February 20, 2013
Cermaq reports a mixed Q4 2012 results
Press release
For the fourth quarter of 2012, Cermaq reported an EBIT pre fair value and non-recurring items of NOK 11 million (US$2 million) from high volume growth in feed offset by low salmon prices, especially in Americas and Japan.
EBIT pre fair value was NOK164 million (US$29.7 million). The full year EBIT pre fair value and non-recurring items was NOK404 million (US$73.2 million). The Board of Directors propose a dividend for 2012 of NOK1.0 (US$0.18) per share.
The results in fourth quarter were acceptable taking into account the challenging market in Americas and Japan, says CEO Jon Hindar. Strong growth and performance in EWOS and improved production cost in Mainstream compared to third quarter completes a challenging year for Cermaq. The combined results support our strategy of operating a leading feed company combined with a strong farming business, continues Jon Hindar.
Cermaq''s operating revenues were NOK3.542 million (US$641,000) in fourth quarter 2012. Revenues in EWOS increased by 16% to NOK2.939 million (US$532,000). Mainstream''s revenues were NOK1.181 million (US$214,000), an increase of 2% from higher volumes offset by significantly reduced salmonid prices in the American and Japanese markets. The non-recurring items mainly relate to a bargain purchase gain from the acquisition of Cultivos Marinos Chilo？？.
EWOS sold 330,000 tonnes of fish feed in fourth quarter 2012, an increase of 9% compared to fourth quarter 2011. The growth came from an increase of 13% in Norway and 16% in Chile. EBIT pre fair value increased to NOK192 million (US$35 million) mainly from high volume growth and strong capacity utilisation.
EWOS concludes its best year by delivering strong performance also in fourth quarter. The organisation''s competence in product development, purchasing, production and logistics is fundamental for supporting such results. The strong volume growth also demonstrates the recognition from its customers, says Jon Hindar.
Mainstream reported a negative EBIT pre fair value and non-recurring items of NOK146 million (US$26 million) in the quarter. Volumes sold were 46,700 tonnes. The EBIT pre fair value per kilogramme, gutted weight, was negative NOK3.1 (-US$0.56). Cultivos Marinos Chilo？？ (CMC), which was acquired in October 2012, has been consolidated with effect from fourth quarter. Lower sales price in all markets compared to last year, and decline in Americas and Japan from third quarter 2012, was the main reason for the reduced results. The production cost in fourth quarter was higher than last year, but reduced compared to third quarter 2012 due to improved operational performance.
The Board of Directors of Cermaq will propose a dividend for 2012 of NOK 1.0 (US$0.18) per share or 40% of adjusted net result, amounting to NOK93 million (US$17 million). Despite the acquisition of CMC and significant expansions in a challenging market, Cermaq''s financial position and capacity remain strong with a diversified funding structure and an equity ratio of 47%.
The current market situation for Atlantics may continue for some months and put pressure on the profit contribution from Canada and Chile. The existing market imbalance between Europe and Americas is however expected to level out during 2013. Mainstream expects sales volume for 2013 of 150,000 tonnes, 25% up from 2012, due to growth in Mainstream Chile, partly from the recent acquisition of Cultivos Marinos Chilo？？.