Supply-side “protection” guiding MHG borrowing

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Marine Harvest on Wednesday morning made it known that it was increasing its net interest-bearing debt target from EUR 1.05 billion to EUR 1.2 billion, and the stated reason is an expected increase in earnings to pay down that debt in the years to come.

During today’s presentation of last year’s results, Marine Harvest Group finance director, Ivan Vindheim, expanded on his reasons for more borrowing. With today’s technology, the company thinks the regulatory regime in Norway will help limit supply for the foreseeable future.

“When we set those debt levels, we did not have the regulation we have today. Regulating (the industry) puts an effective stopper on supply growth, so we see some protection on the price side that we did not have before,” Vindheim was quoted aby TDN as saying.

“We have considered raising this level for a long time but decided to do it now. When we’ve expanded our business, we’ll also increase our debt target, because there has to be a connection there,” he said.