August 16, 2010

Norway's Cermaq posts strong Q2 results

Cermaq ASA on Friday (Aug 13) released its second-quarter results, including an EBIT (earnings before interest and taxes) of NOK215 million (US$34.7 million), compared to an EBIT of NOK81.4 million in the same period last year.

The Norwegian farmed salmon producer attributed its strong second-quarter results to high salmon prices, a "good" biological performance in farming and a considerable increase in fish-feed production.

EWOS, the company's fish-feed division, watched its output grow 12% from the second quarter of 2009 to 2010.

Cermaq CEO Geir Isaksen said the strong volume growth in EWOS has a significant impact on its results. EWOS' product range provides strong biological performance and good fish health for the farmers, and this is the basis for further growth in EWOS.

Isaksen also added that salmon prices are expected to remain high for the rest of 2010 and into 2011.

Mainstream, the company's salmon-farming division, delivered an EBIT of NOK174 million in the second quarter of 2010, up from NOK32 million in the same period last year.

However, its sales totalled 16,600 tonnes of fish, a drop from the second quarter of 2009. That is due entirely to last year's strong sales of frozen Chilean salmon, according to the company.