MH record “in line with expectations”

“The Q2 trading update shows EBIT at NOK 1.2bn which is pretty much in line with our expectations,” he said.

“They deliver EBIT margins NOK 12.1 (expected NOK 11.5) in Norway, while UK came in at NOK 12.1 (expected NOK 12.0). The results from Chile and Canada on the other hand were lower than expected. Overall, the volumes were higher than expected, mainly owing to higher than expected harvesting in Europe. As they maintain their 417k tonne volume guidance, this means less volume than previously expected to be harvested in 2H 2014. This is also an indicator that the harvesting pressure to some extent has moved from Q3 to Q2.”

“A re-financing of their credit facilities was also announced this morning,” he continued. “Key takes are less financial covenants and a flexibility to double to EUR 425m credit facility if required. In other words; an option for an M&A facility. Hence, they position themselves for a more active M&A approach and they have previously communicated that they are exploring such opportunities in Norway and Chile. The facility also contains less financial covenants as they now only have the Equity ratio left (above 35%).”