Strong operational earnings for Marine Harvest in Q4
(Oslo, 14 February 2018) In the fourth quarter of 2017 Marine Harvest achieved an operational EBIT of EUR 181 million. For 2017 as a whole Marine Harvest made an operational EBIT of EUR 792 million, which is the best year in the history of the Group.
Marine Harvest Group achieved an operational revenue of EUR 1 010 million in the quarter and EUR 3 654 million for 2017. Full year turnover is record high for the Group.
Supported by the results and a solid financial position, the Board has resolved a quarterly dividend of NOK 2.60 per share. The dividend will be distributed as ordinary dividend, and not as repayment of paid-in capital.
- Global harvest growth in the industry put pressure on the salmon prices in all markets in the quarter. It is encouraging to see that the supply is growing, but the market needs time to adapt to the recovery after the significant global supply contraction in 2016, says CEO Alf-Helge Aarskog.
Marine Harvest reported operational revenues of EUR 1,010 million (EUR 1,018 million) in the fourth quarter of 2017. Total harvest volume was 112 628 tonnes in the quarter (99 634 tonnes). Harvest guidance for 2018 is 410 000 tonnes.
Salmon of Norwegian origin achieved an operational EBIT per kilo of EUR 1.77 (2.70) in the fourth quarter, while salmon of Scottish and Canadian origin reported operational EBIT per kilo of EUR 1.19 and EUR 0.98 respectively (EUR 1.83 and EUR 3.33). Salmon of Chilean origin reported operational EBIT per kilo of EUR 1.03 in the quarter (EUR 2.61). The figures include contribution from Sales and Marketing, including MH Consumer Products. MH Consumer Products reported an operational EBIT of EUR 25.9 million (EUR 23.6 million). MH Feed reported an operational EBIT of EUR -2.8 million (EUR 10.8 million).
- 2017 was a great year for Marine Harvest financially, and I am proud of the work all Marine Harvest staff have put in to accomplish this. However, I am concerned about the rising cost and the challenging biology. Hence, we have initiated a global cost savings program with a target of EUR 50 million savings. The savings are expected to be realized in all parts of the organization, says Aarskog.
For further information, please contact:
Ivan Vindheim, CFO, Mobile: +47 958 71 310
Kim Galtung Døsvig, IR Officer & Head of Treasury, Mobile: +47 908 76 339
About Marine Harvest Group
Marine Harvest Group is the world's leading seafood company and largest producer of farmed salmon, with presence in 24 countries and a total of 12 717 employees worldwide. The company is headquartered in Bergen, Norway, and is listed on the Oslo Stock Exchange.
Please see www.marineharvest.com for further information.
Forward looking statements
This release may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest's goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Marine Harvest's business and results. Forward-looking statements are typically identified by words or phrases, such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," "plan," "goal," "target," "strategy," and similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are Marine Harvest's current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Marine Harvest ASA's Annual Report contains additional information about factors that could affect actual results, including: changes to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this release are based on information available at the time of the release, and Marine Harvest assumes no obligation to update any forward-looking statement.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.