Domstein boosted by Norway Pelagic
The result in the 4th quarter was primarily boosted by the positive development in Norway Pelagic. Norway Pelagic was established 1st July 2007 through a merger between Domstein Pelagic, Global Fish, Bergen Fiskeindustri, Koralfisk and Bernt Hansen, and Domstein owns 38 % of the company. Norway Pelagic achieved an operating result of MNOK 76 in the first half year of operations. Domstein Fish, operating among other activities the fillet factory for whitefish in Måløy, also showed a positive development in 2007. Profitability towards the end of the year was however negatively influenced by the strong Norwegian krone. Domstein Fish`s operating result in 2007 was MNOK 2,2 compared to MNOK -5,8 the year before. Domstein Enghav is a production and marketing organization for seafood in the Nordic region. During recent years the company has undergone large structural changes, such as the establishment of a nation wide distribution chain for fresh fish in Norway. Domstein Enghav`s operating result in 2007 was MNOK -14, 9 compared to MNOK -14,5 the year before. The result is charged with large adaption costs and write-downs in connection with winding up operations. Ervik Havfiske is Norway`s largest autoline fishing company. Domstein owns 50 %. Ervik Havfiske had good operations in 2007 and achieved an operating result of MNOK 33,9 compared to MNOK 45,4 the year before. Reduced profitability is due to lower cod quotas and lower prices for some species. CEO Rolf Domstein comments that he is satisfied with the development in most areas. - It is especially satisfying that the start up of Norway Pelagic has been successful. This is also important for Domstein. We still have challenges in parts of the group, but correct measures have been implemented giving a foundation for positive development in the future, says Domstein.
