Strong results from Marine Harvest

Solid demand and tight supply led to favourable prices. Achieved prices were lower than spot market prices due to fixed price contracts. The strong results opens up for a dividend of about NOK 0.25 per share based on the 2009 results. Compared to Q4 2008, Marine Harvest expects global supply to fall with 13 - 17 percent in the fourth quarter, in a market with solid demand. Marine Harvest reported operating revenues of NOK 3 569 million in the third quarter of 2009 (3 089), with operational EBIT of NOK 625 million in the period (103). Net Earnings were NOK 626 million (- 1 765). A total volume of 79 554 tonnes HOG (73 354) was harvested in the third quarter of 2009. - Despite a steep fall in harvest volumes in Chile, we have been able to increase our global harvest volumes with 8 percent in the third quarter compared to the third quarter of 2008, and we have taken advantage of the favourable market for salmon. I'm pleased to announce that the strong results opens up for a dividend of about NOK 0.25 per share based on the 2009 results, says Åse Aulie Michelet, CEO of Marine Harvest ASA. Cash flow from operations was NOK 811 million (428) in the third quarter 2009. Due to the strong cash flow and the stronger NOK versus EUR and USD, net interest bearing debt was reduced by NOK 932 million in the quarter to NOK 5 093 million. The equity ratio increased to 55.2 % at the end of the quarter. Net financial items amounted to an income of NOK 264 million (-391) in the third quarter of 2009. Net financial items include net interest expenses of NOK 84 million, down from NOK 139 million in the corresponding quarter last year. Net positive currency effects amounted to NOK 331 million (-107), mainly due to the strengthening of the NOK versus EUR and USD. Marine Harvest Norway achieved an operational EBIT per kg of NOK 6.29 in the third quarter (3.58), while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK 5.33 and NOK 8.67 respectively (3.75 and 6.22). Marine Harvest VAP Europe reported an operational EBIT-margin of 5.9 % in the third quarter of 2009 (4.8 %). Marine Harvest expects to harvest a volume of 322 000 tonnes in 2009, which is an increase of 9 000 tonnes from earlier guiding for the year. 82 000 tonnes is expected to be harvested in the fourth quarter. - Global demand has turned out to be solid in 2009. Even with a 7 percent increase in supply to the EU, prices increased by 4 percent, in EUR, in the third quarter, compared to the same quarter of 2008. Strong growth in harvest volumes in Norway, and sales from inventories in Chile has partly counteracted the effect of the steep decline in harvest volumes in Chile the first nine months. In the fourth quarter global supply will fall between 13 and 17 percent, while demand is expected to remain solid. Looking into 2010 global supply is expected to fall by 3 - 7 percent as supply from Chile will fall further and volume growth in Norway will be weaker than in 2009, says Michelet.