Cermaq rides out ‘challenging market’
A sharp drop in salmon prices bit into Cermaq’s fourth-quarter results, the Norwegian company reported on Thursday.
Cermaq’s operating revenues edged up from NOK 3.29 billion in the fourth quarter of 2011 from NOK 3.17 billion in the corresponding quarter of 2010. But its operating income slipped to NOK 300 million in the fourth quarter of 2011 from NOK 601 million in the corresponding quarter of 2010. For all of 2011, Cermaq’s EBIT pre gain and fair value reached NOK 1.37 billion, compared to NOK 1.34 billion in 2010.
“I am pleased that Cermaq again delivers solid results in a very challenging market. These results supports our strategy of operating a global leading feed company continuously focusing on product development combined with a strong and diversified farming business,” said acting Cermaq CEO Tore Valderhaug.
In the fourth quarter of 2011, Mainstream, Cermaq’s salmon-farming division, posted revenues of NOK 1.16 billion, down from NOK 1.29 million, and an operating income of NOK 157 million, down from NOK 392 million. It sold 41,200 metric tons of salmon, up from 36,300 metric tons.
“Mainstream Chile demonstrates again strong results driven by systematic fish health efforts and solid operations. The diversification in producing three salmonid species in Chile also continues to prove its value for Cermaq,” said Valderhaug.
In the fourth quarter of 2011, EWOS, Cermaq’s fish-feed division, reported revenues of NOK 2.54 billion, up from NOK 2.18 billion, and an operating income of NOK 157 million, up from NOK 210 million. It sold 302,000 metric tons of fish feed, up from 251,000 metric tons in the fourth quarter of 2010, thanks to strong demand in Chile.