Omega Protein Impacted by Hurricanes

Houston-based Omega Protein felt the impact of 2008's hurricane season during the third quarter (3Q), with two fish processing plants in storm-affected areas of Louisiana. Hurricanes Gustav and Ike caused damaged to the company's Abbeyville, La. facility, which was restored to full capacity by Sept. 22; however its Cameron, La. plant continues to undergo repairs and is expected to be back online by start of the 2009 fishing season. Until then, the fishing vessels normally operating out of Cameron will run out of the Abbeyville plant and another company facility in Moss Point, Miss.

Additionally, the hurricanes caused increased production costs for 2008, including lost fishing days, which also affected 2008 total volume figures. On the bright side, the company received a $1.5 million grant from the Louisiana Department of Wildlife and Fisheries, as a part of assistance efforts to help companies and regions affected by two previous hurricanes, Katrina and Rita in 2005. The company is unsure what, if any, other aid will be available relative to the hurricanes in 2008.