Aker Seafoods expanded production of fresh products at its plants in Norway by 38 per cent during the first half of 2009 compared with the same period of 2008. Both operations in France and Denmark increased their sales of fresh products, both bulk- and consumer-packed. Consumption of fresh cod in France, Europe’s largest market for this product, rose by 52 per cent in the first five months of 2009.
Operating revenues came to NOK 1 349 million for the first half, compared with NOK 1 502 million in the same period of 2008. This decline stemmed mainly from the business segments in Norway and largely reflected lower whitefish prices. Aker Seafoods achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of NOK 106 million for the first half, compared with NOK 134 million in the same period of 2008.
Sales fell for the harvesting segment in the first half compared with same period of last year. Despite an increase in the volume harvested, sales declined by 18 per cent. Reduced prices for cod products explaines part of the decrease. In addition, Aker Seafoods harvested a relatively larger proportion of saithe in the first half than in the same period of 2008. Fuel prices declined substantially in the first half, which made a positive contribution to results.
– In the first half of 2009, we have focused more on harvesting of saithe and haddock and less on harvesting of cod. We have no less than 55 per cent of our cod quota left, which provides a good basis for operations for the rest of the year. In addition, we will make investments in a new trawler and upgrade two of our other trawlers in the third quarter. This gives us an opportunity to improve the utilization of existing quotas, says Aker Seafoods’ CEO Yngve Myhre.
The processing Norway segment was well supplied with raw material during the first half by in-house and external suppliers and with that production rose some. The decline in market prices affected sales for the processing segment, which fell by 20 per cent. A poor market for salted fish and declining fillet prices prompted Aker Seafoods to recognise additional impairment charges of NOK 10 million on inventories during the second quarter.
– We are also making investments in the processing segments, and we are in the process of upgrades our processing plant in Stamsund, Norway, with super chill technology. This will boost efficiency and further improve production quality, says Myhre.
Fresh secondary processing in Denmark and France boosted sales in the first half of 2009 compared with the year before.
– In the first half of 2009, Aker Seafoods has strengthened its sales position. Especially in France. Consumption of fresh cod in France rose by 52 per cent in the first five months of 2009, while statistics from the Norwegian Seafood Export Council shows that the total value was up by 34.7 per cent, says Myhre.
