Aker's harvest volume increased by almost 50 per cent in the fourth quarter of 2009. (Photo: Aker Seafoods)

Aker Seafoods' Q4 points sector in right direction

Aker Seafoods' fourth quarter stood out with its trawlers catching significantly more fish than in the same period of 2008 and its plants benefitting from better supplies of raw material than usual. Operating revenues came to NOK 727 million (EUR 90.5 million) compared with NOK 630 million (EUR 78.4 million) in the same period of 2008, mainly from increased volumes in the Norwegian and French business segments despite lower prices.

French and Danish production was also high, although prices for cod and haddock fillet products fell from the preceding quarter. An impairment charge of NOK 20 million (EUR 2.5 million) was recognised on the product inventory.

Aker Seafoods achieved EBITDA of NOK 51 million (EUR 6.3 million) for Q4 compared with NOK 23 million (EUR 2.9 million) in Q4 2008. Harvest volume increased by almost 50 per cent and sales by 59 per cent with both haddock and cod doing superbly. Significantly lower fuel prices for 2009 positively affected results.

“Even though the harvested volume by our own trawlers was good in 2009 and the landings from the coastal fishing fleet were up from the same period in 2008, the result is not satisfactory,” commented acting CEO Liv Monica B Stubholt.

The Norway processing segment had fairly good raw material supplies from its own trawlers and the coastal fishing fleet, which yielded higher production during the quarter with sales up by 6 per cent. However, fillet product prices declined and the group recognised an impairment charge on the product inventory.

Aker Seafoods increased its yield of fresh products in the fourth quarter, helping to improve results from 2008, despite a general decline in cod and haddock prices.

Activity at the plants in the European Union (EU) was buoyant during Q4. A positive price trend for the group's own trout production helped ensure a good result in France and the volume of fresh secondary processing rose compared with 2008 in Denmark, although sales there were low for frozen secondary production.

For 2009 as a whole, Aker Seafoods achieved sales of NOK 2.685 billion (EUR 334.3 million) and an EBITA of NOK 192 million (EUR 23.9 million). Sales were lower than in 2008, but EBITDA rose by 33 per cent.

Still, the result is unsatisfactory: the business needs to be made more robust and forward-looking to the benefit of its shareholders, employees, customers, partners and society as a whole, the company said. Aker Seafoods must enhance value creation at every stage and get more out of the fish, which necessitates an efficiency increase and further strengthening of marketing work, and the group will assess possible structural moves.

Related article:

- Aker Seafoods shows enhanced results in Q3

By Natalia Real
[email protected]
www.seafood.media

Address:	Fjordalléen 16 - Postboks 1301
City:	Oslo
State/ZIP:	(0250)
Country:	Norway
Phone:	+47 24 13 01 60
Fax:	+47 24 130 161
E-Mail:	[email protected]
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