Annual Report 2005
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2005 Part of the Aker group This is Aker Seafoods 1 Highlights 2005 2 Key Figures 2005 3 Letter from the CEO 4 Integrated value chain 6 Harvesting 8 Processing 10 Sales and distribution 12 Corporate social responsibility 14 Annual Report 2005 16 Board of directors 21 Annual accounts 23 Auditor’s Report for 2005 68 Corporate governance 70 Management 71 Shareholder facts 72 This is Aker Seafoods Aker Seafoods is a leading Aker Seafoods’ harvesting international modern seafood operations are performed by company. The company focuses fifteen active vessels. All vessels on operations for harvesting, harvest cod, saithe and haddock processing and marketing white- in Norwegian territorial waters fish. Aker Seafoods operates north of the 62nd parallel, as well enterprises in Norway, Denmark as for saithe in the North Sea. and the UK. Aker Seafoods controls 28 cod licenses that constitute roughly The company has an integrated 9 % of the total Norwegian cod value chain with strong bonds quotas north of the 62nd parallel. between harvesting and process- ing that gives Aker Seafoods a Aker Seafoods’ processing steady supply of raw materials all operations are performed by year round. The integration ena- eleven fully-owned process- bles the company to supply fresh ing facilities, six of which are in fish products to market 364 days Norway and five in Denmark. In a year. Roughly two-thirds of the addition Aker Seafoods owns raw materials processed by Aker shares of receiving facilities and Seafoods’ Norwegian processing other fishing industry operations. plants are supplied by our own fishing fleet. In sales and distribution, Aker Seafoods has developed close relations with major supermarket chains, processing companies and brand owners in Europe and USA. Driftsinntekter 2005 -2316 2004 -2402 2003 -2431 E M PL O YEES 3000 2002 -2992 200 REVENUES year 2005 EBITDA year 2005 2000 year 2005 EBITDA 100 1000 2005 -1267 181 2316 Harvesting: 337 181 2004 - 162P rocessing: 893 0 0 MNOK 2002 2003 2004 20052003 - 179 O t h e r : 3 7 2002 2003 2004 2005 MNOK 2002 - 72 Highlights 2005 1st quarter In early March, the Norwegian government launched an adjusted By the end of March, and agreement was made to merge the com- structural quota system for the sea-based trawler fleet. Structural panies Norway Seafoods, West Fish-Aarsæther (WFA) and Nordic quota means that quotas from several vessels can be allocated to Sea Holding (NSH) into one of the leading fishing companies in one vessel if the superfluous vessels are removed from the fleet. Europe, Aker Seafoods ASA This has proved beneficial for Aker Seafoods’ operations 2nd quarter Aker Seafoods was listed at the Oslo Stock Exchange in May 2005 This June Aker Seafoods made new agreements that implied a full with the ticker code AKS. Through the listing Aker Seafoods has refinancing of its corporate accounts, to improve the further develop- improved its access to capital and through this increased its financial ment of the company. The refinancing made had better terms for flexibility. Aker Seafoods and a long term perspective. 3rd quarter In august Aker Seafoods acquired Nordic Sea Mehamn AS’ in Gam- Aker Seafoods has strengthened their operational activities in Fin- vik, there will be a gradual starting-up process, with fresh fish being mark by merging West Fish Aarsæther AS and Nordic Sea Holding processed at the plant from 2006. AS into one stronger and more forward-looking harvesting company. In August Aker Seafoods also made a deal with ICA Sverige AB to In addition Aker Seafoods has located all production of sawed frozen produce fish products for the ICA-chain in the Nordic region. This retail products in Norway to Melbu. contract represents a revenue increase of 30 MNOK, if the contract is continued it will have an annual revenue potential of 50 MNOK. After the parliamentary elections, the newly elected government decided to introduce a pause in the structural scheme offered to the In September Aker Seafoods entered agreements to increase its coastal- and the high sea trawler fleet. ownership share in Lofoten Trålerrederi AS to just above 93 percent, and through this strengthened operations in Nordland by merging In October, through a joint effort with Aker ASA, Aker Seafoods Lofoten Trålerrederi and Havfisk into a stronger and more progres- bought real estate and operational equipment from Aarsæther Vardø sive harvesting company. AS. In the short term Aker Seafoods will run the Whøni-plant with limited fishing activity. 