The Grieg Seafood shares
We aim to deliver an attractive return to our shareholders and contribute to the correct pricing of our shares. To achieve this, we proactively share honest information about our operations.
Our ambition is to create shareholder value and deliver competitive returns relative to comparable investment alternatives.
Our dividend should average 25 % - 35 % of the Group's net profit after tax adjusted for fair value appraisals.
OUR SHARES AND SHAREHOLDERS
Grieg Seafood was listed on the Oslo Stock Exchange on 21 June 2007 under the ticker GSF. We have only one class of shares, and all shares carry the same rights. At 31 December 2018 the Company had 110 433 576 shares outstanding at a nominal value of NOK 4.0 per share (excluding own shares).
As of 31 December 2018, we had 5 123 shareholders, with our ten largest investors holding 69.6 % of our shares. Domestically based shareholders own the majority of the Company, with Per Grieg jr and his immediate family controlling 53.4 % of the outstanding shares as of 31 December 2018. A further 5.4 % is controlled by OM Holding AS, and 3.4 % by Folketrygdfondet as of year end 2018.
Grieg Seafood ASA holds a total of 1 228 424 own shares as of 31 December 2018. For a detailed breakdown of our 20 largest shareholders and their movements, please refer to note 17 in the Group Accounts.
Our shareholders reside in all parts of the world, with a clear concentration in Europe. Over the last five years Grieg Seafood has experienced a substantially increased interest from investors, and we have more than doubled the share of foreign shareholders since 2013. Apart from our majority shareholder, the Grieg family, based in Bergen Norway, there is a majority of foreign shareholders, split between the EU, the UK, and the USA.
THE RETURN ON OUR SHARES
Our ambition is to create shareholder value and deliver competitive returns relative to comparable investment alternatives. The return on our shares is a combination of dividend and share price appreciation.
The Grieg Seafood share price increased by 42 % in 2018. The closing price at 31 December 2018 was NOK 102.30 compared to NOK 72.25 at year end 2017. Our dividend yield was 3.9 % in 2018, and adjusted for dividend of NOK 4.00 per share, the total return on our share was 46 % in 2018. By comparison, the Oslo Stock Exchange Total Return Index (OBX) and the Oslo Stock Exchange Seafood Index (OBSFX) produced a return of -0.5 % and 53 % respectively.
Over the past five years, the salmon farming industry has experienced a tremendous increase in profitability and valuation. Driven by high demand and increased prices, the Grieg Seafood share has yielded a return over the last five years of 367 % compared to 410 % for the OBSFX, and 48 % for the OBX. Since the release of shares following the exercise of forward contracts in 2016 (see below), the return of the Grieg Seafood share has substantially outperformed the Seafood Index.
THE LIQUIDITY OF OUR SHARES
From May 2016 and onward, the liquidity of our shares has increased significantly compared to prior years. This development was triggered by Mowi ASA realizing a set of old forward contracts, acquiring nearly 29 million shares in Grieg Seafood ASA, and immediately selling them in the market. Following this release of shares into the open market, the Grieg Seafood share has ranked approximately 25th in terms of trading volume among the shares on the Oslo Stock Exchange from 2016 to 2018. In 2018 a total of 116 million shares were traded, with a median of 411 341 shares per trading day.
DIVIDEND AND DIVIDEND POLICY
We aim to provide our shareholders with a competitive return on invested capital through payment of dividends in addition to share price increases. The dividend payout should follow 25 % - 35 % of the Group's net profit after tax, adjusted for the impact of fair value adjustments on biological assets. At the same time, the Group's net interest-bearing debt per kg harvested salmon should remain between NOK 15 and 20. Dividends declared and paid may be adjusted to satisfy the targeted debt level.
For the fiscal year 2017, NOK 4 was paid out per share, corresponding to a pay-out ratio of 68 % on the 2017 profit after tax. The high pay-out ratio reflects a sound financial position and strong financial performance. In June 2019, the Annual General Meeting will decide the dividend for the fiscal year 2018.
For more information about key figures and trading statistics, please visit the Oslo Stock Exchange's web page www.oslobors.no – Grieg Seafood (GSF).
Grieg Seafood provides information to, and communicates with, the capital market participants, including shareholders, potential investors, analysts, portfolio managers, investment banks, and others that are interested in our share. Investor relations activities are primarily aimed at giving the market a correct picture of our activities and future prospects. In connection with the release of our quarterly financial results, we arrange presentations to contribute to greater understanding of our operations. In addition, we hold meetings with existing and potential investors. In 2018, we held our first Capital Markets Update, where we presented our Company’s goals, strategy, operations, financial developments and outlook. Investors, analysts, media and other stakeholders were invited.
For more information and dates of our Annual General Meeting and quarterly presentations in 2019 see details on our web site www.griegseafood.com