculating Aquaculture System (RAS) facility currently under construction. The acquisition is accounted for as a business combination and further described in note 24, and assets acquired is shown as acquisition of business in the table above. In Grieg Maritime Group the disposals of vessels is related to the sale of four dry bulk vessels in Grieg Maas joint venture during the year. FINANCIAL LEASE AGREEMENTS Grieg Seafood has financial lease agreements on vehicles, machinery and other equipment, with a book value of NOK 780 million. The corresponding amount of lease liabilities recognized is NOK 360 million and the undiscounted amount of future lease payments is NOK394 million as of 31.12.2021. Rensefiskgruppen has financial lease agreements with a book value of NOK 24 million on vehicles, machinery and other equipment, and lease liabilites amounts to NOK 19 million as of year-end 2021. Of the total balance sheet amount for vessels the share of leased operating assets held by Grieg Maritime Group is NOK 515 million as of 31.12.2021 and the long-term financial lease liability recognized amounts to NOK 477 million as of 31.12.2021.
From the Boardroom
92 — 93
Note 7
Intangible assets
GRIEG GROUP
Amounts in NOK 1 000 Goodwill
Contracts
Other intangible assets
Licenses
Total
720 182
158 934
33 956
1 642 715
2 555 787
Currency translation differences
18 104
0
80
30 997
49 181
Additions
4 964
0
8 913
7 298
21 175
Disposals
-66 476
-153 122
-789
-5 304
-225 691
Purchase cost at 31.12
676 774
5 811
42 160
1 675 706
2 400 451
Accumulated depreciations
-66 195
-5 811
-22 497
-88 161
-182 664
Accumulated write-down
-89 603
0
0
0
-89 603
Balance sheet value at 31.12
520 976
0
19 663
1 587 545
2 128 184
28 295
0
4 772
10 241
43 309
0
0
0
0
0
Economic lifetime
3-20 years
10 years
3 -10 years
5-25 years/ unlimited
Depreciation plan
Linear
Linear
Linear
Linear/none
Purchase cost at 01.01
Depreciation Write-down (reversal)
Goodwill primarily relates to the aquisition of Grieg Newfoundland, descibed in note 24. Contracts represent excess values related to the vessels’ contracts of affreightment through the participation in the G2 Ocean pool and purchased dividend rights in the Grieg Shipbrokers Group. Other intangible assets relates to logistic systems in Grieg Logistics Group, digital software solutions in Grieg Investor AS and Grieg Green AS. Licenses relates mainly to fish-farming licenses in Grieg Seafood ASA and Ryfylke Rensefisk Group. Most licenses have an unlimited economic lifetime, but is subject to a yearly valueassessment to determine if write-downs are required.
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 8
Investments in subsidiaries
GRIEG GROUP Subsidiary
Amounts in NOK 1 000 Registered office
Ownership
Proportion of voting shares
Book equity 100%
Book value
Dividend
Bergen
75%
100%
4 068 864
4 021 796
506 250
Grieg Maturitas II AS
Grieg Maturitas II AS, which is owned 75% by Grieg Maturitas AS and 25% by Grieg Foundation, is the common holding company of the Group.
GRIEG GROUP
The consolidated financial statements comprise the company Grieg Maturitas AS and Grieg Maturitas II AS with the following subsidiaries:
Grieg Maturitas II AS owns the following companies:
Registered office
Grieg Maritime Group AS
Directly ownership
Directly and indirectly ownership
Proportion of voting shares
Bergen
100%
100%
100%
Grieg Logistics AS
Bergen
100%
100%
100%
Grieg Kapital AS
Oslo
100%
100%
100%
Grieg Aqua AS
Bergen
100%
100%
100%
Grieg Shipbrokers KS
Bergen
45%
55%
55%
AS Joachim Grieg & Co
Bergen
100%
100%
100%
Grieg Investor Holding AS
Oslo
45%
45%
80%
Grieg Group Resources AS
Bergen
100%
100%
100%
From the Boardroom
94 — 95
Grieg Maritime Group AS owns the following companies:
Registered office
Grieg Edge Grieg Green AS Grieg Green Consulting and Advisory Company Limited Grieg Shipholding AS Grieg Star AS Grieg Star Philippines inc. Grieg Shipowning AS
Bergen
100%
100%
Oslo
100%
100%
China
100%
100%
Bergen
100%
100%
Bergen
100%
100%
Philippines
100%
100%
Bergen
100%
100%
Bergen
100%
100%
Grieg International II AS
Oslo
100%
100%
Grieg Shipping III AS Grieg Shipping III AS
Bergen
97%
97%
Bergen
100%
100%
Bergen
3%
3%
Grieg Star 2017 AS
Bergen
100%
100%
Grieg Star OH Pool AS
Bergen
100%
100%
Grieg Star Bulk Pool AS
Bergen
100%
100%
GriegMaas AS
1
GriegMaas Ultramax AS
1
Proportion of voting shares
Grieg Shipping II AS
Grieg Star Bulk AS
1
Ownership
Bergen
50%
50%
Bergen
100%
100%
Ownership
Proportion of voting shares
GriegMaas companies has been disvolved in 2022.
Grieg Shipbrokers KS owns the following companies:
Registered office
Grieg Shipbrokers Valuation Services AS1
Bergen
100%
100%
Grieg Shipbrokers Ltd.
UK
100%
100%
Grieg Shipbrokers Asia AS
Bergen
100%
100%
Grieg Shipbrokers Asia Pte. Ltd.
Singapore
100%
100%
Grieg Shipbrokers Asia Ltd.
