Marine Harvest Q1 surges more than four-fold

Marine Harvest ASA on Wednesday (May 5) released its first-quarter results, including an operational EBIT of NOK608 million (US$100.5 million), up more than four-fold from the same period last year.

The world's largest farmed salmon producer also posted operating revenues of NOK3.43 billion (US$567.1 million) in the first quarter of 2010, up from NOK3.3 billion in the first quarter of 2009. Net earnings totalled NOK626 million (US$103.5 million) in the first quarter of 2010, compared to NOK217 million last year.

“Our first quarter results confirm the favourable market balance, with continued strong demand in key markets and limited global supply. Also in this quarter, we achieved operational improvements in Norway, VAP Europe, Canada and Chile,” said Thomas Farstad, acting CEO of Marine Harvest.

Higher salmon prices more than compensated for a 4% drop in production, from 76,177 tonnes in the first quarter of 2009 to 73,061 tonnes in the first quarter of 2010.

The Norwegian company expects to harvest 298,000 tonnes of farmed salmon in 2010, 68,000 tonnes of which is expected to be harvested in the second quarter.

“We expect a strong market for salmon in 2010 and 2011 and have recently entered into sales contracts confirming the strength of the market. There should also be a potential for improvement in achieved prices through a better organised and more coordinated sales function, including VAP sales activities,” said Farstad.