Cermaq ASA (OSL:CEQ) Improved Result For Farming In Norway And Canada, But Sanitary Issues In Chile And Lower Margins In Feed Reduced The Result Vs. 2007

Cermaq ASA (OSL:CEQ) (Oslo 05.11.2008) Cermaq reported EBIT pre fair value of NOK 164.1 million for Q3, a reduction of NOK 50.8 million from 2007. Good biological performance and increased prices gave good results in farming in Norway and in Canada and strengthened the result with approximately NOK 31 million vs. 2007. This was however not enough to offset the losses in farming in Chile and reduced margin for EWOS.

- Q3 results show a significant improvement vs. Q2. It is encouraging to see the good results in farming in Canada and Norway. The biological performance in Nordland has been especially strong, and in Mainstream Canada we have seen reduced costs and strong prices, says Geir Isaksen.

The EWOS feed business has seen an increase in volume of almost 10 % in Q3 vs. last year. Q3 is normally the quarter with the highest sales volume due to the favourable sea water temperatures in the northern hemisphere. EWOS market shares have been stable and the prices were increased by more that 12 % in local currency vs. Q3 last year, reflecting the increases in the raw material prices.

- The challenges in Chile should not be under estimated. We have seen the number of sites infected by ISA increasing by the month. This is by far the biggest challenge for Cermaq, says Geir Isaksen.

On top of the new regulatory measures being introduced, Cermaq has implemented a number of company specific actions like lowering densities, greater use of vaccines and moving smolt production into onshore facilities. The transfer of Atlantic smolt has been cut from 15 million in 2007 to 9 million this year and will stay at this lower level also for 2009. The sanitary issues in fish farming in Chile will result in reduced demand of feed in 2009.

- We are heading in the right direction, but it will take time before we see the effect of the actions that have been implemented, concludes Geir Isaksen.

+-------------------------------------------------------------------+ | NOK million | 3.kv. 08 | 3.kv. 07 | YTD 08 | YTD 07 | FY2007 | |----------------+----------+----------+---------+--------+---------| | | | | | | | | Operating | 2 827.3 | 2 081.9 | 6 777.8 | 5 | 7 721.2 | | revenues | | | | 499.3 | | |----------------+----------+----------+---------+--------+---------| | EBIT pre fair | 164.1 | 214.9 | 122.3 | 632.4 | 746.9 | | value | | | | | | |----------------+----------+----------+---------+--------+---------| | EBIT pre fair | 5.8 % | 10.3 % | 1.8 % | 11.5 % | 9.7 % | | value % | | | | | | |----------------+----------+----------+---------+--------+---------| | Profit/loss | 198.6 | 103.9 | 166.0 | 391.8 | 455.1 | | before tax and | | | | | | | minorities | | | | | | |----------------+----------+----------+---------+--------+---------| | Profit/loss | 131.9 | 89.7 | 94.1 | 411.3 | 477.8 | | after tax and | | | | | | | minorities | | | | | | |----------------+----------+----------+---------+--------+---------| | Earnings per | 1.4 | 1.0 | 1.0 | 4.4 | 5.2 | | share (NOK) | | | | | | |----------------+----------+----------+---------+--------+---------| | Dilutes | 1.4 | 1.0 | 1.0 | 4.4 | 5.2 | | earning per | | | | | | | share | | | | | | |----------------+----------+----------+---------+--------+---------| | Adjusted | 0.8 | 1.8 | 0.1 | 6.3 | 7.5 | | result per | | | | | | | share | | | | | | |----------------+----------+----------+---------+--------+---------| | Adjusted | 0.8 | 1.8 | 0.1 | 6.3 | 7.5 | | diluted result | | | | | | | per share | | | | | | +-------------------------------------------------------------------+

Cermaq's key earnings measure under IFRS is EBIT pre fair value (Operating result before unrealised fair value adjustments). Unrealised fair value adjustments are made in Cermaq's accounts to arrive at EBIT (Operating result). The adjustments for fair value relate to valuing live biomass inventory at a market value equivalent rather than cost. Cermaq reports EBIT pre fair value to clearly identify earnings on sales during the period.





Further information - please contact: Geir Isaksen, CEO, phone: +47 23 68 50 10, mobile: +47 91 34 82 81 Steven Rafferty, CFO, phone: +47 23 68 50 24, mobile: + 47 97 66 41 04

About Cermaq

Cermaq is an international group of companies with activities in fish farming, production of salmonid feed and research in aquaculture. Cermaq has operations in Norway, Scotland, Canada and Chile, the main geographic regions for salmon and trout farming. Through its EWOS subsidiary, Cermaq ranks as the world's second largest fish feed producer. The Mainstream subsidiary is the second biggest farmer of salmon and trout in the world. The Group had sales of over NOK 7.7 billion in 2007. Per 30.09.2008 the Group employs around 3 500 people.

Cermaq is listed on the Oslo stock exchange with ticker code CEQ.

www.cermaq.com

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



LINK: http://hugin.info/134455/R/1266580/279129.pdf



LINK: http://hugin.info/134455/R/1266580/279130.pdf

Cermaq ASA

http://www.cermaq.com

ISIN: NO0010003882

Stock Identifier: XOSL.CEQ