Hong Kong
100%
100%
Ownership
Proportion of voting shares
10%
10%
Grieg Shipbrokers Valuation Services AS has changed from KS to AS
AS Joachim Grieg & Co. owns the following companies:
Registered office
Grieg Shipbrokers KS
Bergen
GRIEG MATURITAS | ANNUAL REPORT 2021
Grieg Logistics AS owns the following companies:
Registered office
Scandinavian Harbour Service AS
Tønsberg
Proportion of voting shares
100%
100%
Mosjøen Industriterminal AS
Mosjøen
100%
100%
Grieg Connect AS
Kristiansund
100%
100%
Grieg Strategic Services AS
Bergen
100%
100%
Grieg Aqua owns the following companies:
Registered office
Ownership
Proportion of voting shares
Grieg Seafood ASA
Bergen
50,17%
50,17%
Bergen
100%
100%
Grieg Seafood Finnmark AS
Alta
100%
100%
Grieg Seafood Canada AS
Bergen
100%
100%
Grieg Seafood BC Ltd.
Canada
100%
100%
Grieg Seafood Sales North America Inc.
Canada
100%
100%
Grieg Seafood Premium Brands Inc.
Canada
100%
100%
Grieg Seafood Rogaland AS
Grieg Seafood Norway AS
Bergen
100%
100%
Grieg Seafood Sales UK Ltd.
UK
100%
100%
Grieg Seafood Sales USA Inc.
USA
100%
100%
99%
99%
Grieg Newfoundland AS
1
Ownership
Bergen
Grieg Seafood Newfoundland Ltd.
Canada
100%
100%
Grieg Newfoundland Seafarms Ltd.
Canada
100%
100%
Grieg Newfoundland Nurseries Ltd. 1
Canada
100%
100%
Grieg Newfoundland Development Ltd has merged with Grieg Newfoundland Nurseries Ltd.
From the Boardroom
96 — 97
Grieg Investor Holding AS owns the following companies:
Registered office
Grieg Investor AS
Oslo
Grieg Kapital AS owns the following companies:
Registered office
Grieg Holdings II AS
Bergen
100%
100%
Finnøy
75,2
75,2%
Ryfylke Rensefisk AS
Finnøy
100%
100%
Finnmark Rensefisk AS
Alta
100%
100%
Ryfylke Berggylt AS
Finnøy
100%
100%
Talgje Rensefisk AS
Finnøy
100%
100%
Austevoll Rensefisk AS
Austevoll
100%
100%
AS Nestun Uldvarefabrik
Bergen
100%
100%
Silves Odissey Inv. and Techn. Lda.
Portugal
74%
90%
Grieg Gaarden AS
Bergen
100%
100%
Grieghallen Parkering II AS
Bergen
47,52%
47,52%
Bergen
100%
100%
93,15%
93,15%
Rensefiskgruppen AS
1
Grieghallen Parkering AS Maris Reinvest AS 1
Marin Innovasjon AS has merged with Ryfylke Bergylt AS
GRIEG MATURITAS | ANNUAL REPORT 2021
Oslo
Ownership
Proportion of voting shares
100%
100%
Ownership
Proportion of voting shares
Note 9
Investments in associated companies and joint ventures
GRIEG GROUP
Amounts in NOK 1 000
Ownership %
Registered office
Book value 01.01
Fram Marine AS1
25,00%
Oslo
2 281
Portalo AS
50,00%
Oslo
-
35
Tytlandsvik Aqua AS
33,33%
Hjelmeland
43 158
-
Nordnorsk Smolt AS
50,00%
Hasvik
41 264
Årdal Aqua AS
37,04%
Hjelmeland
-
G2 Ocean Holding AS
35,00%
Bergen
North Ammonia
50,00%
Rogaland Havbrukspark Eiendom AS
50,00%
Sum 1
Addition
Book value 31.12.
Excess value inlc. in Book value
2 281
219
-20
15
-
4 929
48 087
-
Share of profit/loss for the year
Other changes
-6 053
12 500
47 711
-
-
-363
9 241
8 877
-
41 105
-
-984
3 174
43 295
-
Oslo
-
4 915
-956
101
4 065
-
Finnøy
500
500
-
154 831
219
128 308
4 950
-3 447
25 017
Booked according to the cost method.
From the Boardroom
98 — 99
Note 10
Financial items
Amounts in NOK 1 000 Parent company Other Financial Income Interest income Gain on sale of investments
Grieg Group
2021
2020
2021
2020
96
169
5 662
17 442
-
-
119 298
30 055
136
-
Reversal of write-down of financial investments Other financial income
-
-
133 055
23 941
Total financial income
96
169
258 151
71 437
Parent company Other Financial Expenses
Grieg Group
2021
2020
2021
2020
Interest expenses
-
-
346 553
307 411
Write-down of financial fixed assets
-
-
0
180
Other financial expenses
18
3
63 604
146 631
Total financial expenses
18
3
410 157
454 222
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 11
Shareholdings and other investments
GRIEG GROUP
Amounts in NOK 1 000
Shareholdings and other investments - classified as current assets Ownership
Purchase cost
Argentum Investment Partner IS
7,62%
25 952
Proximar Seafood AS
7,99%
26 718
Voxtra East Africa Agribusiness Fund
5,44%
5 740
Blueye Robotics AS
2,10%
5 250
25,00%
5 008
1,41%
2 672
F 14 Invest AS
3,81%
210
Rem Nor AS
8,82%
3 000
Union Real Estate Holding AS
0,74%
1 048
Karihaugveien 22 Holding AS
6,70%
1 456
Sahara Forest Project AS
2,10%
1 150
C-Feed AS
7,90%
5 000
1,60%
4 356
Company
Fremre Asset 3 AS DNB Private Equity III ( IS)
Idekapital Fund 2 IS Total - classified as current assets
Book value 31.12.
87 559
87 559
Ownership
Purchase cost
Book value 31.12.
