Lerøy Seafood Group still growing

The Group`s operating profit before fair value adjustment biomass was 125.0 million against a corresponding figure of 120.9 million for the first quarter of 2006. The Group`s operating margin before fair value adjustment biomass amounted to 8.38% for the fist quarter this year compared to 10.85% for the first quarter of 2006. In the first quarter of 2007, the Group achieved an operating profit after fair value adjustment biomass of 88.5 million against a comparable 211.0 million for the first quarter of 2006. The affiliated company Norskott Havbruk AS also performs very well, and improves its results compared to the first quarter of 2006. The profit share from this company amounts to 16.4 million for the first quarter of 2007 against a corresponding figure of 4.8 million for the same period last year. The Group`s net financial items for the first quarter of 2007 was -17.3 million compared to -5.7 million for the first quarter of 2006. The Group`s profit before tax before fair value adjustment biomass was 129.3 million against a corresponding figure of 120.9 million for the first quarter of 2006. Net earnings for the first quarter of 2007 correspond to a profit before fair value adjustment biomass of 2.05 per share, against a corresponding figure of 2.44 per share for the first quarter of 2006. In the first quarter of 2007, the number of shares outstanding has been increased from 42,777,368 shares to 53,577,368 shares. The Group`s return on capital employed (ROCE) before fair value adjustment biomass was 14.09% against 34.25% for the same period last year. The Group`s financial position is solid with an accounting equity of 3,767 million, corresponding to an equity ratio of 48.4%.. The Group`s net interest-bearing debt at the end of March 2007 was 1,194 million against a corresponding figure of 1,450 million per 31.12.2006. The Group`s financial position is good, and will be utilized to create increased value through organic growth, alliance building and acquisitions. The Board has recommended for the company`s Ordinary General Assembly, which will be held 21 May 2007, that dividend for 2006 is set to 4.00 per share. If the dividend is approved, it will be paid out 1 June 2007. The share will be quoted ex dividend 22 May 2007. The Group`s level of activity is good, and the Board believes future prospects for the Group to be favourable. Considering the international nature of the Group`s activities, developments in the world economy will always have an impact on the Group`s activities. The price level of Atlantic salmon so far in 2007 is as expected lower than for the same period last year. The company expects larger volatility in the global market for Atlantic salmon through the year 2007 compared with the very volatile conditions we experienced through second and third quarter last year. The fish farming and processing industry in Norway and in the EU is exposed to the risks represented by the EU`s continued threats of long-term political trade barriers. The EU Commission`s decision to implement temporary minimum price on Norwegian salmon is not a problem as long as the market price is higher than the politically set minimum price. The company thinks it is positive that at the authorities in EU will reconsider the basis for trade barriers set against Norwegian salmon producers. In the first quarter of 2007, the Group exported, in line with its market strategy, a wide range of seafood products from Norway to a considerable number of countries. The largest of these markets were France, Japan and Sweden. Demand for the Group`s products is good, resulting in increased sales in all substantial seafood markets. The competitive situation in the international food markets requires the company to continue to seek profitable growth and customer satisfaction through cost effective and market-oriented solutions. The Board believes that the Group`s strategic business development over the past few years together with the underlying growth in productivity and market adjusted structure, provide a more robust platform for earnings in the coming years. The Board still expects a strong result this year.