Marine harvest's profitable returns for Q3 – Fishfarmer Magazine

Marine harvest’s profitable returns for Q320 November, 2009 –

The Oslo based company with major operations in Scotland, Norway, Canada and Chile achieved operational earnings before interest and tax (EBIT) of NOK 625 million (£67 million) in Q3, compared to only NOK 103 million in the corresponding quarter last year. Earnings per share was NOK 0.18 compared to NOK -0.51 in the third quarter of 2008.

Solid demand and tight supply led to favourable prices however the prices actually achieved were lower than spot market prices due to fixed price contracts.

The company predicts that the strong results will allow for a dividend of about NOK 0.25 per share based on the 2009 results.

Marine Harvest had operating revenue of NOK 3,569 million in the third quarter of 2009 (3,089). Net Earnings were NOK 626 million compared with a loss of 1,765 in Q3 2008. A total volume of 79,554 tonnes was harvested in the third quarter of 2009 (73,354 tonnes in Q3 2008).

Åse Aulie Michelet, CEO of Marine Harvest ASA said: “Despite a steep fall in harvest volumes in Chile, we have been able to increase our global harvest volumes by 8 percent in the third quarter compared to the third quarter of 2008, and we have taken advantage of the favourable market for salmon. I’m pleased to announce that the strong results should allow for a dividend of about NOK 0.25 per share based on the 2009 results.”

Marine Harvest Norway achieved an operational EBIT per kg of NOK 6.29 in the third quarter (3.58), while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK 5.33 and NOK 8.67 respectively (3.75 and 6.22). Marine Harvest VAP Europe reported an operational EBIT-margin of 5.9 % in the third quarter of 2009 (4.8 %).

Marine Harvest expects to harvest a volume of 322,000 tonnes in 2009, which is an increase of 9,000 tonnes over earlier predictions. 82,000 tonnes is expected to be harvested in the fourth quarter.

Michelet continued: “Global demand has turned out to be solid in 2009. Even with a 7 percent increase in supply to the EU, prices increased by 4 percent, in Euro, in the third quarter, compared to the same quarter of 2008. Strong growth in harvest volumes in Norway, and sales from inventories in Chile has partly counteracted the effect of the steep decline in harvest volumes in Chile the first nine months. In the fourth quarter global supply will fall between 13 and 17 percent, while demand is expected to remain solid. Looking into 2010 global supply is expected to fall by 3 – 7 percent as supply from Chile will fall further and volume growth in Norway will be weaker than in 2009.”