July 20, 2012

 

Marine Harvest profits suffer decline from falling salmon prices

 

 

Marine Harvest reaches an operational EBIT of NOK231 million (US$38.1 million) in the second quarter of 2012, a significant decline compared to on-year's figures NOK 894 million (US$147.67) due to falling salmon prices.

 

Operational revenues and other income reached NOK4 billion (US$660 million) compared to NOK4.2 billion (US$693 million) a year ago.

 

Harvest volumes jumped by 24% to 99,165 tonnes from 79,932 tonnes in the second quarter of 2011. The company sold more to make up for lower prices.

 

Operational EBIT amounted to NOK507 million (US$84 million) and net interest bearing debt was reduced by NOK759 million (US$125 million) to NOK5.2 billion (US$857 million). 

 

"In a challenging quarter, Marine Harvest has been able to improve its competitive position and solidity. We have reduced the cost of harvested fish in the quarter, which is a highly appreciated achievement given a demanding marketplace," commented Marine Harvest CEO, Alf-Helge Aarskog.

 

Marine Harvest Norway achieved satisfactory results, with an operational EBIT/kg of NOK3.37 (US$0.56) in the second quarter versus NOK13.10 (US$2.16) in 2011, while Marine Harvest Scotland reported a strong operational EBIT/kg of NOK7.11 (US$1.17) versus NOK13.68 (US$2.26) a year ago.

 

Marine Harvest Canada and Marine Harvest Chile achieved higher operational EBITs/kg of NOK4.18 (US$0.69) and NOK0.60 (US$0.10), respectively.

 

Marine Harvest VAP Europe reported an operational EBIT margin of -0.5% (0.1% in 2011) in the second quarter.

 

Marine Harvest expects to harvest a volume of 380,000 tonnes this year, of which 90,000 tonnes is expected to be harvested in Q3.

 

In Q4, the global supply growth is expected to sink to 2-7%, figures much lower than the ones seen in H2 of 2011.

 

The gradual decline in performance parameters in Chile is leading Marine Harvest to make necessary investments to protect its strategic position in the region. 

 

The price level so far in Q3 has been lower than the average for the first half of the year. Marine Harvest has sold approximately 30% of the Norwegian harvest volume for the remainder of 2012 at good prices. 

 

Marine Harvest Scotland continued to deliver terrific results, while the Norwegian division delivered satisfactory results given some adverse biological events.

 

Operational results in Marine Harvest VAP Europe have been disappointing and the company has implemented a change in management.

 

"The board reconfirms their cautiously optimistic view communicated in the first quarter report, and is getting increasingly confident with respect to the market balance for 2013 and 2014," Marine Harvest added in a statement.