Despite Poor Prices, Cermaq Reports Record Year

Cermaq’s operating revenues were NOK 3,285 million (NOK 3,171 million) in fourth quarter 2011 and EBIT pre fair value for the quarter was NOK 300 million (NOK 601 million). Full year EBIT pre gain and fair value was NOK 1,369 million compared to NOK 1,343 million in 2010.

"I am pleased that Cermaq again delivers solid results in a very challenging market. These results supports our strategy of operating a global leading feed company continuously focusing on product development combined with a strong and diversified farming business," says acting CEO Tore Valderhaug.

Mainstream’s revenues were NOK 1,160 million (NOK 1 287 million) and volumes sold were 41.2 thousand tonnes (36.3 thousand tonnes). Mainstream achieved an EBIT of NOK 157 million (NOK 392 million), a decrease of NOK 235 million compared to fourth quarter 2010. The decline is mainly due to the sharp drop in achieved salmon prices in the quarter compared to last year.

Mainstream Chile reported an EBIT pre fair value of NOK 172 million (NOK 162 million). EBIT pre fair value per kilogram, gutted weight, was NOK 7.7 (NOK 9.3). The result was driven by higher volumes of Coho and overall solid margins for all three species.

Mainstream Norway reported an EBIT loss pre fair value of NOK 16 million (profit of NOK 179 million). EBIT pre fair value per kilogram, gutted weight, was a loss of NOK 1.3 (profit of NOK 14.9). The EBIT per kilogram for Nordland and Finnmark was a profit of NOK 0.4 and a loss of NOK 3.2, respectively. In addition to significantly reduced prices, the start-up of the processing plant in Hammerfest also this quarter negatively impacted the results.

Mainstream Canada reported EBIT pre fair value of NOK 1 million in the quarter (NOK 51 million). EBIT pre fair value per kilogram, gutted weight, was NOK 0.1 (NOK 7.5). The reduction in profit was mainly due to lower prices.

"Mainstream Chile demonstrates again strong results driven by systematic fish health efforts and solid operations. The diversification in producing three salmonid species in Chile also continues to prove its value for Cermaq," comments Tore Valderhaug.

EWOS’ revenues were NOK 2,542 million (NOK 2,182 million) with a total volume sold of 302 thousand tonnes (251 thousand tonnes). Higher volumes came primarily from Chile with a 34 per cent increase compared to fourth quarter 2010. The strong growth and a continued high share of value added products resulted in an EBIT of NOK 157 million (NOK 210 million).

"In addition to a solid quarter, EWOS has delivered a record full year EBIT in 2011, documenting its strong market position based on a continuous development of value added products and focus on supporting customer needs," concludes Tore Valderhaug.

As a result of Cermaq’s strong financial position, the Board of Directors will propose a dividend for 2011 of NOK 4.63 per share, representing 40 per cent of adjusted net result, amounting to NOK 428 million.