Improved underlying operations
Oslo 10 August 2006: Aker Seafoods
had revenues of NOK 577 million in the second quarter of 2006, compared with
NOK 680 million in the same period last year. Adjusted for the disposal of
Nordic Group, this represents an increase of NOK 18 million. The Group reported
an EBITDA of NOK 38 million in the quarter, against NOK 40 million in the
second quarter of 2005. Adjusted for the
disposal of Nordic Group, EBITDA is unchanged compared with the second quarter
- We are pleased with Aker Seafoods’
underlying operations during the second quarter. High oil prices have however
been challenging for harvesting, and the high raw material costs have put
pressure on margins in processing, said Yngve Myhre, CEO of Aker Seafoods.
Seafoods achieved revenues of NOK 577 million in the
second quarter of 2006, compared with NOK 680 million in the second quarter
last year. Adjusted for the disposal of Nordic Group the company’s revenues
increased by NOK 18 million in the second quarter 2006 compared with the same
period last year. The moderate increase in underlying revenues reflects the
increase in prices for white fish, which was mitigated by lower harvesting
volumes in this quarter than in the same period in 2005. Lower harvesting
volumes in first half of 2006 than in corresponding periods in 2005 partly
reflects Aker Seafoods’
plan of levelling out the harvesting activity over the year, but is also a
result of regulatory changes, combined with delays in dealing with applications
for structural measures.
communicated earlier, the Ministry of Fisheries and Coastal Affairs (FKD) has
announced regulatory changes, which, if adopted, will weaken Aker Seafoods’ opportunities to
optimise operations and the scope of activities in the group.
Seafoods reported an EBITDA of NOK 38 million in the
quarter. This compares to NOK 40 million in the second quarter of 2005.
Adjusted for the disposal of Nordic Group, EBITDA remains unchanged compared
with the second quarter of 2005. This gives the company an EBITDA margin of 6.6
percent in the second quarter 2006, compared with 5.8 percent in the second
quarter of 2005.
increase in first hand prices of whitefish has had a positive effect on
harvesting profitability. In processing however, this has put pressure on
margins as a result of the increase in raw material prices. A stronger
Norwegian krone, higher bunkers costs and lower
availability of raw materials also influenced margins in the second quarter.
processed products made good progress, and the group has secured acceptance for
price adjustments from the second half-year. However, Aker
Seafoods has been unable to compensate fully for high
raw material costs in the frozen fish segment – particularly because China is
still offering large quantities of cheap frozen cod fillets.
financial expenses came to NOK 12 million in the second quarter, an improvement
of NOK 6 million from the same period of 2005. Pre-tax profit was NOK 4
million, compared with NOK 2 million in the same quarter of last year.
Myhre, CEO of Aker Seafoods ASA. Tel. + 47 24 13 01 60
Bent Skisaker, CFO of Aker Seafoods ASA. Tel. + 47 24
13 01 60