Global salmon company Marine Harvest Group reached an operational EBIT of NOK792 million (US$128 million) in Q2 versus NOK268 million in the corresponding quarter of last year.
Earnings per share saw an improvement from NOK-0.02 to NOK 0.21 and robust demand and lower industry supply bred higher prices.
Nevertheless, Marine Harvest Norway saw weak prices.
Given the strong cash-flow in the first half of the year, the board resolved to call an EGM next month where a half-year dividend to propose NOK0.20 per share.
There were operating revenues of NOK3.562 billion in the second quarter versus NOK3.948 billion in the same quarter of 2009. Harvest volumes were 68,263 tonnes compared to 83,960 tonnes in the second quarter of last year.
Net earnings in the period reached NOK741 million against NOK -61 million in the corresponding period of 2009.
"Our Norwegian operations showed a weak price achievement due to a large contact portfolio with prices well below the spot prices and a lower than normal share of superior fish. There is a considerable potential for improved results the next quarters," said Marine Harvest ASA CEO Alf-Helge Aarskog.
Cash flow from operations was NOK890 million this Q2 versus NOK1.099 billion in Q2 2009.
Net financial items were NOK-34 million against NOK-204 million during the same period last year, including net interest expenses of NOK108 million versus NOK120 million in the corresponding quarter of last year. Net interest-bearing debt rose to NOK4.678 billion from NOK4.140 billion at end of the first quarter after June's dividend distribution.
The equity ratio fell to 57.2 per cent at the end of the quarter, compared to 60.4 per cent at end of Q1. Annualised ROACE was 20.7 per cent versus -4.5 per cent in Q1 and NIBD/Equity was 38.6 per cent compared to 33.75 per cent in the first quarter.
Marine Harvest Norway reached an operational EBIT per kg of NOK11.22 in the second quarter against NOK8.42 in Q2 2009, while Marine Harvest Canada and Marine Harvest Scotland reported operational EBIT per kg of NOK11.65 and NOK9.35, respectively, up from NOK 9.14 and NOK8.17, also respectively.
Marine Harvest VAP Europe had an operational EBIT-margin of 5.7 per cent versus 5.4 per cent in the second quarter of 2009. Marine Harvest Chile saw an operational EBIT of NOK17 million against NOK-391 million in the same period last year, achieving a break-even operational EBIT.
Marine Harvest expects to harvest 294,000 tonnes in volume this year, of which 66,000 tonnes are to be harvested in the third quarter. This is mainly due to escalated volumes from Norway, where Marine Harvest, contrary to most of the industry, has considerable flexibility within the current license capacity to further boost the volume.
By Natalia Real
{WISroYQ symbol='MHG.OL'}
