Marine Harvest on Thursday reported an operating profit of NOK 55 million (USD 8.5 million, EUR 6.4 million) in the first quarter, up from NOK 49 million (USD 7.6 million, EUR 5.7 million) in the first quarter of 2008.
The world's largest farmed salmon producer also said it will restructure its Chilean operations in the second quarter. The spread of infectious salmon anemia (ISA) forced the company to prematurely harvest "low weight, low quality" fish at a high cost and a low per-kilogram price.
As a result, Marine Harvest Chile posted a per-kilogram operational loss of NOK 13.74 (USD 2.08, EUR 1.55) in the first quarter, while Marine Harvest Norway and Marine Harvest Canada delivered an operational profit of NOK 2.79 (USD 0.43, EUR 0.32) and NOK 5.88 (USD 0.91, EUR 0.68), respectively.
Despite its struggle with ISA, Marine Harvest CEO Ase Aulie Michelet remains optimistic about the remainder of this year.
"With strong demand, increasing prices and decreasing costs, I have an optimistic view on the development for the rest of 2009," he said. "Both demand and prices have developed favorably so far in 2009. From April, global supply of salmon will fall. We have achieved good cost control in Norway, Canada and Scotland. From the second quarter we will gradually start harvesting salmon fed on lower cost feed."
Marine Harvest expects to harvest 296,000 metric tons of salmon and trout in 2009, including 73,000 metric tons in the second quarter.
"During the second quarter we will implement a new business plan for Chile," said Michelet. "This will have negative financial consequences on EBIT in this quarter, mainly as accounting effects. I am very encouraged by the strong market and our operational improvements in key regions and expect continued improved performance in 2009."
