The higher figures were mainly due to operations in France. (Photo: Aker)

Aker Seafoods reaches higher profits in H1

NORWAY
Wednesday, August 11, 2010, 23:50 (GMT + 9)

Aker Seafoods achieved operating revenues of NOK 1.533 billion (EUR 193.4 million) for the first half of 2010 versus NOK 1.349 billion (EUR 170.2 million) in the same period of last year.

The increase in operating revenues was mainly because of higher harvesting volumes, sales from inventories and turnover in France.

EBITDA was NOK 167 million (EUR 21.1 million) for the first half against NOK 106 million (EUR 13.4 million) in the same period of 2009. EBITDA for Q2 reached NOK 65 million (EUR 8.2 million) compared to NOK 51 million (EUR 6.4 million).

EBITDA in Denmark was NOK 13 million (EUR 1.6 million) against NOK 18 million (EUR 2.3 million) for H1 of last year, and France was NOK 11 million (EUR 1.4 million) and NOK 7 million (EUR 883,061), respectively. High salmon raw material prices cut overall margins for processing outside Norway.

But in France, elevated trout prices led to improvement in sales and profitability for trout farming. Volumes from the Danish and French plants fell.

Inventories had not grown by the end of H1, the company's high season, but they were unusually high at 31 December and cutting their size was prioritised.

Aker Seafoods' trawlers harvested a bigger volume more efficiently than in previous years and plants improved their results via better margins, inventory decline and augmented sales of fresh products. Better profits mainly echo high production and greater sales, but raw material dearth appeared towards the end of H1 while fish and cod fillet product prices remain stressed.

Sales and profitability for the fleet and processing were higher than in the first half of last year. From 30 June, little raw material is available partly because the coastal fishing fleet had harvested more than normal by then.

The company is restructuring its business to reach a stable improvement in profitability with a sharper focus on markets and customers. All processing activities have been assembled from 1 July in the company Norway Seafoods.
 
Fishing was satisfactory during H1, leading to efficient trawler harvesting. Cod quotas rose by 16 per cent for the year.

The firm harvested 54 per cent of its cod quota compared with 45 per cent in H1 2009. The remaining quota remains at the same level as at 30 June 2009.
 
“Remaining quotas for the coastal fishing fleet during 2010 are low, and raw material shortages are expected to continue exerting a negative effect during the second half even though the company's own fleet has substantial remaining quotas. The latter are in any event insufficient on their own to meet the raw material requirements of the plants,” said CEO Liv Monica Stubholt.
 
Fillet prices were lower than in the same period of 2009 while production stayed the same. Turnover, however, climbed due to elevated inventory sales.

Good fresh raw material supplies from the coastal fleet helped guarantee a higher proportion of fresh products. Results for the plants were better, mainly because of lower raw material prices, stable demand and better fresh product sales.
 
Related articles:

- Aker Seafoods sees grand Q1
- Aker Seafoods announces restructuring

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

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