Cermaq reported an EBIT pre fair value and biomass
write-down for the quarter of NOK 60 million (NOK 318
million). Low salmon prices and operational challenges
negatively impacted the result in Mainstream, while EWOS
reports good results also in second quarter.
EBIT pre fair value and biomass write-down in second
quarter 2012 was NOK 60 million compared to NOK 318 million
in second quarter 2011. Mainstream accounts for most of the
reduction mainly caused by significantly lower salmon
The result for second quarter is below our expectations.
Mainstream has experienced several operational challenges
with negative impact for the farming results, says CEO
Jon Hindar.The issues are however mainly solved during
second quarter and we expect improved operations and
reduced cost development in second half of 2012,
EWOS reported an EBIT pre fair value of NOK 114 million in
second quarter compared to NOK 128 million in same quarter
last year. Volumes sold were 260 thousand tonnes of fish
feed, an increase of 6 percent compared to second quarter
2011. Higher volumes came primarily from growth in Norway
and Chile where volumes increased by 14 percent and 8
EWOS continues its volume growth and contributes with a
good result, says Jon Hindar. I am also impressed that
the challenging capacity expansion project in EWOS Norway
has been completed on time and budget and that the entity
is able to meet expected volume growth during the peak
season, continues CEO Jon Hindar.
Mainstream Chile reported an EBIT pre fair value loss of
NOK 24 million (profit of NOK 33 million). EBIT pre fair
value per kilogram, gutted weight, was negative NOK 4.7
(positive NOK 8.0). Apart from lower sales prices,
seasonally low volumes and increased production cost from
harvesting out two sites with slow growth and high feed
conversion ratio impacted the results negatively. Potential
quality problems with third party supplies have been
indicated as a possible cause for the slow growth.
Mainstream Norway reported an EBIT pre fair value loss of
NOK 3 million (profit of NOK 87 million). EBIT pre fair
value per kilogram, gutted weight, was negative NOK 0.3
(positive NOK 12.4). The EBIT per kilogram for Nordland and
Finnmark was NOK 0.7 (NOK 11.7) and negative NOK 0.9
(positive NOK 14.1), respectively. In addition to lower
salmon prices, increased production cost from harvesting
out three poor performing sites in Finnmark and severe
algae bloom issues in Nordland contributed significantly to
the second quarter results for Mainstream Norway.
Mainstream Canada reported an EBIT pre fair value of NOK 11
million (NOK 93 million), excluding the NOK 27 million
biomass write-down from the IHN outbreak. The corresponding
EBIT pre fair value per kilogram, gutted weight, was NOK
2.3 (NOK 14.8). The reduced profit was mainly caused by
lower prices. Apart from the IHN outbreak, the biological
performance in Canada has been good during the quarter.
Mainstream has experienced a severe IHN outbreak, and
addressed this incident with the urgency and immediate
actions required, irrespective of the cost incurred.
Mainstream Canada is currently looking into the
possibility to obtain compensation from the federal
government or its insurance provider, concludes Jon
Outlook. Mainstream has reduced its expected sales for 2012
with 14 thousand tonnes, to 111 thousand tonnes, mainly
from shifting sales pattern for Coho and trout. The reduced
growth rate in feed in second quarter is expected to
continue during second half of 2012.