2nd quarter 2007
The group’s operating revenue in Q2 amounted to MNOK 498,6 compared with MNOK 337,9 last year. EBITDA was MNOK 99,1 mill. compared with MNOK -8,0 last year and EBIT MNOK 86,7 compared with MNOK -18,9 last year. The result before tax was MNOK 74,1 compared with MNOK -27,5 last year and the result after tax was MNOK 57,9 compared with MNOK -27,6 last year. Per June 30th operating revenues amounted to MNOK 1 006,5, compared with MNOK 827,6 last year. EBITDA was MNOK 122,0 compared with MNOK 9,5 and EBIT was MNOK 97,1 compared with MNOK -12,1 last year. The result before tax was MNOK 72,0 compared with MNOK -27,5 last year. Result after tax was MNOK 56,5 compared with MNOK -27,1 last year.
The group’s balance sheet at June 30th was MNOK 1.245,7 compared with MNOK 1 210,4 last year. Book equity was MNOK 329,9 corresponding to an equity ratio of 26,5%. Net interest bearing debt was MNOK 724,5.
As per July 1st 2007 the pelagic activities in Domstein are mergered into Norway Pelagic. The merger gave a net accounting profit of MNOK 120 which is included in the operating revenues and operating result for the 2nd quarter. Domstein’s stake in Norway Pelagic is 38,36%. The shares are booked at NOK 34,29 per share.
Domstein Pelagic
Domstein Pelagic includes pelagic fish sales organisation and production units in Kalvåg, Måløy, Selje and Bodø.
Mnok Q2 2007 Q2 2006 YTD 2007 YTD 2006
Net operating revenues 271,0 95,6 499,0 354,6
EBITDA 104,9 -4,9 125,1 14,1
EBIT 99,1 -8,8 113,5 4,7
Operating margin 36,6 % -9,2 % 22,7 % 1,3 %
Q2 is low season both regarding raw material and sales. The volume of raw material in Q2 was 3.748 tons compared with 8.826 last year. Accumulated volume of raw material was 50.255 tons compared with 51.861 tons last year.
Stocks from the winter season are mainly sold, but the price level has resulted in low margins. The Norway Pelagic merger has also had a negative influence on operations.
The accounting profit on the merger transaction is MNOK 120 and is included in the operating
revenues and operating profit for Q2. Interest bearing debt amounting to MNOK 89.7 is transferred to Norway Pelagic as part of the transaction. In addition Domstein participated with MNOK 50 in the capital increase. Domstein’s stake in Norway Pelagic is 38,36%. The shares are booked at NOK 34,29 per share.
All properties tied to the pelagic activities are transferred to a new company Domstein Eiendom AS, and are rented to Norway Pelagic for a period of 15 years with an option for Norway Pelagic to extend the rental period by 5 plus 5 years. First years rent amounts to MNOK 17,3 and is to be adjusted yearly by 80% of the consumption index. An agreement has also been reached to sell administrative services at the head office in Måløy.
Domstein Fish
Domstein Fish is the business area for whitefish and includes the fillet factory in Måløy, the sales activities for whitefish in Måløy and Trondheim and the share in Ultra Seafood Loppa. The activities will include production and sales of fresh, chilled and frozen products of whitefish, based on traditional raw materials, breeded wild fish and farmed fish. The main market will be Europe.
Bait sales and the freezing storage at Raudeberg are not included in the pelagic merger and will be part of Domstein Fish as of July 1st.
Mnok Q2 2007 Q2 2006 YTD 2007 YTD 2006
Net operating revenues 66,5 60,6 166,9 133,6
EBITDA -2,0 0,1 3,4 -2,9
EBIT -4,2 -3,0 -1,1 -7,7
Operating margin -6,3 % -5,0 % -0,7 % -5,8 %
In the period April to June the European whitefish market has as usual been influenced by large landings and pressure on market prices. We have therefore chosen to reduce production of cod fillets and to build up stocks of raw materials towards the autumn season. In July and August the market has improved and normal production is expected after the summer holidays. The supplies of saithe, which is normally the main product line during the summer, has failed this year, probably owing to high sea temperatures. For this reason results in the second quarter are lower than last year.
