August 19, 2011
Leroy Seafood incurs US$9.47-million Q2 loss
Leroy Seafood reported Thursday (Aug 18) a Q2 net loss of NOK51.96 million (US$9.47 million) and sees H2 result to decline against the same period in 2010 due to lower prices.
The company is expecting higher growth in the global supply of Atlantic salmon in the next few years compared with the last two years.
Development in demand is good, and lower prices provide grounds for optimism as to continued positive development in demand, the company said.
It has a Q2 turnover of NOK2.4 billion (US$0.44 billion) from NOK2.18 billion (US$0.40 billion) a year earlier.
Operating profit before fair value adjustment of biomass is at NOK440.3 million (US$80.24 million) from NOK367.8 million (US$67.03 million), due to volume growth and improved prices for the company's main products-Atlantic salmon and salmon trout.
Leroy Seafood's committed contract prices for 2011 are higher than prevailing spot prices, indicating that the company can also expect to achieve higher realised prices than current spot prices in the time ahead.