Salmon up, seabream down for Marine Farms

Gustav-Erik Blaalid
Published Modified

- For the year 2008, revenue increased by 3% compared to 2007. EBIT before fair value was NOK 26.1 mill, which was NOK 68.5 mill lower than the year before.

- The salmon operations in Lakeland (UK), a 100% owned subsidiary of Marine Farms ASA, continue to do well. The company obtained an EBIT/kg gwt sold salmon of NOK 7.4 in 4th quarter 2008 (NOK 7.6 in 2007). Volumes increased by 9% in 4th quarter 2008 compared to same quarter last year. For the year 2008, Lakeland generated an EBIT/kg sold fish of NOK 7.8.

- The seabass/seabream operations in Culmarex (Spain), a 100% owned subsidiary of Marine Farms ASA, obtained an EBIT/kg sold seabass/seabream of NOK 2.2 in 4th quarter 2008 (NOK 6.8 in 2007). Volumes dropped slightly in 4th quarter 2008 compared to same quarter last year. For the year 2008, Culmarex generated an EBIT/kg sold fish of NOK -1.8.

- The development of the two new cobia operations in Belize and in Vietnam are progressing according to plan, although the organisations are now set up for significant increased production, resulting in higher losses when biomass production is low. The new marine hatchery in Belize should be up and running in time for the cobia spawning season, starting in spring 2009.

- Per 31.12.2008, equity amounted to NOK 492 mill (34.1% equity ratio) and net interest-bearing debt amounted to NOK 649 mill. Net interest bearing debt increased by some NOK 70 mill due to the significant increase in the EUR and the USD exchange rates in 4th quarter 2008. As pr 31.12.2008, the group had approximately NOK 150 mill in free cash and available credit facilities. The group should have sufficient funding in 2009.

Marine Farms ASA combines farming of salmon with profitable farming of marine species. In addition the Company is exploiting opportunities within new marine species such as cobia. Marine Farms has a clearly defined strategy to invest in regions/segments where it may become one of the top producer's earnings wise. Focus is on large and efficient clusters, controlling the entire value chain from broodfish to customer. Its activity shall be diversified in terms of species and markets, leveraging on established species and investing in new ones. The company will seek market leadership in selected niches by being an innovative and trustworthy supplier of high quality seafood products.

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