Best third quarter ever

After its strongest ever third quarter, Pan Fish achieved a pre-tax profit of NOK 683.5 million at 30 September, in addition to which it achieved a total gain of NOK 184 million in the third quarter on the purchase and sale of its own shares. The pre-tax profit at the end of the third quarter last year was NOK 106.7 million. The increase in profit is an impressive 540 %. The turnover for the first three months of the year was NOK 3.1 billion, compared with NOK 1.5 billion for the same period last year.

The operating profit for the third quarter alone amounted to NOK 169 million, and the pre-tax profit was NOK 132.5 million. (In addition to this, it made a gain of NOK 185 million on the sale of its own shares, which is entered directly as equity.) The operating profit for the corresponding period last year was NOK 30.9 million, and the pre-tax profit was NOK 18.8 million – an increase of slightly over 600 % . Turnover in the third quarter amounted to NOK 1.3 billion, compared with NOK 552.1 million in the same quarter last year.

Aquaculture had contributed an operating profit of NOK 601.4 million at 30 September 2000, compared with NOK 118.8 million in the same period last year. The operating result for the third quarter was NOK 152.4 million, compared with NOK 31.2 million last year. Pan Fish harvested 18,500 tonnes of salmon in the third quarter, compared with 4,500 tonnes in the same period last year. So far this year, Pan Fish has harvested 47,500 tonnes, compared with 14,600 tonnes last year. The increase is attributable to increased activity at its own farms and from investments in new farms in Canada and the Faeroes. Salmon prices fell in most markets in the third quarter, while Pan Fish increased its margin, to some extent substantially, as a result of reduced costs compared with the third quarter last year.

The processing business made a positive contribution in the third quarter with an operating profit of NOK 4.5 million, compared with a loss of NOK 1.3 million last year. The processing business had an operating loss for the first nine months of NOK 18.3 million, compared with a loss of NOK 1 million for the same period last year. The negative development in the processing business stopped during the third quarter. This is partly due to lower prices of raw materials and the fact that the industry has obtained higher prices for its consumer products.

Sales and logistics had contributed an operating profit of NOK 20.8 million at 30 September 2000, compared with NOK 21.9 million in the same period last year. This year’s and last year’s operating profit for the third quarter was NOK 3.2 million and NOK 2.3 million respectively.

During recent months Pan Fish has invested NOK 834 million in the pelagic sector. This is a strategic investment to secure the group access to raw materials for quality feed and to insure against the risk of price increases on feed. Pan Fish also wants to position itself in the market for pelagic fish for consumption. This market is currently at a historic low, and Pan Fish anticipates considerable improvements in the years ahead. The Pan Pelagic companies are only partially consolidated in the accounts for the third quarter, but nonetheless contributed an operating profit of NOK 12 million. Pan Fish now owns 100 % of the shares in Global Fish AS, 99 % of Egersund Fisk AS (whose holdings include Egersund Sildoljefabrikk AS and Egersund Seafood AS and 66 % of Welcon Holding AS (which owns Måløy Sildoljefabrikk and others).

In the third quarter Pan Fish collected all its activities in the farming of marine species such as turbot and halibut into Pan Marine ASA. Pan Marine forms part of the aquaculture business area.

Pan Fish’s financial income in the third quarter amounted to NOK 40.4 million.

At the end of the third quarter Pan Fish held 7,758,165 of its own shares. Pan Fish has used its own shares as settlement for investments. The purchase and sale of own shares constitutes an equity transaction, and is thus not recognised in the income statement. In the third quarter of 2000 Pan Fish earned NOK 184.6 million on the sale of its own shares. The group’s capacity for the production of Atlantic salmon is about 130,000 tonnes on a global basis. This corresponds to about 200 Norwegian licence equivalents, 30 of which are in Norway.

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