4th quarter In November the Directory of fishing discontinued the maximum In December Aker Seafoods was granted permission by the Ministry quota for saith north of 62°N for vessels with trawling licenses for cod of Fisheries and Coastal Affairs to change the composition of owner- or saith. ship in the harvesting companies. This made it possible to execute the agreements of share purchases entered in September. AKER SEAFOODS ANNUAL Report 2005 Key figures 2005 Proforma Proforma Proforma Proforma 2005 2004 2003 2002 MNOK IFRS IFRS NGAAP NGAAP Revenues 2 316 2 402 2 431 2 992 EBITDA 181 162 179 72 EBITDA margin (%) 7.8 6.7 7.4 2.4 EBIT 98 121 64 -45 Earnings per share (NOK) 0.63 1.11 -0.27 0.12 Total assets 2 750 2 589 2 594 2 835 Total equity 905 830 793 757 Equity ratio (%) 32.9 32.1 30.6 26.7 AKER SEAFOODS ANNUAL Report 2005 Letter from the CEO Aker Seafoods aims to have the capacity of delivering high-quality fish 364 days a year to quality-conscious European consumers. From the time the fish are landed on our trawlers until they’re lying on dining tables all over Europe, it takes extensive teamwork to bring the prime seafood products all the way to market. Lasting profitability in the fishing industry ”We wish to create an integrated, market-oriented company that is profitable in every link of the chain – from harvesting and processing to sales and distribution. This strategy enables Aker Seafoods to generate added value for the company’s customers and shareholders.” PRESIDENT & CEO Yngve Myhre Today, we are one of the largest employ- to succeed in international competitive mar- Taking a longer view, our industry will more ers in Northern Norway. Around 900 of kets. Yesterday’s solutions will not measure than likely be increasingly internationalised. Aker Seafoods’ 1267 employees work and up to tomorrow’s market demands. From Aker Seafoods aims to be one of the leading live in the districts of Finnmark, Troms or now on, our industry must be given the suppliers of fresh fish for the European sea- Nordland. An additional 50 employees live requisite stability and predictability for giving food market and we must be part and parcel along the coast of Western Norway. We investors the same profit margins that are of the ongoing internationalisation process also have substantial activities in Denmark available to them in other similar industries. in the fishing industry. This means that in the involving almost 300 employees. Aker Sea- years ahead we will consider increasing our foods invested about NOK 50 million in our Future prospects activities beyond Norway’s borders as well. operations along the coasts of Norway and Last year was a year of significant opera- In addition, we must continue to strengthen Denmark in 2005. tional prosperity for Aker Seafoods. Good our distribution channels through alliances in first-hand prices, an improved product mix important markets and implement new, mod- The great seafood resources in the coastal and a high demand for our products have ern fishing technology that helps to improve waters are a renewable resource which, if improved the Group’s operating margins. our efficiency, combined with supplying sustainably managed, can maintain lasting Even so, a great potential still exists for products of even higher quality. communities in the districts in which we efficiency improvements and for simplifying operate. Aker Seafoods wishes to partici- and streamlining the seafood industry in Year of great changes pate in managing these resources, for which Norway and Denmark. Exploiting this poten- 2005 was a year of great changes for the we have quotas to fish, for the benefit of tial is necessary if we are to reach the same fishing industry and Aker Seafoods. Early future generations. margin level as our global competitors. Aker on, we launched the new fishery group Aker Seafoods wants to be an active initiator of Seafoods, which resulted from a merger of From crises and continual readjust- forward-looking initiatives that can increase Norway Seafoods, West Fish-Aarsæther and ments to an industry with lasting our profitability on land and at sea in the Nordic Sea Holding. At the same time, we profitability years ahead. Denmark has issued new announced the stock market listing of the Although the fishing industry is crucial for Nor- fishery regulations for 2006 which are more new aggregate company. The transaction way, its profitability has been too low in the flexible and make it possible to exchange was and is based on the fact that merging the past. Over the last fifteen years, the industry quotas and improve the operating frame- companies would strengthen their opportuni- has managed to free itself from the need for work for fishermen. We expect great things ties as a competitive supplier of high-quality and the use of state subsidy. This has been from these changes and also believe that fish to demanding customers in Europe. a comprehensive and pain -ful conversion the land-based industry will come through process for the industry, but everything now these changes with renewed strength. Aker Seafoods underwent a hectic, demand- appears to be headed in the right direction.