Katrina, Rita Spoil Omega Protein 3Q

Katrina, Rita Spoil Omega Protein 3Q

HOUSTONOmega Protein Corp.(NYSE:OME) suffered numerous production and inventory setbacks in the wake ofhurricanes Katrina and Rita, resulting in increased costs and decreased profitsfor its third quarter. Losses for the quarter resulting from natural disasterstotaled an estimated $13.2 million, net of insurance recoveries, as loss ofphysical inventories and physical damage to the companys fish processingfacilities created abnormal downtime and significant extraordinary costs. If notfor the hurricane-related costs, pre-tax net income for the quarter would havebeen $3.7 million; instead, operating income dropped to a loss of $9.2 million,compared to $2.7 million in positive operating income a year ago. Revenues of$31.4 million were off $10 million compared to a year ago.

According to Omega Protein (www.omegaproteininc.com),operations at two of its fish processing facilities were reestablished inmid-October, but at reduced processing capabilities. It further estimated itsthird Gulf Coast fish processing facility will not be reopened until late 2006or early 2007, and it is still evaluating whether the location of that facilitywill remain in Morgan City, La., or relocate to Cameron, La. In the interim, thecompany currently estimates that its full fleet of 31 Gulf Coast fishing vesselswill begin the 2006 fishing season at its Moss Point, Miss., and Abbeville, La.,facilities, where fish catches will be unloaded. The companys other fishprocessing plant is located in Reedville, Va.