Pan Fish ASA: Results per first quarter 2004

Profitable operations: Pan Fish achieved an operating profit before depreciation (EBITDA) of NOK 61.4 million in the first quarter 2004, compared with NOK 11.8 million in the same quarter last year, and an operating profit (EBIT) of NOK 15.2 million, compared with an operating loss of NOK 32.2 million in the first quarter last year. All four fish farming operations contribute to the significant improvement, while the operating loss from processing is on level with the corresponding period 2003. 

 

Refinancing before summer: At the end of the first quarter, the Pan Fish Group had a negative equity in the amount of NOK 207.4 million. The company is currently working to secure long-term financing, and the board of directors will present an action plan for a refinancing solution for the Group at the Annual General Meeting.

 

"While 2004 has started stronger than we dared hope for a few months back, the Group's liquidity still curbs long-term sustainable development. We have enjoyed an increase in demand in a number of our core markets during the first three months of the year. We believe the favourable market developments will continue in both the European and the US markets. Combined with a strong focus on costs, good fish health and a refinancing solution for the company, this will contribute to making Pan Fish the industry's lowest cost producer and a very profitable, fully integrated fish farming enterprise", says Atle Eide, CEO of Pan Fish.

 

(NOKm)	1Q-04	1Q-03
Operating income	602,7	698,8
EBITDA	61,4	11,8
Depreciations	-46,2	-43,9
Special items	0,0	0,0
EBIT	15,2	-32,2
Profit before taxes	-58,1	-85,9
Net profit	-57,8	-102,8

 

Gross operating revenues from the company's fish farming operations amounted to NOK 522.2 million in the first quarter, compared with NOK 657.1 million in the corresponding period 2003. 18,294 tonnes round weight (trw) of salmon was harvested in the quarter, compared with 22,613 tonnes trw in the first quarter 2003.

 

Outlook: "We are optimistic about the future. The substantial harvesting of fish in the Faeroe Islands, combined with reduced biomass in Norway, give grounds for optimism with respect to price developments during the remainder of 2004", says Atle Eide, CEO of Pan Fish.

 

Pan Fish upholds its assessments regarding the long-term growth potential of the fish farming industry in the years to come. In the short term, however, it is vital that the industry maintains strict discipline in its efforts to adjust production to sustainable levels.

 

"We are progressing with the goal of having a refinancing plan for the Pan Fish Group worked out before summer.  As soon as this is in place, Pan Fish will be in a position to reclaim its status as a leading, profitable global fish farming company", concludes Atle Eide.

 

 

 

Atle Eide, CEO, telephone +47 911 52 977