Cermaq 4Q: farmed salmon down, feed up
By SeafoodSource staff
12 February, 2013
Cermaq’s 2012 fourth quarter showed a boost to its fish feed division, but it wasn’t enough to overcome losses in its farmed salmon division, leading to a net loss in profit.
Earnings before interest and taxes (EBIT) pre-fair value for the fourth quarter were NOK 11 million (USD 2 million, EUR 1.5 million), a sharp drop from the NOK 299.7 million (USD 54.6 million, EUR 40.6 million) reported in 4Q 2011. Fiscal 2012 EBIT was down too, at NOK 404.3 million (USD 73.7 million, EUR 54.8 million), compared to NOK 1.37 billion (USD 249.8 million, EUR 185.5 million) reported in fiscal 2011.
The company noted a recovery of more than NOK 150 million (USD 27.3 million, EUR 20.3 million) from compensation from the IHN outbreak in July 2012 and a bargain purchase gain from the Cultivos Marinos Chiloé (CMC) acquisition, making for an adjusted EBIT of over NOK 163 million (USD 29.7 million, EUR 22.1 million).
The company’s farmed salmon division took a hit, with an EBIT of NOK 145.5 million (USD 26.5 million, EUR 19.7 million), down from NOK 156.7 million (USD 28.6 million, EUR 21.2 million) recorded in 2011. Annual EBIT was also down, to NOK 175.8 million (USD 32.1 million, EUR 23.8 million), compared to 2011’s NOK 771.5 million (USD 140.7 million, EUR 104.5 million).
The report pointed to drops in pricing as a leading part of the problem. The average price in the fourth quarter 2012 was NOK 26.4 (USD 4.81, EUR 3.58) per kilogram, approximately 4 percent up from prior quarter and 16 percent above fourth quarter 2011, but Chilean Atlantic fillets traded at USD 3.17 (EUR 2.35) per pound in 4Q 2012, a 16 percent drop over the same quarter in 2011, and 3 percent lower than 3Q 2012. Canadian Atlantic whole fish 4Q prices went down, too, to USD 1.98 (EUR 1.47) per pound, 15 percent lower compared to the same period last year, and 1 percent lower than the prior quarter in 2012.
The good news came from the company’s fish feed division with production at 886 thousand metric tons (MT) for the quarter, a 2 percent increase over the same quarter in 2011. Prices for industrial grade fishmeal, compared to 4Q 2011, went up 2 percent, fish oil was up 4 percent and vegetable ingredients 1 percent.
As a result, the fish feed division’s EBIT set a record, coming in at NOK 191.7 million (USD 34.9 million, EUR 26 million), up over the NOK 157.2 million (USD 28.6 million, EUR 21.3 million) recorded in 4Q 2011. For-the-year EBIT came in at NOK 713.2 million (USD 130 million, EUR 96.6 million), an increase over the NOK 624.8 million (USD 113.9 million, EUR 84.7 million) recorded last year.
12 February, 2013