Domstein Enghav
Domstein Enghav consists of sales organisations for VAP products in Norway, Sweden, Denmark and Finland and production units in Vardø, Haugesund, Lysekil and Kungshamn (Sweden) and Hammel (Denmark). After the acquisition of Matgrossisten Midt-Norge AS Domstein Enghav has established a nationwide distribution of fresh fish in Norway
Mnok Q2 2007 Q2 2006 YTD 2007 YTD 2006
Net operating revenues 212,4 206,4 429,0 398,0
EBITDA -1,9 -2,2 -2,4 0,8
EBIT -6,1 -5,9 -10,7 -6,1
Operating margin -2,9 % -2,8 % -2,5 % -1,5 %
Several measures are implemented to improve the results in Domstein Enghav. The distribution of fresh fish in Eastern Norway is moved from rented facilities at Fiskehallen in Oslo to our own premises at Våler. Fiskmäster’n in Kungshamn is sold to Aker Seafood, and Vest Engros in Stavanger is placed under Matgrossisten. These measures are expected to improve yearly results by minimum MNOK 8. Further measures are pending.
The underlying operations in Domstein Enghav are already improved. Included in the Q2 results are one-off costs totally MNOK 5,3 tied to the write-off of goodwill in connection with the sales of
Fiskmäster’n, and the relocation of the fresh fish activities in Eastern Norway.
Ervik Havfiske (50%)
Ervik Havfiske AS is a fishing vessel company with 12 sea-going longliners and controls 13 cod and 14 haddock quotas in Norway. In addition, several of the company’s vessels are fishing on foreign quotas.
The share of the profit in Ervik Havfiske is included in the financial profit as income from investments in associated companies and amounted in Q2 to MNOK 1,3 and accumulated MNOK 3,7.
Mnok Q2 2007 Q2 2006 YTD 2007 YTD 2006
Net operating revenues 52,9 59,2 112,1 120,6
EBITDA 13,0 15,4 30,5 36,1
EBIT 9,1 11,4 22,6 28,1
Operating margin 17,2 % 19,3 % 20,2 % 23,3 %
Whitefish prices have had a positive development contributing to stable operations. Lower income and results compared to last year are due to reduced income from the Antarctic fisheries for Patagonian Toothfish. The prospects for the second half-year are also promising.
Shareholder information
Domstein ASA is listed on Oslo Stock Exchange with ticker DOM. The market value of the company per 30th June 2007 was MNOK 371 , based on a share price of NOK 5,30. Number of outstanding shares is 69.912.402.
Måløy, 30th August 2007
Resultatregnskap konsern 2007 Q2 2007 Q2 2006 YTD 2007 YTD 2006 2006
Consolidated profit and loss account Group Nok.mill.
Netto driftsinntekt Operating revenues 498,6 337,8 1 006,5 827,6 1 918,8 Varekostnad Raw materials and consumables used -298,7 -258,1 -672,2 -628,0 -1 491,9 Øvrige betalbare driftskostnader Other operating expenses -100,8 -87,7 -212,3 -190,1 -404,6 Sum driftskostnader Total operating expenses -399,5 -345,8 -884,5 -818,1 -1 896,5
EBITDA 99,1 -8,0 122,0 9,5 22,4
Ordinære avskrivinger Ordinary depreciation -12,5 -10,9 -24,9 -21,6 -45,6
EBIT 86,7 -18,9 97,1 -12,1 -23,3
Inntekt på investering i tilknyttet selskap 1,2 1,4 2,4 3,5 1,0
Income from investments in associated companies
Netto finanskostnader Net financial expenses -13,8 -10,0 -27,4 -18,9 -42,4 Ordinært resultat før skatt Result before tax 74,1 -27,5 72,0 -27,5 -64,8
Skattekostnad Taxes -16,2 -0,2 -15,5 0,4 18,8
Resultat etter skatt Result after tax 57,9 -27,6 56,5 -27,1 -46,0 Minoritetsandel Minority share -0,63 -0,12 -0,52 -0,04 -0,60 Resultat margin Profit margin 11,6 % -8,2 % 5,6 % -3,3 % -2,4 % Driftsmargin Operating margin 17,4 % -5,6 % 9,6 % -1,5 % -1,2 % Resultat pr. aksje (nok) Profit per share 0,80 -0,39 -0,67 Utv.resultat pr. aksje (nok) Diluted profit per share 0,77 -0,33 -0,55 Avkastning sysselsatt kapital Return on capital employed 18,9 % -1,6 % -4,1 % Egenkapitalandel (inkl min int) Book equity ratio 26,5 % 23,5 % 20,5 % Utestående aksjer Outstanding shares 69 912 402 69 922 402 69 794 898
Balanse konsern 30.06.07 30.06.06 31.12.06
Consolidated balance sheet Group Nok.mill.
