Aker Seafoods: Record volume in harvesting, poor results in processing

Oslo, November 2nd: Aker Seafoods achived an operating result of 18 million kroner in the third quarter 2011, compared with eight million kroner from the same time 2010. The fleet caught a record high volume in the third quarter. Norway Seafoods, the processing and marketing company, experienced an operating loss for the processing facilities in Norway of 11 million kroner and a 10 million kroner operating loss in France.

Sales for Aker Seafoods came to 705 million kroner in the third quarter 2011, compared to 681 million kroner in the same period 2010. Sales of whole fish increased due to higher prices and increased volume, whilst the sales of processed products were almost unchanged.

- We have never harvested this much in one quarter, and we are deligheted about the new record. The harvesting segment is more efficient than ever and the prices are better, says Thomas Farstad, CEO, Aker Seafoods ASA. -Norway Seafoods experienced increasing challenges due to weaker demand for the company's products and a too high cost base, says Farstad.

Aker Seafoods' profit before financial items (EBIT) for the quarter came to 18 million kroner. EBIT-margin was 2.2 per cent in the third quarter, compared to 1.1 per cent at the same periode last year. Earnings per share in the quarter were 0.01 (-0.12). Cash flow from operations was 11 million kroner (14 million kroner). Net financial items was -18 million kroner (-24 million kroner).

Net interest-bearing debt was reduced to 929 million kroner (942 million kroner by the end of second quarter 2011). The equity ratio was 39.1 per cent by the end of the quarter, compared to 38.8 per cent at the end of second quarter 2011.

Aker Seafoods' harvesting segment achieved an operating profit (EBIT) in the third quarter 2011 of 38 million kroner (nine million kroner), and total catches were 17 252 ton, a 34 per cent increase from the same periode last year. The harvesting efficiency increased with 16 per cent per operating day.

Norway Seafoods, the processing and marketing company, which embraces the Norway, Denmark and France segments, reported an EBIT of -20 million kroner (0 million kroner) for the third quarter. EBIT was -11 million kroner (-six million kroner) for the Norwegian processing business, one million kroner (three million kroner) for the Danish business and -10 million kroner (three million kroner) for the French business in third quarter 2011. Higher raw material prices are the main reason for the weakening in the result in the Norwegian business. In France the company experienced challenges in the trout farming.

Aker Seafoods expects satisfactory fishing for its own fleet for the rest of 2011, with a higher remaining quota base for cod and haddock of 2 600 compared with the same time last year. The total Norwegian quotas for cod and haddock for 2012 is decided increased by respectively six and three per cent.

- Aker Seafoods harvesting segment is well posistioned for the future, says Thomas Farstad.

Norway Seafoods needs to face a challening market situation while redusing its costs to ensure profitability and safe jobs.

- We experience that consumers are searching for more affordable food solutions.  We are now in a process to meet this demanding situation, says Thomas Farstad.