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Q1 2010: Best quarterly results ever for GSF |
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Highlights - first quarter 2010 · Best quarterly results ever for Grieg Seafood ASA.
· Greatly improved performance in Norway and Shetland. · Strong prices and a tight market on the supply side. · Temporarily weak performance in Canada due to reorganisation of one production area.
· Proposed dividend of NOK 0.25 for 2009.
The Group's EBIT was NOK 6.38 per kg (NOK 1.21 per kg). Rogaland achieved an EBIT of NOK 9.07 per kg (NOK -0.41 per kg), while Finnmark reached an EBIT of NOK 8.97 per kg (NOK 1.36 per kg). The EBIT in Shetland also showed a strong increase and reached NOK 7.43 per kg (NOK -2.28 per kg), while the result in Canada was reduced to NOK 0.18 per kg (NOK 9.14 per kg).
The salmon market in the first quarter was affected by a further decline in the supply from Chile. The supply side shortage has led to an unusually tight salmon market and high prices globally. Salmon prices were at seasonally record high levels throughout the quarter.
The harvested volume in the first quarter totalled 18 080 tons, an increase of 96.4% from the same period last year. Sales revenues increased with 118% to NOK 618.9m in first quarter 2010.
The pre-tax profit in the first quarter was NOK 357.3m, compared with NOK 171.0m in the corresponding period last year. The equity ratio at the end of the first quarter was 42.7%
Both higher salmon prices and lower production costs contributed to the considerably improved profits. Fixed price contracts have reduced the positive effect of the high salmon prices. Fixed price contracts accounted for 25% of the total sales volume in Norway.
Cash flow from operations was NOK 246.6m in first quarter 2010, compared to NOK 12.6m in the same quarter in 2009.
Outlook
Despite difficult economic times globally and increased salmon prices, the demand has so far proved to be robust.
Grieg Seafood can report a positive trend in production costs in most production areas, and the improvement in operations is expected to be maintained. An improved fish health situation and lower mortality will also contribute to lower production costs. In BC in particular we expect to see normalised margins and lower production costs from the second quarter.
Grieg Seafood's estimated harvest volume in 2010 remains at 68,000 tons, in accordance with current production plans, an increase of close to 40% compared to 2009. This is in spite of slightly lower sea water production in the first quarter. The main growth period lies ahead of us and this will be decisive for the actual harvest volumes in the period ahead.
Dividend
For further information, please contact:
CEO Morten Vike (Cell phone: +47 994 911 65)
CFO Atle Harald Sandtorv (Cell phone: +47 908 45 252)
For further information, please see www.griegseafood.no.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act) |
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GSF Q1 2010 report GSF Q1 2010 presentation |