Aker Seafoods: Progress in a demanding period

EBITDA for Aker Seafoods came to NOK 41 million for the third quarter of 2010, an increase from NOK 36 million from the third quarter of 2009. The EBITDA margin remained stable at 5.9 per cent, reports www.megafishnet.com with reference to Aker Seafoods. 

Aker Seafoods's operating revenues for the third quarter came to NOK 681 million, compared to NOK 609 million for the third quarter of 2009. The increase is the result of increased harvesting volumes, higher production rate, higher prices as well as increased sales from inventory.

- Aker Seafoods achieved progress in a demanding period. The harvesting volumes have increased and we have improved the results within the processing segment. This, despite a demanding supply situation for raw materials, said CEO in Aker Seafoods ASA, Thomas Farstad.

Earnings before interest and tax (EBIT) for the period came to NOK 8 million (NOK (5) million). Earnings per share isolatad for the period was negative NOK (0.12) per share. Cash flow from the operations increased to NOK 14 million (NOK (1) million) in the third quarter of 2010. Net finance were NOK (24) million ( NOK 141 million). Net interest-bearing debt increased to NOK 1 067 million (NOK 1 012 million at the end of the second of 2010).

Shareholders's equity were 36.2 per cent at the end of the third quarter of 2010, compared to 35.8 per cent at the end of the second quarter of 2010.

EBITDA for Aker Seafoods Harvesting came to NOK 30 million (NOK 33 million in the third quarter of 2009), and total harvested volumes increased with 20 per cent in the third quarter of 2010, compared to the third quarter of 2009.

The market and processing company Norway Seafoods, comprises the geographiocal segments Norway, Denmark and France, achieved an EBITDA of NOK 11 million (NOK 3 million). The Norwegian processing segment had an EBITDA of NOK (1) million (NOK (8) million) and sold a total of 3 248 tonnes of fish fillets. The Danish segment reached an EBITDA of NOK 6 million (NOK 10 million). The EBITDA for the French segment were NOK 6 million (NOK 1 million) for the third quarter of 2010.

Aker Seafoods expects that fisheries will be normalized for the remaining period of 2010, but the overall situation will be characterized by a shortage of cod supplies from the coastal fleet and this will result in challenging operations for the Norwegian plants. The quotas for 2011 are set to increase for cod (up 16 per cent) and haddock (up 25 per cent). This could provide more efficient harvesting operations and improved supply of raw materials for the Norwegian processing operations.

- Increased cod quotas will strengthen the Norwegian filleting industry, but to achieve a profitable industry it is necessary to have less sesonality for cod harvesting. This would prevent layoffs and thus help to secure jobs. In addition, we are considering potential opportunities of improved profitability with a more flexible fishing fleet, as well as looking at different opportunities to develop our processing segments in a more market-oriented direction, said Thomas Farstad.