Marine Harvest warns of $9.25m hit from ‘exceptional mortality’

Marine Harvest expects third quarter operating profit to be up by nearly a tenth year-on-year, guiding for earnings before interest and taxes (ebit) of NOK 870 million in the period.

That would be a 9.7% increase from NOK 793m in the same quarter last year.

The growth is even though the company warned ‘exceptional mortality’ would cost it approximately NOK 60m ($9.25m) in the quarter.

“Exceptional mortality in the quarter impacted operational ebit adversely by about NOK 60 million in the quarter,” wrote Marine Harvest in a third quarter guidance update on Oct. 14.

The world’s largest salmon farmer did not give details, but the costs are likely to include the 1,000 metric ton of fish that the company lost to algae bloom in Canada last month.

The fish were near full grow out size, at an average weight of 4.1 kilograms, and would have totaled 1,300 tons of finished product, communications director Ian Roberts told Undercurrent News at the time.

The company said it harvest 107,000 metric tons in the quarter, in line with its forecast of 106,000t.

It also produced 25,000t of feed from its new fish feed plant.

The harvest volumes broke down as following, in head-on gutted tons equivalent:

  • Norway 64,000t
  • Scotland 14,000t
  • Canada 7,000t
  • Chile 17,000t
  • Other 5,000t
  • Total 107,000t

The group said total operational ebit per kg through the value chain were approximately as follows for the main sources of origin:

  • Norway NOK 9.6
  • Scotland NOK 9.8
  • Canada NOK 4.6
  • Chile NOK 6.0

The quarter also saw the start of Marine Harvest’s feed plant, which it said produced some 56,000t of feed during the three-month period.

The plant generated an operational ebit of about NOK 20m, it said, but this profit will not be accounted for before the fish fed on the feed is harvested.

“As the feed production is applied for internal purposes only, accounting practices prevent a realization of the segments profits in the Group accounts prior to harvesting of the fish having consumed the feed,” wrote the company.

Reported net interest bearing debt was approximately NOK 7.23 billion by
the end of the quarter.


View original article at: Marine Harvest warns of $9.25m hit from ‘exceptional mortality’

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