Marine Harvest salmon production on track in Q1, profits up

Published on
April 18, 2016

Marine Harvest harvested 97,000 metric tons (MT) of salmonids in the first-quarter of this year, exceeding its forecast for the period by 3,000 MT and the Q1 2015 harvest by 14,000 MT, according to the company’s latest trading update.

For the three-month period, the company’s Norwegian operations harvested 54,000 MT of salmon, down from 65,000 MT in Q1 2015, while its Chilean operations harvested 15,000 MT, down from 16,000 MT. However, there were larger harvests in both Scotland and Canada. Its Scottish operations harvested 13,000 MT, which was 6,000 MT more than in Q1 2015, while Canada harvested 12,000 MT, which was 2,000 MT higher than a year ago. A further 3,000 MT was harvested from its other production regions, up by 2,000 MT.

The Norway-headquartered salmon producer achieved operational earnings before interest and taxes (EBIT) of EUR 110 million (USD 124.5 million) in Q1 2016, up from EUR 95 million (USD 107.4 million) in in the corresponding quarter of 2015. 

Its salmon of Norwegian, Scottish and Canadian origin respectively achieved operational EBITs of EUR 1.85 (USD 2.09), EUR 0.65 (USD 0.73) and EUR 1.95 (USD 2.20) per kg in Q1 2016. At the same time, its salmon of Chilean origin achieved an operational EBIT of EUR -1.55 (USD -1.75) per kg.

The trading update stated that the operational EBIT for Norway was positively impacted by EUR 0.03 (USD 0.03) from its feed business, but that the operational EBIT for Chile was negatively impacted by the algal bloom of approximately EUR 0.60 (USD 0.68) per kg, and the operational EBIT for Scotland was negatively impacted by losses at its Rosyth processing plant of approximately EUR 0.60 per kg.

Reported net interest bearing debt (NIBD) was approximately EUR 960 million (USD 1.1 billion) at the end of the quarter.

Marine Harvest's complete Q1 2016 report will be released on 11 May.

Contributing Editor reporting from London, UK

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