1,90%
11 167
11 167
3,00%
1 622
1 622
18 903
18 216
31 692
31 004
119 251
118 563
1
Shareholdings and other investments - classified as fixed assets Company Mercell Holding AS UACC Ross Tanker DIS Other investments Total - classified as fixed assets
2
Total shareholding and other investments
Portfolio investments: the portfolio of investments on the list is valued at the lower of cost price and estimated fair value (market value). The investments are treated as a portfolio where gains and losses are off-set, and the cost price are measured against the estimated fair value on the total portfolio. The portfolio investments are classified as current assets. 2 Direct share investments: the shares are valued on the basis of the cost method at an individual basis, and written down if fair value is lower than the cost price. Write-downs are reversed when the grounds for the write-down no longer exist. The direct share investements are classified as fixed assets. 1
From the Boardroom
100 — 101
Note 12
Inventories and biological assets
GRIEG GROUP
Amounts in NOK 1 000
Raw materials - fish farming Goods in progress - fish farming Finished goods Bunkers and lube oil Total inventories and biological assets
Note 13
2021
2020
130 327
80 278
2 490 480
2 209 169
723
155
29 882
19 682
2 651 412
2 309 284
Receivables due in more than one year
GRIEG GROUP
Amounts in NOK 1 000 2021
2020
27 781
35 837
Other receivables
156 836
74 423
Total
184 617
110 260
Loan to associated companies
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 14
Market based financial investments
GRIEG GROUP
Amounts in NOK 1 000 Purchase cost
Market value
20 929
34 419
Mutual funds
212 593
314 131
Bonds
181 703
190 330
Money market funds
151 758
152 325
566 983
691 204
Individual shareholdings
Total
Unrealised gain this year of market based financial investments
Note 15
7 536
Debt payable after 5 years
GRIEG GROUP
Long-term debt - maturity more than 5 years
Long-term finance lease liabilities - maturity more than 5 years1
Amounts in NOK 1 000 2021
2020
62 321
100 879
2021
2020
389 953
453 517
The long-term finance lease liabilites relates to leases of barges, cage installations, plant, machinery and other equipment in the segment Grieg Seafood group and leases of vessels in the segment Grieg Maritime Group.
1
From the Boardroom
102 — 103
Note 16
Mortgages/guarantee liability/restricted
PARENT COMPANY
Restricted deposits related to employees’ tax deduction
GRIEG GROUP
Amounts in NOK 1 000 2021
2020
-
-
Amounts in NOK 1 000 2021
2020
Restricted deposits related to employees’ tax deduction
48 584
42 158
Debt secured by mortgage (including overdraft facilities)
2021
2020
4 552 892
6 035 633
8 229
9 654
4 561 122
6 045 287
Mortgaged debt - long term Factoring and short term debt Total mortgaged debt
Out of the total long-term mortgaged debt, NOK 856 million is long-term financial lease liabilities. For further details on leased assets see note 6. Group assets have been given as mortage security.
Balance sheet value of mortgaged assets
2021
2020
Receivables
181 444
221 241
Vessels and newbuildings
4 113 121
4 496 663
Real estate
1 401 564
1 459 959
Other assets
1 946 370
1 122 081
Licences
1 536 319
809 947
2 620 807
2 280 270
-
1 107 076
11 799 625
11 497 237
2021
2020
957 787
551 720
1 627 101
1 940 029
Stocks Assets held for sale Total
Total guarantee liability
Undrawn borrowing facilities
GRIEG MATURITAS | ANNUAL REPORT 2021
LOAN COVENANTS
sels. Grieg Shipping II AS and Grieg International II AS is
For Grieg Seafood the financial covenant of the syn-
providing guarantees in the amount of USD 248,6 mill.
dicated loan agreements is equity-ratio of minimum
for Grieg Shipowning AS. The companies have been in
35%, measured on the consolidated book value of
compliance with the covenants throughout the year.
Grieg Seafood Group. In addition, there is a rolling 12-months NIBD/EBITDA leverage-ratio requirement.
Grieg Kapital AS is required to comply with covenants
The leverage-ratio metric of NIBD/EBITDA is linked
due to acting as a guarantor for the credit facility that
to the equity-ratio requirement: if equity-ratio is more
Proximar Seafood AS has entered into (see further de-
than 40%, maximum leverage-ratio is 5.0, and if eq-
tails under “guarantee liability”). Grieg Kapital AS are
uity-ratio is equal to or less then 40%, maximum lev-
required to maintain value adjusted equity ratio above
erage ratio is 4.5. Grieg Seafood was in compliance
50%, maintain total equity above MNOK 420 and main-
with its financial covenants as at 31 December 2021.
tain liquidity-ratio (current ratio) above 200%. Grieg Kapital AS has entered into a first priority share pledge of
After the reporting date of 31 December 2021,
all share in Proximar Japan and has received a fee for the
Grieg Seafood Group has refinanced its syndicat-
guarantee on markets terms. Grieg Kapital AS has been
ed loans. In Q1 2022, Grieg Seafood finalized a re-
in compliance with the covenants throughout the year.
financing of the Group’s syndicated financial liabilities, with an aggregate of NOK 3 200 million in
GUARANTEE LIABILITY
five-year senior secured sustainability-linked loans
Grieg Kapital AS has guaranteed for a credit facili-
and credit facilities. The sole financial covenant
ty that Proximar Seafood AS has entered into with a
for the new facilities is a minimum recognized eq-
Japanese credit institution. Grieg Kapital AS is act-
uity ratio of 31%, excluding the effect of IFRS 16.
ing as the primary guarantor, which by 31.12.2021 added to JPY 1 749 000 000. Grieg Kapital AS has
In 2020 Grieg Seafood issued a Green Bond list-
entered into counter-guarantee agreements that re-
ed on Euronext (Oslo Stock Exchange). The bond
duce the company’s exposure to JPY 375 000 000.
matures on 25 June 2025. The bonds financial covenant is an quity-ratio requirement of minimum
The counter-guarantees are subject to financial cove-
30%, measured consistent with the Group’s equi-
nants:
ty-ratio financial covenants as defined in its syndi-
i)
Ensure that the realizable market value of its finan-
cated loan agreement with secured lenders. Grieg
cial current assets at all times exceed the amount
Seafood was in compliance with the financial cove-
of its Counter Guarantee liabilities by a ratio of at
nants of the bond agreement at 31 December 2021.
