August 30, 2010

Norway's Marine Farms puts cobia plant up for sale

Norwegian Marine Farms ASA has put its cobia-farming operations in Belize up for sale.

The decision comes as the Norwegian company posted a second-quarter operating loss of NOK44.5 million (US$7.1 million) at its cobia-farming operations in both Belize and Vietnam, compared to an operating loss of NOK17 million during the same period last year. Included in the results is a write-down of assets in Belize amounting to NOK37.3 million.

However, Marine Farms second-quarter and first-half results were strong. Revenue increased 36% to NOK289 million in the second quarter of 2010 and jumped 25% to NOK509 million in the first half of 2010.

EBIT (earning before interest and taxes), or operating income, came to NOK41.7 million in the second quarter of this year, up from NOK26.0 million in the second quarter of 2009.

Marine Farms attributed its second-quarter results to historically high prices and increased production of salmon in the UK combined with high prices for sea bass and sea bream in Spain.