EX-99.1 2 a6-kq22016exhibit991.htm EXHIBIT 99.1 Exhibit
Q2
/
2016
/
SECOND QUARTER
MARINE HARVEST GROUP
Record-high Operational EBIT of EUR 149 million. Financial EBIT of EUR 181 million
Unprecedented salmon prices on strong demand and reduced supply
Establishment of aquaculture shipping joint venture
Divestment of shares in Grieg Seafood with a realized gain of EUR 54.8 million
Quarterly dividend of NOK 3.20 per share



© Marine Harvest Group
 
1

 
 
Q2|2016

HIGHLIGHTS - SECOND QUARTER 2016
Record-high Operational EBIT of EUR 149.0 million. Financial EBIT of EUR 180.5 million.
Unprecedented salmon prices on strong demand and reduced supply.
Harvest volume slightly below guidance for the second quarter.
Estimated volumes for 2016 have been reduced from 414 000 to 400 000 GWT as a result of biological issues.
Increased production cost for all regions compared to the second quarter of 2015.
Operational EBIT for Consumer Products negatively impacted by the substantial rise in raw material prices.
Notwithstanding a loss of EUR 3.5 million, performance of our processing plant in Rosyth has improved.
Subsequent to the previously announced restructuring process in Marine Harvest Chile, the entity has recognized impairment of fixed assets of EUR 19.0 million and a restructuring provision of EUR 2.2 million.
Establishment of aquaculture shipping joint venture between Marine Harvest and Deep Sea Supply.
Divestment of all shares in Grieg Seafood with a realized gain of EUR 54.8 million.
Net cash flow per share of EUR 0.50, and Underlying earnings per share (EPS) of EUR 0.24.
Return on capital employed (ROCE) 23.8% and Net interest-bearing debt (NIBD) of EUR 832.4 million.
A quarterly dividend of NOK 3.20 per share, of which NOK 1.10 is related to divestment of shares in Grieg Seafood, will be paid out to the shareholders as a repayment of paid in capital.
Main figures 1)
Q2 2016

Q2 2015

YTD Q2 2016

YTD Q2 2015

2015

EUR million
Operational revenue 2)
832.1

767.3

1 641.6

1 502.6

3 121.1

 
 
 
 
 
 
Operational EBITDA 3)
184.4

119.5

332.0

249.2

486.6

Operational EBIT 3)
149.0

84.0

260.9

179.3

346.8

 
 
 
 
 
 
EBIT
180.5

-6.4

373.3

22.5

345.3

Net financial items
-90.5

10.3

-118.8

34.1

-95.2

Profit or loss for the period
42.5

4.3

170.5

44.1

158.3

 
 
 
 
 
 
 
 
 
 
 
 
Cash flow from operations
213.3

85.2

363.4

146.4

233.3

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
4 198.4

3 987.9

4 198.4

3 987.9

4 196.1

NIBD 4)
832.4

875.5

832.4

875.5

999.7

 
 
 
 
 
 
EPS (EUR)
0.09

0.01

0.38

0.10

0.36

Underlying EPS (EUR) 5)
0.24

0.13

0.42

0.27

0.52

Net cash flow per share (EUR) 6)
0.50

0.14

0.72

0.11

0.01

Dividend declared and paid per share (NOK)
1.70

1.30

3.10

2.50

5.20

ROCE 7)
23.8
%
9.8
%
21.1
%
12.3
%
13.1
%
Equity ratio
45.8
%
50.9
%
45.8
%
50.9
%
45.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Harvest volume (GWT, salmon)
87 159

104 158

183 772

203 635

420 148

 
 
 
 
 
 
 
 
 
 
 
 
Operational EBIT per kg (EUR) - Total 8)
1.71

0.81

1.42

0.88

0.83

 
 
 
 
 
 
Norway
2.12

1.22

1.99

1.37

1.37

Scotland
0.47

0.64

0.58

0.52

0.35

Canada
2.34

0.26

2.15

0.41

0.34

Chile
-0.23

-0.53

-1.14

-0.64

-0.82

 
 
 
 
 
 

1)
This interim report is unaudited. Presentation currency has been changed from NOK to EUR from January 1, 2016, with retrospective application for comparative figures, see Note 2 and Note 13. Please refer to the interim report on form 6-K for detailed descriptions and reconciliations of non-IFRS measures such as Operational EBIT, Operational EBITDA, Operational revenue, NIBD, underlying EPS and ROCE.
2)
Operational revenue: Revenue and other income, excluding change in unrealized salmon derivatives.
3)
Calculated by excluding the following items from financial EBITDA/EBIT: Change in unrealized internal margin, change in unrealized gains/losses from salmon derivatives, net fair value adjustment on biomass, onerous contract provisions, restructuring costs, income from associated companies, impairment losses of fixed assets/intangibles and other non-operational items. A reconciliation between Operational EBIT and financial EBIT is provided on the next page, and we also refer to the interim report on form 6-K for further information. The largest individual difference between Operational EBIT and financial EBIT is the net fair value adjustment on biomass according to IFRS, which is a volatile figure impacted by estimates of future salmon prices as well as other estimates.
4)
NIBD: Total non-current interest-bearing debt, minus total cash, plus current interest-bearing debt and plus net effect of currency derivatives on interest-bearing debt.
5)
Underlying EPS: Operational EBIT adjusted for accrued interest payable, with estimated weighted tax rate - per share.
6)
Net cash flow per share: Cash flow from operations and investments, net financial items paid and realized currency effects - per share.
7)
ROCE: Annualized return on average capital employed based on EBIT excluding net fair value adjustment on biomass, onerous contract provisions and other non-operational items / Average NIBD + Equity, excluding net fair value adjustment on biomass, onerous contract provisions and net assets held for sale, unless there are material transactions in the period.
8)
Operational EBIT per kg including allocated margin from Feed and Sales and Marketing.

© Marine Harvest Group
 
2

 
 
Q2|2016

PROFIT - FINANCIAL RESULTS IN THE QUARTER
The Group’s profit hinge on its ability to provide customer value from healthy, tasty and nutritious seafood, farmed both cost effectively and in an environmentally sustainable way that maintains a good aquatic environment and respects the needs of the wider society.

(Figures in parenthesis refer to the same quarter in 2015.)
(EUR million)
Q2 2016
Q2 2015
Operational EBIT
149.0

84.0

Change in unrealized internal margin
-1.7

0.8

Change in unrealized salmon derivatives
5.1

1.1

Net fair value adjustment on biomass
34.0

-78.7

Onerous contract provisions
-2.2

0.9

Restructuring costs
-2.1

-14.6

Other non-operational items
1.3

2.5

Income from associated companies
16.2

0.7

Impairment losses of fixed assets/intangibles
-19.0

-3.2

EBIT
180.5

-6.4

Operational EBIT amounted to EUR 149.0 million in the quarter (EUR 84.0 million). The contribution from Feed was EUR 3.3 million (EUR 3.1 million), and Farming contributed with EUR 136.0 million (EUR 64.4 million). Markets contributed with EUR 17.8 million (EUR 15.0 million) and Consumer Products contributed with EUR -4.8 million (EUR 5.5 million).