least 2:1 ii) Ensure that the market value of its equity at all
Grieg Shipowning on consolidated basis (sub-group of
times exceed the amount of its Counter Guarantee
Grieg Maritime Group) is per year end 2021 required
liabilities by a ratio of at least 2.5:1
to have a minimum of liquid funds of USD 25 mill. / 5% of total interest bearing debt. A common covenant
The counter-guarantees has complied with its cove-
for all mortgage loans is that the Group must con-
nant’s requirements.
tinue to be controlled by the Grieg family and have a booked equity ratio > 25%. The companies have been in compliance with the covenants throughout the year. In addition to the guarantees listed above, Grieg Shipowning AS is providing guarantees in the amount of USD 19,3 mill. per 31.12.2021 for Grieg International II AS vessel, USD 8,4 mill. for the Grieg Shipping III AS vessel and USD 21,4 mill. for the GriegMaas Ultramax AS ves-
From the Boardroom
104 — 105
Note 17
Financial risk
The Group is exposed to a range of financial risks; mar-
CREDIT AND COUNTERPARTY RISK
ket risk (including currency risk, cashflow interest rate
The Group’s credit risk that counterparties do not have
risk, fair value interest rate risk and price risk), credit
financial ability to meet their obligations is relatively
risk and liquidity risk. The Group make use of financial
low due to solid customers, and a diversified portfolio.
derivatives to manage the financial risk.
Historical losses on receivables have been minor
MARKET RISK
amounts. The Group strive to mitigate the counterparty credit risk by making use of procedures and
Several of the Group’s companies hold significant fi-
systems and developing these on an ongoing basis. In
nancial investment portfolios, and changes in the
specific parts of the Group with a large customer port-
value of international securities and interest rates di-
folio, the risk is reduced by maintaining robust proce-
rectly affect the valuation of these. The portfolios are
dures for assessing counterparty risk and credit rating.
managed in accordance with long-term strategies and within defined mandates, also reflecting the Group’s
LIQUIDITY RISK
business principles.
The Group constantly monitors liquidity reserves
FOREIGN EXCHANGE RISK
and needs. The Group’s liquidity risk has increased, but strong liquidity and a focus on cash management
A large proportion of the Group’s revenues, assets and
ensure that there is sufficient liquidity to meet the
liabilities are in foreign currencies, mainly USD and
Group’s obligations when they mature.
EUR. Changes in foreign exchange rates therefore affect the group accounts presented in NOK. The Group
INTEREST RATE RISK
companies have strategies and procedures in place to
Interest rate risk arises in the short and long term as
reduce the exchange rate risk.
most parts of the Group’s debt are at a floating rate of interest. A change in interest rates will therefore im-
Grieg Maritime Group hedges expenditures in cur-
pact the interest expense. The application of interest
rencies other than USD through forward contracts. At
rate derivatives increases the predictability of the fi-
31.12.21 the company had entered into hedging agree-
nancing cost. A change in interest rates will also affect
ments for the use of currency swaps for USD 3.8m. To-
the returns on the investment portfolio and the rates
tal unrealized MTM value, not recognized in the bal-
on cash deposits. The Group’s strategy is to employ a
ance sheet at 31.12.21, was USD - 0.077m.
certain level of hedging using interest rate swap agreements to ensure low volatility in the Group’s interest
Grieg Seafood apply hedge accounting to foreign cur-
expenses.
rency contracts relating to non-current physical delivery contracts. The company do not utilize hedge
Grieg Maritime Group hedges part of its interest rate
accounting for its short-term foreign currency forward
exposure. Gains and losses arising from valuation of
contracts. At 31 December 2021, no hedging contracts
interest rate swaps in Grieg Maritime Group are rec-
through comprehensive income at fair value is present
ognised in the same period as the related interest ex-
for the Group, as these contracts are recognized at fair
pense.
value through profit and loss. At 31.12.21 the Grieg Maritime Group held interest rate Grieg Shipbrokers had 31.12.21 forward contracts to
swap agreements of USD 206m. Total unrealized MTM
hedge a total of USD 18.4m, with an unrealized not rec-
value, not recognized in the balance sheet, was USD -
ognised loss of NOK 0,5m.
4m.
GRIEG MATURITAS | ANNUAL REPORT 2021
Gains and losses arising from interest rate swaps in
Forward Freight Agreements (FFA) are from time to
Grieg Seafood are not subject to hedge accounting and
time used as a risk management instrument in order to
are recognized at the lowest of cost and fair value. At
smooth out freight volatility. The FFA contracts are set-
31.12.21 Grieg Seafood held interest rate swap agree-
tled as an adjustment of operating income. At 31.12.21,
ments with a total of NOK 1 660m. Unrealized gains
the Group had not entered into any Forward Freight
related to these agreements, not recognized in the bal-
Agreements (FFA).
ance sheet, amounts to NOK 36.5m. The interest rate swap agreements have a duration of four years. The
PRICE RISK
Company constantly evaluates whether these periods
The Group is exposed to fluctuations in spot prices for
should be rolled over.
salmon, which is mainly determined by global supply. Although the effect of changing prices is somewhat re-
FREIGHT RISK
duced through geographical diversification, long pro-
The Group’s ship earnings are to a large extent relat-
duction cycles make it challenging to respond rapidly
ed to cargo transportation contracts as a considera-
to change in marked prices. Salmon is primarily traded
ble share of the shipping activities are of an industri-
at spot prices. The price risk is partly hedged through
al character. The open hatch fleet’s earnings are to a
financial sales and purchase contracts. At 31 Decem-
large extent related to long term cargo contracts. This
ber 2021, the Group had financial salmon contracts for
implies that revenues are less volatile than in the spot
2021 totaling NOK – 20,6 million, of which all were sales
market, and that change in market conditions gener-
contracts, and physical delivery contracts recognized
ally have a delayed effect on the results. The Group’s
as liability, was zero. The unrealized loss per year end
dry bulk activity is on the other hand more exposed to
is recognized as loss, as the contracts are recognized at
general spot market movements.
the lower of cost and market value.
