Record earnings for Marine Harvest

MARINE Harvest achieved all-time high earnings in 2016, doubling its operational EBIT to EUR 700 million, compared to EUR 347 million in 2015.

Announcing the figures, the Norwegian company said its fourth quarter EBIT was EUR 259 million, compared to EUR 90 million in the corresponding quarter of 2015.

‘Driven by high salmon prices on strong demand and reduced supply, we achieved record high operational results in the fourth quarter,’ said CEO Alf-Helge Aarskog.

He said 2016 was ‘a great year for Marine Harvest, with both record earnings and cash flow generation. The company said total harvest volume was 99,634 tonnes in the final quarter, a drop of almost 10 per cent compared to 110,551 tonnes in the same period in 2015.

Problems with lice in Norway was an important reason why Marine Harvest produced 30,000 tonnes less salmon than planned last year.

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 EUR 2.70 (1.47) in the fourth quarter, 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).

Salmon of Chilean origin reported operational EBIT per kilo of EUR 2.61 in the quarter (EUR -1.31).

In Scotland, results in the final quarter were impacted by low harvest volume and high cost due to biological issues. Consequently, biological costs per kg increased by 28 per cent in the fourth quarter of 2016 compared to 2015.

However, the cost level improved compared to the third quarter of 2016, due to a general improvement in the biological performance of the fish being harvested.

The company also announced plans to open a new processing facility in British Columbia this year, following the recent expansion in Dallas at the end of 2016.

But the group will be delisting from the New York Stock Exchange.