Marine Harvest confirms best ever third-quarter results

Published on
October 31, 2018

Bergen, Norway-headquartered Marine Harvest has confirmed operational earnings before interest and taxes (EBIT) of EUR 207.1 million (USD 234.7 million) for the third quarter of 2018, up from EUR 194.2 million (USD 220.1 million) in Q3 2017, and a new record for the three-month period. The increase of EUR 12.9 million (USD 14.6 million) from the comparable quarter was mainly volume-driven, with increased outputs from both the farming and feed divisions. 

The salmon company reported record high Q3 operational revenues of EUR 990 million (USD 1.1 billion) for the last quarter, up from EUR 868 million (USD 983.7 million) in Q3 2017. The total harvest volume in the quarter was 109,896 metric tons (MT), up from 95,338 MT in Q3 2017. 

Its harvest guidance for 2018 remains unchanged at 380,000 MT, while its estimated volume for 2019 is 430,000 MT.

“This has been a very good quarter for Marine Harvest. We managed to generate a record high operational result for the third-quarter as demand for salmon continues to increase the value of our products,” Marine Harvest CEO Alf-Helge Aarskogsaid.

In the third-quarter, salmon of Norwegian origin achieved an operational EBIT per kilogram of EUR 2.25 (USD 2.55), up from EUR 2.24 (USD 2.54) in Q3 2017. Salmon of Scottish and Canadian origin recorded operational EBIT per kilogram of EUR 1.36 (USD 1.54) and EUR 1.05 (USD 1.19) respectively, with the Scottish EBIT down from EUR 2.33 (USD 2.64) and Canada’s down from EUR 1.73 (USD 1.96) per kg. Salmon of Chilean origin recorded operational EBIT of EUR 1.28 (USD 1.45) per kg in the quarter, a decline from EUR 1.30 (USD 1.47) a year previously. 

According to the company’s Q3 2018 results statement, while sea lice remains a challenge, the biological cost of fish harvested in Norway decreased by six percent compared to Q3 2017, mainly due to three percent lower feed costs and 29 percent lower health costs per kilogram. The cost decrease is the result of improved biology and positive scale effects from higher volumes, it said.

Biological costs in Chile decreased by two percent year-on-year, but in Scotland and Canada, they increased by 20 percent and 10 percent respectively.

MH Consumer Products recorded an operational EBIT of EUR 16 million (USD 18.1 million), up from EUR 14.6 million (USD 16.5 million) in Q3 2017. In total, 43,074 MT of products were sold in the quarter, representing an increase of 27 percent.

MH Feed reported an operational EBIT of EUR 7.3 million (USD 8.3 million), down from EUR 9.4 million (USD 10.7 million), although its production was up to 97,564 MT.

“Marine Harvest Feed produced record high volumes in the third quarter," Aarskog said. "I am very pleased that the growth continues with the opening of the new feed factory in Scotland in 2019. It is also very encouraging to see the growth and margin achievements in our value-added production in the U.S. and Asia."

Contributing Editor reporting from London, UK

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