Weak market prices and a lower benefit from sales contracts stalled third quarter sales at Marine Harvest Oslo, Norway.
Revenues totaled NOK 3.647 billion, up slightly from NOK 3.636 million in 2011; operational EBIT tumbled to NOK 93 million versus NOK 407 million.
But the company is optimistic. Harvest volumes increased by 12% to 93,229 tons from 83,076 tons in the third quarter of 2011. And Marine Harvest has decided to invest in a 220,000-ton feed facility in Norway, an important step in transforming it into an integrated protein company
"I am pleased by the organization's ability to deliver on costs, particularly in Norway," said CEO Alf-Helge Aarskog. "We are struggling in Chile and Canada due to the exceptional low market prices in the Americas. We are continuing to benefit from the cash flow measures implemented last year, and our balance sheet is therefore very strong."
"We expect an attractive return on the investment and it will contribute to more stable earnings," Aarskog said of the feed plant. "This is a natural part of the value chain as feed represents about 50% of our costs. The investment will also balance the current unfavorable situation of few feed suppliers operating at full capacity."
