November 18, 2009

Marine Harvest achieves improved profits in Q3

Marine Harvest ASA achieved an operational EBIT of NOK625 million (US$111.7 million) in the third quarter, compared to NOK103 million (US$ 18.4 million) in the corresponding quarter last year.

Compared to fourth quarter last year, Marine Harvest expects global supply to fall with 13 percent to 17 percent in the fourth quarter, in a market with solid demand.

Marine Harvest reported operating revenues of NOK3.569 million in the third quarter of 2009, with operational EBIT of NOK625 million in the period. Net Earnings were NOK626 million.

Despite a steep fall in harvest volumes in Chile, the company was able to increase its global harvest volumes with 8 percent in the third quarter compared to the third quarter of 2008, and took advantage of the favourable market for salmon.

Cash flow from operations was NOK811 million in the third quarter 2009. Due to the strong cash flow and the stronger NOK against euros and US dollar, net interest bearing debt was reduced by NOK932 million in the quarter to NOK5.093 million.

Marine Harvest expects to harvest a volume of 322,000 tonnes in 2009, which is an increase of 9,000 tonnes from earlier guiding for the year. 82,000 tonnes is expected to be harvested in the fourth quarter.

Even with a 7-percent increase in supply to the EU, prices increased by 4 percent, in euros, in the third quarter, compared to the same quarter of 2008.

Strong growth in harvest volumes in Norway, and sales from inventories in Chile has partly counteracted the effect of the steep decline in harvest volumes in Chile the first nine months.

In the fourth quarter global supply will fall between 13 percent and 17 percent, while demand is expected to remain solid. Looking into 2010 global supply is expected to fall by three - seven per cent as supply from Chile will fall further and volume growth in Norway will be weaker than in 2009, according to Marine Harvest.