The group’ s (AUSS) revenues for Q4 2007 totalled MNOK 720.0 compared with MNOK 887.4 in Q4 2006. The operating result before depreciation (EBITDA) amounted to MNOK 22.6 for Q4 2007
compared with MNOK 167.4 in Q4 2006. The group’ s total revenues for 2007 were MNOK 3469.0 compared with MNOK 2732.6 for year 2006. Proforma revenues for 2006 totalled MNOK
3480.8. EBITDA for the entire financial year 2007 totalled MNOK 483.4 compared to MNOK 482.4 for 2006. Proforma EBITDA for 2006 was MNOK 699.8.
Catch patterns and catch quota regulations have an impact on the group’ s total catch per quarter, and subsequently the exploitation of the group’ s production facilities. This results in seasonal fluctuations in production and sales volumes, reflected in the group’ s fourth quarter results.
The last season of the “ Olympic” fishing for anchoveta in Peru started on 17 November. The group’ s fleet in Peru fished an approximate total of 155,000 tons this season, and purchased approx. 40,000 tons from a third party. The execution of the fishing season was in line with expectations, and the quarter has seen good production of fishmeal and fish oil.
Catches in Chile were difficult this autumn, due to the arrival of colder seawater. At year-end, approx. 250,000 tons of the total Chilean quota (in the south) for horse mackerel was unutilised.
For our fleet, approx. 10,000 tons of the quota remained, and these quota cannot be transferred to 2008. The drop in seawater temperatures has continued in 2008, but the fleet has now started fishing and we expect the group to exploit its quotas as normal in 2008. The market for fishmeal has been relatively stable, while we have witnessed an increased demand for consumer products and fish oil.
AUSS has further strengthened its position via acquisitions within the fishmeal and fish oil segment in Peru and Norway. The acquisition of Cormar in Peru is of strategic importance for AUSS, as it helps the group maintain its good balance between fleet capacity and production plants. Vertical integration within the supply chain for fishmeal and fish oil allows for synergy effect, quality and cost control. The acquisitions strengthen AUSS’ s position as a leading manufacturer of fishmeal and fish oil.
The Board of Directors will make a proposal to the Ordinary General Meeting in 2008 for payment of dividend from the company of NOK 0,30 per share. This represents a total dividend payment of MNOK 55,3.
Strategic evaluations
Acquisition in Peru strengthens AUSS’ s position in South America On 15 November, AUSS closed the acquisition of 100% of the shares in Corporacion del Mar (Cormar). The acquisition was executed via AUSS’ s subsidiary Alumrock Overseas Inc. and together with Locksley Capital Corporation (Locksley).
Cormar has a total fleet of 4,414 m3 and production capacity of 244 tons/hour in 6 plants along the coast of Peru.
As a result of the agreement with Locksley, AUSS acquires 50% of the fleet, 6 vessels, production plants with 45 ton/hour capacity in Chicama, 35 ton/hour capacity in Chimbote and a 50% share of a cooperation agreement with Locksley for the operation of a plant with 115 ton/hour capacity in Tambo de Mora and Paita.
This transaction provides AUSS with increased production capacity in the strategically important area of Chimbote, and provides new capacity in Chicama. Both areas number amongst the most important harbours for landing of pelagic fish in Peru.
Acquisition of 40% of the shares in Bodø Sildoljefabrikk AS In December, AUSS’ s subsidiary, Welcon Invest AS, signed an agreement for the acquisition of 40% of the shares in Bodø Sildoljefabrikk AS. This acquisition was completed on 23 January 2008, partly via the purchase of existing shares and partly via a private placing in Bodø Sildoljefabrikk AS.
The company has a strategic location in relation to important catch areas for pelagic fish.
Acquisition of 2 566 700 shares in Lerøy Seafood Group ASA On 20 December, AUSS acquired 2 566 700 shares in Lerøy Seafood Group ASA (LSG), and Subject to this AUSS owns totally 17 860 300 shares in LSG. AUSS took up its first shareholding in LSG in connection with the sale of the salmon company, Veststar Holding AS, to LSG.
The financial year 2007
As a result of the sale of the salmon business in 2007, the historical result figures from the salmon business have been deducted from certain result items, and recognised net as separate items in the profit and loss account, under “ results from non-continued business” .
The group’ s operating income for 2007 totalled MNOK 3 468.9, compared with MNOK 2 732.6 in 2006. Proforma operating income for 2006 was MNOK 3 480.8. In 2007, the group achieved an EBITDA of MNOK 483.4 compared with MNOK 482.4 for 2006. Proforma EBITDA for 2006 was MNOK 699.8.
One of the main reasons for the decline in EBITDA in 2007 compared with the proforma figures for 2006 was high raw material prices in Norway during the first half of the year, together with reduced fishmeal prices in the second half.
Depreciation (excluding depreciation of added value on stockholding) totalled MNOK 201.9 in 2007 compared with MNOK 116.8 in 2006. Proforma depreciation in 2006 was MNOK 183.9.
The increase in depreciation reflects acquisitions made in second half of 2006 and acquisitions made in 2007.
Earnings from affiliated companies for 2007 totalled MNOK 65,8 compared with MNOK 16.1 for 2006. Lerøy Seafood Group ASA represents MNOK 64.6 of this figure for 2007.
The Norwegian kroner accounts were affected by the fluctuations in the exchange rates.