Operational EBIT of EUR 149.0 million in the quarter was negatively impacted by losses of EUR 3.5 million from our processing plant in Rosyth.

Earnings before financial items and taxes (EBIT) was EUR 180.5 million (EUR -6.4 million), after a net increase in fair value on biological assets of EUR 34.0 million, mainly due to higher salmon prices.

Financial items
(EUR million)
Q2 2016
Q2 2015
Interest expenses
-12.2

-9.2

Net currency effects
-0.2

-20.1

Other financial items
-78.0

39.6

Net financial items
-90.5

10.3

Other financial items include an increase in fair value of conversion liability component of the convertible bond of EUR 61.5 million and change in fair value of other financial instruments of EUR 17.1 million.



© Marine Harvest Group
 
3

 
 
Q2|2016

Cash flow and NIBD
(EUR million)
Q2 2016
Q2 2015
NIBD beginning of period
-960.1

-866.5

Operational EBITDA
184.4

119.5

Change in working capital
75.4

13.8

Taxes paid
-48.5

-40.3

Other adjustments
2.0

-7.9

Cash flow from operations
213.3

85.2

Net Capex
-50.4

-49.2

Cash received from other investments
16.8

11.6

Cash received from sale of shares
52.3

30.8

Other investments
-2.3

-0.1

Cash flow to investments
16.4

-6.9

Net interest and financial items paid
-6.5

-7.0

Other items
-9.4

-22.0

Dividend / return of paid in capital
-82.0

-68.3

Translation effect on interest-bearing debt
-4.0

10.1

NIBD end of period
-832.4

-875.5


Cash flow from operations amounted to EUR 213.3 million (EUR 85.2 million). Net working capital was reduced in the second quarter due to seasonality and low volumes.

Net Capex was EUR -50.4 million (EUR -49.2 million). Cash received from sale of shares in the second quarter of 2016 is related to proceeds from sale of shares in Grieg Seafood.

Currency effect on interest-bearing debt of EUR -4.0 million (EUR 10.1 million) during the quarter is mainly due to the weakening of EUR against USD.

Quarterly dividend of EUR -82.0 million (EUR -68.3 million), as announced in the report for the first quarter of 2016, was distributed as repayment of paid in capital.

GUIDING PRINCIPLE
AMBITION
ACHIEVEMENT
Profitability
ROCE of at least 12% over a cycle (4-5 years)
Q2
23.8%
 
 
YTD
21.1%
Solidity
Long term NIBD target:
June 30, 2016
 
EUR 1 050 million
EUR 832 million
 
Farming NIBD / kg EUR 1.8
Farming NIBD / kg EUR 1.4

© Marine Harvest Group
 
4

 
 
Q2|2016

PROFIT - OPERATIONAL PERFORMANCE AND ANALYTICAL DATA
 
Feed
Farming
Sales and Marketing
Other
Group 1)
 
 
 
 
 
Markets
Consumer Products
 
 
 
 
EUR million
Q2 2016

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q2 2015

External revenue
3.9

0.1

1.2

32.6

506.1

476.1

320.0

256.8

1.0

1.7

832.1

767.3

Internal revenue
65.5

58.3

507.5

460.5

148.2

87.7

5.1

7.7

3.8

6.5

0.0

0.0

Operational revenue
69.4

58.4

508.6

493.1

654.3

563.9

325.1

264.4

4.9

8.2

832.1

767.3

Operational EBIT
3.3

3.1

136.0

64.4

17.8

15.0

-4.8

5.5

-3.2

-4.1

149.0

84.0

Change in unrealized margin
0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-1.7

0.8

Change in unrealized salmon derivatives
0.0

0.0

4.7

-0.7

0.0

0.0

-4.7

0.7

5.0

1.1

5.0

1.1

Net fair value adjustment on biomass, onerous contract provisions
0.2

-1.6

31.7

-76.1

0.0

0.0

0.0

0.0

0.0

-0.1

31.8

-77.7

Restructuring costs
0.0

0.0

-2.1

-9.8

0.0

0.0

0.0

-4.9

0.0

0.0

-2.1

-14.6

Other non-operational items
0.0

0.0

1.3

2.5

0.0

0.0

0.0

0.0

0.0

0.0

1.3

2.5

Income from associated companies
0.0

0.0

16.2

0.9

0.0

0.0

0.0

-0.2

0.0

0.0

16.2

0.7

Impairment losses of fixed assets
0.0

0.0

-18.8

-3.3

-0.2

0.0

0.0

0.1

0.0

0.0

-19.0

-3.2

EBIT
3.4

1.5

168.8

-22.0

17.6

15.0

-9.4

1.3

1.7

-3.1

180.5

-6.4

Operational EBIT %
4.7
%
5.3
%
26.7
%
13.1
%
2.7
%
2.7
%
-1.5
 %
2.1
%
na

na

17.9
%
10.9
%
1) Group adjusted for eliminations.



Marine Harvest follows the overall value creation of the operations based on the salmon’s source of origin. For this reason Operational EBIT related to our Feed and Sales and Marketing operations is allocated back to country of origin. The table below and upcoming performance review provide information consistent with the value creation methodology.

Other units reported Operational EBIT of EUR -3.2 million in the quarter (EUR -4.1 million). The currency effects of foreign currency purchases towards EUR are recognized as income/cost of EUR 1.2 million in Marine Harvest ASA and Marine Harvest Markets Norway respectively (in the second quarter of 2015, currency effects of foreign currency sales towards NOK amounted to EUR 3.6 million).
 
