Mixed results from Marine Farms

Its salmon operations in the UK did very well, generating an EBIT/kg gwt sold salmon of NOK 7.9. Its seabass/seabream operations in Spain, however, generated a loss, mainly due to extraordinary costs in connection with turning around companies acquired in 2007. The underlying business in Spain is still performing well. The group`s financial position is strong. At the end of June 2008, equity amounted to NOK 445mill (40.9% equity ratio). As pr 30.06.2008, the group had approximately NOK 280 mill in free cash and available credit facilities. - Sales dropped by 20% in 2nd quarter 2008 compared to the same period last year, mainly due to a 28% drop in volumes in Culmarex and a 16% lower NOK/GBP exchange rate. EBIT before fair value in the 2nd quarter 2008 was NOK 10.8 mill compared to NOK 20.8 mill last year. The drop is mainly a result of significant lower profitability for the seabass/seabream operation in Spain and a significant drop in the NOK/GBP exchange rate. - For the first six months of 2008, revenue dropped by 4% compared to the same period in 2007. EBIT before fair value was NOK 18.9 mill, which is NOK 22.5 mill lower than the year before. - The salmon operations in Lakeland (UK) continue to do very well. The company obtained an EBIT/kg gwt sold salmon of NOK 7.9 in 2nd quarter 2008 (NOK 9.6 in 2007). Volumes increased by 11% in 2nd quarter 2008 compared to same quarter last year. - The seabass/seabream operations in Culmarex (Spain) obtained an EBIT/kg sold seabass/seabream of NOK -10.5 in 2nd quarter 2008 (NOK 7.9 in 2007). The `old` business of Culmarex Group (excluding the three companies acquired in 2007) obtained an EBIT/kg sold fish of approximately NOK 14 in 2nd quarter 2008. Volumes dropped by 28% in 2nd quarter 2008 compared to same quarter last year. - The cobia operations in Belize and in Vietnam continue to develop according to plan. There is a `pull` for cobia in the market and the demand for our fish continues to be higher than what we can supply. - The group`s financial position is strong. Per 30.06.2008, equity amounted to NOK 445 mill (40.9% equity ratio) and net interest-bearing debt amounted to NOK 348 mill. As pr 30.06.2008, the group had approximately NOK 280 mill in free cash and available credit facilities (including new DnB NOR Bank facilities announced on the 16th of June 2008). - The group has room for significant organic growth going forward, especially in seabass/seabream (Spain) and in cobia (Belize andVietnam). Photo: CEO Bjørn Myrseth