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Marine Harvest Reports Operational Profits of NOK 60 Million in Q4

Salmonids Economics +2 more

NORWAY - Marine Harvest has announced its results for the fourth quarter of 2012. Operational EBIT for the Group was approximately NOK 60 million in Q4 2012, a huge loss compared with NOK 403 million in Q4 2011.

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Harvest volumes Q4 2012:

Farming Norway - 70 thousand tonnes
Farming Chile - 11 thousand tonnes
Farming Canada - 11 thousand tonnes
Farming Scotland - 7 thousand tonnes
Other - 4 thousand tonnes
Total - 103 thousand tonnes

In connection with the presentation of the Q3 2012 results, Marine Harvest guided a total harvest volume of 101,000 tonnes head on gutted (HOG) for Q4 2012.

Total operational EBIT per kg through the value chain based on source of origin was approximately:

Norway - NOK 3.5
Chile - NOK -8.5
Canada - NOK -5.0
Scotland - NOK -1.2

The result from Norway was positively impacted by the strongly improved market conditions from the end of the fourth quarter, which has continued into 2013.

The results from Chile and Canada were impacted by the continued very weak market conditions in the Americas. Furthermore, the Chilean result was particularly impacted by a listeria finding at the smoked salmon producer Delifish. Associated costs linked to inter alia product recall led to a loss of NOK 25 million (NOK 2.3 per kg) in the quarter.

Net interest bearing debt per 31 December 2012 was approximately NOK 5,400 million.

Further to the on-going offer process to acquire all outstanding shares in Morpol ASA, a mandatory competition authority process has been initiated. Pending the outcome of this process, Morpol's financial results will not be consolidated in Marine Harvest's accounts. As a consequence, Marine Harvest's lenders have agreed to a temporary increase in Marine Harvest's NIBD/EBITDA covenant to 3.99 from and including Q1 2013 and until the earlier of the end of the quarter where consolidation of Morpols financials occurs and the end of Q4 2013. The covenant will subsequently revert to the original level of 3.25x.

Marine Harvest will release its Q4 2012 results on 6 February at 0700 CET.

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