Note 18
Contingencies and subsequent events
INSPECTION – EUROPEAN COMMISSION
Additional details regarding the transaction can also
The European Commission DG (Director General)
be obtained from Grieg Seafood ASA Annual Report
Competition performed an inspection at Grieg Seafood
2021 on www.griegseafood.com
Shetland on the 19th of February 2019 to explore potential anti-competitive behaviour in salmon industry.
THE RUSSIAN INVASION OF UKRAINE
Grieg Seafood aims to be open, transparent and forth-
The invasion of Ukraine and subsequent sanctions has
coming and will provide all necessary information re-
already a global impact on food and food raw materi-
quested by the European Commission DG Competition
als prices, though salmon demand has not yet been
on its investigation. There is no new information re-
significantly affected. Further inflation in prices and
garding the EU investigation, and Grieg Seafood con-
distribution costs may impact demand going forward.
siders it to be probable that the investigation will find
However, as of the time of publishing this report, the
in its favour, which also is supported by legal advice.
expecation is that market prices will rise going forward.
GRIEG SEAFOOD FINALIZED A REFINANCING
For our shipping segment, while there could be some
OF THE GROUP’S SYNDICATED FINANCIAL
positive effects on earnings, the costs of operating due
LIABILITIES
to price increases as well as coping with cyber risk and
In Q1 2022, Grieg Seafood finalized a refinancing of
sanctions risk are expected to increase.
the Group’s syndicated financial liabilities, with an aggregate of NOK 3 200 million in five-year senior se-
The first priority for the Grieg Group will always be
cured sustainability-linked loans and credit facilities.
to ensure the safety and wellbeing for the Group’s em-
This represents the completion of the funding process.
ployees and our operations.
The new debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK 200 million overdraft facility. From the Boardroom
106 — 107
Note 19
Taxes
PARENT COMPANY Tax expense consists of:
Amounts in NOK 1 000 2021
2020
505 777
89 950
-506 225
-89 975
9
12
Basis of tax payable in P&L
-438
-13
Tax losses carried forward
-
13
Basis for payable tax in the income statement
-
-
2021
2020
Payable tax on this years result
-
-
Change in deferred tax
-
478
Tax expense
-
478
2021
2020
38
47
-
-
-2 684
-2 246
2 646
2 198
Ordinary result before tax Permanent differences Change in temporary differences
Components of the income tax expense
Deferred tax Taxable differences Tax-deductable differences Tax credit carried forward Deferred tax assets not recognised in the balance sheet
GRIEG MATURITAS | ANNUAL REPORT 2021
GROUP Tax expense consists of:
Amounts in NOK 1 000 2021
2020
Profit before tax
750 239
-877 876
Profit before tax, companies subject to shipping tax
452 772
-899 756
Profit before tax, companies not subject to shipping tax
297 467
21 880
17 127
-72 734
-20 020
-178 219
91 517
335 767
386 091
106 694
Tax payable, companies not subject to shipping tax
102 103
25 241
Tax payable in profit and loss
102 103
25 241
17 678
61 231
119 781
86 473
2021
2020
99 221
20 884
3 388
3 277
Other adjustments (treasure trove)
-
1 051
Total tax payable in balance sheet
102 609
25 212
2021
2020
3 727 328
3 039 481
-36 298
-59 308
-1 105 707
-967 493
2 585 323
2 012 680
Deferred tax on net timing differences
519 126
494 999
Unposted deferred tax assets
141 093
112 267
660 219
607 266
2021
2020
-536 004
-579 792
-197 207
-91 288
-
-17 345
-372 496
-279 067
-1 105 707
-967 493
Permanent differences Change in temporary differences Change in tax loss carried forward Basis of tax payable, companies not subject to shipping tax
Increase / (decrease) in deferred tax Tax charge for the year on ordinary result
Tax payable in balance sheet Tax payable, companies not subject to shipping tax Tonnage tax
Deferred tax Taxable timing differences Tax-deductible timing differences Tax loss to be carried forward Net timing differences
Net deferred tax in balance sheet
Loss carried forward Norway, companies not subject to shipping tax Canada USA Companies subject to shipping tax Total
Grieg Star Bulk AS left the tonnage tax regime in 2019. Unrealized currency losses that were not tax deductible in 2018 given the restrictions under the tonnage tax regime, was claimed to be tax deductible in 2019 when the company became subject to ordinary taxation. The tax authorities has notified that the deduction of unrealized currency losses will be reversed by NOK 69 875 810 which will reduce tax losses carry forward from 96 728 464 to NOK 26 852 654. Grieg Star Bulk AS has challenged the tax authorities’ position. A final conclusion from the tax authorities is expected to be received during 2022.
From the Boardroom
108 — 109
Note 20
Equity
PARENT COMPANY
Amounts in NOK 1 000
Share capital
Share premium reserve
Other equity
Total
1 124
409 763
3 651 581
4 062 467
Profit of the year
505 777
505 777
Dividend paid during the year
-168 750
-168 750
-337 500
-337 500
3 651 108
4 061 995
Equity - opening balance
Provision for dividend Equity - Closing balance
1 124
409 763
GROUP
Amounts in NOK 1 000
Share capital
Share premium reserve
Group reserves
Minority interests
Miority interests - contingent consideration 1
1 124
409 763
3 683 387
2 813 087
446 040
627 466
606 739
1 234 204
-337 500
-126 699
-464 199
-168 750
-60 606
-229 356
Currency translation differences included in net profit from discontinued operations
-31 625
-51 514
-83 139
Equity transactions and change in ownership share in subsidiaries
1 611
3 353
4 964
90 553
62 812
153 365
-5 529
-2 725
-8 254
3 859 613
3 244 447
Equity - Opening Balance Profit for the year Provision for dividend at year end Dividend paid during the year
Currency translation differences 2,3 Other changes Equity - Closing Balance
1 124
409 763
446 040
1
Relates to the acquistion of Grieg Newfoundland AS in 2020. For further details see note 24 Business combinations.
2
Currency translation difference gain previously included in the reserves, but transferred to gain on sale of subsidiary described in note 25.
