August 11, 2008

Fish oil helps income surge at Omega Protein, fishmeal flat

Omega Protein Corporation, a US manufacturer of specialty fishmeals and fish oil used as value-added ingredients in aquaculture, swine and other livestock feeds, has reported a net income of US$6.7 million (US$0.37 per share) for the second quarter of 2008, compared with net income of $2.5 million ($0.15 per share) for the second quarter of the previous year.

The company is also the largest US manufacturer of fishoil for human consumption.

Omega Protein's second quarter results reflect increased revenues and margins primarily due to higher volumes and sales prices from the company's fish oil business. However, the results were partially offset by a decline in sales volume of fish meal.

Average prices received for newly contracted fish oil sales, as compared to prices received during 2007, were approximately 63 percent higher and reflect increased demand from aquaculture and pet food manufacturers.

Meanwhile, fishmeal prices remained relatively flat furing the period.

The results for the six months ended June 30, 2007 were impacted by the write-off of approximately US$3.0 million in deferred debt issuance costs and prepayment fees resulting from the refinancing of the Company's prior credit agreement.