Higher costs and lower prices hit Aker Seafoods Q2 profits Published: 13 August, 2012
DESPITE catches reaching a historic high, Aker Seafoods achieved a second quarter operating profit (EBIT) of 17 million Norwegian Kroners, a decrease of NOK 12 million over the same period last year.
The main culprits for this were lower prices and higher costs. Quarter operating profit before depreciation and amortization (EBITDA) amounted to NOK 38 million against NOK 46 million for the same period of 2011.
Revenue in the second quarter was NOK 197 million. This is NOK 5 million higher than in the second quarter of 2011. The company said operations have been good and trapping efficiency (capture volume per operating day) had increased by seven percent compared to the corresponding quarter in 2011. The total catch volume is the highest in the 2nd quarter in company history. Market prices are lower and at the same time costs, including fuel, higher than before.
Aker chief executive Olav Holst-Dyrnes said: “The market conditions taken into account achieved a good result for the quarter. Aker Seafoods Group in the second quarter achieved 2012 operating revenues of NOK 197 million compared with NOK 192 million in the second quarter of 2011.
“The increase in revenue is explained by good cod and haddock fishing in the second quarter.
“EBIT in the second quarter was NOK 17 million versus NOK 29 million in the corresponding period in 2011. EBIT margin was 8.8 percent for the quarter compared with 14.9 percent in the second quarter of 2011. EBITDA was NOK 38 million vs. NOK 46 million for the same period last year. Lower prices and higher costs are the main cause of the reduction.”
He added: “Aker Seafoods continues renewal of the trawler fleet and has agreed to sell the vessel “Hekktind” to a Russian shipping company. In addition, the vessel “K.Arctander” converted from pure freezer trawler to deliver both fresh and frozen products.
“Our goal is to have a flexible and timely fleet,” said Mr Holst-Dyrnes. He expected continued good supply of cod and haddock throughout the year. Mr Holst-Dymes said the initial quota advice for 2013 was also positive, with a proposed increase of 25 percent for cod quotas.
“There are still major economic challenges in key markets in Europe and it is therefore uncertain demand and price trends.”