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Improved Financial Position for Marine Harvest After Second Quarter

NORWAY - The Marine Harvest Group achieved an operational EBIT of NOK 231 million in the second quarter of 2012, compared to NOK 894 million in the corresponding quarter of 2011. Cash flow from operations was strong at NOK 918 million in the quarter and the net interest bearing debt was significantly reduced. Marine Harvest expects a challenging market also in the third quarter of 2012.

Marine Harvest reported operational revenues and other income of NOK 4,005 million (NOK 4,192 million) in the second quarter of 2012. Harvest volumes increased by 24 per cent to 99,165 tons from 79,932 tons in the second quarter of 2011. Net interest bearing debt was reduced by NOK 759 million to NOK 5177 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," comments CEO of Marine Harvest ASA, Alf-Helge Aarskog.

Cash flow from operations amounted to NOK 918 million (NOK 1,614 million) in the second quarter of 2012. Net interest-bearing debt decreased to NOK 5,177 million (5,936 at end of the first quarter).

The equity ratio was 50.8 per cent at the end of the quarter (50.1 per cent at end of the first quarter) and NIBD/Equity was 47 per cent, compared to 53.8 per cent at the end of the first quarter.

"I am particularly pleased to see that the excellent performance in Marine Harvest Scotland continues, and that our Norwegian results are satisfactory given a few biological incidents in the quarter," says Mr Aarskog. "However, the results of Marine Harvest VAP Europe is still disappointing and our efforts continues to improve this unit".

Marine Harvest Norway achieved satisfactory results, with an operational EBIT per kilo of NOK 3.37 (13.10) in the second quarter, while Marine Harvest Scotland reported a strong operational EBIT per kilo NOK 7,11 (13,68). Marine Harvest Canada and Marine Harvest Chile achieved an operational EBIT per kilo of -NOK 4, 18 and NOK 0, 60 respectively (4, 15 and-20, 92). The numbers include contribution from Sales and Marketing, including VAP Europe.

Marine Harvest VAP Europe reported an operational EBIT margin of -0.5 per cent (0.1 per cent) in the second quarter of 2012.

Marine Harvest expects to harvest a volume of 380,000 tons in 2012, of which 90,000 tons is expected to be harvested in the third quarter.

"In a market still absorbing the increased supply of salmon, we remain focused on capital efficiency and cost measures in production, to meet what we continue to see as a challenging market, at least in the next quarter. The expansion of new and existing markets for Atlantic salmon remains a high priority for Marine Harvest," says Mr Aarskog.

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