May 4, 2012

 

 

Cermaq has reported an EBIT pre fair value of NOK101.4 million (US$17.7 million) compared to NOK403.2 million (US$70.2 million) in Q1 2011 and a return on capital employed of 16.6% despite low salmon prices.

 

"I am pleased with the solid results Cermaq presents in a challenging market situation, again confirming the strengths of our strategy of operating a global leading feed company combined with a strong and diversified farming business," said CEO Jon Hindar.

 

EWOS grew its volumes by 40% on-year, breeding an EBIT of NOK62 million (US$11 million), and Chile was the main contributor to the EBIT at NOK60 million (US$10.4 million).

 

Mainstream Chile had an EBIT pre fair value of NOK49 million (US$8.6 million) versus NOK160 million (US$28 million) a year ago due to lower sale prices for all species, particularly for Atlantic salmon.

 

Mainstream Norway reported an EBIT pre fair value of NOK12 million (US$2.08 million). Volumes sold were 10,400 tonnes – 11% above first quarter 2011.

 

An average price per kg of NOK25.7 (US$4.47) is the main reason for the reduced results. Higher production cost at some Finnmark sites and some additional costs from the upgraded Hammerfest processing plant also impacted the operating results.

 

Still, the processing plant's performance is improving, with expected normalised operation by the end of Q2 2012, Cermaq clarified.

 

Mainstream Canada saw a negative EBIT pre fair value of NOK1.6 million (US$279,000) in Q1 quarter. The reduction in profit was mainly driven by lower prices in the US market.

 

"We experience overall good operational performance in our farming business even though the lower salmon prices have significant impact on the results. Mainstream has introduced several cost efficiency activities that together with continuous focus on preventive fish health will support solid performance also going forward," stated Hindar.

 

EWOS reported an EBIT pre fair value of NOK62 million (US$11 million) and an EBIT margin of 3.3% in first quarter. EWOS sold 230,000 tonnes of fish feed -- up 66,000 tonnes, or 40%, compared to first quarter 2011. The organic growth was 33%; higher volumes came primarily from a 47% and 30% growth in Norway and Chile, respectively.

 

Mainstream expects to harvest 125,000 tonnes of salmonids in 2012 compared to 109,000 tonnes in 2011, up 15%. EWOS expects the market growth in Chile and Norway for 2012 to be above 20% and above 10%, respectively.