August 31, 2006

Pan Fish reports a strong second quarter, thanks to merger

Pan Fish, the world's largest fish farming company, reported a sharp rise in second-quarter pretax profits Wednesday (Aug 30) and expects strong results for the second half.

Revenues rose almost four-fold during the second quarter to 1.67 billion crowns (US$265 miliion), from 403.2 million crowns (US$64 million) a year earlier, largely due to the consolidation of Fjord Seafood. However, an increase in harvesting volumes and record high salmon prices also helped the company increase its revenues, Pan Fish said.

Pretax profit managed hit expectations, rising to 215 million Norwegian crowns (US$34 million).

Chief Executive Atle Eide expects results for the second half to be "significantly better" than the first.

Pan Fish expanded aggressively this year, announcing plans to buy Maine Harvest for EUR 1.3 billion earlier and around EUR $770 million for Fjord Seafood.

While the buy-over of Fjord Seafood was smooth-sailing, Pan Fish is still awaiting approval from competition authorities in the UK and France to buy and had to battle concerns of the local fishing community along the way. 

Pan Fish should gain approval by Dec 20, the company said, adding that the Marine Harvest sellers had aimed to close the deal before the end of the year.

The enlarged entity would have about a fifth of the global market for farmed salmon, making it the leader in salmon farming.