Improved results for Domstein

Operating result (EBITDA) was MNOK 23 compared with MNOK 18 last year and EBIT MNOK 10 compared with MNOK 7 last year. The result after tax amounted to MNOK -1 compared to MNOK 1 last year.

The merger agreement between Domstein Pelagic, Global Fish, Bergen Fiskeindustri, Koralfisk and Bernt Hansen has been approved in all companies. The merged company will control approx. a third of the pelagic production in Norway. Norway Pelagic will be operative from July 1st, and the transaction will be included in the Domstein Q2 financial reporting. Domstein Pelagic had operating revenues of MNOK 228 compared with MNOK 259 last year. Operating result (EBITDA) was MNOK 20 compared with MNOK 19 last year. The herring quantities have been all time high whereas the mackerel landings have been small. The large herring quantities put pressure on both prices and margins. Increased quantities compensated for lower margins giving an operating result at the same level as last year. Domstein Fish had operating revenues of MNOK 100 compared with MNOK 73 last year. Operating result (EBITDA) was MNOK 5 compared with MNOK -3 last year. The strong growth and improved result is due to a generally good market for white fish and a successful turnaround for the fillet factory in Måløy. Domstein Enghav had operating revenues of MNOK 217 compared with MNOK 192 last year. Operating result (EBITDA) was MNOK -1 compared with MNOK 3 last year. A majority of the companies have shown a positive sales and profit development. Large costs in establishing and operating the retail organization in Norway, founded in the overall strategy of substantial organic growth, is the main reason for the negative results in the business area as a whole. Ervik Havfiske, where Domstein owns 50%, had operating revenue of MNOK 59 compared with MNOK 61 last year. Operating result (EBITDA) was MNOK 17 compared with MNOK 21 last year. The operations in the 1st quarter have been at the same level as last year, but lower turnover and operating profit is due to a slight decline in the fisheries in the Southern Ocean. The development so far this year, with strong pressure on prices and margins for herring clearly shows that it is right to establish a new and strong company for pelagic fish in Norway, Rolf Domstein comments. `To be able to handle the large herring quantities coming the next years, we must have more power in the market` he adds.