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Q2 Sees Big Improvements for Marine Harvest

by 5m Editor
14 August 2009, at 1:00am

GLOBE - Marine Harvest ASA achieved an operational EBIT of NOK 257 million in the second quarter, compared to NOK 145 million in the corresponding quarter last year.

Solid demand and tight supply led to strong prices, says Marine Harvest. Achieved prices were lower than spot market prices due to fixed price contracts. The updated business plan for Chile was approved and accounted for in the second quarter. Marine Harvest has a positive outlook for the market development in the coming quarters.

"In addition to increased prices and volumes, we have achieved operational improvement demonstrated through lower mortality rates, good development in growth in sea and a reduced number of PD-outbreaks" says Åse Aulie Michelet, CEO of Marine Harvest ASA.

Marine Harvest reported operating revenues of NOK 3 947 million in the second quarter of 2009 (3 196), with operational EBIT of NOK 257 million in the period (145). EBIT was NOK 182 million in the period (6). A total volume of 83 960 tonnes HOG (80 669) was harvested in the second quarter of 2009.

The business plan for Chile was updated during the second quarter, with the purpose of harmonising the scale of the business to a low level of activity in the near term and minimise losses during the period. The total negative effect on EBIT from implementing the new business plan was NOK 727 million. Marine Harvest Chile will be run with a cash neutral target until the rebuilding period starts.

Cash flow from operations was NOK 1 088 million (426) in the second quarter 2009. Due to the strong cash flow and the successful private placement of NOK 300 million carried out in May, the net interest bearing debt was reduced by NOK 1 131 million to NOK 6 025 million. The equity ratio increased to 51.2 per cent at the end of the quarter.

Marine Harvest expects to harvest a volume of 313 000 tonnes in 2009, which is an increase of 17 000 tonnes from earlier guiding for the year. 70 000 tonnes is expected to be harvested in the third quarter.

"We expect this positive development to continue. Feed costs will also be falling in the next quarter from the relatively high level since late 2008," says Åse Aulie Michelet.

"In order to secure stable deliveries to our US customers we have set up a new processing plant in Miami and will open an additional plant in Los Angeles in August. We expect to increase volumes from Norway to the US market significantly in the second half of 2009. With a positive outlook for the market development we expect continued improvements in financial performance for the rest of the year."

5m Editor