Salmon price fall affected Marine Harvest profits. (Photo: Stock File/FIS)

Marine Harvest profits drop due to lower salmon prices

NORWAY
Friday, July 20, 2012, 01:30 (GMT + 9)

Marine Harvest achieved an operational EBIT of NOK 231 million (EUR 30.9 million) in the second quarter of 2012 versus NOK 894 million (EUR 119.6 million) in Q2 2011 -- a significant drop due to the fall in salmon prices.

Operational revenues and other income reached NOK 4 billion (EUR 534.97 million) compared to NOK 4.2 billion (EUR 561.7 million) a year ago.

Harvest volumes jumped by 24 per cent 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 NOK 507 million (EUR 67.8 million) and net interest bearing debt was reduced by NOK 759 million (EUR 101.5 million) to NOK 5.2 billion (EUR 695.5 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 per kg of NOK 3.37 (EUR 0.45) in the second quarter versus NOK 13.10 (EUR 1.75) in 2011, while Marine Harvest Scotland reported a strong operational EBIT per kg of NOK 7.11 (EUR 0.95) versus NOK 13.68 (EUR 1.83) a year ago.

Marine Harvest Canada and Marine Harvest Chile achieved higher operational EBITs per kg of -NOK 4.18 (EUR -0.56) and NOK 0.60 (EUR 0.08), respectively.

Marine Harvest VAP Europe reported an operational EBIT margin of -0.5 per cent (0.1 per cent 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 per cent -- figures much lower than the ones seen in H2 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 per cent 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.

Related article:

- Marine Harvest predicts tough times

By Natalia Real
editorial@fis.com
www.fis.com

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