Focus on expenses continues: Pan Fish's operational progress is largely a result of the company's efforts to reduce production expenses. Reducing the cost of production to become the lowest cost producer of quality salmon delivered to customer will remain Pan Fish's main priority in the time ahead.
Refinancing secured: Pan Fish has now secured a refinancing package that forms the basis to start rebuilding production to a level which corresponds to the value of the company's assets. The refinancing package will start to take effect in the company's accounts for third quarter 2004.
"Pan Fish is in a positive development, and the comprehensive measures that have been implemented to improve the company's profitability are now showing results. These efforts will continue with unabated strength. At the same time, Pan Fish has now secured a refinancing package. This, along with the developments so far in 2004 as well as future prospects, leave us optimistic with regards to improving the company's profitability and position as the most cost-efficient producer of salmon", said Atle Eide, CEO of Pan Fish.
Pan Fish's improvements come in spite of a considerable volume reduction compared to last year, and can mainly be attributed to the comprehensive improvement measures that were implemented during the past year. Turnover was NOK 639.3 million in the second quarter 2004, compared with NOK 783.7 million in the corresponding period of last year. Ambitious expense targets have been established in all regions, and considerable resources will be employed to ensure that they are pursued in the future.
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|
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|
|
(NOKm) |
2Q-04 |
2Q-03 |
YTD-04 |
YTD-03 |
2003 |
|
|
|
|
|
|
|
|
Driftsinntekter / Operating income |
639,3 |
783,7 |
1 242,0 |
1 482,5 |
3 013,7 |
|
Driftsresultat før avskrivninger / EBITDA |
88,9 |
-262,3 |
150,3 |
-250,5 |
-277,8 |
|
Avskrivninger / Depreciations |
-49,1 |
-69,6 |
-95,3 |
-113,5 |
-223,2 |
|
Spesielle poster / Special items |
0,0 |
-689,8 |
0,0 |
-689,8 |
-859,0 |
|
Driftsresultat / EBIT |
39,8 |
-1 021,6 |
55,0 |
-1 053,8 |
-1 360,0 |
|
Resultat før skatt / Profit before taxes |
37,6 |
-1 253,0 |
-20,5 |
-1 338,9 |
-1 824,3 |
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Resultat etter skatt / Net profit |
37,6 |
-1 581,9 |
-20,2 |
-1 684,7 |
-2 258,5 |
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Refinancing secured
Pan Fish's refinancing will considerably improve the Group's liquidity and solidity. Among the main features is a reduction of equity per share from NOK 0.04 to NOK 0.02 to cover uncovered losses, and a subsequent increase in face value from NOK 0.02 to NOK 2.00 through a reversed split of the company's shares at a ratio of 100:1. In addition, the bank syndicate, which also includes Pan Fish's main shareholders, will convert a total of NOK 500 million from bank debt to shares and a subordinated loan.
Pan Fish will also carry out a public share issue of up to NOK 250 million with priority for other current shareholders, at a share price of NOK 2.00. The company's two main shareholders, Nordea and DnB Nor, provide a NOK 100 million guarantee for the share issue. There will also be issued a new short-term convertible liquidity loan of up to NOK 150 million at a conversion rate of NOK 2.00. The loan will, however, be reduced by an amount exactly corresponding to public share issue subscriptions exceeding NOK 100 million.
Outlook
In the first half of 2004, the average price (FOB) per kilo of fresh Norwegian salmon was NOK 1.24 higher than in the same period last year, while the volume of exports to the EU market at the end of June was at approximately the same level as last year. Yet, the market developments give grounds for optimism with regards to price development in the important EU market this fall.
"Pan Fish will uphold the company's focus on further reducing production expenses. At the same time, production will be escalated to a level that corresponds to the value of the company's fixed assets. The long term goal is gradually, and in line with the company's ability to finance its own growth, to escalate production up to a level of between 80,000 and 100,000 tonnes of gutted salmon", said Atle Eide.
Attachment:
Interim Report 2nd Quarter 2004: http://hugin.info/209/R/957187/137238.pdf
Presentation 2nd Quarter 2004: http://hugin.info/209/R/957181/137236.pdf
Interim Report 2nd Quarter 2004: http://hugin.info/209/R/957187/137238.pdf
Presentation 2nd Quarter 2004: http://hugin.info/209/R/957181/137236.pdf
For further information:
Atle Eide, CEO +47 911 52 977