Record profits for Lerøy Seafood Group

In the third quarter of 2009, Lerøy Seafood Group had a turnover of NOK 1,946 million, representing an increase from NOK 1,522 million for the same period in 2008, according to a message from the company. The Board of Directors is very satisfied with the Group's development and with the result achieved for the period which is, to date, by far the highest result achieved in the history of the Group. The Group's operating profit before fair value adjustment of biomass was NOK 275.3 million in the third quarter, compared with NOK 116.5 million in the third quarter of the previous year. The strong increase in the operating profit compared to the same period last year is as high as 136.3%. This is explained by significantly higher prices for the Group's main products, Atlantic salmon and salmon trout, and an extremely good development for the activity area Sales and Distribution. Due to the Group's long-term industrial market strategy, the prices achieved for salmon and salmon trout will naturally deviate from time to time from the spot market prices. Realised contract prices increased in the third quarter were however also lower than prevailing spot prices in this quarter. The Group's share of contracts will vary between 35% and 40% in the fourth quarter, at a similar level as the year to date. In view of the Group's positive market outlook, this indicates that the Group can still expect to achieve satisfactory prices in the time ahead. Development in the Group's profit shows that the intensive work done by the organisation is bearing fruit. Despite the fact that there are still considerable differences between the various units in the activity area Production, it is really good to be able to confirm a good development. So far this year the Group's production costs have been falling - a trend that we believe will continue. The Group's goal is of course to reduce the considerable differences in costs that have existed between different regions in recent years. The organisation's patience and will, and its ability to remain motivated when the result of its work will not materialise until one to two years later, have all proved to be of decisive importance. As a result of improved production in 2009, including improved fish health together with lower feed prices, the Board now anticipates that production costs will continue to fall in the future. The affiliated company Norskott Havbruk (the Scotland-based Scottish Sea Farms Ltd) also saw a healthy development in underlying production in the third quarter, as was the case earlier this year. Together with increased sales prices, income from affiliated companies before fair value adjustment of biomass therefore increased from NOK 1.5 million in the third quarter of 2008 to NOK 14.0 million in the third quarter of 2009. In the third quarter of 2009, the Group's profit before tax and fair value adjustment of biomass was NOK 272.4 million as against NOK 77.7 million in the third quarter of 2008. Below are a number of interesting key figures: * Harvested 28.0 thousand gutted weight tonnes of salmon and salmon trout (Q3 2008: 23.2) * Turnover NOK 1,946 million (Q3 2008: 1,522) * Operating profit before fair value adjustment of biomass NOK 275.3 million (Q3 2008: 116.5) * Profit before tax and before fair value adjustment of biomass NOK 272.4 million (Q3 2008: 77.7) * Export prices for whole Atlantic salmon are up 13.0% compared with Q3 2008 * Spot prices for whole superior salmon have seen an increase of 14.4% compared to Q3 2008 * Net interest-bearing debt was NOK 1,813 million (NOK 2,093 million at 30.09.08) * Equity ratio 50.5%