Norway Pelagic: financial results 2009

May 4, 2010 12:38

The Group's net operating revenues in 2009 were MNOK 2.643,8, EBITDA was MNOK 191,1 and operating result EBIT was MNOK 168,4. Annual results were MNOK 150,9 before tax and MNOK 109,2 after tax, reports with reference to Norway Pelagic.

The Group's balance sheet per 31st December 2009 was MNOK 1.581 and book equity was MNOK 867, corresponding to an equity ratio of 54,8 %. The Board of Directors' objectives is to achieve a capital adequacy of at least 30 %.

As at 31st December 2009 net interest bearing debt was MNOK 453,0. Due to seasonal fluctuations, working capital requirements vary during the year. Average interest bearing debt in 2009 was about MNOK 350. Cash flow from operations for the Group was MNOK 121,5. The Group's liquidity is satisfactory.

In connection with the acquisition of the shares in Fryseriet AS a private placement of total 1 124 117 towards the companies Ytterstad Fiskeriselskap and Rшdholmen AS. Fryseriet AS was merged with Norway Pelagic AS in 2009.

In accordance with Section 3-3a of the Norwegian Accounting Act, it is confirmed that a prerequisite of a going concern has been assumed when preparing the accounts.

It is the Board of Directors' opinion that the financial statement shows the true state of the company and the Group's financial status at 31.12.2009 and the results for the year.

An incident after the turn of the year with considerable impact on the financial statements 31.12, is that Norway Pelagic ASA on the 15th of March entered into an agreement on purchase of Emy Fish and Brшdr. Myhre's pelagic enterprises (machinery) at Mеlшy. The plants combined produced about 33.500 tons of raw materials in 2009. It is agreed that up to 50% of the settlement of totally 43,5 MNOK can be settled in shares. The agreements are planned to be concluded within 30.09.10.


The development of the pelagic fishery resources has been positive the last years, whereas the quotas for NVG herring and mackerel have increased by 13 % in 2009 compared to the year before. In addition, there have been successful fisheries hold own stock, as is expected to imply more capital tied to inventory for Norway Pelagic. Factors like price, foreign currency and the general economic development in the main markets will influence the profitability in 2010. The company is also dependent on good credit- and credit insurance terms in order to ensure payment for sales.


In 2009 there were 425 man-labour years compared to 358 in 2008. About 20 man-labour years were related to the Lodingen plant that was included from September 1st 2009.

The increase in man-labour years reflects the high activity through the year.

The differences between the genders of employees in 2009 was 34 % women and 66 % men, as in 2008. The percentage of women was relatively higher in administrative positions and equivalent lower in management positions.

Norway Pelagic wants to develop a recruitment policy to attract more female applicants for key positions, and wants to give women and men equal development and career opportunities.

There shall be no discrimination between the genders in matters such as wages, promotion, further education and recruitment. The Board of Directors will focus particularly on recruiting more women to executive posts in the Group.

Norway Pelagic emphasise to comply with the objectives of "the discrimination act" and "the discrimination and accessibility act". Through adaption of working tasks, time and sites, the company strives to arrange for persons with limited abilities.

It is the company's goal that employees independent of ethnicity and religion are given equal rights and opportunities for development.

The Board of Directors comprises 3 women and 4 men.

Reported sickness absence shows a decrease from 5,5 % in 2008 to 2,9 % in 2009. Disregarded sickness leave caused by child sickness care is 45 % of absent days past the employer period. Short term leave of 1-3 days is within acceptable extent.

There were no occupational injuries that resulted in longterm sick leave at the premises.

The Board of Directors would like to thank the employees and their organizations for their good co-operation in 2009.


Norway Pelagic's principles for Corporate Governance shall ensure an adequate division of roles between the owners, the Board and the management. Norway Pelagic Board of Directors approved the Groups updated Corporate Governance guidelines in 2010. The guidelines are accounted for in the annual report and are available on the company's website.


The Board of Directors believe that the future of the fishing industry depends on sustainable management of the fish resources. Norway Pelagic shall be able to document that all products are produced from lawfully caught fish.


Most of the Group's turnover comes from export of goods, which means that the rate of exchange of Norwegian kroner affects the Group's revenues. There is nevertheless a correlation between the market prices converted into Norwegian kroner, based on the current exchange rates and the corresponding raw material price. Changes in the market prices converted into Norwegian kroner will therefore over time affect the raw material price and eliminate parts of the currency risk.

Current turnover in foreign exchange is in its entirety secured, primarily by forward contracts.


The degree of credit risk varies depending on the market segments where Norway Pelagic operates. A significant part of sales to Japan/Far East and Africa is partly prepaid or secured by guarantees. Hence, credit risk on this segment is regarded to be low. In order to serve customers in EU , Eastern Europe and Russia it is necessary to sell significant volumes on credit.

To control this risk, the company has established routines and policies to follow up outstandings, and uses guarantees and credit insurance where possible.



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