Aker Seafoods ASA is a leading international seafood group with the focus on harvesting, processing and sale of whitefish (Photo: Aker Seafoods)

Significant Improvement in Operating Profit for Aker Seafoods

Aker Seafoods ASA (Public, OSL:AKS), a leading international seafood group, has achieved a significant improvement in operating profit during 2010, and delivered an EBITDA of NOK 250 million. That compares with NOK 192 million for 2009, and represents the company's best-ever result. EBITDA for the fourth quarter of 2010 was NOK 42 million, down 51 million from the same period the year before. The EBITDA margin was six percent, compared with seven percent in the same period of 2009. Profitability strengthened for harvesting and processing in Norway, but margins weakened in Denmark and France.

Aker Seafoods delivers fresh fish products 364 days of the year, and ranks as Europe’s largest whitefish harvesting group

Highlights – Q4 2010
• Improved profitability in Norway
• Improved profitability in Harvesting
• Improved profitability in Processing Norway
• Reduced margins in Processing Denmark and Processing France
• NIBD reduced to below NOK 1 billion
• Increased quotas for Harvesting in 2011
• 2010 EBITDA increased by 30 percent to NOK 250 million

Thomas Farstad CEO Aker Seafoods

Sales for Aker Seafoods came to NOK 702 million in the fourth quarter, compared with NOK 727 million in the same period of 2009. This reduction reflects both a lower harvested volume and a smaller output of fillet products.

"Viewed as a whole, 2010 was the best year we've ever had," says Thomas Farstad, chief executive of Aker Seafoods. "We made progress in Norway, but had a downturn in our international operations.

"During the fourth quarter, we experienced efficient harvesting and improved prices even though our quotas for the period were smaller than in 2009. The Norwegian processing business also achieved positive results in the quarter despite weak supplies of raw material."

Profit before financial items (EBIT) for the quarter came to nine million, compared with a loss of NOK 29 million in 2009. Earnings per share were NOK 0.11. Cash flow from operations was NOK 87 million as against NOK 196 million in the fourth quarter of 2009. Net financial items broke even, compared with costs of NOK 24 million in 2009. Net interest-bearing debt declined from NOK 1,067 million at 30 September to NOK 995 million at 31 December.

The equity ratio was 38.3 percent at 31 December, compared with 36.2 percent three months earlier.

Aker Seafood's harvesting segment achieved an operating profit before depreciation and amortisation (EBITDA) of NOK 34 million, compared with 26 million in the same period of 2009, and catches were down 18 percent. For the full year, it had an EBITDA of 176 million compared with 125 million in 2009.

Harvesting by the group’s own vessels provides about half of the raw material consumed at its Norwegian processing plants

The Norway Seafoods marketing and processing company, which embraces the Norway, Denmark and France segments, reported an EBITDA of eight million for the fourth quarter, compared with NOK 25 million in the same period of 2009. EBITDA was siX million for the Norwegian processing business compared with a negative two million the year before, three million for the Danish business compared with six million, and negative at one million for the French business compared with a positive NOK 21 million. For the full year, Norway Seafoods had an EBITDA of NOK 75 million compared with NOK 67 million in 2009.

Aker Seafoods reported reduced margins in Processing Denmark and Processing France

Aker Seafoods expects good catches for its own fleet in 2011, with the quota base for cod and haddock increased by 23 and 24 percent respectively. Supplies of raw material for Norway Seafoods are expected to be good in the first half. The company will strengthen its commitment to sales and market development, but expects the margin position for seafood processing to remain demanding.

"The outlook for fishing is good, and we expect increased profitability in the harvesting segment during 2011," says Mr Farstad. "We're enhancing the efficiency of our fleet while anticipating higher catch rates per operating day. Margins for seafood processing will remain demanding, but we're confident of achieving an improvement through an increased commitment to market work and actions to improve operations."

About Aker Seafoods ASA

Aker Seafoods ASA is a leading international seafood group with the focus on harvesting, processing and sale of whitefish. Its head office is in Oslo, and it has operations in Norway, Denmark, Sweden, France, the United Kingdom and Spain.

Aker Seafoods achieved operating revenues of NOK 2 685 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 192 million in 2009. With 1,022 personnel in Norway, the group is one of the largest employers in the Norwegian fishing industry. It employs a total of 1,584 people in Scandinavia and the rest of Europe.

Aker Seafoods delivers fresh fish products 364 days of the year, and ranks as Europe’s largest whitefish harvesting group. Its integrated value chain creates a close link between harvesting and processing. Harvesting by the group’s own vessels provides about half of the raw material consumed at its Norwegian processing plants.

Source: Aker Seafoods ASA

Margaret E.L. Stacey
Editor Companies and Products
editorial@seafood.media
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:	firmapost@akersea.com
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