Austevoll Seafood ASA published financial results 1Q 2010

May 14, 2010 14:26
  • Group income in Q1 2010 totalled NOK 2,746 million, an increase from NOK 2,483 million in the same period in 2009, reports with reference to Austevoll Seafood.
  • The Group operating result before depreciation and value adjustment of biomass (EBITDA) for Q1 2010 was NOK 431 million compared with NOK 337 million in Q1 2009.
  • The first quarter has seen good prices for canned products, frozen products, fishmeal and fish oil, Atlantic salmon and salmon trout.
  • As is normal for the first quarter, production was good for fishmeal and fish oil, and for the pelagic consumption segment in Europe. Lower volumes of fish were caught for human consumption production both in Chile and Peru in the first quarter of 2010 compared with the same quarter last year. This brought about lower sales volumes during the quarter.
  • On 27 February 2010, an earthquake was registered with its epicentre around 90 km northwest of the city of Concepción in Chile. The earthquake measured 8.8 on the Richter scale. Austevoll Seafood (AUSS) undertakes a considerable number of activities and employs many staff in Chile. The Group has land-based operations in the city of Coronel, south of the earthquake's epicentre. The Group is grateful and relieved that none of its employees lost their lives in the earthquake, and main priority in the weeks following the earthquake has been the wellbeing of employees, as well as assessing the extent of material damage. The company's fishing vessels have escaped unscathed but there has been some damage to land-based production facilities, with the frozen fish plant the worst affected. The coastal fleet started landing fish on 17 March and the company's own vessels resumed operations in late March.

Initially, production comprised fishmeal, fish oil and canned goods. The plant for production of frozen goods was ready beginning of May.

Financial information Q1 2010

The Group reported operating income of NOK 2,746 million for the quarter (Q1 2009 NOK 2,483 million). EBITDA before value adjustment for biomass in Q1 was NOK 431 million (Q1 2009 NOK 337 million). Sales prices achieved for fishmeal, salmon and salmon trout in Q1 2010 have been considerably higher when compared with the same quarter 2009. The prices for the Group's other products have also been stable and positive, approximate to the prices achieved in Q1 2009.

EBIT before value adjustment for biomass in Q1 was NOK 309 million (Q1 2009 NOK 220 million). EBIT after value adjustment for biomass in Q1 was NOK 579 million (Q1 2009 NOK 194 million).

Income from associated companies for Q1 totalled NOK 59 million (Q1 2009 NOK 34 million). The largest affiliated companies are Br. Birkeland AS, Norskott Havbruk (Scottish based Scottish Sea Farms Ltd.) and Shetland Catch Ltd.

The Group's net interest costs in Q1 2010 totalled NOK -50 million (Q1 2009 NOK -98 million). The decline in interest costs reflects the significant reduction in net interestbearing liabilities in 2009 and to date in 2010.

The result after tax for the quarter totalled NOK 446 million (Q1 2009 NOK 108 million).

Business segments

Fishmeal and fish oil

Operating income in Q1 2010 totalled NOK 363 million (NOK 426 million in Q1 2009) and EBITDA amounted to NOK 76 million (NOK 55 million in Q1 2009).

Sales of fishmeal and fish oil in Q1 totalled approx. 46,000 tons compared with approx. 63,000 tons in Q1 2009. The prices for fishmeal have been higher in Q1 2010 when compared with the same quarter last year. The prices for fish oil in the first quarter were marginally higher than the prices in the same quarter last year. In Europe, cuts from production for consumers, blue whiting and capelin were the most important input factors for the production of fishmeal and oil and, as is normal for the season, production in Europe has been good this quarter. In Chile and Peru, cuts from own production for consumers and the purchase of raw materials from third parties have been the input factors for production of fishmeal and fish oil in the first quarter. As a result of the earthquake in Chile on 27 February, production was interrupted for around 3 weeks.

The first season for anchoveta fishing in Peru (central/north) starts on 13 May and the quota for the first season is 2.5 million tons compared with 3.5 million tons for the first season last year.

Consumer products

Operating income in Q1 2010 totalled NOK 198 million (NOK 281 million in Q1 2009) and EBITDA amounted to NOK 25 million (NOK 61 million in Q1 2009).

The total volume sold for human consumption is distributed as follows; 1,000 tons of frozen products (Chile) compared with 7,500 tons in the same period last year.

Approx. 436,000 boxes of canned products were sold, compared with approx. 622,000 boxes for the same period in 2009 (Chile and Peru). For high and low concentrate Omega 3 oils, Q1 sales were approx. 420 tons compared with approx. 567 tons for the same period in 2009. Realised prices for canned and frozen products have remained at a stable high for the first quarter and are in line with the prices from Q1 2009. The business segment, particularly during the first quarter, has been affected by the earthquake in Chile at the end of February. This resulted in a halt to all fishing and production of consumer canned products which lasted until the last weeks of March. Frozen production was ready for start up at the beginning of May.

The volume of fishing for consumption in the first quarter in Peru was low and this is reflected in the earnings reported by this segment in Q1.

As previously communicated the sales of intermediate products were phased out May 2009. The company has been successful in replacing this product and Q1 2010 figures clearly indicate a significant increase in the sale of high-concentrate Epax products when compared with the same quarter last year.

Production, sale and distribution of Atlantic salmon and salmon trout

This business segment comprises Lerøy Seafood Group ASA. In Q1 2010, the segment reported operating income of NOK 1,873 million (Q1 2009 NOK 1,522 million) and EBITDA before value adjustment of biomass of NOK 307 million (Q1 2009 NOK 192 million). The segment reported harvests of 22,500 tons gutted weight of salmon and trout in Q1 2010 compared with 22,200 tons in the same quarter last year. The segment has reported satisfactory operations during the quarter with good prices for its products. The market was positive throughout the quarter and  he segment has a strong position on the major global fish markets.

Pelagic Northern Atlantic

Operating income in Q1 2010 totalled NOK 415 million (NOK 308 million in Q1 2009) and EBITDA amounted to NOK 27 million (NOK 32 million in Q1 2009).

Pelagic Northern Atlantic comprises the sales company Atlantic Pelagic AS, which carries out all sales activities for the production companies Austevoll Fiskeindustri AS, Sir Fish AS, Modolv Sjøset AS and North Capelin Honningsvag AS. This company is also responsible for the results of the production companies Austevoll Fiskeindustri AS, Sir Fish AS,Modolv Sjoeset AS and North Capelin Honningsvag AS.

The first quarter is normally a good quarter for Norwegian pelagic fishing due to the season for NVG herring and capelin. There was a high level of activity in the southern and northern plants in the quarter, reflected by the good result for the business segment as a whole.

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