Recovery in Chile lifts Cermaq’s 1Q results
The turnaround in Chile helped push Cermaq’s operating income to NOK 403 million in the first quarter of 2011, up NOK 280 million from the first quarter of 2010, the Norwegian company reported on Thursday.
Cermaq attributed a record first quarter to growth in its farming and fish feed operations in Chile as well as Mainstream Norway’s strong performance (Mainstream is the company’s salmon-farming division). Cermaq’s operating revenues reached NOK 2.29 billion in the first quarter of 2011, up NOK 596.7 million from the first quarter of 2010.
“We have achieved strong results in both business units in Chile. This is a region that is one of the most exciting areas for fish farming in the coming years due to its growth opportunities as well as access to large and promising salmon markets,” said Cermaq CEO Geir Isaksen.
Cermaq also pointed to Brazil, as the country represented 50 percent of Mainstream Chile’s Atlantic salmon sales in the first quarter of 2011. There has also been strong demand from Japan for coho salmon and trout, which is expected to continue, according to Cermaq.
Mainstream’s revenues totaled NOK 998.6 million in the first quarter of 2011, up NOK 291.5 million from the first quarter of 2010, and it sold 26,600 metric tons of fish.
As for Cermaq’s fish-feed division, the turnaround in Chile helped lift EWOS’ revenues to NOK 403 million in the first quarter of 2011, up NOK 280 million from the first quarter of 2010. EWOS sold 164,000 metric tons of fish feed, an increase of 23 percent compared to first quarter of 2010, thanks mainly to 86 percent jump in volumes in Chile.
On Wednesday, Cermaq released its 2010 sustainability report.