Profit realized in Q3 despite high production costs
January 11, 2016
By John Nickum
Norwegian salmon giant Marine Harvest Group (NYSE:MHG/ OSL:MHG) reported an operational earnings before interest and taxes (EBIT) of NOK 720 million, or $83 million (USD) for the third quarter of 2015, down from NOK 912 million, or $106 million dollars, in 2014.
The company also reported revenues of $840.29 million dollars, net earnings of $25.22 million and earnings per share (EPS) of USD 0.06 and total harvest volume of 105,963 tons. Harvest guidance for 2015 is 425,000 tons, 5,000 tons lower than the previous guidance. Guidance for 2016 is 440,000 tons, according to the company.
“I am very pleased with another record-breaking quarter in Marine Harvest Fish Feed. There is a strong demand for salmon in Europe and the market balance for 2016 is expected to remain tight,” said CEO Alf-Helge Aarskog, during the announcement of the quarterly results.
Salmon of Norwegian origin achieved an operational EBIT per kilo of NOK 10.11 in the third quarter (compared to NOK 9.71 the same quarter 2014), while salmon of Scottish and Canadian origin reported operational EBIT per kilo of NOK 6.14 and NOK 1.36 respectively (NOK 9.95 and NOK 4.70). Salmon of Chilean origin reported operational EBIT per kilo of NOK -6.50 in the quarter (NOK 6.06).
“The production cost in the quarter is high due to biological issues and negative impact from currency. Increasing sea lice mitigation cost in Norway is a concern. To combat this, Marine Harvest has implemented a new sea lice management strategy,” said Aarskog.
— Erich Luening