Marine Harvest hits record high - but with rising costs

MARINE Harvest Group more than doubled its third quarter earnings for 2016 following a bounce back in Chile, the Norwegian company said on November 2.

It achieved operational earnings before interest and tax (EBIT) of EUR 180 million in Q3, compared to EUR 78 million in the corresponding quarter of 2015.

‘Driven by seasonally high salmon prices on strong demand and reduced supply, we achieved record high operational results,’ said CEO Alf-Helge Aarskog. ‘It is especially encouraging to see that our business unit in Chile delivers positive earnings after many quarters with negative results.’

Marine Harvest Group reported operational revenues of EUR 850 million (EUR 752 million) in the third quarter of 2016.

Total harvest volume was 97,215 tonnes in the quarter (down from 105,963 tonnes). Harvest guidance for 2016 is 381,000 tonnes.

Scottish volumes decreased by 16 per cent compared to the same period last year, slightly more than expected. Biological challenges related to sea lice and AGD impacted the harvesting volumes.

Growth has improved in the third quarter due to a reviewed feeding strategy, but this was more than offset by high mortality in certain areas.

Several of the Scottish sites harvested in the quarter had a high cost level. Biological costs per kg increased by 36 per cent in the third quarter of 2016.

Although the sea lice situation has been challenging, increased efficiency of treatments has resulted in a significant reduction of sea lice numbers compared to the second quarter of 2016 and the third quarter of 2015.

In Norway, the biological cost of harvested fish increased by 17 per cent.