Solid Performance For Marine Harvest Q3 Results

Marine Harvest Group achieved an operational EBIT of NOK 759 million in the third quarter of 2010, compared to NOK 594 million in the corresponding quarter of 2009. The operational EBIT margin increased from 16.5 per cent to 21 per cent.

Earnings per share improved from NOK 0.18 to NOK 0.19. While spot prices in Norway fell from the second to the third quarter, Marine Harvest Norway increased its achieved average price. Based on the strong cash-flow in the quarter, the Board has resolved to call an EGM in December where an extraordinary dividend of NOK 0.05 per share will be proposed.

Marine Harvest reported operating revenues of NOK 3,610 million in the third quarter of 2010. Harvest volumes were 64,032 tons compared to 79,554 tons in the third quarter of 2009. Net earnings in the period were NOK 670 million.

"The higher price achievement has improved the result for the whole Group and Marine Harvest VAP Europe adapts to the higher raw material prices. Marine Harvest has a strong contract portfolio for the fourth quarter of 2010 with prices above the contracted prices for the third quarter," comments CEO of Marine Harvest ASA, Alf-Helge Aarskog.

Cash flow from operations amounted to NOK 599 million in the third quarter of 2010. Net financial items amounted to NOK -104 million. Net financial items include net interest expenses of NOK 96 million. Net interest-bearing debt increased to NOK 5,152 million (4,678 at end of the second quarter), mainly due to the distribution of a dividend of NOK 0.20 per share in September.

The equity ratio decreased to 52.8 per cent at the end of the quarter (57.2 at end of the second quarter). Annualized ROACE was 18.9 per cent (14.9 per cent) and NIBD/Equity was 44.3 per cent compared to 38.6 per cent at the end of the second quarter.

Marine Harvest Norway achieved an operational EBIT per kg of NOK 13.36 (6.90) in the third quarter, while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK 2.71 and NOK 10.91 respectively (3.73 and 8.77). Marine Harvest VAP Europe reported an operational EBIT-margin of 2.2 per cent in the third quarter of 2010.

Marine Harvest Chile achieved an operational EBIT of NOK 17 million. Marine Harvest expects to harvest a volume of 292 000 tonnes in 2010, of which 87,000 tonnes is expected to be harvested in the fourth quarter.

"We are currently focusing on optimising production volumes from existing licences in Norway. This incremental production will require limited capital expenditure and contribute to a lower overall production cost and increased margins going forward.

"We expect to show substantial growth in Norwegian production volumes in 2011 and 2012. Significant forward volumes have been traded over the Fish Pool exchange for 2011, with recent prices around NOK 36.50 per kilo. Volume for 2012 has been lower, at price levels around NOK 33.00 per kilo. We have entered into contracts confirming this price level," concluded Mr Aarskog.