Cermaq’s 1Q profit takes a hit

Low salmon prices continue to prices bit into Cermaq’s results, but the Norwegian company — one of the world’s largest salmon farmers — is still turning a profit.

On Thursday, Cermaq reported its first-quarter results, including earnings before interest and taxes (EBIT) of NOK 101 million, down from NOK 403 million in the corresponding period of 2011.

Mainstream Chile turned in an EBIT of NOK 49 million in the first quarter of 2012, down from NOK 160 million, while Mainstream Norway reported an EBIT of NOK 12 million, down from NOK 154 million. Mainstream is Cermaq’s salmon-farming division. Mainstream Canada, however, reported a loss of NOK 1.6 million in the first quarter of 2012, compared to a profit of NOK 26.3 million in the corresponding period of 2011.

New Cermaq CEO Jon Hindar explained: “We experience overall good operational performance in our farming business even though the lower salmon prices have significant impact on the results. Mainstream has introduced several cost efficiency activities that together with continuous focus on preventive fish health will support solid performance also going forward.”

A sharp drop in salmon prices bit into Cermaq’s fourth-quarter results, the Norwegian company reported on Thursday. 

EWOS, Cermaq’s fish-feed division, turned in an EBIT of NOK 62 million and an EBIT margin of 3.3 percent in the first quarter of 2012, selling 230,000 metric tons of fish feed, up 40 percent from to first quarter of 2011.

“EWOS is presenting good results from an exceptionally strong market growth in Norway and Chile,” said Hindar.

Mainstream expects to harvest 125,000 metric tons of salmonids in 2012, which would be up from 109,000 metric tons in 2011, while EWOS projects market growth in Chile and Norway this year to be above 20 percent and 10 percent, respectively.


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