October 29, 2012

Marine Harvest achieves US$13 million for EBIT in Q3 2012

The Marine Harvest Group reaches an operational EBIT of NOK 73 million (US$13 million) in Q3 of 2012.

The results were impacted by weak market prices and a lower benefit from sales contracts compared to previous quarters.

"The results for the third quarter were negatively impacted by low market prices and limited benefit from the sales contract portfolio compared to previous quarters. I am pleased by the organisation's ability to deliver on costs, particularly in Norway. We are struggling in Chile and Canada due to the exceptional low market prices in the Americas. We are continuing to benefit from the cash flow measures implemented last year, and our balance sheet is therefore very strong, say Alf-Helge Aarskog, CEO

Marine Harvest reported operational revenues and other income of NOK3 647 million (US$632 million) in the third quarter of 2012. Harvest volumes increased by 12% to 93 229 tonnes from 83 076 tonnes in the third quarter of 2011.

Marine Harvest Norway achieved an operational EBIT per kilogrammes of NOK2.47 (US$0.43) in the third quarter, while Marine Harvest Scotland and Marine Harvest Canada reported operational EBIT per kilogramme was NOK 221 (US$38.30) and NOK595 (US$103) respectively. Marine Harvest Chile achieved an operational EBIT per kilogramme of NOK2.54 (US$0.44). The numbers include contribution from Sales and Marketing, including VAP Europe.

Marine Harvest VAP Europe reported a break even result in the quarter. Marine Harvest Group expects to harvest a volume of 390 000 gutted weight tonnes in 2012, of which 101,000 tonnes are expected to be harvested in the fourth quarter.

Cash flow from operations amounted to NOK237 million (US$41 million) in the third quarter of 2012 after a reduction in working capital. Net financial items amounted to NOK -100 million (-US$17.3 million).

The equity ratio was 49.1% at the end of the quarter (50.8% at end of the second quarter). Annualised ROACE for the quarter was 2.2% and NIBD/Equity 46.7% at the end of the third quarter.

"We have decided to invest in a 220 thousand tonnes feed facility in Norway. This is an important step in transforming Marine Harvest into an integrated protein company. We expect an attractive return on the investment and it will contribute to more stable earnings. This is a natural part of the value chain as feed represents about 50% of our costs. The investment will also balance the current unfavourable situation of few feed suppliers operating at full capacity", says Aarskog.

Marine Harvest is the world's leading seafood company and largest producer of farmed salmon, with presence in 22 countries and a total of 6 200 employees worldwide. The company is headquartered in Bergen, Norway, and is listed on the Oslo Stock Exchange.