Strong growth in Cermaq's results

Cermaq today reported an EBIT pre fair value of NOK 215 million for Q2 2010 based on strong results in all parts of the operations. The adjusted earnings per share were NOK 1.8 which is significantly improved from same quarter in 2009. All parts of the operations have experienced improved results, driven by strong market prices on salmon in all markets, good biological performance in farming and considerable increase in volumes in the feed business, reported www.megafishnet.com (www.fishnet.ru) with reference to the company.

• I am pleased with the results for both Mainstream and EWOS. The strong salmon market gives especially strong profitability for Mainstream, says CEO Geir Isaksen.

EWOS delivered an increase in volume of 12 percent from second quarter 2009, driven by growth in Norway and Chile. Continuations of existing contracts and new customer relations have strengthened EWOS' market position in 2010.

• The strong volume growth in EWOS has a significant impact on our results. EWOS' product range provides strong biological performance and good fish health for the farmers, and this is the basis for further growth in EWOS, emphasises Geir Isaksen

Mainstream delivered an EBIT pre fair value of NOK 174 million in the quarter compared to NOK 32 million in the same quarter last year. The sales volumes were 16,600 tonnes which was a decrease from second quarter last year. The decrease is entirely explained by last year's significant sales of frozen salmon from Chile.

Mainstream Chile delivered an EBIT pre fair value of NOK 1.2 million for the second quarter. The harvesting of salmon transferred to the sea after the ISA crisis will start in August. The transfer of smolt of Atlantic salmon in this quarter reached 1.5 million. The total transfer in 2010 is expected to be 6 million Atlantics smolt which is somewhat lower that previously estimated. The reduction is due to the company's strict quality standards for usage of eggs.

Mainstream Norway experienced a volume increase of 38 percent from same quarter last year, driven by increased volumes from Finnmark. EBIT pre fair value was 103.4 million for Q2 2010, corresponding to NOK 16.3 per kg. EBIT pre fair value same quarter last year was NOK 33.6 million.

Mainstream Scotland delivered an EBIT pre fair value of NOK 10 million against a loss of NOK 5.9 million in the same quarter last year. The improvement comes from strong salmon prices and restructuring of the operation in 2009.

Mainstream Canada delivered an EBIT pre fair value of NOK 59.5 million compared to NOK 47.3 million second quarter last year. The salmon prices in the US were record high in the early part of the quarter, but fell significantly towards the end of the quarter. At the same time salmon prices in the US are still high.

Net interest bearing debt was NOK 2.4 billion per 30th June 2010, an increase of NOK 344 million from first quarter. The increase in working capital is in addition to investments and paid dividend driven by rebuilding of the operations in Chile and seasonal variations in the feed business. A reduction of net interest bearing debt is expected towards the end of the year.

Salmon prices are expected to remain strong in 2010 and into 2011. Expected sales volume for salmon, trout and coho for second half of 2010 are relatively unchanged from the previously communicated estimates. Sales volumes are expected to increase by 9 percent in 2011 from 2010 driven by Chile. EWOS enters the peak season in second half year, and increased volumes are expected foremost in Norway and in Chile with further growth in 2011.