Farmed salmon. (Photo: Marine Harvest)

Marine Harvest achieves record results in 2016

Benefited by high salmon prices, product strong demand, and reduced supply, the aquaculture company Marine Harvest achieved record operating results in the last three months of 2016.

The company reported operating EBIT of EUR 259 million in the fourth quarter of last year, compared to EUR 90 million in the corresponding period of 2015.

The Norwegian giant also registered a record operating EBIT for the full year 2016 of EUR 700 million, compared to EUR 347 million in 2015.

The contraction in supply in the fourth quarter was due to a lower harvest in Norway, and also in Chile, in the latter country because of a harmful algal bloom.

Marine Harvest reported operational revenues of EUR 1,018 million, vs. EUR 867 million a year before.

Total harvest volume was 99,634 tonnes in the last three months of last year (vs. 110,551 tonnes in Q4 last year), which was mainly ascribed to lower production following biological challenges.

However, harvest guidance for 2017 is 403,000 tonnes, which is in line with the previous guidance.

Marine Harvest detailed that the salmon of Norwegian origin achieved an operational EBIT per kilo of EUR 2.70 (vs. 1.47 in the same period of 2015), while salmon of Scottish and Canadian origin reported operational EBIT per kilo of EUR 1.83 and EUR 3.33 respectively (EUR -0.30 and EUR 0.36 in the last quarter of 2015).

Meanwhile, operational EBIT for salmon of Chilean origin was of EUR 2.61 in the quarter, compared to EUR -1.31 in the same period last year.

As regards consumer products, Marine Harvest obtained an operational EBIT of EUR 22.9 million well above the EUR 9.8 million reported in the last quarter of 2015.

The total volume sold in the fourth quarter of 2016 was 35,222 tonnes product weight, which was marginally down for chilled sales, but increased for fresh sales.

The feed division yielded an operational EBIT of EUR 10.8 million vs. EUR 8.0 million in the same period in 2015. In this regard, the salmon producer explained that it will continue to develop its production of smolt and broodstock diets to reduce the dependency on third party feed purchases in those areas.

According to Marine Harvest CEO Alf-Helge Aarskog, efforts in North America will be strenghened with the new opening of the Dallas plant at the end of the fourth quarter and new value-added facilities in British Columbia at the end of the second quarter of 2017.

In addition, he pointed out that Marine Harvest Canada has received a building permit for the construction of a value added plant in Surrey, near Vancouver, which is expected to start operations towards the end of the second quarter of 2017.

The company also plans to buy aquaculture assets on Canada's east coast, which in the future may help it reinforce its supply in the North American market.
 

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Address:	Stortingsgaten 8
City:	Oslo
State/ZIP:	(N-0161)
Country:	Norway
Phone:	+47 21 56 20 00
Fax:	+47 21 56 20 01
E-Mail:	[email protected]
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