Omega Protein posts six-fold jump in 2011 Q1 earnings

Omega Protein Corporation, a nutritional ingredient company and US''s leading producer of Omega-3 fish oil and specialty fishmeal products, reported net income of US$6 million (US$0.32 per share) for the first quarter ended March 31, 2011, compared with net income of US$1 million (US$0.05 per share) for the first quarter of the previous year.

Revenues for the first quarter ended March 31, 2011, increased 75% to US$56.4 million compared with revenues of US$32.3 million for the comparable quarter in 2010. Revenue composition by product for the first quarter of 2011 was 70% fishmeal, 23% fish oil, 5% other nutritional ingredients and 2% fish soluble and other.

The company recorded operating income of US$10.4 million, an 18.4% operating margin, for the first quarter of 2011, versus operating income of US$2.3 million, a 7% operating margin for the first quarter of 2010.

Its increased first quarter 2011 revenue, gross profit and gross profit as a percentage of revenue results, when compared to the first quarter 2010, primarily reflected a 76% increase in fishmeal sales volumes attributable to export contract timing issues and a 40% increase in fish oil sales mainly due to export demand from the aquaculture industry, as well as a general increase in global fats and oils commodity pricing.

As previously disclosed, subsequent to March 31, 2011, the company entered into a final settlement of all of its claims for costs and damages incurred as a result of the oil spill caused by the Deepwater Horizon explosion on April 20, 2010.

As a result of the final settlement, on April 18, 2011, the company received an additional payment of US$26.2 million; net of fees and expenses, but before taxes, from the Gulf Coast Claims Facility, which will be fully recognised during the second quarter of 2011. This settlement further strengthens the company''s balance sheet, which at March 31, 2011, had current assets of US$127.3 million.

Omega Protein Corporationis a nutrition and wellness company dedicated to delivering healthy products to the animal, human and plant nutrition industries. Omega Protein''s marine product lines are sourced from menhaden, an Omega-3 rich fish harvested along the Atlantic and Gulf coasts.