Cermaq ASA : Strong feed results and a challenging salmon market concludes a mixed Q4 2012

Tue Feb 12, 2013 12:31am EST

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Cermaq reported an EBIT pre fair value and non-recurring items for the fourth quarter of NOK 11
million (NOK 300 million) from high volume growth in feed offset by low salmon prices, especially
in Americas and Japan.EBIT pre fair value was NOK 164 million. The full year EBIT pre fair value
and non-recurring items was NOK 404 million (NOK 1 369 million). The Board of Directors propose a
dividend for 2012 of NOK 1.0 per share.

-  The results in fourth quarter were acceptable taking into account the challenging market in
Americas and Japan, says CEO Jon Hindar. Strong growth and performance in EWOS and improved
production cost in Mainstream compared to third quarter completes a challenging year for Cermaq.
The combined results support our strategy of operating a leading feed company combined with a
strong farming business, continues Jon Hindar.

Cermaq's operating revenues were NOK 3 542 million (NOK 3 285 million) in fourth quarter 2012.
Revenues in EWOS increased by 16 percent to NOK 2 939 million. Mainstream's revenues were NOK 1
181 million, an increase of 2 percent from higher volumes offset by significantly reduced salmonid
prices in the American and Japanese markets. The non-recurring items mainly relate to a bargain
purchase gain from the acquisition of Cultivos Marinos Chiloé.  

EWOS sold 330 thousand tonnes of fish feed in fourth quarter 2012, an increase of 9 percent
compared to fourth quarter 2011. The growth came from an increase of 13 percent in Norway and 16
percent in Chile. EBIT pre fair value increased to NOK 192 million (NOK 157 million) mainly from
high volume growth and strong capacity utilisation. 

-  EWOS concludes its best year by delivering strong performance also in fourth quarter. The
organisation's competence in product development, purchasing, production and logistics is
fundamental for supporting such results. The strong volume growth also demonstrates the
recognition from its customers, says Jon Hindar.

Mainstream reported a negative EBIT pre fair value and non-recurring items of NOK 146 million
(profit of NOK 157 million) in the quarter. Volumes sold were 46.7 thousand tonnes (41.2 thousand
tonnes). The EBIT pre fair value per kilogram, gutted weight, was negative NOK 3.1 (positive NOK
3.8). Cultivos Marinos Chiloé (CMC), which was acquired in October 2012, has been consolidated
with effect from fourth quarter. Lower sales price in all markets compared to last year, and
decline in Americas and Japan from third quarter 2012, was the main reason for the reduced
results. The production cost in fourth quarter was higher than last year, but reduced compared to
third quarter 2012 due to improved operational performance.

EBIT pre fair value and non-recurring items per kilogram, gutted weight, for Mainstream Chile was
negative NOK 5.3 (positive NOK 7.7), for Mainstream Canada negative NOK 6.2 (positive NOK 0.1) and
for Mainstream Norway NOK 1.5 (negative NOK 1.3). Within Norway, Nordland is included with NOK 3.4
(NOK 0.4) and Finnmark negative 0.1 (negative NOK 3.2). 

-  The price difference on Atlantic salmon between Europe and Americas has increased further with
significant impact for Mainstream's results in Chile and Canada. In this challenging market, I am
pleased with the operational performance in all Mainstream companies including the solid
integration of Cultivos Marinos Chiloé in Chile, concludes Jon Hindar.
             

The Board of Directors of Cermaq will propose a dividend for 2012 of NOK 1.0 per share or 40
percent of adjusted net result, amounting to NOK 93 million. Despite the acquisition of CMC and
significant expansions in a challenging market, Cermaq's financial position and capacity remain
strong with a diversified funding structure and an equity ratio of 47 percent. 

The current market situation for Atlantics may continue for some months and put pressure on the
profit contribution from Canada and Chile. The existing market imbalance between Europe and
Americas is however expected to level out during 2013. Mainstream expects sales volume for 2013 of
150 thousand tonnes, 25 percent up from 2012, due to growth in Mainstream Chile, partly from the
recent acquisition of Cultivos Marinos Chiloé.

Further information - please contact:
Jon Hindar,          CEO, phone: + 47 23 68 50 10, mobile: +47 977 48 829
Tore Valderhaug, CFO, phone: + 47 23 68 50 38, mobile: +47 995 60 925


Cermaq is an international group of companies with activities in fish farming, production of
salmonid feed and research in aquaculture. Cermaq has operations in Norway, Chile, Canada, and
Scotland, the main geographic regions for salmon and trout farming, and in Vietnam. Through its
business unit EWOS, Cermaq ranks as the world's largest producer of feed for salmonids. The
business unit Mainstream is one of the world's leading farming companies of salmon and trout. The
group had sales of around NOK 11.8 billion in 2012. Cermaq is listed on the Oslo stock exchange
with ticker code CEQ. www.cermaq.com http://www.cermaq.com 



 

This information is subject of the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.


Result presentation Q4 2012 http://hugin.info/134455/R/1677289/546947.pdf 
4th Quarter 2012 http://hugin.info/134455/R/1677289/546944.pdf 


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Source: Cermaq ASA via Thomson Reuters ONE


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