Low salmon prices continue to hit Cermaq
Cermaq reported EBIT of NOK 30 million in the second quarter of 2012, down significantly from NOK 318 million in the second quarter of 2011.
Mainstream, the company’s salmon-farming division, accounts for most of the loss, mainly caused by significantly lower salmon prices.
Mainstream Chile, Norway and Canada all reported second-quarter losses due to lower salmon prices, seasonally low volumes and increased production costs. Mainstream Chile saw an EBIT loss of NOK 24 million compared to a profit of NOK 33 million in 2011. Mainstream Norway reported EBIT loss of NOK 3 million compared to a profit of NOK 87 million, and Mainstream Canada’s EBIT amounted to NOK 11 million compared to NOK 93 million.
“The result for second quarter is below our expectations. Mainstream has experienced several operational challenges with negative impact for the farming results,” said Cermaq CEO Jon Hindar. “The issues are, however, mainly solved during second quarter and we expect improved operations and reduced cost development in second half of 2012.”
EWOS, Cermaq’s fish-feed division, reported EBIT of NOK 114 million compared to NOK 128 million in 2011. The company sold 260,000 metric tons of fish feed, up 6 percent compared to the second quarter of 2011. The higher volumes came from growth in Chile and Norway, where volumes increased by 14 percent and 8 percent, respectively.
Cermaq has reduced Mainstream’s expected sales for 2012 by 14,000 metric tons to 111,000 metric tons. The reduced growth rate in feed in second quarter is expected to continue during the second half of 2012.