MercoPress. South Atlantic News Agency

Antarctic venture giving krill investors cold feet

<i>Saga Sea</i> trawler, one of the vessels taking part in the krill fishery

The leading Norwegian krill harvesting company Aker BioMarine is losing ground in the Oslo Stock Exchange. It looks like the investors who put their monies in the company when it was listed in June, are now getting cold feet.

Monday Aker shares ended down 3.27 per cent, one of many days in the red on the exchange. In a one-week historic perspective the shares were down more than 15 per cent, and in a one-month perspective shares were down 34.66 per cent. This is a dramatic fall for any company. It will not fare not better if the development continues along 2007. Since its highest level in the beginning of January at NOK 57.00 per share, the value has fallen 48.41 per cent. On 30 August the company announced very good results from research to establish the of potential krill meal as an ingredient in salmon feed. According do Aker BioMarine the krill meal they are producing under the brand name Qrill improves aquaculture yield. Salmon fed the company's Qrill product weigh 18 and 23 per cent more than salmon that consumed feed without Qrill - according to studies performed by AKVAFORSK, a leading Norwegian aquaculture research institution. But even this information, indirectly promising a better price potential for the low end but high volume product onboard the company's two krill trawlers, was enough to even halt the negative trend for the shares for a few days. Aker BioMarine ASA was the only Norwegian company to receive two licenses to trawl for krill in Antarctica when the Norwegian government issued four licenses 31 May. Aker BioMarine ASA merged with the listed company Natural ASA in June. The names of the Natural shares were changed to Aker BioMarine. Since then, their rough values of NOK 2.5 billion have evaporated. Aker BioMarine had earnings before interests, tax, depreciation, and amortization (EBITDA) of NOK 13 million in the second quarter of 2007, compared with NOK 17 million in the corresponding 2006 reporting period. The Krill and Faroe Islands operating units delivered second-quarter 2007 results above those of Q2 2006. Argentina, however, reported lower revenue and profit figures due to poor harvesting. Aker BioMarine had second-quarter 2007 revenues of NOK 150 million, down from NOK 167 million in the corresponding 2006 reporting period. This was not the numbers investors dreaming about golden results and billions ticking in were hoping for. For the time being it looks like the krill fever seen in Norway earlier this year is cooling down. Those hoping for quick and easy profits are abandoning the krill trawling venture like rats from a sinking ship. The Captain, ex. fisherman cum industry magnate, Kjell Inge Røkke, is still in the steering house together with the CEO Helge Midtun. That is a good sign. Røkke is known for getting sinking ships back afloat in profitability. (FIS)