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Marine Harvest First Quarter Volumes Above Expectations

15 April 2014

NORWAY - Marine Harvest has recorded a total harvest volume of 80,000 tonnes (HOG) for for the first quarter of 2014.

The increase in volume is partly because of good growth conditions in Norway and is also likely to lead to an increase in the annual volume.

Norway reported the biggest harvest volume of 55,000 tonnes, followed by Chile with 18000 tonnes, Scotland with 10,000 tonnes and Canada with 6,000 tonnes.

Operational profit (EBIT) for the Group was approximately NOK 1,075 million in the first quarter of 2014 compared to NOK 482 million in the first quarter of 2013.

Although this is the best quarter so far for Marine Harvest, the result was hit by high costs in Norway. Costs in Norway are expected to be lower for the remainder of the year.

Total operational EBIT per kg through the value chain were approximately as follows for the main sources of origin:

  • Norway 12.8 NOK
  • Scotland 12.6 NOK
  • Canada 19.1 NOK
  • Chile 6.7 NOK

Net interest bearing debt (NIBD) was approximately NOK 7.5 billion by the end of the quarter.

The first quarter reference price in Norway reached the unprecedented level of NOK 46.6, which was 40% above the first quarter observations made over the last five years and 17 per cent above the previous first quarter all-time high in 2011.

The solid demand is expected to absorb the measurable supply coming to the market over the next quarters, as Fish Pool futures are currently being traded at NOK 41.6 for the second quarter and NOK 38.5 for the last three quarters.

However, seasonal price fluctuations should be expected.

Supported by the strong operating results, the recent successful divestment of UK farming assets, a strong forward market and a solid balance sheet, the Board has resolved to propose a first quarter dividend of NOK 5 per share to the AGM. The AGM will be held 22 May.

The full first quarter 2014 report will be released on 30 April.

TheMeatSite News Desk



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