SOURCES OF ORIGIN
Other

Group

EUR million
Norway

Scotland

Canada

Chile

Ireland

Faroes

 
 
 
 
 
 
 
 
 
OPERATIONAL EBIT
 
 
 
 
 
 
 
 
Farming
102.4

5.8

26.5

-5.6

1.4

5.6

 
136.0

 
 
 
 
 
 
 
 
 
Sales and Marketing
 
 
 
 
 
 
 
 
Markets
9.6

3.0

1.0

4.0

0.0

0.1

0.0

17.8

Consumer Products
-1.5

-3.8

0.0

0.0

-0.1

0.0

0.5

-4.8

Subtotal
110.6

5.0

27.4

-1.6

1.3

5.7

0.5

149.0

 
 
 
 
 
 
 
 
 
Feed
3.3








3.3

Other entities 1)






-3.2

-3.2

 
 
 
 
 
 
 
 
 
Total
113.9

5.0

27.4

-1.6

1.3

5.7

-2.7

149.0

 
 
 
 
 
 
 
 
 
Harvest volume (GWT, salmon)
53 743

10 809

11 745

7 076

1 452

2 334

 
87 159

 
 
 
 
 
 
 
 
 
Operational EBIT per kg (EUR) 2)
2.12

0.47

2.34

-0.23

0.86

2.46

 
1.71

- of which Feed
0.06

0.00

0.00

0.00

0.00

0.00


0.04

- of which Markets
0.18

0.28

0.08

0.57

0.00

0.05

 
0.20

- of which Consumer Products
-0.03

-0.35

0.00

0.00

-0.09

0.00

 
-0.06

 
 
 
 
 
 
 
 
 
ANALYTICAL DATA
 
 
 
 
 
 
 
 
Price achievement/reference price (%) 3)
83
%
83
%
99
%
105
%
na

92
%
 
87
%
Contract share (%)
52
%
69
%
0
%
23
%
85
%
0
%
 
44
%
Quality - superior share (%)
92
%
95
%
90
%
90
%
95
%
84
%
 
92
%
Exceptional items incl in Operational EBIT
-18.7

0.0

0.0

-3.8

-0.2

-0.3

 
-22.9

Exceptional items per kg (EUR)
-0.35

0.00

0.00

-0.54

-0.11

-0.11

 
-0.26

 
 
 
 
 
 
 
 
 
GUIDANCE
 
 
 
 
 
 
 
 
Q3 2016 harvest volume (GWT)
63 000

10 000

9 000

7 000

3 000

2 000


94 000

2016 harvest volume (GWT)
253 000

49 000

44 000

36 000

8 000

10 000



400 000

Q3 2016 contract share (%)
41
%
67
%
0
%
25
%
85
%
0
%

39
%

1)
Sterling White Halibut, Corporate and Holding companies
2)
Including Sterling White Halibut, Corporate and Holding companies
3)
Sales and Marketing Price achievement

© Marine Harvest Group
 
5

 
 
Q2|2016

MARKET OVERVIEW

Industry
The second quarter of 2016 was characterized by unprecedented prices on strong demand and decline in global supply. Prices in Europe increased by an impressive 55%, while prices in Americas surged by 43%, compared to the second quarter of 2015.

Global harvest of Atlantic salmon amounted to 455 100 tons in the second quarter, a decrease of approximately 9% compared to the same quarter in 2015. This was in the low end of expectations driven by lower volumes from Chile mainly due to a strike on the Chiloe Island in Region X.
Supply
Q2 2016

Change vs

12 month

Q1 2016

 
Tons GW

Q2 2015

change

Tons GW

Norway
248 000

-7.3
 %
-2.7
 %
243 700

Scotland
36 300

-1.6
 %
5.9
 %
31 900

Faroe Islands
17 500

 %
3.8
 %
16 400

Ireland
2 900

-29.3
 %
10.2
 %
2 900

Total Europe
304 700

-6.5
 %
-1.3
 %
294 900

Chile
95 200

-19.7
 %
-1.2
 %
138 500

North America
38 400

-0.5
 %
13.4
 %
33 500

Total Americas
133 600

-15.0
 %
1.7
 %
172 000

Australia
11 900

11.2
 %
23.9
 %
12 600

Other
4 900

-5.8
 %
-7.3
 %
4 200

Total
455 100

-8.8
 %
0.1
 %
483 700







Volumes from Norway decreased by 7% compared to the second quarter of 2015. The decline was in line with expectations, and was caused by harvesting of smaller sized fish and biological challenges in general. The biological performance of the fall 2014 generation has been troublesome for many farmers in Norway. The biomass yet to be harvested from this generation is now limited.

Scottish volumes decreased by 2% compared to the same period last year which was in line with expectations. Volumes from the Faroe Islands were flat in the quarter compared to the same quarter in 2015.

Volumes from Chile decreased by 20% compared to the second quarter of 2015 which was a steeper decline than expected. The reduction was mainly driven by the fishermen's protest in May which blocked the processing sites on the Chiloe Island from delivering salmon to their main markets.

In North America the supply contraction of 1% was at the high end of expectations.
Reference prices
Q2 2016
Change vs
Q2 2016
Change vs
Market
Q2 2015
NOK
Q2 2015
Norway 1)
EUR 6.85
54.8%
NOK 63.89
68.5%
Chile 2)
USD 5.32
42.7%
NOK 43.91
51.9%
Chile, GWE 3)
USD 5.74
63.1%
NOK 47.37
73.6%
North America 4)
USD 3.28
43.2%
NOK 27.11
52.4%
North America GWE 3)
USD 6.83
47.2%
NOK 56.37
56.7%
1)
NASDAQ average superior GWE/kg (gutted weight equivalent)
2)
Urner Barry average D trim 3-4 lbs FOB Miami
3)
Reference price converted back-to-plant equivalent in GWE/kg
4)
Urner Barry average GWE 10-12 lbs FOB Seattle



In the market currency, EUR, prices in Europe increased by 55% compared to the second quarter of 2015. Salmon prices increased by 43% in Miami and 43% in Seattle in USD terms. The price increase was even higher in NOK terms as the NOK weakened versus both EUR and USD in the period.

© Marine Harvest Group
 
6

 
 
Q2|2016

Market
Q2 2016

Change vs

12 month

distribution
Tons GW

Q2 2015

change

EU
226 200

-3.7
 %
2.0
 %
Russia
13 600

-47.1
 %
-24.3
 %
Other Europe
16 700

-15.2
 %
-10.6
 %
Total Europe
256 500

-8.5
 %
-1.6
 %
US
96 800

0.9
 %
10.4
 %
Brazil
17 600

-16.2
 %
2.3
 %
Other Americas
23 800

-3.6
 %
3.6
 %
Total Americas
138 200

-2.4
 %
7.8
 %
China/Hong Kong
20 000

4.7
 %
4.1
 %
Japan
12 400

15.9
 %
16.3
 %
South Korea / Taiwan
10 600

-2.8
 %
2.1
 %
Other Asia
17 600

26.6
 %
6.9
 %
Total Asia
60 600

11.0
 %
7.1
 %
All other markets
22 400

5.2
 %
12.0
 %
Total
477 700

-4.0
 %
2.6
 %

Global consumption declined by 4% in the second quarter compared with the same period in 2015. Release of approximately 23,000 tonnes of frozen inventory primarily from Chile into the Asian and American markets have contributed to higher consumption than supply in the quarter.

In the EU consumption declined by 4% in the quarter. The EU market continued to demonstrate good demand growth across several countries. Despite a volume decline, the value increase of salmon continues in key markets such as UK, Germany and Southern Europe. In Russia, consumption decreased by 47% compared to the second quarter of 2015 due to higher global salmon prices in general, and as sourcing from Chile became increasingly challenged by the higher paying fresh US market.

