Aker Seafoods Q4 2009 - Higher volumes, lower prices

          
                                     
Harvesting did well in the fourth quarter. Catches for Aker Seafoods' trawlers were significantly higher than in the same period of 2008, reports www.megafishnet.com with reference to Aker Seafoods.

The plants enjoyed better supplies of raw material than usual for the quarter. Production was also high in the French and Danish businesses. However, prices for cod and haddock fillet products were lower than in the preceding quarter. An impairment charge of NOK 20 million was accordingly recognised on the product inventory in the fourth quarter. 
Operating revenues came to NOK 727 million for the fourth quarter, compared with NOK 630 million in the same period of 2008. This increase stemmed mainly from increased volumes in the Norwegian and French business segments, while lower prices pulled in the opposite direction. Aker Seafoods achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of NOK 51 million for the fourth quarter, compared with NOK 23 million in the same period of 2008. Sales for the harvesting segment were clearly higher in the fourth quarter than in the same period of the year before. The volume harvested increased by almost 50 per cent, and sales grew by 59 per cent. Both haddock and cod fisheries did very well in the quarter. Fuel prices were significantly lower for the year as a whole, and made a positive contribution to results compared with 2008. 
 
- Even though the harvested volume by our own trawlers was good in 2009 and the landings from the coastal fishing fleet were up from the same period in 2008, the result is not satisfactory. Aker Seafoods achieved a positive EBITDA of NOK 51 million, which mainly stems from the group's activities in Denmark and France and the harvesting in Norwegian waters, says acting CEO of Aker Seafoods, Liv Monica B. Stubholt.

The processing Norway segment had fairly good supplies of raw material, both from the group's own trawlers and not least from the coastal fishing fleet. That yielded higher production during the quarter, with sales up by six per cent. However, prices for fillet products declined in the quarter and the group recognised an impairment charge on the product inventory. Aker Seafoods increased its output of fresh products in the fourth quarter. That helped to improve results from 2008, despite a general decline in cod and haddock prices. 
 
Activity at the plants in the EU was buoyant during the fourth quarter. A positive price trend for the group's own trout production helped to ensure a good result in France during the fourth quarter. The volume of fresh secondary processing rose compared with 2008 in Denmark, but sales there were low for frozen secondary production.
 
For 2009 as a whole, Aker Seafoods achieved sales of NOK 2 685 million and an EBITA of NOK 192 million. Sales were rather lower than in 2008, but EBITDA rose by 33 per cent. Despite a year with good raw material supplies, the result is not satisfactory. The business needs to be made more robust and forward-looking ­- to the benefit of its shareholders, employees, customers, partners and society as a whole. With its well-managed fish resources, Norway has a good starting point. But Aker Seafoods must enhance value creation at every stage and get more out of the fish. That will call for an efficiency increase and a further strengthening of marketing work, and the group will assess possible structural moves. 
 
For further information, please contact:
 
Liv Monica B Stubholt, CEO, Aker Seafoods ASA. Telephone: +47 24 13 01 60
 
Gunnar Aasbø, CFO, Aker Seafoods ASA. Telephone: +47 24 13 01 60  
        
                
                
                        
                
                  
Harvesting did well in the fourth quarter. Catches for Aker Seafoods' trawlers were significantly higher than in the same period of 2008. The plants enjoyed better supplies of raw material than usual for the quarter. Production was also high in the French and Danish businesses. However, prices for cod and haddock fillet products were lower than in the preceding quarter. An impairment charge of NOK 20 million was accordingly recognised on the product inventory in the fourth quarter.
 
 
 
Operating revenues came to NOK 727 million for the fourth quarter, compared with NOK 630 million in the same period of 2008. This increase stemmed mainly from increased volumes in the Norwegian and French business segments, while lower prices pulled in the opposite direction. Aker Seafoods achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of NOK 51 million for the fourth quarter, compared with NOK 23 million in the same period of 2008. Sales for the harvesting segment were clearly higher in the fourth quarter than in the same period of the year before. The volume harvested increased by almost 50 per cent, and sales grew by 59 per cent. Both haddock and cod fisheries did very well in the quarter. Fuel prices were significantly lower for the year as a whole, and made a positive contribution to results compared with 2008.
 
 
 
- Even though the harvested volume by our own trawlers was good in 2009 and the landings from the coastal fishing fleet were up from the same period in 2008, the result is not satisfactory. Aker Seafoods achieved a positive EBITDA of NOK 51 million, which mainly stems from the group's activities in Denmark and France and the harvesting in Norwegian waters, says acting CEO of Aker Seafoods, Liv Monica B. Stubholt.
 
 
 
The processing Norway segment had fairly good supplies of raw material, both from the group's own trawlers and not least from the coastal fishing fleet. That yielded higher production during the quarter, with sales up by six per cent. However, prices for fillet products declined in the quarter and the group recognised an impairment charge on the product inventory. Aker Seafoods increased its output of fresh products in the fourth quarter. That helped to improve results from 2008, despite a general decline in cod and haddock prices.
 
 
 
Activity at the plants in the EU was buoyant during the fourth quarter. A positive price trend for the group's own trout production helped to ensure a good result in France during the fourth quarter. The volume of fresh secondary processing rose compared with 2008 in Denmark, but sales there were low for frozen secondary production.
 
 
 
For 2009 as a whole, Aker Seafoods achieved sales of NOK 2 685 million and an EBITA of NOK 192 million. Sales were rather lower than in 2008, but EBITDA rose by 33 per cent. Despite a year with good raw material supplies, the result is not satisfactory. The business needs to be made more robust and forward-looking ­- to the benefit of its shareholders, employees, customers, partners and society as a whole. With its well-managed fish resources, Norway has a good starting point. But Aker Seafoods must enhance value creation at every stage and get more out of the fish. That will call for an efficiency increase and a further strengthening of marketing work, and the group will assess possible structural moves.
 
 
 
 
 
For further information, please contact:
 
Liv Monica B Stubholt, CEO, Aker Seafoods ASA. Telephone: +47 24 13 01 60
 
Gunnar Aasbø, CFO, Aker Seafoods ASA. Telephone: +47 24 13 01 60