Marine Harvest Group reports stable H1

Marine Harvest Group reports stable H1

14 July 2017

The Norway-based producer of seafood shows strong figures in its domestic market and improves results from the previous year.

Marine Harvest ASA is a Norwegian company primarily operative in the production and marketing of seafood. The Company acts within two segments, namely Feed and Farming. The Feed segment is responsible for production of fish feed. The Farming segment manages the Company's farming activities in Norway, Scotland, Canada, Chile, Ireland and the Faroe Islands.

 

Solid H1 results and significant volume increase for second half

Marine Harvest reported first quarter results for 2017: Revenue was up by 9.6% YoY and net profit increased by 65 percent YoY. Earnings per share were reported at NOK 0.35 (+84% YoY). Revenues in Q2 are forecasted to increase by 13.9 percent YoY as well as net profit is expected to more than triple (43 million Euro to 146 million) YoY.

MHG is expected to produce 403.000 tons fish in 2017, whereof around 242.000 tons of production come from Norway. During the first half of the year, MHG produced around 94.000 tons in Norway. Therefore, the company still has to produce around 148.000 tons in Norway to meet the anticipated expectations.

 

Norwegian seafood sector

The seafood industry represents one of Norway's largest export industries after oil and gas. Norway exports farmed and wild fish to more than 150 countries. The total volume for salmon in 2017 is expected to be 855.000 tons.

Besides Marine Harvest, Leroy Seafood Group and SalMar are major players in the market. Especially Leroy Seafood Group is among the most efficient farmers of salmon. According to analysts of Pareto Securities, LSG is expected to show a EBIT/Kg of NOK 26.5 in 2017. SalMar shows a EBIT/Kg of NOK 25.5 . MHG, on the other hand, shows a EBIT/Kg of NOK 21.5 .

Marine Harvest Group quotes with a P/E of 10.9 at around NOK 143 (July 13th), representing a market capitalization of NOK 69.7 Billion. 9 Analysts value the stock with BUY, 5 with HOLD and 3 with SELL. The consensus target price is set at NOK 185. However, the future development remains to be seen.

 

 

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06/02/2023 00:05:10