Total
7 353 402
7 960 988
Currency translation differences: the effect of converting subsidiaries from functional currencies into NOK and mainly relates to subsidiaries witthin Grieg Maritime Group and Grieg Seafood Group.
3
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 21
Share capital and share information
At 31 December 2021 the share capital of Grieg Maturitas AS consisted of 1 123 530 shares of nominal value NOK 1.
THE SHARE CAPITAL CONSISTS OF THE FOLLOWING SHARE CL ASSES: Class
Number of shares
Nominal
Book value
1 123 530
1,-
1 123 530
Ownership %
Ordinary shares
Benedicte WG AS
4,50%
50 559
Bjørnegløtt AS
6,04%
67 874
10,52%
118 142
Gran Sasso AS
6,04%
67 874
Joachim WG AS
4,50%
50 559
Klar Invest AS
4,96%
55 750
Kvasshøgdi AS
4,37%
49 111
Maneo Holding AS
4,96%
55 750
Nina WG AS
4,50%
50 559
Nyhavn Investment AS
4,96%
55 750
10,29%
115 599
7,49%
84 097
22,37%
251 347
Thomas WG AS
4,50%
50 559
Sum
100 %
1 123 530
Ordinary shares
The company’s shareholders are as follows:
Capelka AS
Pania AS Salthavn invest AS Suletind AS
Through the companies specificed above, the Board members Elisabeth Grieg, Per Grieg, Camilla Marianne Grieg,Elna-Kathrine Grieg, Nicolay Hafeld Grieg and Nina Willumsen Grieg and their families have control of 100% of the shares in Grieg Maturitas AS.
From the Boardroom
110 — 111
Note 22
Related parties
PARENT
Amounts in NOK 1 000 Operating revenue
Operating cost
Financial income 1
Financial expenses
Accounts payable
Current receivables 1
0
278
506 250
0
45
337 500
Transactions 1
Dividend from subsidiaries
GROUP
Amounts in NOK 1 000
Members of the board and managing director of the parent company, including their related parties, are with companies in the Group considered as closely related parties. Transactions and intercompany balances with Group companies are eliminated in the Group accounts, and is not mentioned below. Remunerations to Directors and Managing Director are presented in Note 4.
Associated companies Other related parties Total
Operating revenue
Operating cost
Financial income
Financial expenses
Receivables
Liabilities
1 689 223
-
1 428
-
29 070
-
12 035
156 818
154
-
8 423
23 761
1 701 257
156 818
1 582
-
37 493
23 761
Transactions with related parties are governed by market terms and conditions in accordance with the arms length principle. ACQUISITION OF GRIEG NEWFOUNDLAND AS Grieg Seafood Group’s acquisition of Grieg Newfoundland AS (99%) was completed on 15 April 2020. Grieg Newfoundland AS was 39% owned by Kvasshøgdi AS (owned by Per Grieg Jr and a shareholder in Grieg Maturitas). For further information on the transaction see note 24 - Business combinations
GRIEG MATURITAS | ANNUAL REPORT 2021
Note 23
Remuneration to auditor
Amounts in NOK 1 000
PARENT Specification of Group auditor’s fee*
GROUP
2021
2020
2021
2020
Statutory audit
48
38
8 138
6 507
Taxation advice
-
13
2 015
2 005
-
944
700
9
7
1 577
4 967
57
57
12 675
14 179
The amount above includes remuneration to other auditors with:
1 132
1 916
Group Auditor's fee related to discontinued operations included in the table above
2021
2020
Total Group auditor
-
346
Total other auditors
-
624
Total fees discontinued operations (excluding VAT)
-
970
Other assurance services Other assistance Total (except VAT) *Containing continued and discontinued operations
From the Boardroom
112 — 113
Note 24
Business Combinations
There were no business combinations in 2021 BUSINESS COMBINATIONS IN 2020 On 15 April 2020, Grieg Maturitas, through the subsidiary Grieg Seafood ASA (GSF) completed the acquisition of Grieg Newfoundland AS (GNL). At the acquisition date, 99% of the shares were transferred, while the remaining 1% is subject to a put/call option accounted for as contingent consideration. GNL holds ownership in a fish farming business under development in Newfoundland, Canada. As the Grieg Maturitas Group already held 39% of the shares through subsidiary Grieg Kapital AS, the acquired shares for the Group is the remaining 60% acquired from entities outside the Group. ABOUT GRIEG NEWFOUNDLAND The Newfoundland-project comprises licenses for fish farming in the Placentia Bay area in Newfoundland. The project includes a high-end fresh and saltwater Recirculating Aquaculture System (RAS) facility in Marystown Marine Industrial Park, close to Placentia Bay. The facility currently under construction includes a hatchery, nursery and a smolt unit. Further information on the acquired entity can be found in the Annual Report of Grieg Seafood ASA (note 6 to the consolidated financial statements) TRANSACTION Grieg Newfoundland was a project initiated by the Grieg Group and Per Grieg Jr. in collaboration with their Canadian partner. Per Grieg Jr. is a member of the Board in Grieg Maturitas AS, and through related party Kvasshøgdi AS held 39% of the shares in GNL now acquired by the Group. The transaction has been approved by the General Assembly in line with the section 3-8 of the Public Limited Liability Companies Act. The consideration is split into three parts - the net cash payment, the completion shares and contingent consideration.
