Prices down, but improved product mix and increased activity at Aker Seafoods

Developments at Aker Seafoods during the first quarter of 2009 reflected a
market with good availability of raw materials but which presented challenges
for whitefish. Prices for both fillets and raw material have been declining
sharply in 2009. Aker Seafoods' processing business has had access to more
fish, providing a better basis for operations and more efficient production
during the quarter and on through 2009. Combined with increased sales of fresh
and consumer-packed frozen fillets, this could contribute to higher margins for
the segment. 

Raw material availability from external suppliers was good for the Aker
Seafoods processing segment in the first quarter. The harvesting segment
accordingly gave priority to expanding catches of saithe and haddock, which are
not used as much for in-house production. That had a negative effect on
harvesting in the first quarter, since the saithe and haddock fisheries are
less profitable than cod. Results in the harvesting segment were also affected
by a significant decline in whole fish prices, but that was offset at the same
time by lower fuel costs than in the same period of 2008. 

- Lower prices for a number of Aker Seafoods' products, both within harvesting
and primary production, results in lower turnover. We have kept a high focus on
fresh production and improved product mix, which has contributed to a volume
increase of more than 30 percent of fresh fillet at the processing plants in
Norway in the first quarter and is in line with the group's strategy, says Aker
Seafoods CEO Yngve Myhre. 

Operating revenues came to NOK 639 million in the first quarter, down from NOK
791 million in the same period of 2008. This decline derived mainly from the
business segments in Norway and largely reflected the fall in whitefish prices.
Aker Seafoods achieved earnings before interest, taxes, depreciation and
amortisation (EBITDA) of NOK 54 million in the first quarter, compared with NOK
73 million in the same period of 2008. 

- With focus on saithe and haddock harvesting in the first quarter, as well as
increased cod quotas, Aker Seafoods and the Norwegian fleet have a substantial
amount of cod left for the remainder of 2009 compared to previous years.
Therefore, we expect that raw material prices will remain relatively low due to
high access, which will give grounds for increased activity and profitability
in the processing segment where focus will continue on fresh production, says
Myhre. 

High focus on fresh products, combined with greater specialisation in the
processing segment, boosted the return per kilogram of raw material and
increased efficency. Raw material prices declined substantially from the same
period of last year. The market for salted fish was the most challenging
segment in the first quarter, and had a negative effect on results. Good raw
material availability maintained production at a high level, but deliveries of
very large cod meant that it was necessary to produce a good deal of salted
fish with a negative margin. 

In continental Europe, secondary processing makes a positive contribution in
the first quarter. EBITDA, both in Denmark and France, increases compared to
the same period last year, while the turnover remains on the same level as in
2008. The first quarter is traditionally the period with the lowest earnings in
these segments, and results were in line with last year's figures. 

The whitefish market is affected by the general development in the world
economy and Aker Seafoods is uncertain of short-term developments of market
prices. As product prices decrease, Aker Seafoods is experiencing an increase
in demand and possibilities of completing promotional campaigns in European
convenience chains. 

For further information, please contact:
Yngve Myhre, CEO, Aker Seafoods ASA. Telephone +47 24 13 01 60
Gunnar Aasbø, CFO, Aker Seafoods ASA. Telephone +47 24 13 01 60