Good performance from Pan Fish in Norway and Chile – Fishupdate.com

PAN Fish has posted good results in its two most important production areas, Norway and Chile, in the third quarter. Measures have been implemented to improve profitability in Scotland, the company has said.

Operating profit before fair value adjustment of the biomass (IFRS) totalled NOK 245.5 million in the third quarter 2006, compared with NOK 35.2 million in the corresponding quarter last year. At the same time Marine Harvest, which will remain independent of Pan Fish pending receipt of final regulatory clearances from the UK and French competition authorities, has posted good results in Norway, and made progress in its other areas. If the un-audited figures reported by Marine Harvest were consolidated with those of the Pan Fish Group, the two companies combined would have made an EBIT before fair value adjustment of the biomass of NOK 797.8 million during the quarter.

Commenting, CEO Atle Eide said: “We are well on the way to building the world’s leading seafood company. A high level post-merger planning effort, has been initiated, and we expect final clarification with regard to competition authority approval of the Marine Harvest acquisition in the UK and France by 20 December this year. We are pleased with the results posted in the third quarter by the important production areas Chile and Norway. Measures have been implemented to improve the profitability in Scotland. Marine Harvest, which is still operated independently of Pan Fish pending receipt of regulatory approvals, has reported a good performance in all areas, particularly Norway, where the company achieved an EBIT/kg of NOK 16.90.”

The price of Atlantic salmon in the EU has normalised in the third quarter, after the record high prices achieved in the previous period. However prices and margins remain high for the time of year, compared with historical figures. Also for the group’s other main markets, prices are favourable as compared with previous years, and no further negative effects of trade restrictions are expected in what remains of 2006. The company expects a good balance between the global supply of farmed salmon and demand, both in established and new markets, in the next couple of years.

Pan Fish (including Fjord Seafood) expects to harvest approx. 38,000 -42,000 tonnes gutted weight in the fourth quarter 2006. The total volume of fish harvested by Pan Fish (including Fjord Seafood) will therefore come to approx. 121,000 – 125,000 tonnes gutted weight for 2006 as a whole.

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