Marine Harvest, Leroy Seafood Group and Grieg Seafood have reduced their harvest volume estimates for 2017. Investors have given this the thumbs-down.
In connection with today’s reporting of the results for the second quarter, Marine Harvest cut the production prediction for 2017 by 26,000 tonnes to 377,000 tonnes. The main reason is biological challenges in Norway, with a reduced estimate of harvesting volume of 25,000 tonnes.
Nordea Markets points out, according to TDN Finans, that Marine Harvest now plans to slash its Norwegian output by 20 percent in just two years and announces that the brokerage firm will now cut its estimates for Marine Harvest’s operating profit as a result of the volume cut. The results were in line with expectations, but a significant drop in the volume prediction is negative for the prospects, and the slightly less negative outlook for the second half of 2017 can not quite make up for it, summarizes Nordea.
Marine Harvest shares fell by 3.9 percent shortly after the stock market opened Thursday.
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The Leroy Seafood Group also fell back, by 4.9 per cent, probably due to slightly weaker results than expected.
Leroy now sees an annual volume of 175,000 tonnes in 2017, down by 5,000 tonnes from the previous estimate. Nordea Markets points out that Leroy reported that costs are still high in all businesses outside of Leroy Aurora.
In addition, Handelsbanken Capital Markets also announced negative estimates for both Marine Harvest and Leroy Seafood Group following the cuts in predicted harvest volumes.