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Marine Harvest Reports Strong Operational EBIT on Record-High Prices

12 May 2016

NORWAY - Marine Harvest achieved an operational EBIT of €112 million in the first quarter of 2016, compared to €95 million in the corresponding quarter of 2015.

Supported by the good results, a strong forward market, and a solid financial position, the Board has resolved a quarterly dividend of NOK 1.70 per share.

"Driven by record-high prices in Europe and Asia, and improving markets in the Americas, this is one of our strongest quarters ever. I would like to recognize the efforts put in by all our employees contributing to this result. I am also pleased to see a reduction of the production costs in Canada, and the good contribution from Region North and Region West in Norway," says CEO Alf-Helge Aarskog.

Marine Harvest Group reported operational revenues of €810 million (€735 million) in the first quarter of 2016. This is all time high for a first quarter in Marine Harvest, and corresponds to a growth of 10 per cent year over year. Total harvest volume were 96,613 tonnes in the quarter (99,476 tonnes). Harvest guidance for 2016 is 414,000 tonnes, which is 22,000 tonnes lower than the previous guidance.

Salmon of Norwegian origin achieved an operational EBIT per kilo of €1.87 (1.52) in the first quarter, while salmon of Scottish and Canadian origin reported operational EBIT per kilo of €0.68 and €1.97 respectively (€0.32 and €0.58).

Salmon of Chilean origin reported operational EBIT per kilo of €-1.55 in the quarter (€-0.73). The figures include contribution from Sales and Marketing, including MH Consumer Products. MH Consumer Products reported an operational EBIT of €-0.6 million (€-0.2). MH Feed reported an operational EBIT of €1.6 million (€2.1 million).

Marine Harvest's operational EBIT in the quarter has been negatively impacted by the company's operations in Chile and the plant in Rosyth, Scotland.

"The operational EBIT for Consumer Products has also been negatively impacted by losses at the Rosyth plant in Scotland. We have taken actions to improve efficiency and yield," says Mr Aarskog.

The algal bloom in Chile has caused severe problems for the whole industry in Chile, including Marine Harvest. Accordingly, Marine Harvest has initiated a restructuring process to cut costs and become more competitive.

Marine Harvest will write down $16 million of fixed assets in Marine Harvest Chile in the second quarter. In addition, Marine Harvest will make a restructuring provision of $3 million in the second quarter related to employee layoffs. These measures are expected to provide annual savings of approximately $8-10 millions.

"Marine Harvest will continue to advocate for stronger regulations of the fish farming industry in Chile as well as continued consolidation. This should enable the transformation of Chilean fish farming into a sustainable industry with improved biology, sound financial results and safe jobs," says Mr Aarskog.

TheFishSite News Desk



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