Third quarter 2006 – Improving operating margins
Oslo, October 25, 2006: Aker
Seafoods achieved an EBITDA of NOK 35 million in the third quarter 2006,
compared with NOK 25 million in third quarter 2005. Combined with higher whitefish
prices, improved operations have contributed to increased operating margin in
Aker Seafoods. Further improvements are expected in the fourth quarter of 2006
and in 2007.
Aker Seafoods achieved operating
revenues of NOK 400 million for the third quarter 2006, compared with NOK 369
million in the same period of 2005, adjusted for the disposal of Nordic Group.
This gave an increase in operating revenues of NOK 31 million in third quarter,
and an improvement of NOK 11 million in EBITDA compared to third quarter 2005.
- We are pleased with the
development in the operating margins in the third quarter. Increase in first hand
whitefish prices entails higher operating income in the third quarter compared
with the same period in 2005. In addition, good volumes of haddock have been
harvested in the period. Processing has also achieved an improved product mix,
which has yielded positive effects both in terms of operating revenues and
profitability, says CEO Yngve Myhre in Aker Seafoods ASA. Achived improvements
in product-mix, combined with Aker Seafoods’ launch of own local brands and
private label products, further strengthen our expectations of further
improvements in processing profitability, Myhre continues.
The increase in first-hand prices
for whitefish has had a positive effect on harvesting profitability. In processing,
the increased costs for raw material have put pressure on profitability. The
pressure has weakened somewhat in the third quarter, as acceptance for price
adjustments among the company’s customers have started to take effect. However,
Aker Seafoods has not been able to fully secure compensation for the higher
costs of raw material in the frozen fish segment, especially since there still
is supply of cheap cod filets from China.
Depreciation amounted to NOK 23
million, compared with NOK 20 million in the third quarter 2005. Net financial
items amounted to NOK 13 million in the third quarter, compared with NOK 11
million in the third quarter 2005. Pre-tax profit in the quarter was NOK -2
million, compared with NOK -6 million in the same period last year.
Tax benefits, which have not been
included in the balance sheet, have been entered as income in the third
quarter. These are tax benefits primarily related to parts of the group’s
deferred losses. This income entry yields a positive effect on tax of NOK 42
million, and a positive tax income of NOK 39 million as of 30 September 2006.
For further information, please
Yngve Myhre, CEO Aker Seafoods
ASA. Telephone 24 13 01 60
Bent Skisaker, CFO, Aker Seafoods
ASA. Telephone 24 13 01 60