GRIEG MATURITAS | ANNUAL REPORT 2021
Amounts in NOK 1 000
Cost of business combination
15.04.2020
Cash payment for the shares adjusted for leakage cost
70 935
Completion shares in Grieg Seafood ASA
124 575
Adjusted to fair value the transaction day
-28 332
Consideration transferred at closing Contingent consideration
96 243 167 177 446 040
Consideration business combination
613 217
Fair value of the shares held by Grieg Maturitas Group prior to the acquisition
349 017
Total cost of business combination
962 235
Total cost
962 235
Book value of equity, excluding goodwill Excess value to be allocated
78 629 883 605
CONTINGENT CONSIDERATION If certain production volumes are reached within the next ten years, additional payments are triggered. The additional amount becomes unconditional when GNL has reached a planned annual harvest volume of 15 000 tonnes, and the amount increases with volume until an annual harvest volume of 33 000 tonnes. The amount due is NOK 43 per kg for volumes between 15 000-20 000 tonnes, and NOK 55 per kg for volumes between 20 000- 33 000 tonnes, with a 4% per annum inflation adjustment in the period 2023-2029. Fair value estimate of the additional amount has been arrived at by using the DCF-model based on four different scenarios of volume development and the timing of this development. Volumes exceeding 15 000 tonnes require further investments in additional post-smolt modules, biomass, and seafarm equipment. The high probability of such investments being made have been incorporated in the scenario analysis. The maximum nominal amount is estimated to NOK 930 million +4% annual increase in the period from 2023 to 2029. The additional amount is settled in shares in GSF and/or cash. The sellers may require a cash payment of maximum 33.34%. Further GSF has the discretion to increase the cash portion up to 100% cash. If settlement is made in shares, the number of settlement shares is calculated based on the last month’s volume weighted average listed price from time the conditions are met. CLASSIFICATION OF THE CONTINGENT CONSIDERATION It is within the Group’s sole discretion to decide whether the expansion investments are to be carried out in line with the production plan. If stage two and three of the post-smolt facilities are not constructed within ten years, the additional milestone payments will not be triggered. On this basis the contingent consideration is classified as equity. Classification as equity reflects that the sellers continue to share the risk of the operations. Only if the first phase of the operation is successful, the seller will receive a payment when the next phase is entered into. Due to the materiality of the amount, the contingent consideration is presented as a separate component of equity.
From the Boardroom
114 — 115
Amounts in NOK 1 000
Allocation of the excess value (NOK 1 000)*
15.04.2020
Licences (incl. warranty licences)
748 017
Goodwill
604 419
Property, plant and equipment Indemnification assets Excess value assets Deferred tax Net excess value allocated
-493 230 24 400 883 605 883 605
Assets acquired and liabilities assumed Licences (incl. warranty licences)
762 171
Other intangible assets (incl. exclusivity agreement)
44 044
Property, plant and equipment
130 702
Indemnification assets
24 400
Other receivables Cash and cash equivalents Total assets acquired Deferred tax Long-term debt Current liabilities Total obligations assumed
12 779 30 628 1 004 723 584 639 62 269 646 908
Identified net assets
357 815
Goodwill
604 419
Net assets at acquisition
GRIEG MATURITAS | ANNUAL REPORT 2021
962 234
VALUATION OF LICENSES Aquaculture licenses are valued assuming an indefinite useful life. At the time of the transaction, GNL had been granted a long-term exclusive right to operate in Placentia Bay and received approval for 11 site holds in the area. An awarded site hold grants an exclusive right for the holder to the farming location in question, while the application process is in progress. When the application process is finalized and approved, the site hold is converted into a fish farming license. Without the granting of a farming license, the value of the site holds is deemed to be immaterial. At the time of the transaction, three of the site holds were approved and converted to fish farming licenses, in addition one freshwater license was approved. For site holds with a fish farming license granted at the transaction date, valuation is based on expected volumes using reasonable income and cost assumptions to the amount of NOK 213.5 million value added per license. For three additional site holds, the seller has granted a warranty as to the value of the license. If a farming license is not obtained for three additional sites within 31 December 2021, the seller is obliged to compensate for loss incurred by the non-receipt of the licenses in the period 2020-2021. However, if the licenses are granted within 31 December 2024, the compensation will be based on the calculated loss in the intermediate period up until the licenses are granted. The compensation is capped at NOK 122.5 million. The approval of the license is valid for five years until it must be renewed, but this is merely a formality if conditions in the licenses are adhered to. The exclusivity agreement states that GNL has the exclusive right to the area Placentia Bay for a period up to 20 years. We expect to be the sole or leading operator in the area, creating high barriers of entry to other operators. EXCLUSIVITY CONTRACT GNL has received a grant to operate in the production area in Placentia Bay, and an exclusivity agreement for 12 years plus an option of eight years. This means no one else can operate in this geographical area in this period, which is similar to a non-compete advantage. The book value of the cost for the work with the documentation and meetings required in the application process to receive the exclusivity agreement is NOK 38.7 million. The book value is considered a reasonable proxy for the fair value of the exclusivity. This exclusivity will be depreciated over the duration of the agreement. GOODWILL Intangible assets that do not meet the conditions for separate recognition are subsumed into goodwill. The project GNL has been going on for some years, where the sellers have developed the area for salmon farming and started construction of a high-end RAS facility, providing a going-concern value. The exclusive rights to be the sole salmon farmer in the Placentia Bay area long-term, reduces biological risk, with long distances and low interconnectivity between sites, thus providing synergies between the various components of the facilities. The sites and production areas are minimum 100-meter-deep, have good currents and optimal oxygen levels. Goodwill also covers the licenses pending approval. At year-end 2020, eight licenses are finally approved, while three are in different stages of application. Newfoundland is also close to the US market, which may create synergies with existing operations in British Columbia. Goodwill from the acquisition is depreciated on a linear basis over 20 years from transaction date. The nature of the goodwill, in particular relating to exclusive rights and pending licenses, represent long term values. The relatively long economic lifetime of the goodwill is based on achieving an appropriate matching of the depreciation charge and the economic benefits the goodwil represents. TAX For valuation purposes and calculation of deferred tax assets and liabilities, the tax rate is set to zero for all net excess values. The basis for this is that the expected present value of taxation on net excess values is close to zero.
From the Boardroom
116 — 117
Note 25
Assets held for sale and discontinued operations
All note disclosures in these consolidated financial
faith and set out the net debt and net working capital
statements for 2021 of Grieg Maturitas have been pre-
of the Shetland assets. The actual net debt and net
pared for the Group’s continuing operations if not oth-
working capital will be calculated in accordance with
erwise explicitly stated in the specific note disclosure.
prevailing accounting principles and set out in a
This Note 25 of the consolidated financial statements
closing statement.
has been prepared for the Group’s assets classified as held for sale and discontinued operations only.