Immaterielle eiendeler Intangible fixed assets 144,8 134,9 166,0 Varige driftsmidler Tangible fixed assets 327,5 406,7 430,0 Finansielle anleggsmidler Financial fixed assets 231,7 44,7 41,2 Anleggsmidler Total fixed assets 704,0 586,3 637,2
Varer Inventories 300,2 348,8 338,5
Fordringer Receivables 230,0 258,5 331,2
Betalingsmidler Cash and equivalents 11,6 16,9 24,2
Omløpsmidler Current assets 541,7 624,2 693,9
Sum eiendeler Total assets 1245,7 1210,4 1331,1
Innskutt egenkapital Equity contributions 34,9 88,7 34,9
Opptjent egenkapital Earned equity 292,0 193,3 236,2
Minoritetsinteresser Minority interests 3,0 2,2 1,9
Egenkapital og minoritetsinteresser Total equity 329,9 284,3 273,0 Avsetning for forpliktelser Provisions 5,0 13,7 5,7 Rentebærende langsiktig gjeld Interest bearing long term debt 385,7 461,5 431,3 Øvrig langsiktig gjeld Other long term liabilities 3,0 2,1 2,0 Sum annen langsiktig gjeld Total other long term liabilities 388,7 463,6 433,3 Rentebærende kortsiktig gjeld Interest bearing current liabilities 350,3 222,7 317,5 Ikke-rentebærende kortsiktig gjeld Non interest bearing current liabilities 171,8 226,1 301,5 Kortsiktig gjeld Current liabilities 522,1 448,8 619,1 Sum egenkapital og gjeld Total equity and liabilities 1245,7 1210,4 1331,1
Netto rentebærende gjeld Net interest bearing debt 724,5 667,3 724,6
Kontantstrømoppstilling konsern
Consolidated cash flow statement Group 30.06.07 31.06.06 31.12.06
Kontantstrøm operasjonelle aktiviteter Net cash flow from operating acitvities -25,2 -16,6 -19,0 Kontantstrøm investeringsaktiviteter Net cash flow investment activities -61,1 -56,2 -72,0 Kontantstrøm finansieringsaktiviteter Net cash flow from financial activities 73,8 63,3 88,5 Effekt av valutakursendringer Effect of change in exchange rates -0,2 0,0 0,4 Endring av kontanter og innskudd Net change in cash and bank deposits -12,7 -9,5 -2,2
Kontanter og innskudd ved periodens begynnelse Cash and bank deposits at start of period 24,2 26,4 26,4 Kontanter og innskudd ved periodens slutt Cash and bank deposits at end of period 11,6 16,9 24,2
Avstemming av egenkapital Change in equity 30.06.07 30.06.06 31.12.06
Egenkapital ved begynnelsen av perioden Equity at the start of the period 273 014 323 797 323 797 Resultat i perioden Result for the period 56 517 -27 065 -45 951 Omregningsdifferanser Conversion differences -115 1 336 4 259
Emisjon Capital increase 0
Utbytte dividend -273 -13 927 -13 927
Andre egenkapital justeringer Other changes in equity 740 143 4 836 Egenkapital ved slutten av perioden Equity at the end of the period 329 883 284 284 273 014
- Denne rapporten er utarbeidet I henhold til “ International Financial Reporting Standards” IFRS herunder standard for delårsrapportering ( IAS 34 ).
- This report is produced according to “ International Financial Reporting Standards” IFRS Including the interim report standard ( IAS 34 ).
- ved utarbeidelse av delårsrapporten er det benyttet de samme prinsipper som i årsregnskapet
Domstein ASA N-6706 Måløy, Norway Tel.: +47 57 85 90 00 Fax: +47 57 85 90 90