Aquaculture for all

Lery Seafood: Strong Results in Troubled Times

Trout Economics +3 more

NORWAY - In the fourth quarter of 2008, Lery Seafood Group had a consolidatedoperating revenue of NOK 1,703 million as against NOK 1,591 millionin the fourth quarter of 2007.

The Group's operating profit before fair value adjustment of biomass was NOK 100.3 million, whereas the corresponding figure for the fourth quarter of 2007 was NOK 65.7 million.

This is a strong increase in the operating profit compared to the same period last year, and it is mainly explained by an extremely positive development in the Sales and Distribution activity area and also by higher prices for Atlantic salmon.

In the fourth quarter, the group's profit before tax and fair value adjustment of biomass was NOK 60.1 million as against NOK 69.1 million in the fourth quarter of 2007.

As for the year as a whole, the profit in the fourth quarter was strongly characterised by the high production costs for part of the group's salmon harvesting operations - see in connection with this the biological problems experienced by some parts of the group during 2007 and the first part of 2008.

Results in the subsidiary company Lerøy Hydrotech were negatively affected by a relatively large proportion of salmon trout in the fourth quarter. Also during the fourth quarter, the group's accounts were depleted by costs as a consequence of the mandatory offer process period that Lerøy Seafood Group ASA has just been through.

The affiliated company Norskott Havbruk (UK-based Scottish Sea Farms Ltd) continued to have high production costs in salmon harvesting in the fourth quarter. Throughout the fourth quarter there was a good development in underlying production within Scottish Sea Farms. Other production units had satisfactory operations in the fourth quarter.

In view of the international nature of our business, developments in the world economy will always have an impact on the Group's activities. The uncertainty concerning the future development of the world economy, including developments in demand for the group's products, is even greater than what might be considered normal.

Recent developments in the demand for seafood in general and for salmon in particular, as well as an anticipated reduction in the global supply of Atlantic salmon in the immediate future, do however provide some grounds for optimism.

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