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Improved Results for Marine Harvest

Salmonids Economics +2 more

NORWAY - Marine Harvest Group achieved an operational EBIT of NOK 792 million in the second quarter of 2010, compared to NOK 268 million in the corresponding quarter of 2009.

Earnings per share improved from NOK -0.02 to NOK 0.21. Strong demand and reduced industry supply lead to increasing prices also in the second quarter.

However, Marine Harvest Norway showed a weak price achievement in the quarter. Based on the strong cash-flow in the first half of 2010, the Board has resolved to call an EGM in August where a half-year dividend of NOK 0.20 per share will be proposed.

Marine Harvest reported operating revenues of NOK 3,562 million (NOK 3,948 million) in the second quarter of 2010.

Harvest volumes were 68,263 tons compared to 83,960 tons in the second quarter of 2009. Net earnings in the period were NOK 741 million (NOK -61 million).

"The group delivered an improved result in this quarter, supported by continued strong demand, reduced global supply and increasing prices. Our Norwegian operations showed a weak price achievement due to a large contact portfolio with prices well below the spot prices and a lower than normal share of superior fish. There is a considerable potential for improved results the next quarters," said CEO of Marine Harvest ASA, Alf-Helge Aarskog.

Cash flow from operations amounted to NOK 890 million (NOK 1,099 million) in the second quarter of 2010. Net financial items amounted to a NOK -34 million (NOK -204 million). Net financial items include net interest expenses of NOK 108 million (NOK 120 million). Net interest-bearing debt increased to NOK 4,678 million (4 140 at end of the first quarter) after dividend distribution in June.

The equity ratio decreased to 57.2 percent at the end of the quarter (60.4 at end of the first quarter). Annualised ROACE was 20.7 per cent (-4.5 per cent) and NIBD/Equity was 38.6 per cent compared to 33.75 at the end of the first quarter.

Marine Harvest Norway achieved an operational EBIT per kg of NOK 11.22 (8.42) in the second quarter, while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK 11.65 and NOK 9.35 respectively (9.14 and 8.17). Marine Harvest VAP Europe reported an operational EBIT-margin of 5.7 per cent (5.4 per cent) in the second quarter of 2010. Marine Harvest Chile achieved an operational EBIT of NOK 17 million (NOK -391 million). The Chilean farming operations achieved a break-even operational EBIT.

Marine Harvest expects to harvest a volume of 294,000 tonnes in 2010, of which 66,000 tonnes is expected to be harvested in the third quarter.

"The contract share for the third quarter will be in line with the second quarter. However the average contract price is approximately NOK 3 higher than in the second quarter. I expect a strong market and robust results for the coming quarters. The main priorities going forward will be sustainable growth in all regions, a better coordination of sales in the group, and further operational improvements," said Alf-Helge Aarskog.