Norwegian salmon farmer Cermaq is reporting weak 3Q earnings driven in part by “exceptional mortality” and value adjustments in frozen inventory.
The company released a short statement on its quarterly earnings in advance of the full report expected later this month. Right now, the company is considering a buyout offer from Mitsubishi Corp., and Cermaq’s report coincides with the upcoming deadline for a decision on whether to accept the offer.
The company’s earnings before interest and taxes (EBIT), recorded pre fair value and non-recurring items, ran into the red by NOK 38 million, a stark contrast to the profit of NOK 113 million Cermaq recorded in 3Q 2013.
The company’s report indicated mortality losses and value adjustments of frozen inventory cut into the EBIT by NOK 44 million in 3Q 2014. The company has struggled with an outbreak of salmon rickettsia syndrome, a bacteriological infection, in its operations in Chile.
The company plans to release its full Q3 2014 report on 28 October.
