Major improvement in Cermaq operating results in Q3
(Thomson Reuters ONE) - (Oslo 06.11.09) Cermaq reports a third quarter EBIT pre fair value ofNOK 300.1 million, an increase of 123 percent from prior year. Higherprofits were achieved in both EWOS and Mainstream. EWOS margins arere-established at a satisfactory level. Cermaq continues investing inChile including transferring atlantic smolts to sea. Lack of progresson new, stricter legal framework in Chile is a growing concern.Cermaq's operating revenues in the quarter were NOK 2 598.0 million(NOK 2 432.9 million). The revenue increased mainly due tosignificantly higher sales prices in Mainstream. EWOS revenues fellsomewhat on the back of lower total volumes.- The third quarter 2009 is a turning point for the Cermaqgroup. After a challenging 2008 and first half 2009, the overalloperational results have improved significantly. I expect EWOS tocontinue at levels well above prior year performance and also apositive EBIT in the coming two quarters in the Chilean farmingbusiness, says Cermaq's CEO Geir Isaksen.EWOS' EBIT pre fair value was NOK 197.8 million for the quarter (NOK80.2 million). EWOS returned much improved EBIT in a challengingglobal market. Despite moderate volume and revenue reduction, EBITmargin increased significantly in the third quarter to 9.7 percent(3.8 percent). With record high volumes in Norway the timing of thenew Florø feed plant proved to be successful and secured costefficient and high quality production. All regions except for Chileenjoyed high capacity utilization in the quarter.- EWOS achieved excellent results in the quarter, and themargin is re-established at a satisfactory level. I'm especiallypleased that this result reflects also increased recognition of EWOS'total portfolio and improved market share, says Geir Isaksen.Mainstream's EBIT pre fair value for the quarter was a profit of NOK119.4 million (NOK 75.5 million). The improved profitability wasprimarily due to much better sales prices and margins achieved inCanada, Norway and also Scotland. Chile was loss making in thequarter. The geographical spread of Mainstream operations across fourcountries has worked well in recent quarters with higher revenues inCanada, Norway and Scotland compensating for the losses due todisease in Chile.- Our portfolio approach, including exposure to the threespecies atlantic salmon, coho and trout in Chile, allows us tomaintain reasonable levels of biomass while the rebuilding of Chileis undertaken in 2010 and 2011, says Geir Isaksen.Rebuilding sustainable aquaculture in Chile is a key focus forCermaq. Two sites have already been stocked with atlantic salmon in2009, and Cermaq plans to transfer a total of approximately 2.8million atlantic juveniles to sea during this year, increasing to 8million in 2010. All the fish transferred are vaccinated against ISA,SRS and IPN diseases and are reared in onshore freshwater facilities.Biological performance of these fish is good so far. There is noguarantee the vaccines will fully mitigate the risk, though Cermaqremains hopeful that all appropriate precautions have been taken.- It is vital to get remaining legislation regardingimproved bio-security measures approved and implemented as quickly aspossible. We can not risk that the improved sanitary situation,partly due to lower biomass, leads to reduced attention to the legalframework for rebuilding sustainable salmon farming in Chile, saysGeir Isaksen.The equity ratio increased to 50.0 percent at the end of the quarter,from 48.0 percent at second quarter end. The deconsolidation ofDenofa reduced total assets and debt. The main factor for reductionof debt is operating cash flow from continuing operations. Inaddition to unused committed unused credit lines of NOK 568 million,Cermaq has other available short term credit lines of NOK 758million.Further information - please contact:Geir Isaksen, CEO, phone: + 47 23 68 50 10, mobile: +47 91 34 82 81Steven Rafferty, COO farming, phone: + 47 23 68 50 24, mobile: + 4797 66 41 04About CermaqCermaq is an international group of companies with activities in fishfarming, production of salmonid feed and research in aquaculture.Cermaq has operations in Norway, Scotland, Canada and Chile, the maingeographic regions for salmon and trout farming. Through its EWOSsubsidiary, Cermaq ranks as the world's second largest fish feedproducer. The Mainstream subsidiary is the second biggest farmer ofsalmon and trout in the world. The group had sales of over NOK 9.8billion in 2008. Per 30 September 2009 the group employs around 2 500people. Cermaq is listed on the Oslo stock exchange with ticker codeCEQ.www.cermaq.comhttp://hugin.info/134455/R/1353065/327682.pdfhttp://hugin.info/134455/R/1353065/327683.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 06.11.2009 - 07:02 Uhr
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