May 12, 2011

Marine Harvest Group's revenue increases

Marine Harvest Group reported a surge in revenue and other earnings for the first quarter of the year at NOK3.942 billion (US$716.5 million) in contrast to NOK3.454 billion (US$627.8 million) during the same period last year due to enthusiastic demand for salmon and lofty prices in all markets.

Furthermore, the company's EBIT increased from NOK766 million (US$139.2 million) in Q1 2010 to NOK1.052 billion (US$191.2 million) in Q1 2011.

The firm did achieve record results for its two biggest farming businesses, Marine Harvest Norway, and Marine Harvest Scotland, due to ongoing strong global demand for salmon and the consequent high prices and record results for their two largest farming units. Even so, EBIT per kilogramme in Marine Harvest Norway was harmed by the achieved price and higher costs.

All of the company's farming units save for Marine Harvest Canada delivered good results in the first quarter of the year, but Marine Harvest VAP margins continued to be negatively influenced by high raw material prices. Achieved prices in all markets this first quarter surpassed those of the same period in 2010, the company said.

"I am not satisfied with our achieved prices in Norway and the margins in Marine Harvest Canada and Marine Harvest VAP Europe," said CEO of Marine Harvest ASA Alf-Helge Aarskog.

However, all news is not bleak. Marine Harvest's operational EBIT rose in the first quarter of 2011 to NOK963 million (US$175 million) compared to NOK608 million (US$110.5 million) in the corresponding quarter of 2010, an increase of 58%. The company attributed its increased profitability to higher market prices.

For the rest of 2011, Marine Harvest foresees a strong market balance as a result of contract prices and future prices.

"The establishment of a new global sales and marketing organisation should improve our overall price achievement and an on-going operational review will address the challenges we have in Canada," Aarskog commented.