Marine Harvest Posts All-time High Third Quarter Results

Bergen, Norway-headquartered Marine Harvest on November 1 reported operational EBIT of EUR 194 million in the third quarter of 2017, which is up from EUR 180 million generated during the corresponding quarter of 2016.

Supported by the good results, a strong market outlook, and a solid financial position, the board of directors of the world’s largest producer of farmed Atlantic salmon has proposed a quarterly dividend of NOK 3.40 per share.

“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 CEO Alf-Helge Aarskog.

MH salmon“It is encouraging to see that costs decreased for our farming operations in Norway, Chile and Canada during the quarter. We continues to have the utmost focus on cost reduction throughout the organization.”

Marine Harvest Group reported operational revenues of EUR 868 million in the third quarter of 2017, up from EUR 850 million during the same period the year before.

Total harvest volume was 95,338 tons in the quarter, down from 97 215 in Q3 2016. Harvest guidance for 2017 has been reduced to 369,000 tons because of biological issues in Norway.

Salmon of Norwegian origin achieved an operational EBIT per kilo of EUR 2.24 in the third quarter (up from 1.98), while salmon of Scottish and Canadian origin generated operational EBIT per kilo of EUR 2.33 and EUR 1.73 respectively, compared with EUR 0.60 and EUR 2.63 the year before. Salmon produced in Chile achieved operational EBIT per kilo of EUR 1.30 in the quarter, compared with EUR 1.43 in Q3 2016.

MH Feed reported an operational EBIT of EUR 9.4 million, which was down from EUR 12.4 million the previous year. MH Consumer Products logged an operational EBIT of EUR 10.4 million, up from EUR 2.6 million). 

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

The company’s value-added range, much of which is sold as frozen private label products at major retail chains as well as through foodservice channels, includes breaded, dusted and pre-fried fillets, grilled, battered and sauced steaks and portions, to complete ready meals.

Marine Harvest product development teams spot market trends and identify opportunities and requirements for new products. Often this is done in close cooperation and exclusively with customers. At other times new products are directly brought to the market by the producer and later become widely available under numerous store brands.

It is estimated that over six million meals containing Marine Harvest farmed salmon and other seafood products that it supplies are consumed every day. The company employs 12,717 people who work in 24 countries around the world.