Lerøy Seafood Group ASA : Preliminary financial figures 2012
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For best results when printing this announcement, please click on the link below: http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130226:nHUGcXD4 POSITIVE DEVELOPMENT IN OPERATIONS IN FOURTH QUARTER 2012 Key figures: *41.3 thousand tons gutted weight of salmon and salmon trout harvested (Q4 2011: 39.6) *Turnover NOK 2,411 million (Q4 2011: 2,251) *Operating profit before fair value adjustment of biomass NOK 136 million (Q4 2011: 120) *Operating profit per kg NOK 3.3 (Q4 2011: 3.0) *Profit before tax and fair value adjustment of biomass NOK 114 million (Q4 2011: 96) *The industry spot price for whole superior salmon increased by 14% when compared with the fourth quarter of 2011 *Net interest-bearing debt was NOK 2,232 million (31.12.2011: 1,593) *Equity ratio of 51%, similar to end of 2011 Lerøy Seafood Group reports the Group's second highest quarterly revenue in Q4 2012, with turnover of NOK 2,411 million. By comparison, the Group reported turnover of NOK 2,251 million for the same quarter last year. The Group's operating profit before value adjustment of biomass in Q4 2012 was NOK 136 million compared with NOK 120 million in Q4 2011. The increase in operating profit when compared with the previous year is attributed to a higher volume and somewhat lower production costs. For Q4 2012, the Group reported a 10% share of contracts on the salmon market and a 16% share of contracts for trout. These figures are lower than the norm expected by the Group, and have to be seen in the light of the low spot price for salmon up to December. Contract prices have seen an increase throughout the quarter but have on average not deviated significantly from the spot prices. The prices achieved by the Group in Q4 2012 are similar to those in Q4 2011. Prices achieved in Q4 2012 have been affected by the fact that more than 40% of the volume of salmon and salmon trout was sold in the month of October, a month of low prices. Strong biomass growth for the Group throughout 2012 has generated a record-high slaughter volume for Q4 2012, totalling 41 thousand tons gutted weight of salmon and salmon trout. The growth achieved in 2012 has had a positive impact on costs. Production cost for salmon and salmon trout in the fourth quarter 2012 was the lowest achieved by the Group during 2012, and also lower than those realised in Q4 2011. The associated company, Norskott Havbruk (Scotland-based Scottish Sea Farms Ltd.) has achieved good prices and lower output costs, resulting in a higher profit figure for the fourth quarter of 2012 when compared with the same period last year. Income from associated companies before fair value adjustment of biomass has therefore seen an increase from a loss of NOK 2.3 million in Q4 2011 to a profit of NOK 5.2 million in Q4 2012. Production at Scottish Sea Farms Ltd is strong and the company has expectations for positive development in the future. The Group's profit figure before tax and value adjustment of biomass in Q4 2012 was NOK 114 million compared with NOK 96 million in Q4 2011. FINANCIAL SUMMARY, 2012 Satisfactory profit in a year of low prices Key figures: *153.4 thousand tons gutted weight of salmon and salmon trout harvested (2011: 136.7) *Turnover of NOK 9,103 million (2011: 9,177) *Operating profit before fair value adjustment of biomass NOK 450 million (2011: 1,213) *Operating profit per kg NOK 2.9 (2011: 8.9) *Profit before tax and fair value adjustment of biomass NOK 380 million (2011: 1,183) *The industry spot price for whole superior salmon fell by 17% compared with 2011 *Dividend payments, MNOK 383 *Dividend Net interest-bearing debt was NOK 2,232 million (31.12.2011: 1,593) *Equity ratio of 51%, similar to end of 2011 Lerøy Seafood Group reported turnover of NOK 9,103 million in 2012. This is a slight decline when compared with the record-high turnover reported for 2011, totalling NOK 9,177 million. However, with the growth in volume for the Group's sales and production, this decline did not constitute more than 0.8%, despite the strong fall in prices for salmon and salmon trout. The turnover figure reported is the second highest in the history of the Group, and reflects the Group`s strong position. The Group's operating profit before value adjustment of biomass was NOK 450 million in 2012 compared with NOK 1,213 million in 2011. A figure of NOK 50 million in write-downs for the closure of Lerøy Hydrotech's slaughterhouse is included in the operating profit. Without this figure, the operating profit before value adjustment of biomass would be NOK 500 million. The Group's operating margin before fair value adjustment of biomass was 4.9% in 2012 (5.5% excluding the closure of the Hydrotech slaughterhouse), compared with 13.2% for the corresponding period in the previous year. The main factor behind the decline in operating profit