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.



This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

For detailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: Additionally, the Base Prospectus, any supplements to the Base Prospectus and the Final Terms are available in printed form, free of charge, at the registered office of the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.

Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.

Without permission, this product advertisement may not be reproduced or redistributed.

06/02/2023 00:05:10