In the US consumption increased by 1% compared with the same quarter in 2015. In value terms the US market is growing at healthy rates as prices increased substantially in the quarter. The inflow growth of large sized fresh European salmon to the US market continues. Available salmon from Chile, however, were lower due to strike. Brazil experienced the same headwind as the US in terms of lack of Chilean salmon.
 
Consumption in the Asian market increased by 11% in the quarter compared to the same period last year, as the availability of large sized fresh salmon was higher. Thailand in particular experienced positive consumption developments.





Source: Kontali and Marine Harvest

© Marine Harvest Group
 
7

 
 
Q2|2016

Marine Harvest
Geographic market presence
Total salmon revenues in the second quarter were distributed as shown in the graph below. Europe is by far the largest market for Marine Harvest’s salmon with 69% of the total revenues (72%). France, Germany and UK are the main markets for our products. As a result of the ban on import of salmon from most European production countries, our sales to Russia originate from the Faroe Islands.
Sales by product
The Group’s main species is Atlantic salmon. The sales revenue distribution across products was as follows in the second quarter:
Fresh whole salmon represented 43% of total sales revenues (46%), while fresh smoked salmon and fresh and frozen elaborated salmon combined accounted for 45% (43%). The share of smoked and elaborated products decreased somewhat from the first quarter of 2016, as the first quarter included Easter, which traditionally is a season with increased demand for our smoked and elaborated products. However, the share of smoked and elaborated products increased compared to the second quarter of 2015, with positive effects from improved operational efficiency and introduction of new products.

Branding and product development efforts
In the second quarter we continued our effort to further develop existing brands, including Ducktrap and Mowi. Ducktrap River of Maine, our smoked seafood facility in the US, continues to expand business and strengthen its market position as a leader in the US smoked seafood category. The Ducktrap brand remains a trusted, well-recognized and preferred brand among discerning customers and chefs in the US, with 15% average annual growth in the last four and a half years.

Our premium brand, Mowi continued the positive development in the Asian market with volume growth of 49% compared to the second quarter of 2015. In May 2016, three smoked Mowi salmon products were recognized for their superior quality and taste with Gold Medals by Monde Selection. The Monde Selection quality labels are awarded by an independent professional jury, including Michelin starred chefs. Over 3 000 products from more than 80 different countries are judged each year.

Price achievement
Prices in the European market were significantly higher than in the second quarter of 2015 due to strong demand and lower volumes available for harvest. Supply contraction contributed to higher prices in Americas in the second quarter. Sales in the second quarter of 2015 were also affected by the market disruptions caused by the Russian ban on salmon of Norwegian and Scottish origin starting in August 2014.

© Marine Harvest Group
 
8

 
 
Q2|2016

* Price achievement to the five farming units, Norway, Scotland, Canada, Chile and Faroes.

The reference price was 54% higher in the second quarter of 2016 compared to the second quarter of 2015. The combined global price achieved was 13% below the reference price in the period. In the second quarter of 2015, the global price achieved was 6% above the reference price. Contribution from contracts relative to the reference price was positive in the second quarter of 2015, but negative in the second quarter of 2016.
Markets
 
 
 
 
Q2 2016
Norwegian

Scottish

Canadian

Chilean

Contract share
52
%
69
%
0
%
23
%
Quality - superior share
92
%
95
%
90
%
90
%
Price achievement
83
%
83
%
99
%
105
%
The average price achievement is measured vs reference prices in all markets (NASDAQ for Norwegian and Faroese, derived NASDAQ (NASDAQ + EUR 0.40) for Scottish salmon, and Urner Barry for Chilean and Canadian salmon).
The ambition over time is to exceed the relevant reference price in all markets.

© Marine Harvest Group
 
9

 
 
Q2|2016

PROFIT - OPERATIONAL PERFORMANCE
Salmon of Norwegian origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
113.9

77.9

EBIT
153.4

28.4

 
 
 
Harvest volume (GWT)
53 743

64 036

 
 
 
Operational EBIT per kg (EUR)
2.12

1.22

- of which Feed
0.06

0.05

- of which Markets
0.18

0.10

- of which Consumer Products
-0.03

0.08

 
 
 
Exceptional items incl in op. EBIT
-18.7

-15.6

Exceptional items per kg (EUR)
-0.35

-0.24

 
 
 
 
 
 
Price achievement/reference price
83
%
105
%
Contract share
52
%
33
%
Superior share
92
%
90
%
 
 
 

Financial results
Operational EBIT amounted to EUR 113.9 million (EUR 77.9 million) in the second quarter, which was 2.12 EUR per kg (EUR 1.22). The profitability of the four Norwegian regions showed significant variation in the second quarter with EUR 0.98 per kg separating the best performing region (Region North) from the lowest performing region (Region Mid). This is due to high biological costs as a consequence of a lower performing generation of fish harvested in the quarter. Spot prices in the second quarter were higher than in the corresponding period in 2015. However, a higher contract share, and cost increase driven by higher feed and lice mitigation costs, partially offset the effect of significantly increased spot prices. Exceptional items related to mortality and lice mitigation amounted to EUR 18.7 million in the second quarter (EUR 15.6 million).

Financial EBIT amounted to EUR 153.4 million (EUR 28.4 million).

Price and volume development
The reference price for Salmon of Norwegian origin increased by 56% compared to the second quarter of 2015 due to strong demand and lower supply. The average reference price in the second quarter was EUR 6.85 per kg compared to EUR 4.39 per kg in the second quarter of 2015.

Marine Harvest had a contract share of 52% for salmon of Norwegian origin in the second quarter, compared to 33% in the second quarter of 2015. The overall price achieved was 17% below the reference price in the quarter (5% above), mainly due to negative contract contribution in a market with an increasing spot price. The superior share was 92% (90%).

Harvested volume in the second quarter was 53 743 tonnes gutted weight (64 036 tonnes gutted weight). The volume available for harvest was lower than in the second quarter of 2015 due to advanced harvest in 2015 caused by biological challenges and lower production following reduced feeding appetite and reduced feeding in connection with lice treatments.
 



© Marine Harvest Group
 
10

 
 
Q2|2016





















Costs and operations
The biological cost of harvested fish increased by 20% compared to the second quarter of 2015. The cost of feed per kg harvested salmon was up by 12% compared to the corresponding quarter in 2015 as a result of increased feed conversion rate and increased price of feed. As in previous periods, sea lice mitigation costs have been high for the harvested generation. The health cost per kg salmon harvested in the second quarter of 2016 increased by 78% compared to the corresponding quarter in 2015. The estimated exceptional cost related to sea lice mitigation and losses amounted to EUR 17.7 million (EUR 14.7 million) in the second quarter of 2016. Per kg harvested, exceptional sea lice mitigation costs amounted to EUR 0.33 (EUR 0.23) in the quarter.

