The decline in operating profit before fair value adjustment of biomass is attributed to substantially lower prices achieved for the Group's main products, Atlantic salmon and salmon trout.
The Group's underlying production costs have, as a result of very good growth, together with lower feed prices, seen a slight reduction in the quarter.
The good growth has also materialised in record-high harvest volumes for the season. In the second quarter of 2012, realised contract prices have not substantially deviated from prevailing spot prices. The Group's share of contracts was 15 per cent, and the current share of contracts is lower than what the Group considers normal.
However, this figure must be viewed in the light of the weak price development experienced over the past quarters.
As a result of considerably lower prices and higher costs for released-from- stock products, the associated company Norskott Havbruk (owner of the Scotland- based Scottish Sea Farms Ltd) achieved lower net earnings in the second quarter of 2012 compared with the second quarter of 2011. Income from associated companies before fair value adjustment of biomass therefore saw a reduction from NOK 17.7 million in the second quarter of 2011 to NOK 7.5 million in the second quarter of 2012.
The Group's profit before tax and fair value adjustment of biomass in the second quarter of 2012 was NOK 123.4 million against NOK 439.3 million in the second quarter of 2011.
Some interesting key figures:
- 38.4 thousand tons gutted weight of salmon and salmon trout harvested (Q2 2011: 33.2)
- Turnover NOK 2,306 million (Q2 2011: 2,397)
- Operating profit before fair value adjustment of biomass NOK 137.7 million (Q2 2011: 440.3)
- EBIT/kg all inclusive NOK 3.6 (Q2 2011: 13.3)
- Profit before tax and before fair value adjustment of biomass NOK 123.4 million (Q2 2011: 439.3)
- Spot prices for whole superior salmon have seen a decrease of 24 per cent compared with Q2 2011
- Net interest-bearing debt was NOK 2,080 million (NOK 1,528 million at 30.06.2011)
- Equity ratio 51.3 per cent
