Marine Harvest achieved operational earnings before interest and taxes (EBIT) of EUR 175.2 million (USD 202.9 million) in the second-quarter of this year, on the back of high demand and strong prices in all markets. However, this latest EBIT was lower than Q2 2017’s record EUR 197.9 million (USD 229.2 million), with the Norwegian-headquartered salmon farming company attributing the decline to reduced market prices from peak levels.
According to Marine Harvest's latest results statement, the reference price of EUR 7.16 (USD 8.29) per kg for salmon of Norwegian origin in the second-quarter was 1 percent below the record Q2 2017 level, but 15 percent higher than in Q1 2018.
“The global demand for salmon has been very good so far this year. This has led to high prices in all markets in the second-quarter. The result has also been impacted by strong performances by our business units in Norway and Chile, which both had their best second-quarter ever,” said Alf-Helge Aarskog, CEO of Marine Harvest.
Marine Harvest reported operational revenues of EUR 888.4 million (USD 1 billion) for the last quarter, up slightly from EUR 884 million in Q2 2017. The total harvest volume in the quarter was 78,346 metric tons (MT), down from 78,612 MT in Q2 2017 and 87,159 in Q2 2016.
As a result of biological issues in Norway, Scotland, and Canada, the company has reduced its harvest guidance for 2018 by 20,000 MT to 380,000 MT.
In the last quarter, salmon of Norwegian origin achieved an operational EBIT per kg of EUR 2.56 (USD 2.96), up from EUR 2.50 (USD 2.90) in Q2 2017, Marine Harvest said. Salmon of Scottish and Canadian origin reported operational lower EBITs per kg of EUR 2.38 (USD 2.76) and EUR 0.98 (USD 1.14), respectively. Salmon of Chilean origin reported operational EBIT of EUR 1.86 (USD 2.15) per kg in the quarter, an improvement from EUR 1.46 (USD 1.69).
MH Consumer Products reported an operational EBIT of EUR 13.1 million (USD 15.2 million), down from EUR 19.2 million (USD 22.2 million) in Q2 2017, while MH Feed reported an operational EBIT of EUR 800,000 (USD 926,898), down from EUR 1.8 million (USD 2.1 million).
The results statement also highlighted that after being given the approval by Canada's Competition Bureau to buy Northern Harvest in June, Marine Harvest completed the transaction in July. Northern Harvest will be consolidated from the third-quarter.
“This is an important investment for Marine Harvest and shows that we are committed to growing the industry in Canada. We believe the prospect for salmon farming in Atlantic Canada is great. Although this is a new area for us, we are working in close cooperation with authorities, local communities and other industry players to realize success,” said Aarskog.