According to the sales purchase agreement, the closing statement and the calculation of the final purchase
THE EFFECT OF NON-CURRENT ASSETS CLAS-
price was expected to be finalized by the end of Q1
SIFIED AS HELD FOR SALE AND DISCONTINUED
2022, as communicated in Grieg Seafood’s report for
OPERATIONS:
Q4 2021. Due to minor disagreements of the closing
In 2020, there were two disposal groups within the
balance, the final settlement is postponed to Q2 2022.
Group. Both of these were within the segment Grieg
As at 31 December 2021, the calculation of the gain/loss
Seafood and were classified as assets held for sale and
from sale of the Shetland assets has been based on the
presented as discontinued operations from 2020. As of
preliminary purchase price. The preliminary gain after
31 December 2021 both disposal groups have been
income tax resulting from the sale of the Shetland as-
divested. The two disposal groups were “Ocean
sets is NOK 487 million. The preliminary gain has been
Quality”
(GSF
calculated by deducting Grieg Matuiritas’ book value
Shetland), of which the assets in Ocean Quality were
of the Shetland assets on the closing date and trans-
divested within year-end 2020.
action costs from the sum of the preliminary purchase
and
“Grieg
Seafood
Shetland”
and the settlement of the Seller’s debt. In addition, the The assets associated with the GSF Shetland disposal
gain/loss calculation includes an amount of NOK 106
group were classified as assets held for sale at the bal-
million before tax and NOK 83 million after tax, relat-
ance sheet date year-end 2020. On 29 June 2021, Grieg
ing to the realization of currency gains on the settled
Seafood ASA entered into an agreement with Scottish
receivable and the investment in subsidiaries.
Sea Farms Ltd for the disposal og all shares in the holding company of the Shetland disposal group. The trans-
The consolidated statement of cash flow includes both
action was completed on 8 december 2021 - at which
the continued and discontinued operations. When pre-
point the Shetland disposal group were deconsolidated
paring the financial information of the two disposal
from the Grieg Maturitas Group.
group’s, intercompany balances and -transactions between the entities within the disposal group’s, as well
The enterprise value of the transaction was set to
with other Group Companies, have been eliminated in
GBP 164 million, assuming a normalized net working
the consolidated financial statement. Certain invoiced
capital and adjusted for net debt. On the closing date
intercompany services from Grieg Seafood ASA to
of the transaction, Grieg Seafood received a prelim-
Grieg Seafood Shetland have not been eliminated, and
inary purchase price for the Shetland assets of NOK
are included in the discontinued operations’ result.
2 087 million. In addition, Scottish Sea Farms Ltd
These costs are considered directly associated with the
settled a GBP intercompany long-term loan granted
assets held for sale, and will cease following finaliza-
by Grieg Seafood ASA (“Seller’s debt”). The prelimi-
tion of the sales transaction.
nary purchase price has been calculated pursuant to a pre-closing statement, which was prepared in good
GRIEG MATURITAS | ANNUAL REPORT 2021
PROFIT (LOSS) FROM DISCONTINUED OPERATIONS GRIEG SE AFOOD SHETL AND*
Amounts in NOK 1 000 OCE AN QUALIT Y
TOTAL
2021
2020
2021
2020
2021
2020
Operating income
951 334
968 729
-
3 084 108
951 334
4 052 837
Operating expenses
-782 122
-1 220 800
-
-3 058 240
-782 122
-4 279 040
169 212
-252 071
-
25 868
169 212
-226 203
4 420
-5 560
-
10 271
4 420
4 711
Profit before tax from discontinued operations
173 631
-257 631
-
36 139
173 631
-221 492
Estimated taxation
-56 625
82 368
-
-8 476
-56 625
73 892
Gain on the sale of the subsidiary after income tax
486 740
-
5 033
Profit for the period from discontinued operations
603 746
-
32 696
Operating profit - EBIT Net financial items
-175 264
GAIN ON THE SALE OF THE SUBSIDIARY AFTER INCOME TAX
5 033 603 746
-142 568
Amounts in NOK 1 000 GSF SHETL AND 2021
Sale/purchase price
2 087 494
Transaction costs
-26 950
Currency translation differences on investment in/loans to subsidiaries
83 139
Total consideration
2 143 683
Book value
1 656 943
Gain on the sale of the subsidiary after income tax
486 740
CLASSES OF ASSETS AND LIABILITIES OF THE DISPOSAL GROUP
Amounts in NOK 1 000
GRIEG SE AFOOD SHETL AND
OCE AN QUALIT Y
TOTAL
31.12.2020
31.12.2020
31.12.2020
Deferred tax assets
157 869
-
157 869
Other intangible assets
477 796
-
477 796
Tangible assets
501 666
-
501 666
Inventory and biological assets
474 315
-
474 315
Trade receivables and other receivables
139 516
112
139 628
855
43
898
1 752 017
155
1 752 172
78 517
-152
78 365
Current liabilities
196 396
970
197 366
Liabilities directly associated with the disposal group
274 913
818
275 731
1 477 104
-663
1 476 441
Cash and cash equivalents Assets directly related with the disposal group Non-current liabilities
Net assets directly associated with the disposal group
From the Boardroom
118 — 119
Independent Auditor’s report
GRIEG MATURITAS | ANNUAL REPORT 2021
Independent Auditor’s report
From the Boardroom
120 — 121
Independent Auditor’s report
GRIEG MATURITAS | ANNUAL REPORT 2021
From the Boardroom
122 — 123
GRIEG MATURITAS | ANNUAL REPORT 2021
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Grieg Foundation
17
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19
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27
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31
Grieg Logistics
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41
Tommy Ellingsen
44
Grieg Seafood
From the Boardroom
9
45, 46, 47, 58, 74
Veronika Stuksrud
50
Tom Haga
59
David Engmo
59
Grieg Star
60
124 — 125
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