Norway Pelagic achieved a very successful mackerel season whith an increase in both volumes and margins (Photo: Norway Pelagic)

Norway Pelagic Reports a Very Successful Mackerel Season

Norway Pelagic ASA (Public, OSL:NPEL), a world leader in sales and production of pelagic fish for human consumption, has reported a good continuous margin on sales of mackerel for Q4 2010.

Highlights Q4

• Re-pricing of both mackerel and herring in Q4 due to good demand and less available raw material
• Very successful mackerel season, increase in both volumes and margins, although mackerel profits this year divided between Q3 and Q4
• Increase in herring margins due to increase in value on goods held in stock
• NP Bergen to be closed down and replaced by new investment programme
• Integration agreement with Austevoll Seafood on integrations pelagic consumption activities in North Atlantic

Norway Pelagic’s operating revenues in Q4 were MNOK 968,3 compared to MNOK 1 096,1 last year

Financial Development

The Group’s operating revenues in Q4 were MNOK 968,3 compared to MNOK 1 096,1 last year.

EBITDA was MNOK 70,1 compared to MNOK 84,6 last year. Operating result was MNOK 58,1 compared to MNOK 74,3 last year. Result before tax was MNOK 58,8 compared to MNOK 74,9 last year.

Operating revenues in 2010 were MNOK 2 616,7 compared to MNOK 2 643,8 last year. EBITDA was MNOK 150,9 compared to MNOK 191,1 last year. Operating result was MNOK 121,3 compared to MNOK 168,4 last year. Result before tax was MNOK 117,9 compared to MNOK 150,9 last year.

The Group’s balance sheet at December 31st 2010 was MNOK 1.708. Book equity was MNOK 874, corresponding to an equity ratio of 51,2 percent. Net interest bearing debt was MNOK 583.

Norway Pelagic currently has 12 production facilities situated along the Norwegian coastline in Sommaroy, Lodingen, Bodo, Liavag, Selje, Maloy (3 plants), Kalvag, Floro, Bergen and in Karmoy

Raw Material and Operations

In Q4 the main focus has been on the remaining mackerel quota, where much of the fisheries took place in Q3, since the available quota had an overhang of about 70.000 tons from the year before.

When these fisheries was completed the rest of the herring quota was caught, which also had a smaller remaining quota than the year before. The fleet has since been searching for horse mackerel, but the fishing was relatively unsuccessful, with a landing in Norway of only about 11.000 tons, compared to about 67.000 tons in the same period last year.

The margin development for Norway Pelagic is still positive. A good continuous margin on sales of mackerel has been achieved, while the value of herring stocks from spring has increased in accordance with repricing of the products.

Norway Pelagic is engaged in fishing, processing and distribution of pelagic fish from the Arctic Ocean, which include winter herrings, mackerels, horse mackerels, North Sea herrings and capelins

In Q1, Norway Pelagic will mainly produce herring from Norwegian vessels and foreign trawl mackerel. Towards the end of the quarter catches of capelin for consumption are expected. Herring fisheries will be reduced because of lower quotas, both in winter and autumn season. Reduced herring catches, combines with expected increase in demand, will lead to higher prices for herring in 2011, compared to last year. There is still positive price and market development for mackerel and at the same time landings have increased. The quotas of capelin are at about the same level as last year, but it is unclear how much will be fished for consumption. The markets are characterized by competition from Iceland and it is uncertain whether it will be focused as much on capelin roe as before.

In January 2011 Norway Pelagic decided to end the operations at the plant in Bergen at the lease expiration 30.06.2011. An investment plan to replace this capacity has been initiated, mainly by building of a new cold store in Maloy, but also by expansion of the capacity in other plants.

Purse seiner offloading herring at Norway Pelagic

On January 31 2010, an integration agreement was signed with Austevoll Fisk AS, Austevoll Seafood ASA’s pelagic consumption business in the North Atlantic. It is planned that Austevoll Fisk, as well as the ownership in Shetland Catch Ltd, will be merged into Norway Pelagic ASA with settlement in shares. The transaction will increase Austevoll Seafood ASA's ownership in Norway Pelagic ASA from 33,3 percent to about 43 percent.

About Norway Pelagic ASA

Norway Pelagic ASA is the world leader of sales and production of pelagic fish for human consumption.

Norway Pelagic ASA has been established as a result of a merger between Koralfisk AS, Bergen Fiskeindustri AS, Domstein Pelagic AS, Global Fish AS and Bernt Hansen Eftf AS.

The company provides the purest quality of Arctic pelagic fish to its customers worldwide by combining in-depth knowledge of the fishing industry and leading edge technology for processing of pelagic fish.

Source: Norway Pelagic ASA

Margaret E.L. Stacey
Editor Companies and Products
editorial@seafood.media
www.seafood.media

Address:	Keiser Wilhemls gate 23b - P.O. Box 790
City:	Ålesund
State/ZIP:	(NO-6001)
Country:	Norway
Phone:	+47 5784 4400
Fax:	+47 5784 4401
E-Mail:	npsales@norwaypelagic.no
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