brand cultivation. For 2020, Grieg Seafood has guided on a total harvest of 100 000 tonnes gutted weight equivalent (GWT) with cost at or below industry average. The full medium- and long-term implications of the coronavirus pandemic remain uncertain. However, based on the current situation, the Company will harvest according to the Q1 guiding of 16 800 tonnes, and the Company’s volume target for 2020 remains in place. Shipping – logistics and shipbroking Throughout 2019 shipping markets, and especially the dry bulk market, have been challenging. Demand for medium-sized supramax and ultramax vessels, which is closely linked to economic growth, is expected to remain low going forward. However, a reduction in deliveries after first half of 2020 should, on the other hand, contribute positively to the supply demand balance. In respect of open hatch, world seaborne pulp demand seems sound and is expected to continue with stable growth, primarily from the Americas to Asia. From January this year, a new business unit, Grieg Edge, is established to identify and develop new business opportunities within shipping, ship owning and related maritime segments, with a strong emphasis on sustainability. A multidisciplinary team with broad experience from shipping, finance, technology, and start-ups are in place. With an increased focus on sustainability, transparency, and a green transition of the maritime industry. Given the COVID-19 situation shipping market is still challenging and necessary action is taken to secure all employees on land and sea, operations, and liquidity. Within Grieg Logistics we see emerging potentials within digital solutions in harbors and shipping segments, and also of strategic services within logistics. Outlook for our Shipbroking company varies within the shipping segments. In all our shipping activities, we are monitoring the risks and follow the markets closely both with respect to valuation in currencies and customers’ credibility. Investments Thinking long term pays off. It is the cornerstone of all our investments and each investment product must have a meaningful impact on the overall portfolio. To become a positive driving force for sustainable development, we must think big and bold and create a purpose-driven organisation with a culture of innovation. To achieve this, we will continue promoting 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. The unstable financial market we have seen so far in 2020 is impacting on our financial portfolios negatively. But our risk profile is balanced, and we are handling the portfolio in a secure manner. Going forward, we will continue focusing and adapting to changing markets
Grieg Maturitas Annual Report 2019
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