Poor quarter for MH Scotland
Marine Harvest Scotland processed 11,000 tonnes of salmon in Q2, for an EBIT/kg of €0.45 – a “disappointing” result caused by “high cost and high contract share”, according to Kolbjørn Giskeødegård.
The Group’s preliminary Q2 report, which was published today, reveals an overall salmonid harvest of 87,000 tonnes – 54,000 of which came from Norway, 11,500 from Canada and 7,000 from Chile – just under the 90,000 tonnes predicted.
Operational EBIT for the Group was approximately €147 million in Q2 2016 (€84 million in Q2 2015). EBIT per kilo in the other regions was €2.10 in Norway, €2.35 in Canada and -€0.25 in Chile.
According to Giskeødegård, the Nordea analyst, EBIT is 8% lower than expected, which “can be explained 50/50 by lower volumes than guided and lower margin achievement. We suspect this is mainly due to weaker than expected performance from its downstream operations (MHG Consumer Products).
He adds: “Despite a firm salmon price development and US prices at 4-year high in the quarter, the cost base in Chile is still so high that they enter into a negative EBIT figures, although less negative than expected. The Canadian figures are good as expected, where a high USA price and ‘normal’ cost base are key drivers for the improvement. UK is still disappointing owing to high cost and high contract share, the latter also keeping margins down in Norway.”
