Marine Harvest rides out falling salmon prices
Marine Harvest ASA on Wednesday released its second-quarter results, including an operating income of NOK 894 million, up from NOK 792 million during the same period last year.
The Norwegian company’s operating revenues reached NOK 4.19 billion in the second quarter of 2011, up from NOK 3.58 billion during the same period last year. Net earnings totaled NOK 685 million in the second quarter of 2011, down from NOK 741 million.
“During the last part of the second quarter, our industry experienced a sudden and significant increase in supply, leading to a significant decrease in spot prices. Despite this supply shock, Marine Harvest was able to improve average achieved prices in the quarter. Overall operational performance in the group was satisfactory, with record results in Scotland,” said Marine Harvest CEO Alf-Helge Aarskog.
Marine Harvest harvested 79,932 metric tons of Atlantic salmon in second quarter of this year, up from 68,102 metric tons during the same period in 2010. The world’s largest farmed salmon producer expects to harvest 335,000 metric tons of salmon in 2011, of which 79,000 metric tons is projected to be harvested in the third quarter.
The company yielded 295,683 metric tons of salmon in 2010, 327,100 metric tons in 2009 and 326,864 metric tons in 2008.
“Global supply in the second quarter was at the same level as in the second quarter of 2008, but at a significantly higher price level,” said Aarskog. “The underlying demand growth which has materialized into higher prices the last years must now be utilized to increase volumes at a different price level. In the second half of 2011, we have a strong contract portfolio entered into at prices reflecting the average achieved price level in the second quarter.”