Incident based mortality losses in the amount of EUR 1.5 million were recognized in the quarter, of which EUR 0.5 million is included in the cost of lice mitigation and losses above. Losses from incident based mortality in the second quarter of 2015 were EUR 2.6 million.

The primary challenge for the Norwegian farming operations continues to be sea lice, and substantial effort is put in to mitigate and solve the challenge.

The cost development is concerning, and we expect high costs also in the third quarter of 2016 for Marine Harvest Norway. In addition, ISA outbreak in Region North in the third quarter is expected to negatively impact Operational EBIT by approximately EUR 8 million.




© Marine Harvest Group
 
11

 
 
Q2|2016

Salmon of Norwegian origin by region
Regions
South
West
Mid
North
Total
EUR million
Q2 2016

Q2 2016

Q2 2016

Q2 2016

Q2 2016

 
 
 
 
 
 
Operational EBIT
32.9

23.7

18.3

38.9

113.9

 
 
 
 
 
 
Harvest volume (GWT)
14 798

11 665

11 837

15 443

53 743

 
 
 
 
 
 
Operational EBIT per kg (EUR)
2.22

2.03

1.54

2.52

2.12

 
 
 
 
 
 
 
 
 
 
 
 
Superior share
94
%
95
%
92
%
89
%
92
%
 
 
 
 
 
 
 
 
 
 
 
 
Regions
South
West
Mid
North
Total
EUR million
Q2 2015

Q2 2015

Q2 2015

Q2 2015

Q2 2015

 
 
 
 
 
 
Operational EBIT
18.0

20.4

18.2

21.3

77.9

 
 
 
 
 
 
Harvest volume (GWT)
14 998

16 142

16 308

16 588

64 036

 
 
 
 
 
 
Operational EBIT per kg (EUR)
1.20

1.27

1.11

1.28

1.22

 
 
 
 
 
 
 
 
 
 
 
 
Superior share
92
%
95
%
83
%
91
%
90
%

Region South
Operational EBIT was EUR 32.9 million in the second quarter (EUR 18.0 million), or EUR 2.22 per kg (EUR 1.20).
Biological costs per kg harvested fish in the second quarter increased from the comparable quarter in 2015 due to 15% increase in feed costs and 56% increase in lice mitigation and treatment costs.
Results in Region South in the first half of 2016 have been affected by a high number of poor performers. The last fish of the poor performing generation was harvested in the beginning of June.
Volume harvested was 14 798 tonnes gutted weight (14 998 tonnes).
There was no incident based mortality in the second quarter of 2016.
Seawater production was higher than the comparable quarter in 2015 due to higher smolt stocking.
Sea lice levels increased during the quarter. Non-medicinal lice treatment tools are expected to provide better control and increase survival during treatments.






Region West
Operational EBIT was EUR 23.7 million in the second quarter (EUR 20.4 million), or EUR 2.03 per kg (EUR 1.27).
Biological costs per kg harvested fish in the second quarter increased from the comparable quarter in 2015 due to 16% increase in feed costs and 37% increase in lice mitigation and treatment costs.
Sea lice level at the end of the quarter was lower than at the end of the comparable quarter last year.
Volume harvested was 11 665 tonnes gutted weight (16 142 tonnes). The volume decrease contributed to increased non-seawater cost per kg (scale effects).
Incident based mortality in the amount of EUR 0.3 million was recognized in the quarter due to lice treatment losses.
Seawater production was higher than the comparable quarter in 2015 due to more biomass in sea.
Corrective measures will be taken in order to reduce lice challenges and mortality losses relating to treatments, including increased use of non-medicinal lice treatment tools and lice prevention measures.


© Marine Harvest Group
 
12

 
 
Q2|2016


Region Mid
Operational EBIT was EUR 18.3 million in the second quarter (EUR 18.2 million), or EUR 1.54 per kg (EUR 1.11).
The cost per kg harvested fish was very high in the quarter due to particularly high health costs. Health costs were more than twice as high as in the second quarter in 2015. This is a consequence of high lice mitigation and treatment costs as well as advanced harvesting to mitigate risk. In addition, feed costs increased by 11% compared to the second quarter of 2015.
Volume harvested was 11 837 tonnes gutted weight (16 308 tonnes). The volume reduction contributed to increased non-seawater cost per kg (scale effects).
Incident based mortality in the amount of EUR 0.5 million was recognized in the quarter mainly due to lice treatment losses.
Seawater production was lower than the comparable quarter in 2015 due to advanced harvesting and reduced feeding in relation to lice treatments.
Sea lice level at the end of the quarter was lower than at the end of the comparable quarter last year. However, sea lice remains a significant challenge, and we continue our efforts to keep adult females at target levels. We have increased the use of non-medicinal lice treatment tools to be prepared for the autumn.




Region North
The best performing region in Marine Harvest Norway in the second quarter of 2016 measured in Operational EBIT per kg. Operational EBIT was EUR 38.9 million in the second quarter (EUR 21.3 million), or EUR 2.52 per kg (EUR 1.28).
Biological costs per kg harvested fish in the second quarter increased from the comparable quarter in 2015 due to 6% increase in feed costs and almost a doubling of lice mitigation and treatment costs. However, of the Norwegian regions, only Region South has lower lice mitigation and treatment costs per kg than Region North.
Non-medicinal lice treatment tools combined with our sea lice strategy have contributed to the improved fish health situation in the region, but we see somewhat higher lice levels than in the corresponding quarter last year.
Volume harvested was 15 443 tonnes gutted weight (16 588 tonnes). The volume decrease contributed to increased non-seawater cost per kg (scale effects).
Incident mortality in the amount of EUR 0.7 million was recognized in the quarter due to outbreak of HSMI disease.
Seawater production was at the same level as in the comparable quarter in 2015.

© Marine Harvest Group
 
13

 
 
Q2|2016

Salmon of Scottish origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
5.0

7.9

EBIT
12.4

-2.3

 
 
 
Harvest volume (GWT)
10 809

12 351

 
 
 
Operational EBIT per kg (EUR)
0.47

0.64

- of which Markets
0.28

0.30

- of which Consumer Products
-0.35

0.03

 
 
 
Exceptional items incl in op. EBIT
0.0

-0.4

Exceptional items per kg (EUR)
0.00

-0.03

 
 
 
 
 
 
Price achievement/reference price
83
%
117
%
Contract share
69
%
45
%
Superior share
95
%
96
%
 
 
 
















Financial results
Operational EBIT amounted to EUR 5.0 million in the second quarter (EUR 7.9 million), which was EUR 0.47 per kg (EUR 0.64). Operational EBIT is negatively affected by allocated losses from the Rosyth processing operation in the amount of EUR 3.5 million. Adjusted for aforementioned losses, Operational EBIT is EUR 0.79 per kg in the second quarter of 2016 (EUR 0.64).

