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THE Norwegian fish feed and farming company, Cermaq has released record quarterly and full year results.
Quarter four profits (EBIT pre fair value adjustment) were NOK 601 million (£65 million) and the EBIT adjusted for sales gains was NOK 574 million, which is the best result ever for Cermaq. The excellent result for the quarter is based on increased farming volumes, high salmon prices and strong results from the Chilean operations.
CEO of Cermaq, Geir Isaksen said: “I am proud of the results from both Mainstream and EWOS which we present today. Building on the current strong market, both business units demonstrate improvements in volumes, cost, and working capital, comments.
Cermaq’s fish feed division, EWOS, reported an EBIT of NOK 210 million (£23 million) for the quarter, a Q4 record in the company's history. The result includes one off items in the range of NOK 30 million. The Norwegian feed market decreased by 4 % in the fourth quarter 2010 compared to last same quarter year. Despite this, EWOS achieved a growth of 7 % compared to same quarter 2009, primarily from increased volumes in Chile and continued rising demand for value added products.
“This result reflects a volume increase for EWOS in all regions in the quarter and also increased attention by the farmers to our functional feeds which provide better yield and fish health,” explains Geir Isaksen.
Cermaq’s fish farming company, Mainstream demonstrated continued improvements and reported an EBIT pre fair value adjustment of NOK 392 million (£42 million) in Q4 2010, representing an EBIT/kg of NOK 10.8. The good result is mainly driven by increased prices in all regions combined with higher volumes and improved biological performance in Chile.
“We experienced a good sanitary situation in all Mainstream operations and this is reflected in the strong results. I am very pleased with the operational improvement in Mainstream Chile which has contributed significantly to a fantastic Q4 result. I would also emphasise the good results Mainstream Norway achieved this quarter,” comments Geir Isaksen.
For the full year 2010, Cermaq reported an operating revenue of NOK 9 991 million (£1078 million) and an EBIT pre fair value adjustment of NOK 1 439 million - the best result ever in Cermaq's history. Cermaq's return on capital employed (ROCE) reached 21.7 % for 2010 compared to 8.0 % in 2009. The equity ratio increased by 7.1 % in the quarter to 59.8 percent at the end of fourth quarter 2010.
“Cermaq is well positioned to meet the future growth in the salmon market. The improvements we have demonstrated in Chile and our completed and planned investments in farming, particularly in Chile and Norway, will amongst other contribute to an increase in our farming volumes of 8 % in 2011,” says Geir Isaksen.
“In this situation it is promising to note how EWOS continues building its product portfolio and thus contributes to ensure the good operational and financial results for Cermaq and its customers,” concludes Geir Isaksen.
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