Cermaq presents its best results ever

Cermaq reported an EBIT for Q4 2010 of NOK 601 million against NOK 218 million in the corresponding quarter last year. Adjusted for a gain on sale of property the EBIT was NOK 574 million. The strong performance contributed to an operational cash flow of NOK 504 million. The net interest bearing debt was reduced by NOK 475 million to NOK 1 181 million in the quarter.

-I am proud of the results from both Mainstream and EWOS which we present today. Building on the current strong market, both business units demonstrate improvements in volumes, cost, and working capital, comments CEO of Cermaq Geir Isaksen.

EWOS reported an EBIT of NOK 210 million for the quarter, a Q4 record in the company's history. The result includes one off items in the range of NOK 30 million. The Norwegian feed market decreased by 4 % in the forth quarter 2010 compared to last same quarter year. Despite this, EWOS achieved a growth of 7 % compared to same quarter 2009, primarily from increased volumes in Chile and continued rising demand for value added products.

-This result reflects a volume increase for EWOS in all regions in the quarter and also increased attention by the farmers to our functional feeds which provide better yield and fish health, explains Geir Isaksen.

Mainstream demonstrated continued improvements and reported an EBIT pre fair value adjustment of NOK 392 million in Q4 2010, representing an EBIT/kg of NOK 10.8. The good result is mainly driven by increased prices in all regions combined with higher volumes and improved biological performance in Chile.

We experience good sanitary situation in all Mainstream operations and this is reflected in the strong results. I am very pleased with the operational improvement in Mainstream Chile which has contributed significantly to a fantastic Q4 result. I would also emphasise the good results Mainstream Norway achieved this quarter, comments Geir Isaksen.

For the full year 2010, Cermaq reported an operating revenue of NOK 9 991 million and an EBIT pre fair value adjustment of NOK 1 439 million - the best result ever in Cermaq's history. Cermaq's return on capital employed (ROCE) reached 21.7 % for 2010 compared to 8.0 % in 2009. The equity ratio increased by 7.1 % in the quarter to 59.8 percent at the end of fourth quarter 2010.

Cermaq is well positioned to meet the future growth in the salmon market. The improvements we have demonstrated in Chile and our completed and planned investments in farming, particularly in Chile and Norway, will amongst other contribute to an increase in our farming volumes of 8 % in 2011, says Geir Isaksen.

In this situation it is promising to note how EWOS continues building its product portfolio and thus contributes to ensure the good operational and financial results for Cermaq and its customers, concludes Geir Isaksen.

Cermaq announced in December that the annual dividend level over time will be 30-50 % of adjusted net profit. Based on this and the company's expectations for 2011, the Board will propose to the Annual General Meeting a dividend of NOK 5.40 per share for 2010, representing 45 % of the net result pre fair value adjustments after tax.