Financial EBIT amounted to EUR 12.4 million (EUR -2.3 million).

Price and volume development
The reference price in local currency was up by approximately 45% in the second quarter of 2016 compared to the second quarter of 2015. This is due to strong demand and lower supply.

Price achievement for salmon of Scottish origin relative to the reference price is impacted by negative margin on sales from the Rosyth processing plant. Adjusted for this, price achievement is 88%. High contract share for the quarter negatively impacted the price achievement for the second quarter compared to spot prices. In addition, size distribution had an adverse effect on price achievement for spot sales, with lower average harvest weight than in the second quarter of 2015. In the second quarter of 2015, contract contribution was positive in a market with falling reference price.

The second quarter harvest volume was 10 809 tonnes gutted weight which is a decrease from the corresponding quarter in 2015 (12 351 tonnes). Harvest volumes in the second quarter of 2016 were negatively impacted by health issues in the fourth quarter of 2015, advanced harvest in the first quarter of 2016, high mortality and poor growth.











© Marine Harvest Group
 
14

 
 
Q2|2016

Costs and operations
Biological challenges contributed to a 20% increase in biological costs per kg harvested in the second quarter of 2016 compared to the corresponding quarter in 2015. This is mainly caused by increased health and feed costs in the second quarter of 2016. Other seawater costs have also increased due to negative scale effects.

Non-seawater costs per kg harvested decreased in the second quarter of 2016 compared to the second quarter of 2015 due to lower costs related to incident based mortality. No costs related to incident based mortality was recognized in the quarter (EUR 0.4 million).

Prior biological challenges continue to contribute to a high cost level for salmon of Scottish origin. The recent weakening of GBP towards the NOK, intensified by the UK's EU referendum, is expected to have positive market effects. The ongoing restructuring process, as described in the report for the first quarter of 2016, proceeds as planned. The process aims to make Marine Harvest Farming Scotland more streamlined and cost-efficient. However, we expect high costs also in the third quarter of 2016.






© Marine Harvest Group
 
15

 
 
Q2|2016

Salmon of Canadian origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
27.4

3.0

EBIT
15.9

-0.7

 
 
 
Harvest volume (GWT)
11 745

11 583

 
 
 
Operational EBIT per kg (EUR)
2.34

0.26

- of which Markets
0.08

0.10

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
0.0

-0.4

Exceptional items per kg (EUR)
0.00

-0.03

 
 
 
 
 
 
Price achievement/reference price
99
%
100
%
Contract share
0
%
0
%
Superior share
90
%
91
%
 
 
 


Financial results
Operational EBIT amounted to EUR 27.4 million in the second quarter (EUR 3.0 million), which was EUR 2.34 per kg (EUR 0.26). The increase in Operational EBIT compared to the second quarter of 2015 is mainly due to improved spot market prices and strengthening of the market currency.

Financial EBIT amounted to EUR 15.9 million (EUR -0.7 million).

Price and volume development
The North American market for fresh whole Canadian salmon remained strong in the second quarter due to low export volumes from the Chilean market into the US. The average price per lb gutted weight (Urner Barry 10-12 lb) was USD 3.32 per lb, compared to USD 2.29 in the second quarter of 2015.
Prices decreased temporarily following the termination of the fishermen's blockade of Chiloe Island and subsequent release of backlog harvest into the market. When the harvest surplus was absorbed, prices increased at the end of the second quarter.




Price achievement in the second quarter was 1% below the reference price (price achievement was at the reference price in the second quarter of 2015). There were no contracts for salmon of Canadian origin in the second quarter of 2016 or 2015. The superior share was 90% in the quarter (91%).

© Marine Harvest Group
 
16

 
 
Q2|2016

Harvested volume was 11 745 tonnes gutted weight in the second quarter, a small increase from the comparable quarter last year (11 583 tonnes). Production has been at the same level as in the second quarter of 2015.

Costs and operations
Biological costs per kg salmon harvested in the quarter increased by 7% compared to the second quarter of 2015. Higher feed costs and health costs are the main drivers for the increase. However, health costs remain significantly lower per kg harvested than in Norway and Scotland. No incident-based mortality is reported in the quarter (EUR 0.4 million).
We expect higher costs in the third quarter of 2016.









© Marine Harvest Group
 
17

 
 
Q2|2016

Salmon of Chilean origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
-1.6

-7.0

EBIT
-12.7

-32.0

 
 
 
Harvest volume (GWT)
7 076

13 240

 
 
 
Operational EBIT per kg (EUR)
-0.23

-0.53

- of which Markets
0.57

0.25

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
-3.8

3.1

Exceptional items per kg (EUR)
-0.54

0.23

 
 
 
 
 
 
Price achievement/reference price
105
%
111
%
Contract share
23
%
17
%
Superior share
90
%
90
%
 
 
 


Financial results
Operational EBIT amounted to EUR -1.6 million in the second quarter (EUR -7.0 million) which was EUR -0.23 per kg (EUR -0.53). Notwithstanding the strong price increase, negative effects of the algal bloom resulted in negative Operational EBIT.

Financial EBIT amounted to EUR -12.7 million (EUR -32.0 million).

Price and volume development
The Urner Barry reference price for Chilean salmon was up by 43% compared to the second quarter of 2015. This is mainly a result of lower harvesting volumes following the algal bloom.

Price achievement for Chilean salmon exceeded the reference price in the quarter. However, compared to the second quarter of 2015, price achievement is negatively impacted by the effect of lower contract contribution in a market with an increasing spot price. In addition, biological issues adversely impacted quality.

The contract share was 23% in the period, compared to 17% in the second quarter of 2015.

Harvested volume was 7 076 tonnes gutted weight in the second quarter (13 240 tonnes). The significant reduction from the comparable quarter in 2015 is a result of the algal bloom.

Costs and operations
Compared to the second quarter of 2015, costs in our Chilean operations have increased in the second quarter of 2016. Biological costs increased by 17% due to negative scale effects on costs following lower harvest volumes, as well as challenging biology.










© Marine Harvest Group
 
18

 
 
Q2|2016

















There were no incident based mortality losses in the second quarter of 2016, but the algal bloom continues to negatively impact the results of Marine Harvest Chile. Non-seawater costs in the second quarter of 2016 include EUR 3.8 million of costs related to algal bloom. In the second quarter of 2015, net non-seawater costs were positive due to insurance coverage from the Calbuco volcano eruption.

Cost in box was USD 6.85 per kg in the second quarter of 2016. Adjusted for non-recurring costs related to algal bloom, cost in box was USD 6.24 per kg.

