April 18, 2011

Marine Harvest reports Q1 profit

Norwegian fish farming company Marine Harvest said its first-quarter operating profit soared from a year ago as harvest volumes exceeded expectations.

Marine Harvest's operating profit grew 58% to about NOK960 million (US$178 million), said Marine Harvest on Thursday (Apr 14), in an update of its earnings before the full quarterly report next month.

The total salmon harvest of 76,000 tonnes exceeded its forecast from the previous quarter of 73,000 tonnes. In the first quarter last year, total harvest was 73,061 tonnes.

Marine Harvest said average prices in the contract portfolio for the remainder of 2011 were up to NOK40 (US$7.42) per kg. Operational EBIT per kg for Marine Harvest Norway was approximately NOK13.4 (US$2.49) in the quarter.

"The figures are about 3-4% higher than my estimates, and a little weaker on EBIT per kg in Norway than expected, but on the other hand the total volume is higher," said Nordea analyst Kolbjoern Giskeoedegaard.

"That means that even though earnings in Norway are a bit lower than expected, it is a bit better than expected in other regions," Giskeoedegaard said.

The firm said it expected feed prices to fall in the second half of 2011 and in 2012 as higher wild catch quotas in South American fisheries were expected to positively influence raw material prices. Marine Harvest will release its full first-quarter report on May 11.