Marine Harvest ASA (OSE: MHG): The fourth quarter 2006 was influenced by integration of the new Marine Harvest. Pro forma operating profit before depreciation and fair value adjustment of the biomass totalled NOK 921.9 million in the fourth quarter 2006, while pro forma gross operating revenues totalled NOK 4,482.2 million. Pro forma operating profit before depreciation and fair value adjustment of the biomass for 2006 as a whole totalled NOK 3,573.1 million, while gross operating revenues totalled NOK 15,877.0 million.
"We are content with the Company's performance during the latter part of 2006 and for the year as a whole," says CEO Atle Eide. "2006 was a challenging year, not least because of the considerable resources which have been devoted to ongoing merger and integration processes. That we nevertheless are able to post solid results signals that we have succeeded in maintaining operational focus despite the challenges linked to the transactions. We are starting 2007 with a good foundation for the further development of Marine Harvest as the world's leading seafood company. I am proud of the way in which these demanding merger processes have been carried out by our people, and look forward to the task of leading this unique company."
Pro forma key figures for the fourth quarter 2006
- Gross operating revenues totalled NOK 4,482.2 million, while operating profit before depreciation and fair value adjustment of the biomass (EBITDA) totalled NOK 921.9 million in the fourth quarter 2006.
- The Group's EBITDA margin totalled 20.6% in the fourth quarter 2006. EBITDA in the fourth quarter includes restructuring costs of NOK 51 million.
- The Group's positive financial development has allowed Marine Harvest to record deferred tax assets of NOK 820 million.
- At the end of the fourth quarter 2006 the Group had interest-bearing debt of NOK 7,398.6 million and an equity ratio of 49.7 per cent.
On 29 December 2006 Pan Fish ASA officially acquired the shares in Marine Harvest N.V. after all necessary approvals from the competition authorities in the UK and France had been received. Including the advance payment which was made in March 2006 and subsequent accrued interest, the value of the consideration paid was NOK 10,004.5 million. As part of its efforts to secure the competition authorities' approval, Marine Harvest has undertaken to sell its Scottish operations to Pan Fish during 2007.
Business units
Marine Harvest divides its operations into five business units: Marine Harvest Norway, Marine Harvest Chile, Marine Harvest Canada, Marine Harvest UK and Marine Harvest VAP (Value Added Products). Pro forma figures per segment for the fourth quarter 2006 are presented below.
Marine Harvest Norway generated gross operating revenues of NOK 1,725.4 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 398.1 million. A total of 41,554 tonnes (HOG) was harvested during the quarter.
Marine Harvest Chile generated gross operating revenues of NOK 960.0 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 286.8 million. A total of 27,092 tonnes (HOG) was harvested during the quarter.
Marine Harvest Canada generated gross operating revenues of NOK 298.3 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 78.5 million. A total of 8,938 tonnes (HOG) was harvested during the quarter.
Marine Harvest UK generated gross operating revenues of NOK 437.8 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 82.2 million. A total of 11,572 tonnes (HOG) was harvested during the quarter. Pan Fish Scotland is reported as a "held-for-sale" business and is not included in the figures above. Pan Fish Scotland generated gross operating revenues of NOK 119.1 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 13.0 million, while 3,472 tonnes (HOG) was harvested during the quarter.
Marine Harvest Faeroes generated gross operating revenues of NOK 42.5 million in the fourth quarter 2006. Operating profit (EBITDA) before fair value adjustment of the biomass totalled NOK 9.2 million.
Marine Harvest VAP generated gross operating revenues of NOK 1,675.7 million in the fourth quarter 2006. Operating profit (EBITDA) totalled NOK 83.7 million.
A total of 90,676 tonnes (HOG) was harvested during the fourth quarter, while for 2006 as a whole the volume harvested totalled 325,781 tonnes (HOG).
Outlook
The company expects 2007 to be another year in which the global supply of farmed salmon largely meets demand in both existing and new markets.
For further information:
CEO Atle Eide, +47 911 52 977
CFO Trine S Romuld, +47 99 16 36 32
The Interim report can be downloaded from the following link:
