Strong operational EBIT on record-high prices
May 11 2016 - 12:45AM
Marine Harvest achieved an operational EBIT of EUR 112 million
in the first quarter of 2016, compared to EUR 95 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 1.70 per share.
- Driven by record-high prices in Europe and Asia, and improving
markets in the Americas, this is one of our strongest quarters
ever. I would like to recognize the efforts put in by all our
employees contributing to this result. I am also pleased to see a
reduction of the production costs in Canada, and the good
contribution from Region North and Region West in Norway, says CEO
Alf-Helge Aarskog.
Marine Harvest Group reported operational revenues of EUR 81o
million (EUR 735 million) in the first quarter of 2016. This is all
time high for a first quarter in Marine Harvest, and corresponds to
a growth of 10 % year over year. Total harvest volume were
96 613 tonnes in the quarter (99 476 tonnes). Harvest guidance
for 2016 is 414 000 tonnes, which is 22 000 tonnes lower than the
previous guidance.
Salmon of Norwegian origin achieved an operational EBIT per kilo
of EUR 1.87 (1.52) in the first quarter, while salmon of Scottish
and Canadian origin reported operational EBIT per kilo of EUR 0.68
and EUR 1.97 respectively (EUR 0.32 and EUR 0.58).
Salmon of Chilean origin reported operational EBIT per kilo of EUR
-1.55 in the quarter (EUR -0.73). The figures include contribution
from Sales and Marketing, including MH Consumer Products. MH
Consumer Products reported an operational EBIT of EUR -0.6 million
(EUR -0.2). MH Feed reported an operational EBIT of EUR 1.6
million (EUR 2.1 million).
Marine Harvest's operational EBIT in the quarter has been
negatively impacted by the company's operations in Chile and the
plant in Rosyth, Scotland.
- The operational EBIT for Consumer Products has also been
negatively impacted by losses at the Rosyth plant in Scotland. We
have taken actions to improve efficiency and yield, says
Aarskog.
The algal bloom in Chile has caused severe problems for the
whole industry in Chile, including Marine Harvest. Accordingly,
Marine Harvest has initiated a restructuring process to cut costs
and become more competitive.
Marine Harvest will write down USD 16 million of fixed assets in
Marine Harvest Chile in the second quarter. In addition, Marine
Harvest will make a restructuring provision of USD 3 million in the
second quarter related to employee layoffs. These measures are
expected to provide annual savings of approximately USD 8-10
millions.
- Marine Harvest will continue to advocate for stronger
regulations of the fish farming industry in Chile as well as
continued consolidation. This should enable the transformation of
Chilean fish farming into a sustainable industry with improved
biology, sound financial results and safe jobs, says Aarskog.
For further information, please contact: Ivan Vindheim,
CFO, Mobile: +47 958 71 310 Kim Galtung Døsvig, IR Officer
& Head of Treasury, Mobile: +47 908 76 339
About Marine Harvest Group Marine Harvest Group is the
world's leading seafood company and largest producer of farmed
salmon, with presence in 24 countries and a total of 12 400
employees worldwide. The company is headquartered in Bergen,
Norway, and is listed on the Oslo Stock Exchange and New York Stock
Exchange (NYSE). Please see www.marineharvest.com for further
information.
Forward looking statements This release may be deemed to
include forward-looking statements, such as statements that relate
to Marine Harvest's goals and strategies, salmon prices, ability to
increase or vary harvest volume, production capacity, trends in the
seafood industry, restructuring initiatives, exchange rate and
interest rate fluctuations, expected research and development
expenditures, business prospects and positioning with respect to
market, demographic and pricing trends, strategic initiatives, and
the effects of any extraordinary events and various other matters
(including developments with respect to laws, regulations and
governmental policies regulating the industry and changes in
accounting policies, standards and interpretations) on Marine
Harvest's business and results. Forward-looking statements are
typically identified by words or phrases, such as "believe,"
"expect," "anticipate," "intend," "estimate," "may increase," "may
fluctuate," "plan," "goal," "target," "strategy," and similar
expressions or future or conditional verbs such as "may," "will,"
"should," "would," and "could." Forward-looking statements are
Marine Harvest's current estimates or expectations of future events
or future results. Actual results could differ materially from
those indicated by these statements because the realization of
those results is subject to many risks and uncertainties. Marine
Harvest ASA's registration statement on Form 20-F filed in 2015,
including the section captioned "Risk Factors," contain additional
information about factors that could affect actual results,
including: changes to the price of salmon including the value of
our biological assets; hedging risks; risks related to fish feed;
economic and market risks; environmental risks; operational risks;
risks related to escapes, disease and sea lice; product risks;
risks related to our acquisitions; financing risks; regulation
risks including relating to food safety, the aquaculture industry,
processing, competition and anti-corruption; trade restriction
risks; litigation risks; tax and accounting risks; strategic and
competitive risks; and reputation risks. All forward-looking
statements included in this release are based on information
available at the time of the release, and Marine Harvest assumes no
obligation to update any forward-looking statement.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
MHG Q1 2016 report http://hugin.info/209/R/2011471/744695.pdf
MHG Q1 2016 presentation
http://hugin.info/209/R/2011471/744696.pdf
HUG#2011471
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