Marine Harvest net profit down, forecast 11% growth

News
1915

Norway-based Marine Harvest reported its third-third quarter net profit fell to €150.6 million, or down five percent year-on-year on revenues that were up €18 million to €867.8 million.

The result was a “solid” third quarter that was “in-line with expectations”, SpareBank 1 Markets’ equity analyst, Tore Toenseth, said in a communique. Marine Harvest will pay out a NOK3.40 dividend, which was above the consensus NOK3.10.

With third-quarter production reaching 95,000 tons, the company could report record operational EBIT of €194 million or above Sparebank’s €191 million estimate. Costs have come down in Norway, where most of the company’s salmon are produced, and “underlying farming operations are 15-percent (more efficient) than we forecasted”, Toenseth said.

Meanwhile, the company’s efficient Scottish production has reported lower volumes, and Canadian per-kilo earnings still lag results in Norway. Not unexpectedly, MHG cut its 2017 volume guidance to 369,000 tons (down two percent) from 377,000 t. Growth guidance for  2018 is 410,000 t, or up 11 percent over 2017.