Marine Harvest earnings jump

Marine Harvest earnings jump

Norwegian seafood manufacturer Marine Harvest has proposed an extraordinary dividend, having booked its "best second quarter in history".

The company said operating profit rose to NOK901m (US$147.9m) in second quarter, up from NOK231m in the comparable three-month period last year. Sales rose to NOK4.44bn, up from NOK4bn driven by higher pricing, which more than offset a 20% drop in fish harvest volumes.

The world's largest producer of farmed salmon proposed an extraordinary dividend of NOK0.05 per share.

Marine Harvest lowered its 2013 production outlook to 335 000 tonnes, but ramped up its full-year production estimates for 2014.

"The future prospects for MarineHarvest are also good. We are ramping up production estimates with 55 000 tonnes in 2014, to 390 000 tonnes," CEO Alf-Helge Aarskog said. "I am very encouraged by the strong market outlook in Europe."

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(Oslo, 21 August 2013) The Marine Harvest Group achieved an operational EBIT of NOK 901 million in the second quarter of 2013, compared to NOK 231 million in the corresponding quarter of 2012. Cash flow from operations was NOK 1 123 million (Q2 2012: 918 million).
 
- Backed by a strong market, Marine Harvest delivers the best second quarter in history. Naturally, we are very pleased with these results. As a consequence we are proposing an extraordinary dividend of NOK 0.05 per share. The future prospects for MarineHarvest are also good. We are ramping up production estimates with 55 000 tonnes in 2014, to 390 000 tonnes, says CEO Alf-Helge Aarskog.
 
Marine Harvest Group reported operational revenues and other income of NOK 4 445 million (NOK 4 005 million) in the second quarter of 2013. Total harvest volumes were 79 438 tonnes in the quarter.
 
Marine Harvest Norway achieved an operational EBIT per kilo of NOK 12.33 (NOK 3.37) in the second quarter, while Marine HarvestScotland and Marine Harvest Canada reported operational EBIT per kilo was NOK 13.55 and NOK 14.55 respectively (NOK 7.11 and NOK -4.18). As planned, Marine Harvest Chile did not harvest fish in the second quarter (NOK 0.64). The figures include contribution from Sales and Marketing, including VAP Europe. Marine Harvest VAP Europe reported an operational EBIT of NOK 7 million compared to NOK -5 million in the second quarter of 2012. Marine Harvest Group expects to harvest a volume of 335 000 tonnes gutted weight in 2013, of which 80 000 tonnes are expected to be harvested in the third quarter.
 
-I would like to highlight the results of Scotland and Canada, says Aarskog. These countries are examples of how a long term and systematic approach to biological issues improves not only the fish welfare; it also shows on the bottom line.
 
Cash flow from operations amounted to NOK 1 123 million (NOK 918 million) in the second quarter of 2013. Net financial items amounted to NOK -375 million (NOK -218 million). Net financial items include interest expenses of NOK 149 million (NOK 93 million). Net interest-bearing debt for second quarter was NOK 5 857 million, compared to NOK 5 177 million in the second quarter of 2012, and to 5 381 million at the end of 2012.
 
The equity ratio was 47.3% at the end of the quarter (50.1% at end of 2012). Annualised ROCE for the quarter was 16.7% and NIBD/Equity 47.2% at the end of the period.
 
- I am very encouraged by the strong market outlook in Europe, with future prices of NOK 34 for the remaining part of 2013 and NOK 35 in 2014. Marine Harvest is well positioned to take advantage of this as the majority of our volume will be originating in Europe, says Aarskog.

Original source: Marine Harvest