Austevoll ekes out 11% decline in 3Q income
Austevoll Seafood ASA on Tuesday published its third-quarter results, including an 11.4 percent decline in operating income, to NOK 2.95 billion, and a 43.3 percent decline in earnings (before before depreciation and value adjustment for biomass), to NOK 400 million.
Austevoll owns a majority stake in Lerøy Seafood, which on Tuesday posted a 51.3 percent drop in operating profit in the third quarter of 2011.
To no surprise, considerably lower salmon prices hurt Lerøy in the third quarter. “The price for Atlantic salmon has seen a significant fall in the third quarter of 2011, from what was recognized as extraordinarily high levels,” said Austevoll. “The decline in prices is attributed to a higher increase in the global offering of salmon and trout when compared with the past two years. Correspondingly, we expect to see a positive development in global demand for Atlantic salmon. The above-mentioned factors, combined with expectations of improved productivity for the segment, including improvements to biology, allow for a positive outlook for the business segment.”
As for its other segments, Austevoll’s fishmeal and fish oil business watched its operating income fall 25.9 percent, to NOK 502 million, while its consumer products business saw its operating income slip 17.2 percent, to NOK 169 million.