Restructuring process in Marine Harvest Chile
The previously announced restructuring process in Marine Harvest Chile continues as planned. In relation to this process, fixed assets have been written down by EUR 19.0 million (corresponding to USD 21.6 million) in the quarter. Additionally, a restructuring provision of EUR 2.2 million (corresponding to USD 2.5 million) has been recognized. Aforementioned costs are reported in financial EBIT in the second quarter.















© Marine Harvest Group
 
19

 
 
Q2|2016

Salmon of Irish origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
1.3

6.2

EBIT
4.7

7.4

 
 
 
Harvest volume (GWT)
1 452

2 948

 
 
 
Operational EBIT per kg (EUR)
0.86

2.11

- of which Markets
0.00

0.00

- of which Consumer Products
-0.09

0.06

 
 
 
Exceptional items incl in op. EBIT
-0.2

-0.1

Exceptional items per kg (EUR)
-0.11

-0.03

 
 
 
 
 
 
Price achievement/reference price
na

na

Contract share
85
%
90
%
Superior share
95
%
94
%
 
 
 

 
Operational EBIT amounted to EUR 1.3 million in the second quarter (EUR 6.2 million), which was EUR 0.86 per kg (EUR 2.11 per kg). Achieved prices were 3% higher in the second quarter of 2016 than in the second quarter of 2015.

Financial EBIT amounted to EUR 4.7 million (EUR 7.4 million).

The effects of very challenging weather conditions, hampered feeding and biological challenges from the first quarter continue to impact costs. Compared to the second quarter of 2015, biological costs increased by 12%. Harvest volume was 1 452 tonnes gutted weight (2 948 tonnes).

Incident based mortality of EUR 0.2 million was recognized in the second quarter of 2016 (no incident based mortality in the corresponding quarter of 2015).

Salmon of Faroese origin
EUR million
Q2 2016

Q2 2015

 
 
 
Operational EBIT
5.7

0

EBIT
10.8

0.8

 
 
 
Harvest volume (GWT)
2 334

0

 
 
 
Operational EBIT per kg (EUR)
2.46

0.00

- of which Markets
0.05

0.00

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
-0.3

0.0

Exceptional items per kg (EUR)
-0.11

0.00

 
 
 
 
 
 
Price achievement/reference price
92
%
0
%
Contract share
0
%
0
%
Superior share
84
%
0
%
 
 
 


Operational EBIT amounted to EUR 5.7 million (EUR 0.0 million), which was EUR 2.46 per kg. There was no harvesting in the first three quarters of 2015.

Financial EBIT amounted to EUR 10.8 million (EUR 0.8 million).

The majority of the harvested salmon in the second quarter of 2016 was sold to Russia, USA and China. High prices in other markets, such as the EU, have reduced the premium of selling to the former mentioned markets.

Full cost for the harvested fish is at the same level as in the first quarter.

In 2016, a fee on harvesting revenue has been applied by the authorities in the Faroe Islands. In the second quarter of 2016, the fee negatively impacted Operational EBIT by EUR 0.7 million.

© Marine Harvest Group
 
20

 
 
Q2|2016


Consumer Products
EUR million
Q2 2016

Q2 2015

 
 
 
Operating revenues
325.1

264.4

 
 
 
Operational EBIT
-4.8

5.5

Operational EBIT %
-1.5
 %
2.1
%
EBIT
-9.4

1.3

 
 
 
 
 
 
Volume sold (tonnes product weight)
30 457

25 541

 
 
 
Exceptional items
0.0

0.0

 
 
 
Volume share salmon
78
 %
73
%
Revenue share salmon
80
 %
77
%
 
 
 
Please note that the Operational EBIT for salmon in Consumer Products is also included in the results per country of origin.


Financial results
Operational EBIT for Consumer Products was EUR -4.8 million (EUR 5.5 million). The Operational EBIT margin was -1.5% (2.1%). The significant increase in raw material prices adversely impacted earnings in Consumer Products. In addition, Operational EBIT in the second quarter of 2016 was negatively impacted by losses in our plant in Rosyth of EUR 3.5 million.

Financial EBIT amounted to EUR (9.4) million (EUR 1.3 million).

For our Fresh operations in Benelux, Operational EBIT increased somewhat compared to the second quarter of 2015 mainly as a result of improved factory performance. Our Fresh operations in France were adversely impacted by increased raw material prices. The negative performance of our Rosyth processing plant in Scotland also significantly impacted Operational EBIT for our Fresh operations.

For our Chilled operations, the negative development of raw material prices in 2016 more than offsets the effect of improved factory performance of our main plants.

Price and volume development
Consumer Products’ operating revenues were EUR 325.1 million (EUR 264.4 million). As for the first quarter, average price achieved per sold volume in the second quarter increased compared to the corresponding quarter in 2015 for both our Chilled and Fresh operations.

Total volume sold in the second quarter of 2016 was 30 457 tonnes product weight, which is an increase of 19% compared to the second quarter of 2015. The volume has increased for both Fresh and Chilled sales. Salmon sales volume increased by 33%, and salmon’s share was 78% (73%).




© Marine Harvest Group
 
21

 
 
Q2|2016

We are experiencing good growth in the German, Benelux and South European markets. In the UK, we are experiencing strong growth due to full range production for a major retail customer. We continue our efforts to grow sales through the introduction of new products and through cross-selling of existing products. The French salmon market continues to be challenging.

Costs and operations
As the increase in raw material prices more than offsets the increase in achieved prices per sold volume, both our Chilled operations and Fresh operations were loss-making in the second quarter.




Consumer Products
Q2 2016
EUR million
Fresh

Chilled

Total

Volume sold (tonnes prod wt)
13 902

16 555

30 457

Operational EBIT
-3.0

-1.9

-4.8

Operational EBIT per kg (EUR)
-0.21

-0.11

-0.16

 
 
 
 
 
 
 
 
Consumer Products
Q2 2015
EUR million
Fresh

Chilled

Total

Volume sold (tonnes prod wt)
9 513

16 028

25 541

Operational EBIT
1.6

3.9

5.5

Operational EBIT per kg (EUR)
0.17

0.24

0.22


Losses in the Rosyth entity in the second quarter were EUR 3.5 million (loss of EUR 1.3 million), or EUR 0.5 million better than guided in the report for the first quarter. Measures to improve efficiency and yield have started to take effect. We are aiming for break-even results for the third quarter of 2016.




© Marine Harvest Group
 
22

 
 
Q2|2016

Feed
EUR million
Q2 2016

Q2 2015

 
 
 
Operating revenues
69.4

58.4

 
 
 
Operational EBIT
3.3

3.1

Operational EBIT %
4.7
%
5.3
%
EBIT
3.4

1.5

 
 
 
 
 
 
Feed sold volume
55 956

47 608

Feed produced volume
74 821

58 189

 
 
 
Exceptional items
0

0

 
 
 
Please note that the Operational EBIT for Feed is also included in the results per country of origin (currently only Norway).





