Marine Harvest chief hails record profits in Scotland
Marine Harvest chief executive Alf-Helge Aarskog hailed the performance of its Scottish division as he unveiled record first quarter profits.
High prices and reduced operating costs helped the Scottish division achieve operational EBIT of €55.4 million in the first quarter, up from €8.5 million in the same quarter last year, despite CMS outbreaks at two sites leading to €700,000-worth of mortalities.
In total the group achieved an operational EBIT of €220 million in the first quarter of 2017, compared to €112 million in the corresponding quarter of 2016.
Aarskog said: “Driven by all-time high salmon prices, we achieved record high operational results in the first quarter. It is especially encouraging to see strong operational performance in Marine Harvest Scotland and Marine Harvest Canada.”
The company’s Q1 report reveals that 17,772 tonnes gutted weight were harvested in Scotland, up from 12,620 in the same quarter last year, while the EBIT/kg was €3.12, up from €0.68 in the same period in 2016. The level of sea lice was reduced compared to the first quarter of 2016.
The group reported total operational revenues of €892 million in the first quarter of 2017 (€810 million in 2016). Total harvest volume was 83,768 tonnes in the quarter (96,613 in Q1 2016). Harvest guidance for 2017 is 403,000 tonnes, which is in line with the previous guidance.
Salmon of Norwegian origin achieved an operational EBIT per kilo of €2.52 (€1.87 in 2016) in the first quarter, while salmon of Canadian origin reported operational EBIT per kilo of €3.42 (€1.97 in 2016). Salmon of Chilean origin reported operational EBIT per kilo of €1.87 in the quarter (€-1.55 in 2016). MH Feed reported an operational EBIT of €0.1 million (€1.6 million in 2016). MH Consumer Products reported an operational EBIT of €9.6 million (€-0.6 million in 2016).
Aarskog added: “I am very pleased with the result Marine Harvest Consumer Products has achieved so far this year, seasonality taken into account. Consumer Products has improved its operations in all areas.
“We are also pleased to announce that Marine Harvest has entered into a term sheet to refinance its existing bank facility with a senior secured five year €1,206 million credit facility with DNB, Nordea, ABN Amro, Rabobank, Danske Bank and SEB, says Aarskog. The principle financial covenant of the facility is an equity ratio of no less than 35 per cent.”
Marine Harvest’s board of directors has proposed a quarterly dividend of NOK 3.00 per share, subject to approval by the Annual General Meeting on 1 June 2017.
