All-Time High Operational EBIT for Marine Harvest

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All-Time High Operational EBIT for Marine Harvest

03 November 2016

NORWAY - Marine Harvest has achieved an operational EBIT of €180 million in the third quarter of 2016, compared to €78 million in the corresponding quarter of 2015.

Supported by the good results, a strong forward market, and a solid financial position, the Board has resolved a quarterly dividend of NOK 2.30 per share.

"Driven by seasonally high salmon prices on strong demand and reduced supply, we achieved record high operational results. I am pleased that the hard work put in by all Marine Harvest employees results in positive earnings in all business segments and farming regions this quarter. It is especially encouraging to see that our business unit in Chile delivers positive earnings after many quarters with negative results. It is also very encouraging to see record high operational results in the Feed business area," says CEO Alf-Helge Aarskog.

Marine Harvest Group reported operational revenues of €850 million (€752 million) in the third quarter of 2016. Total harvest volume was 97 215 tonnes in the quarter (105 963 tonnes). Harvest guidance for 2016 is 381 000 tonnes, which is 19 000 tonnes lower than the previous guidance. Biological challenges are concerning especially in Norway and Scotland. Harvest guidance for 2017 is 403 000 tonnes.

Salmon of Norwegian origin achieved an operational EBIT per kilo of €1.98 (1.25) in the third quarter, while salmon of Scottish and Canadian origin reported operational EBIT per kilo of €0.60 and €2.63 respectively (EUR 0.69 and EUR 0.14). Salmon of Chilean origin reported operational EBIT per kilo of €1.44 in the quarter (€-0.72).

The figures include contribution from Sales and Marketing, including MH Consumer Products. MH Consumer Products reported an operational EBIT of €2.2 million (€4.6 million). MH Feed reported an operational EBIT of €12.4 million (€8.2 million).

"The market balance going forward is expected to remain tight. Combined with the unparalleled market demand we have seen in 2016, the future looks promising. We will continue to ramp-up marketing efforts in important markets such as the US where we are about to open up a new processing plant in Dallas. Production costs are increasing and Marine Harvest will continue the work for lower production costs," says Mr Aarskog.

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