Cermaq ASA: Continued high costs in Chile, but encouraging underlying
EBIT pre fair value and non-recurring items was NOK 123 million in second
quarter 2014 versus a comparable pro forma EBIT of NOK 137 million in second
quarter 2013. Strong prices helped create satisfactory results in Norway and
Canada, while earnings in the Chilean operation were hampered by high costs.
- A continued strong market made this a reasonable quarter for Cermaq in
Norway and Canada, says CEO Jon Hindar in a comment.
- Chile had weak results for Atlantics and trout as cost continues to be high.
This is related to challenging growing conditions during 2013 and high
mortality due to the SRS bacteria. The increase in ex-cage cost for Atlantics
this quarter versus first quarter is reflecting harvesting underperforming
sites. At the same time the underlying biological development of the biomass
is improving. This development makes us uphold our target of reaching an
ex-cage cost for Atlantics of USD 3.8 per kg in 2015, as communicated at our
capital markets day in November 2013, Jon Hindar continues.
Group volumes sold in second quarter were 26.5 ktonnes, some 6 ktonnes below
estimate due to market timing. Harvest volume was is in line with production
plans and expected sales volume for 2014 is 158 ktonnes, marginally up from
previous estimate of 157 ktonnes.
Cermaq Chile's earnings in second quarter improved versus previous year. The
EBIT pre fair value was NOK 5 million whereas EBIT for the same quarter last
year was a loss of NOK 6 million. EBIT per kg for Atlantics and trout was a
loss of NOK 0.6 and NOK 1.0 respectively. Coho continues to perform well and
came in at NOK 7.5 per kg. Ex-cage cost for Atlantics was USD 4.7 per kg in
the first half of 2014. This is an increase of USD 0.2 compared to full year
2013. On a constant feed price basis the cost declined by USD 0.2 per kg in
the same period.
The sanitary situation in Cermaq's Chilean operations is developing in a
positive direction. Sea lice levels are lower than in the same period in 2013
and 2012, and harvest weights have further increased. Use of antibiotics was
reduced compared to first quarter due to less severe SRS outbreaks and more
effective treatment. Still, SRS remains a concern, also due to resulting
mortality on large fish. Cermaq's antibiotics usage remains significantly
below industry average.
Cermaq Norway delivered an EBIT pre fair value of NOK 81 million versus NOK
122 million last year. EBIT for Nordland was NOK 11.0 per kg and NOK 8.8 per
kg for Finnmark. Cermaq Canada reported an EBIT pre fair value of NOK 52
million, a reduction of NOK 2 million compared to previous year. EBIT per kg
was NOK 11.8.
Net interest bearing debt was NOK 2.1 billion and equity ratio 53 percent.
EBIT pre fair value was NOK 167 million and includes a gain of NOK 44 million
from sale of a grain silo.
For further information please contact:
CEO Jon Hindar ph. +47 23 68 50 10 mobile: +47 977 48 829
CFO Stig Jarle Pettersen ph. +47 23 68 50 38 mobile: +47 909 60 336
About Cermaq -Cermaq is one of the world's leading companies in farming of
salmon and trout, with operations in Norway, Chile and Canada. In 2013 the
farming business had sales of NOK 5.1 billion, and a total harvested volume of
142.3 thousand tonnes. Cermaq's feed business unit EWOS was sold in 2013.
Cermaq is listed on the Oslo stock exchange with ticker code CEQ.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Result presentation Q2 2014
2nd Quarter 2014
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Cermaq ASA via Globenewswire
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