Cermaq Reports Second Quarter Results
Due to high costs, low harvest weights in Chile and high raw material costs, Cermaq today reported a second quarter loss before interest and tax pre fair value of NOK 8 million.
However, the Norwegian aquaculture company's net interest increased by NOK 791.3 million from the end of the first quarter to NOK 2061.7 million at the end of June.
The company's farming division, The Mainstream Group, reported a second quarter loss of NOK 54.7 million compared to a profit of NOK 131.4 million in the second quarter of 2007.
"Costs in Chile were high due to disease and low harvest weight; our highest priority remains improving conditions in the region," says CEO Geir Isaksen. "EBIT performance in the other Mainstream companies is viewed as satisfactory. For EWOS, high raw material costs reduced the result." Through its EWOS subsidiary, the company ranks as the world's second largest fish feed producer.
Harvest volumes were up 10 percent, with the biggest increase in Chile. However, average farming revenues were down due to reduced average prices because of low harvest weights. Costs per kilogram were higher due to higher feed costs and fish health problems in Chile. The exceptional cost of biomass write-downs was NOK 38 million in the quarter.
Cermaq is an international group of companies, with activities in fish farming, production of salmon and trout feed and research in aquaculture and operations in Norway, Scotland, Canada and Chile. The Mainstream subsidiary is the world's second largest salmon and trout farmer.