POSITIVE DEVELOPMENT IN OPERATIONS AND STRONG CASH FLOW IN Q1 2013
Key figures:
- 33.2 thousand tons gutted weight of salmon and salmon trout harvested (Q1 2012: 36.3)
- The industry spot price for whole superior salmon increased by 36% when compared with the first quarter of 2012.
- Turnover NOK 2,332 million (Q1 2012: 2,164)
- Operating profit before fair value adjustment of biomass NOK 369 million (Q1 2012: 103)
- Profit before tax and fair value adjustment of biomass NOK 357 million (Q1 2012: 89)
- Operating profit per kg (before fair value adjustment of biomass) NOK 11.1 (Q1 2012: 2.8)
- Gain on sales, included in operating profit before fair value adjustment of biomass, NOK 53.7 million from sale of assets in Chile.
- Cash flow from operating activities of NOK 478 million. (Q1 2012: 143)
- Net interest-bearing debt was NOK 1,877 million (31.03.2012: 1,679)
- Equity ratio of 53% (31.03.2012: 51%)
In Q1 2013, Lerøy Seafood Group reported turnover of NOK 2,332 million, up from NOK 2,164 million in the same period last year. The Group achieved an operating profit before value adjustment for biomass in Q1 2013 of NOK 369 million compared with NOK 103 million in Q1 2012. The increase in operating profit compared with Q1 2012 is mainly attributed to higher prices for salmon and trout, but also lower production costs. A figure of NOK 53.7 million is included in the operating profit and relates to a gain on the sale of assets in Chile.
The prices achieved by the Group for Atlantic salmon and trout in Q1 2013 are significantly higher than in Q1 2012, although the increase is less than the increase in spot prices in the same period. For Q1 2013, the Group had a contract share of 18% for salmon and 32% for trout. The share of contracts is lower than considered normal by the Group. Production costs for salmon and trout in Q1 2013 are substantially lower than in Q1 2012 and also lower than in Q4 2012. The group estimates that higher feed cost will give somewhat higher production costs in coming quarters.
Income from associated companies before fair value adjustment of biomass has seen an increase from NOK 8.9 million in Q1 2012 to NOK 14.2 million in Q1 2013. The associated company Norskott Havbruk (Scotland-based Scottish Sea Farms Ltd.) has achieved good prices and lower output costs, resulting in a considerably higher profit figure for the first quarter of 2013 when compared with the same period last year. Production at Scottish Sea Farms Ltd is strong and the company has expectations for a continued positive development in the future.
The Group's pre-tax profit figure before value adjustment for biomass in Q1 2013 was NOK 357 million compared with NOK 89 million in Q1 2012.
FINANCIAL INFORMATION Q1 2013
The Group's profit before tax and before fair value adjustment of biomass was NOK 357 million in Q1 2013, compared with a corresponding figure of NOK 89 million in Q1 2012. Estimated tax cost for Q1 2013 is NOK 150 million compared with NOK 48 million for the same period last year. This corresponds to a profit per share before value adjustment of biomass of NOK 4.63 compared with NOK 1.26 per share in Q1 2012. The Group's annualised return on capital employed (ROCE) before fair value adjustment of biomass was 19.4% in Q1 2013, against 6.0% in the first quarter of the previous year.
The Board of Directors has proposed to the annual shareholder's meeting a divided payment for 2012 of NOK 7.0 per share, the same as for 2011. The number of outstanding shares is the same as in the first quarter of 2012. As of 31 March 2013, the number of outstanding shares was 54,577,368. The shares are quoted exclusive of dividend on 24 May 2013.
THE MARKET SITUATION AND OUTLOOK
The strong growth in the global supply of Atlantic salmon experienced over the last couple of years has declined in 2013. This has paved the way for a significant increase in prices for Atlantic salmon and trout, and allows for an optimistic outlook. At the same time, the Board of Directors believes that the prices for the Group's main products will remain volatile and that the recent price increase serves to highlight the need for framework conditions which facilitate continued growth within the seafood industry in Norway. Such framework conditions are essential for long-term growth in value creation for the industry. The Board of Directors currently anticipates a stronger underlying result in Q2 2013 than was achieved in Q1 2013.Questions and comments may be addressed to the company's CEO, Henning Beltestad, or to the CFO, Sjur S. Malm.
Bergen, 14 May 2013
The Board of Directors for Lerøy Seafood Group ASA
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
