November 17, 2006

 

Pan Fish posts impressive profits in Norway and Chile 

 

 

PAN Fish has posted impressive results in its two most important production areas, Norway and Chile, in the third quarter.

 

Operating profit before fair value adjustment of the biomass (IFRS) totalled NOK 245.5 million for the quarter, compared with just NOK 35.2 million in the same quarter last year.

 

Marine Harvest, Pan Fish's acquisition, which would remain independent of Pan Fish pending receipt of regulatory clearances from competition authorities, has posted good results in Norway, and made progress in its other areas.

 

The two companies combined would have made an EBIT before fair value adjustment of the biomass of NOK 797.8 million during the quarter.

 

CEO Atle Eide said the company is well on its way to becoming the world's leading seafood company.

 

Pan Fish expects approval of its merger with Marine Harvest by 20 December this year and has started planning for it.

 

The price of Atlantic salmon in the EU has normalised in the third quarter, after the record high prices the previous period. However prices and margins remain high for the time of year, compared with historical figures.

 

Also for the group's other main markets, prices are favourable as compared with previous years, and no further challenges are expected for the rest of 2006.

 

The company expects a good balance between the global supply and demand, both in established and new markets, in the next couple of years.

 

Steps are also being taken to improve profitability in its Scottish operations, the company said.