Marine Harvest displaying significantly improved results in the first quarter

May 5, 2010 10:58

Marine Harvest ASA achieved a significant improvement in operational EBIT, increasing to NOK 608 million in the first quarter of 2010, from NOK 137 million in the corresponding quarter in 2009. Earnings per share improved from NOK 0.06 to NOK 0.17, reports ( with reference to Marine Harvest.

A solid demand and tight supply resulted in record high prices. Supported by operational improvements in key business units, the group achieved an operational EBIT-margin of 17.7% compared to 4.2% in the first quarter of 2009.

Marine Harvest reported operating revenues of NOK 3 431 million (NOK 3 298 million) in the first quarter of 2010. Higher prices more than compensated for a 4% drop in harvest volumes from 76 177 to 73 061 tonnes. Net earnings in the period were NOK 626 million (NOK 217 million).

- Our first quarter results confirm the favourable market balance, with continued strong demand in key markets and limited global supply. Also in this quarter, we achieved operational improvements in Norway, VAP Europe, Canada and Chile, comments Acting CEO of Marine Harvest ASA, Thomas Farstad.

Cash flow from operations amounted to NOK 805 million (NOK 393 million) in the first quarter of 2010. Net financial items amounted to a positive NOK 32 million (NOK 172 million), mainly due to the appreciation of NOK versus other currencies. Net financial items include net interest expenses of NOK 69 million (NOK 116 million). Classification of currency effects, previously accounted for under Operational EBIT, has been changed and is now reported under net currency effects. Comparable figures have been restated. Net interest-bearing debt was reduced to NOK 4 140 million (5 075 in Q4 2009). The value of the conversion option of the convertible bonds, amounting to NOK 272 million, is classified as non interest-bearing debt. The refinancing of the Group is now in place.

The equity ratio increased to 60.4 percent at the end of the quarter. Based on the strong financial position, and the strong cash flow, the Board of Directors has resolved to propose for the AGM a dividend of NOK 0.35 per share, to be distributed in June with ex.dividend date 10 June 2010.

Marine Harvest Norway achieved an operational EBIT per kg of NOK 8.59 (5.37) in the first quarter, while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK 8.36 and NOK 6.21 respectively (5.10 and 6.96). Marine Harvest VAP Europe reported an operational EBIT-margin of 4.5% (3.4%) in the first quarter of 2010. Marine Harvest Chile achieved an operational EBIT of NOK - 10 million (NOK - 204 million). The Chilean farming operations achieved a break-even EBITDA.

Marine Harvest expects to harvest a volume of 298 000 tonnes in 2010, of which 68 000 tonnes is expected to be harvested in the second quarter.

- We expect a strong market for salmon in 2010 and 2011, and have recently entered into sales contracts confirming the strength of the market. There should also be a potential for improvement in achieved prices through a better organised and more coordinated sales function, including VAP sales activities, says Thomas Farstad.

About Marine Harvest

Marine Harvest is the world's leading seafood company and largest producer of farmed salmon, with presence in 18 countries and about 4 800 employees worldwide. The company is headquartered in Oslo, Norway, and is listed on the Oslo Stock Exchange.

For further information, please contact:

Jørgen Andersen, CFO, Tel: +47 21 56 20 09, Mobile: +47 951 43 854
Henrik Heiberg, Finance Director, Tel: +47 21 56 20 11, Mobile: +47 917 47 724

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