Leroy: Salmon price rise expected – Fishupdate.com

Leroy: Salmon price rise expected Published:  09 May, 2008

LOW salmon prices have hit Norwegian company Leroy Seafood’s Q1 results.

“So far this year, the price level of Atlantic salmon is considerably lower than for the same period last year, though somewhat higher compared to the fourth quarter in 2007,” the company stated. “The Group expects a positive price development compared to the first quarter of 2008. This, together with an improved productivity gives rise to a positive profit development for the rest of the year.”

In the first quarter of 2008 Lerøy Seafood Group had consolidated operating revenues of NOK 1,317 million, which is a decrease from NOK 1,491 million for the same period in 2007.

The Group’s operating profit before fair value adjustment biomass was NOK 68.7 million vs. a corresponding figure of NOK 125.0 million for the first quarter of 2007.

The Group’s operating margin before fair value adjustment biomass amounted to 5.2 % for the fist quarter this year vs. 8.4 % for the first quarter of 2007. In the first quarter of 2008, the Group achieved an operating profit after fair value adjustment biomass of -105.3 million vs. a comparable NOK 88.5 million for the first quarter of 2007.

Income from affiliated companies totalled NOK 3.6 million in the first quarter 2008 vs. NOK 16.7 million the first quarter of 2007. Adjusted for fair value adjustment biomass the figures are NOK 6.3 million and NOK 21.6 million respectively.

The Group’s net financial items for the first quarter of 2008 amounted to NOK -30.6 million compared to NOK -17.3 million for the first quarter of 2007.

The Group’s profit before tax before fair value adjustment biomass was NOK 44.4 million vs. a corresponding figure of NOK 129.3 million for the first quarter of 2007.

Net earnings for the first quarter of 2008 correspond to a profit before fair value adjustment biomass of NOK 0.65 per share, against a corresponding figure of NOK 2.05 per share for the first quarter of 2007. The number of outstanding shares is 53,577,368 shares.

During recet years the Group has developed to become one of the world’s leading producers of salmon and trout, and has confirmed its position as a major part of the seafood distribution in Norway and Sweden, and strengthened its position as the largest exporter of seafood in Norway.

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