Austevoll Seafood ASA (OSE: AUSS) had revenues of 2.6 billion NOK in Q4 2011. The net profit was fown to 75 million (EPS of 0.24 NOK) from over 600 million a year ago. Full-year sales came in at 12.1 billion, EBITDA at 2 billion and EPS 1.82 (2010: 6.03). The Board proposes a dividend cut of one third to 1 NOK a share.
Raw material volumes supplied for consumption in Chile and Peru were extremely low. The second anchoveta fishing season in Peru has now ended and was very positive. Austevoll has 7% of anchovy quota centre-north in Peru. Fourth quarter is seasonally strong in Norway. Jack mackerel global quota is down again for 2012 to 250 000 tonnes (315 000). The company sees the jack mackerel fishery recovering in Peru.
The group as a whole harvest over 500,000 tonnes of pelagic fish and over 150,000 tonnes of salmon and its 55 processing plants handle nearly 1.5 million tonnes of pelagic fish annually. It has its own worldwide wholesale network and also produces fishmeal and fish oil.
Second largest salmon producer in the world Lerøy Seafood Group ASA (OSE: LSG) is a consolidated company where Austevoll owns 76.72% of the shares. Is also reported its earnings today. The company felt that the achieved result is positive in light of the difficult conditions. Annual turnover was 9.2 billion NOK, operating profit was 597 million and EPS 15.13 NOK a share. A dividend cut of 30% to 7 NOK a share (382 million in total) is suggested
Associated company Norway Pelagic ASA (OSE: NPEL, 43.3%) reported yesterday speaking of strong price increases and positive margins for herring products. It said fish consumption is not really affected by financial uncertainty. Estimated pro-forma annual net income taking into accounts merged operations of Austevoll Fisk AS as well as Emy fish AS and Brødr Myhre AS contribution was 4.24 billion NOK and EBITDA 215 million.
Norway Pelagic normally makes its dividend decisions towards the summer as at this point as the high activity season is drawing to a close its cash is typically tied into working capital and in wages paid. During the low processing activity season it is then recouping those tied up checkels.
Norwegian pelagic quotas for 2012 are as follows:
Mackerel: 187 000 tonnes (+2% vs 2010, Iceland & Faroe agreement lacking)
North Sea Herring: 117 000 (+112%)
Norwegian Spring Spawning Herring (NVG Herring) : 508 000 tonnes (-13%)
Blue Whiting: 125 000 (+443%)
Capelin: 270 000 (-12%, including swap with Iceland, excluding summer catch)
Horse Mackerel: 93 000 (-1%)
Sand Eel: to be agreed in May
Pout: No catches
Austevoll Seafood feels it is a strong company with an excellent position as a diversified player within the global seafood industry. It stresses the need to think long-term when taking part in this industry. It aims to grow even further within the segments where is already active.
Fishmeal price correction is over in the company’s view with prices stabilized around 1,100 USD in Peru. Hog and aqua feed industry demand from China was strong in Q4. Consumption is expected to increase further in China in 2012 as fishmeal vs. soymeal price ratio favours fishmeal at the moment. Austevoll predicts an increase of around 180,000 MT in 2012. Much of the Peruvian exports go to China.
Fish oil prices are stable with good demand. Long-term Atlantic salmon demand should benefit from lower prices but in the short-term challenges remain. Pelagic fish prices should remain firm going forward. Investors are reacting quickly and the stock has slid by 5 below 25 NOK%
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