Strong First Quarter For Aquaculture Giant Cermaq

NORWAY - The Norwegian aquaculture Giant Cermaq reports a strong first quarter of 2006 with an EBIT pre fair value of NOK 238.5 million compared to a loss of NOK -23.3 million for the first quarter 2005.

CEO Geir Isaksen said "The results for the first quarter 2006 show that Cermaq is taking advantage of the current favourable market conditions. The strong performance in Mainstream has driven the result improvement.

EWOS division saw significantly increased volumes during the quarter but the higher raw material costs present a challenge to us and the industry".

Mainstream group reported a first quarter 2006 EBIT pre fair value of NOK 266.8 million compared to NOK 59.6 million in the first quarter of 2005. The result benefited from exceptional income in the period of NOK 13.1 million. Average prices per kilogram in NOK in the quarter were 23 percent higher than in the equivalent period in 2005.

Mainstream Chile had better prices in all markets and higher volumes than in quarter one 2005. Prices for Atlantic salmon were high throughout the period; prices for coho and trout began 2006 slightly softer but firmed up during the quarter. Mainstream Canada benefited from improved prices, and higher volumes due to the impact of the acquisition of Heritage in 2005. An exceptional gain of NOK 9.0 million related to an insurance claim increased Canada's result in the quarter.

Source: FishUpdate