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Marine Harvest reveals record third-quarter profits

Marine Harvest chief executive Alf Helge Aarskog revealed record third-quarter results. Photo: Daniella Balin.
Marine Harvest chief executive Alf Helge Aarskog revealed record third-quarter results. Photo: Daniella Balin.

Marine Harvest has made a record third-quarter operating profit in 2017, reporting operational earnings before interest and tax (EBIT) of €194 million, compared to €180 million in the corresponding quarter of 2016.

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But the world's biggest salmon farmer also reduced volume guidance for 2017 by 8,000 tonnes due to biological issues in Norway. And it said it expected volumes in Scotland to decline temporarily in 2018 due to change in stocking pattern.

According to its Q3 report released today, Scotland had good results supported by higher contract prices, and improved costs year-over-year. But Marine Harvest that biological performance in Scotland was somewhat more challenging going forward, and costs were to increase in the fourth quarter of this year.

Record high results

The report stated that the company continued to have a very good contribution from Marine Harvest Ireland, although Q4 costs were also expected to increase.

"Driven by high salmon prices on strong demand and improved contributions from our sales contracts, we achieved record high operational results in the third quarter," said chief executive Alf-Helge Aarskog.

"It is encouraging to see that costs decreased for our farming operations in Norway, Chile and Canada in the quarter. Marine Harvest continues to have the utmost focus on cost reduction throughout the organisation."

Biological issues

Marine Harvest Group reported operational revenues of €868 million (€850 million Q3 2016) in Q3 2017. Total harvest volume was 95,338 tonnes in the quarter (97,215). Harvest guidance for 2017 has been reduced to 369,000 tonnes from 377,000 tonnes because of biological issues in Norway.

Salmon of Norwegian origin achieved an operational EBIT per kilo of €2.24 (€1.98) in the third quarter, while salmon of Scottish and Canadian origin reported operational EBIT per kilo of €2.33 and €1.73 respectively (€0.60 and €2.63). Ireland's operational EBIT was €3.23 (€1.60). Salmon of Chilean origin reported operational EBIT per kilo of €1.30 in the quarter (€1.43). MH Feed reported an operational EBIT of EUR 9.4 million (€12.4 million). MH Consumer Products reported an operational EBIT of EUR 10.4 million (€2.6 million).

"I am also pleased to see that our value-added production continues its improvements in a challenging quarter," said Aarskog.

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