Cermaq: Strong results in farming and good prospects for 2010

May 11, 2010 14:35

Cermaq delivers a strong result for Q1 2010 based on solid increase in operating result in farming due to high prices on salmon, good biological results in Norway, and a robust improvement of the operations in Chile. Cermaq maintains the guiding on farming volumes for 2010, reports www.megafishnet.com with reference to Cermaq.

Cermaq delivers a EBIT pre fair value of NOK 122 million for the first quarter 2010 compared to a loss of NOK 65 million in first quarter 2009. High prices on salmon in all markets have been a strong driver, but also good biological results in Norway, and a positive development in Chile have contributed substantially to the result. EWOS increased its feed sales by 10 percent due to growing activity in more markets. However, low sea temperatures as well as rising fishmeal prices have temporary weakened the operating result in the feed division.
- The results for Q1 are over all in line with expectations and what we have communicated earlier. High salmon prices are certainly a positive element, but equally important for this result is our long term planning and work, especially within farming in Norway and Chile, say CEO Geir Isaksen.

Mainstream delivered a EBIT pre fair value of NOK 117 million in Q1 compared to a loss of NOK 89 million in Q1 last year. The sales volumes were 22,300 tonnes, a reduction from the same quarter last year, mainly because the company in first quarter 2009 sold large volumes of frozen salmon from Chile from fish harvested in 2008.

The Norwegian farming operations delivered an EBIT pre fair value of NOK 86 million and a volume increase of 9 percent compared to same quarter 2009. The operating result corresponds to NOK 9.8 per kg compared to NOK 3.6 per kg in 2009. The volume increased mainly in Finnmark, and larger volumes combined with strong operations contributed to a good result for Mainstream Norway.
- I am pleased with the strong results in farming operations in Norway. Our results reflects good fish health and low number of sea lice, and Finnmark excels particularly this quarter, says Geir Isaksen

Mainstream Chile delivered an operating result of NOK 26 million and around half of Mainstream's total volumes in the quarter. The results for Atlantic salmon were strong. Whereas the biomass is low, the biological development is regarded as positive, and is supporting the growth initiatives implemented by the company.
- It is promising to see the improving results in Chile. We still expect a transfer of 8 million Atlantic smolt in 2010, and our investment plans for Chile remain unchanged, Geir Isaksen emphasises.
Farming operations in Canada and Scotland remain stable. As previously stated the volumes for the quarter are low.
Cermaq maintains the volume guiding for 2010 for the group's farming operations.

EWOS delivered a volume increase of 10 percent in the quarter compared to Q1 2009, despite lower than normal sea temperatures in Norway. The volume growth is due both to market growth as well as EWOS' systematic development of a strong product portfolio. The result decreased compared to same quarter last year, partly due to costs related to the tragic earthquake in Chile in February and also due to increased prices for fishmeal.
- Through strong research EWOS has developed a product portfolio which is well received in the market. It is a healthy sign for the industry that competence is valued, says Geir Isaksen.
Salmon prices are expected to remain at a high level throughout 2010 following the reduction in the global supply of Atlantic salmon. A continued reasonable growth in Norwegian farming and increased biomass in second half year in Chile is expected to contribute to a solid underlying growth in the global feed market.

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