Marine Harvest ASA reported an operational EBIT of MNOK 145 in the second quarter of 2008, compared to MNOK 407 in the corresponding quarter last year, due to the biological situation in Chile, a higher share of downgraded fish and increased costs in Norway. The operational EBIT is improved from the loss of MNOK -65 in the first quarter. The company has implemented the planned operational actions in Chile in the second quarter. A new business plan for Chile will be concluded during the third quarter.
– Marine Harvest is not satisfied with the financial results for the group in the second quarter. However, several strong measures to improve the operations have been implemented and we are pleased with the improvements achieved so far in Chile and Scotland, says Åse Aulie Michelet, chief executive officer of Marine Harvest, and continues:
– In Chile, we closed the Chinquihue secondary processing plant in April and the Teupa primary processing plant in July. Although the biological situation is serious, the number of new outbreaks is declining for Marine Harvest.
Marine Harvest reported operating revenues of MNOK 3,195 in the second quarter 2008 (3,592), and an operational EBIT of MNOK 145 in the period (407). The reduction in revenues relates mainly to the decline in realized prices, lower volumes and negative currency effects. A total volume of 80 059 tonnes HOG was sold in the second quarter 2008, compared to 85 303 tonnes HOG in the same quarter last year.
Cash flow from operation improved to MNOK 426 in the second quarter 2008, compared to MNOK 376 in the second quarter of 2007. During the second quarter, Marine Harvest’s financing syndicate agreed to amend a cash flow related covenant through 2009, to allow for a continued restructuring in Chile without using the equity market.
Marine Harvest Norway delivered an operational EBIT per kg of 3.41 in the second quarter (6.51), while Marine Harvest Chile had an operational EBIT per kg of – 5.51 in the period (2.03). Marine Harvest Canada and Marine Harvest Scotland reported an operational EBIT per kg of 2.93 and 3.14 respectively (7.21 and 3.10). Marine Harvest VAP Europe reported an EBIT margin of 4.5 per cent in the second quarter (4.8).
– The farming operations in Norway had a challenging quarter, with a higher share of downgraded fish and increased costs. Marine Harvest Canada and Marine Harvest Scotland showed a positive development, while Marine Harvest VAP Europe delivered margins in line with the corresponding quarter last year, says Aulie Michelet.
As a result of mortality and accelerated harvesting, Marine Harvest will have a substantial reduction of the harvested volume in Chile in the second half of 2008.
– The restructuring continues and a new business plan for Chile will be concluded during the third quarter. As a part of this plan, impairment of assets, including licenses and goodwill will be considered. We expect, based on the price development so far in the second half of 2008, combined with the operational measures initiated, that the operational results for Q3 and Q4 2008 will show a clear positive development, compared to Q2 2008, says Åse Aulie Michelet,
