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Marine Harvest achieves lower EBIT in Q3, expects production to skid in 2013

NORWAY
Friday, October 26, 2012, 23:50 (GMT + 9)

Atlantic salmon farmer Marine Harvest Group's results for the third quarter of 2012 were negatively impacted by low market prices and limited benefit from the sales contract portfolio compared to previous quarters.

The firm achieved an operational EBIT of NOK 73 million (EUR 9.8 million) compared to NOK 457 million (EUR 61.2 million) in Q3 2011.

“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,” said Alf-Helge Aarskog, CEO.

Marine Harvest reported operational revenues and other income of NOK 3.65 billion (EUR 489.2 million) in the third quarter of 2012 against NOK 3.64 billion (EUR 487.8 million). Harvest volumes increased by 12 per cent to 93,229 tonnes from 83,076 tonnes.

Marine Harvest Scotland again showed good results, while Marine Harvest Norway delivered satisfactory results despite some adverse biological events. Regardless, the farming performance has been satisfactory in 2012 and, compared to market reference prices, the price achievement has been higher than the reference prices year thus far.

Marine Harvest VAP Europe reported a break even result in the quarter compared to NOK 35 million (EUR 4.7 million) a year ago.

Marine Harvest Group expects to harvest a volume of 390,000 tonnes in 2012, of which 101,000 tonnes are expected to be harvested in Q4; the guiding for 2013 is for a drop in volume to 350,000 tonnes due to market measures on smolt stockings taken in 2011.

According to the company, spot prices in the third quarter reflect a record-high increase in global supply of Atlantic salmon in 2012 combined with seasonality in the third quarter, which is expected to have material effect on Q4. While the supply growth in Europe seems to flatten out in 2013, there will still be a significant growth in Chile.

Despite the current strong growth in supply, the price level for Norwegian salmon is substantially higher. The forward market indicates a price level in excess of NOK 30 (EUR 4.02) for 2013.

Related article:

- Marine Harvest profits drop due to lower salmon prices

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

Photo Courtesy of FIS Member

Marine Harvest ASA - Headquarters

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