May 8, 2010

Salmon farming and fish feed company, Cermaq has delivered profits (EBIT pre fair value) of NOK122 million (US$19.6 million) for the first quarter 2010 compared to a loss of NOK65 million (US$10.5 million) in the same period last year.

These are ascribed to a solid increase in operating results from fish farming due to high prices on salmon, good biological results in Norway, and robust improvements in their Chilean operations. Cermaq said this means they can maintain current predictions for 2010 fish production.

The fish feed division, EWOS increased its feed sales by 10% due to growing activity in more markets. However, low sea temperatures as well as rising fishmeal prices have temporarily weakened the operating result in the feed division.

"The results for Q1 are overall in line with expectations and what we have communicated earlier. High salmon prices are certainly a positive element, but equally important for this result is our long term planning and work, especially within farming in Norway and Chile," said CEO Geir Isaksen.

The fish farming division, Mainstream delivered profits (EBIT pre fair value) of NOK 117 million (US$18.8 million) in Q1 compared to a loss of NOK89 million (US$14.3 million) in Q1 last year. The sales volumes were 22,300 tonnes, a reduction from the same quarter last year, mainly because the company in first quarter 2009 sold large volumes of frozen salmon to Chile from fish harvested in 2008.

"I am pleased with the strong results in farming operations in Norway. Our results reflects good fish health and low number of sea lice, and Finnmark excels particularly this quarter," said Isaksen.

"It is promising to see the improving results in Chile. We still expect a transfer of eight million Atlantic smolt in 2010, and our investment plans for Chile remain unchanged," he added.

Salmon prices are expected to remain at a high level throughout 2010 following the reduction in the global supply of Atlantic salmon. A continued reasonable growth in Norwegian farming and increased biomass in second half year in Chile is expected to contribute to a solid underlying growth in the global feed market.