from 2011 to 2012 is the significantly lower average price for salmon and salmon trout in 2012 when compared with 2011. The difference in prices was at its highest in the first half of 2012. The Group reported an operating profit after biomass value adjustment of NOK 745 million in 2012, compared with NOK 597 million in 2011. Fair value adjustment of biomass in accordance with IFRS is NOK 295 million in 2012, compared with NOK -616 million in 2011. The significant difference in value adjustment of biomass is attributed to the higher price for salmon and salmon trout at the end of 2012 when compared to the end of 2011. Income from associated companies totalled NOK 25 million in 2012, compared with NOK 20 million in 2011. Corresponding figures before fair value adjustment of biomass were NOK 25 million and NOK 52 million respectively. The Group's net financial items in 2012 amounted to NOK -95 million, compared with NOK -82 million in 2011. The Group's profit before tax and before fair value adjustment of biomass was NOK 380 million in 2012, compared with a corresponding figure of NOK 1,183 million in 2011. The profit figure reported for 2012 corresponds to a profit before biomass value adjustment of NOK 5.11 per share, compared with NOK 15.13 per share in 2011. The Board of Directors intends to recommend a dividend payment of NOK 7.00 per share to the company's ordinary shareholder's meeting for 2012. The proposed dividend payment for 2012 is therefore equivalent to the dividend in 2011. The Board of Directors' recommendation reflects the capital adequacy of the Group, its strong financial position and positive outlook to the Group's profit performance. The Board of Directors also underlines the importance of ensuring continuity and predictability for the company's shareholders. STRUCTURAL CONDITIONS Through organic growth and acquisitions over the last decade, the Group has become one of the world's largest producers of Atlantic salmon and salmon trout. The Group has also consolidated its position as a major participant in seafood distribution in Norway and worldwide, and it has strengthened its position as the leading exporter of seafood from Norway. Thanks to a combination of acquisitions and alliances, the Group has been able to offer its key national customers cost-effective national distribution of fresh seafood. Over the coming years, the Group will increase its focus on sales, distribution and processing. In the opinion of the Board of Directors, the Group's strategic and financial flexibility, in conjunction with current earnings, will enable the Group to continue as an active participant in on-going, value-generating structural changes in the seafood industry, both regionally and globally. Lerøy Seafood Group will continue to selectively consider possible investment and merger opportunities, as well as alliances, which could strengthen the basis for further profitable growth and sustainable value creation. Lerøy Seafood Group shall continue to develop and grow by means of regional development in a global perspective. Since 1997, the Group has maintained a strong focus on the decisive importance of financial flexibility for both operational and long-term strategic developments. It will therefore remain important for the Board that the Group, through its operations, retains the confidence of participants in the various capital markets. The Group's financial position is very strong. THE MARKET SITUATION AND OUTLOOK The Board of Directors believes that the Group's strategic business development over the past few years, together with underlying productivity improvements and market-oriented structure, ensures a robust platform for earnings in the years to come. The strong growth in the global supply of Atlantic salmon experienced over the last couple of years is expected to diminish in 2013. The low price level the business has faced over the last 12 months has contributed to a very strong development in demand. Good demand together with expectations for improved productivity in the Group's production facilities, including improved biology, provides justification for the Board's positive attitude towards the Group's development. The Board of Directors currently anticipates a considerably stronger result in 2013 than was achieved in 2012. Questions and comments may be addressed to the company's CEO, Henning Beltestad, or to the CFO, Sjur S. Malm. Bergen, 25 February 2013 The Board of Directors of Lerøy Seafood Group ASA This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Q4 2012 Presentation http://hugin.info/131537/R/1680904/549310.pdf Q4 2012 Report http://hugin.info/131537/R/1680904/549308.pdf ---------------------------------------------------------------------------------------------------- This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Lerøy Seafood Group ASA via Thomson Reuters ONE HUG#1680904
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