Financial results
Operational EBIT was EUR 3.3 million (EUR 3.1 million) in the second quarter of 2016. The Operational EBIT margin was 4.7% (5.3%).

Financial EBIT amounted to EUR 3.4 million (EUR 1.5 million).

Price and volume development
Operating revenues were EUR 69.4 million in the second quarter (EUR 58.4 million). Volumes sold in the second quarter were 55 956 tonnes, compared to 47 608 tonnes in the second quarter of 2015.

Volumes sold in the second quarter accounted for 85% of total feed delivered in our Norwegian farming operations in the second quarter of 2016 (83% in the second quarter of 2015).

The volume increase from the second quarter of 2015 is mainly a result of improved operational efficiency and discontinued third party feed supply.

We continue our efficiency improvement projects and our latest plant upgrades are expected to result in a volume increase which would take the production capacity of the Bjugn plant to approximately 320 000 tonnes per year.

Feed prices are set at market terms and benchmarked against third parties. As the largest buyer of salmon feed globally, we are able to efficiently benchmark our own feed towards third party suppliers both with regards to price and quality.




 


© Marine Harvest Group
 
23

 
 
Q2|2016


Costs and operations
Costs in the second quarter have been negatively impacted by increased raw material prices. The fish meal and oil market has been affected by uncertainty regarding the Peruvian fishing quota for 2016. We continue to source alternatives where suitable. Other operating costs have been stable compared to the second quarter of 2015.

Quality improved in the second quarter compared to the first quarter of 2016, with no significant claims costs. The Norwegian Food Safety Authority performed a successful first audit of the factory in the second quarter.

Given the significant increase in fish feed self-sufficiency, we target further reduction in the third party share of feed going forward. We continue our production of smolt and broodstock diets to reduce the dependency on third party feed purchases in this area.

The location for our new feed plant in Kyleakin, Scotland has been secured, with planning application expected to be submitted in the third quarter of 2016.




© Marine Harvest Group
 
24

 
 
Q2|2016

PEOPLE - SAFE AND MEANINGFUL JOBS
The safety, self-respect and personal pride of our employees cannot be compromised if Marine Harvest is to succeed as a company and maintain good relationships with local communities.
Employee Health and Safety
In the second quarter, the Group recorded 45 Lost Time Incidents (LTIs), which is a decrease from 74 in the second quarter of 2015. Measured in LTIs per million hours worked (rolling average), the figure is 9.93 (12.00). Absenteeism increased to 5.2% in the second quarter of 2016 from 4.7% in the same quarter in 2015.
 
GUIDING PRINCIPLE - ISSUE
AMBITION
Q2 2016 Achievement
 
Safe jobs
No lost time incidents (LTI)
LTIs per million hours worked was 9.93. Programs are in place to reduce the number.
 
 
Healthy working environment
Absenteeism < 4%
Absenteeism of 5.2% in the quarter.
 
 
PRODUCT - TASTY AND HEALTHY SEAFOOD
We aim to continually deliver healthy, tasty and responsibly produced seafood to our customers to deliver long-term financial profitability.

Consumer Products in Europe
In the second quarter, Marine Harvest Consumer Products launched its first complete product catalog. The catalog provides a taste of the extensive range of retail and food service products offered by the companies in our European value added operations. The catalog presents the unique character of our Consumer Products operations. It tells the story of how our close customer contact, knowledgeable and resourceful people and versatile equipment in the plants we operate, contribute to bring a constant stream of product innovations to the market. Our innovation is not limited to product innovation, but also includes new ideas in processing, preparation and packaging – all in an effort to make fish more attractive and convenient for the consumers.

By presenting a taste of our complete selection in one catalog, our customers have become more aware of our wide range and capabilities, which has contributed to increased overall sales and increased cross-selling of Marine Harvest products across markets. The complete catalog is available upon request.

Our branding efforts continue
Laschinger
Laschinger, our award winning brand for the German, Austrian and Swiss markets, continues the positive development, reporting double digit growth compared to last year for many products. Our most successful product, Hot smoked salmon, displays continuous sales growth and in the second quarter it was up 10 % compared to 2015. Fresh products such as BBQ salmon and salmon portions were also displaying significant growth compared to last year in the second quarter.
Weekly promotional activities drive our development in these markets.

Ducktrap
Ducktrap River of Maine, our smoked seafood facility in the US, continues to expand business and strengthen its market position as a leader in the US smoked seafood category. The Ducktrap brand remains a trusted, well-recognized and preferred brand among discerning customers and chefs in the US, with 15% average annual growth in the last four and a half years.

Rebel Fish
We continued our efforts to grow Rebel Fish in the second quarter. The Rebel Fish packaging has undergone a makeover, with a positive effect on the sale of the product.

Skin-packed products in the US
Our fresh skin-packed products in the US market continue the positive development with a growth of almost 15% compared to the first quarter of 2016. Second quarter sales were approximately 1 520 tonnes product weight for all species.

Mowi
In the second quarter, our premium brand Mowi, continued the positive development in the Asian market, with volume growth of 49% compared to the second quarter of 2015. In May 2016, three smoked Mowi salmon products were recognized for their superior quality and taste with Gold Medals by Monde Selection. The Monde Selection quality labels are awarded by a totally independent professional jury, including Michelin starred chefs, members of the French Culinary Academy, university lecturers and nutrition and health consultants. Over 3 000 products from more than 80 different countries are judged each year.

© Marine Harvest Group
 
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Q2|2016

 
GUIDING PRINCIPLE - ISSUE
AMBITION
Q2 2016 Achievement
 
Food quality and safety
Supply seafood with valuable health benefits for its quality and documented safety
Health targets met
 
 
Product innovation
Marine Harvest wants to play an important role in the design and use of products to satisfy customer needs
Continuous effort with existing brands.
 
 

© Marine Harvest Group
 
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Q2|2016

PLANET - SUSTAINABLE AND RESPONSIBLE DEVELOPMENT

Our operations and long-term profitability ultimately depend on sustainable and environmentally responsible interactions with the natural environment. We rely on qualified personnel to maintain fish health, avoid escapes and minimize the environmental impact of our operations.

 



Escape prevention
Marine Harvest has a target of zero fish escapes and is constantly striving to prevent escapes and improve methods, equipment and procedures that can minimize or eliminate escapes. Unfortunately, there was 1 escape incident in the second quarter. The incident, which occurred in Norway region North, was connected to washing of net pens and the estimated number of escaped fish was 30 (52 000 in the second quarter of 2015, of which 36 000 was in Norway). Remediating actions have been taken. There were no escape incidents in our other units (second quarter of 2015: 16 000 escaped fish in Scotland).

Fish health
Pancreas Disease (PD): 1 new site was diagnosed with PD in Norway in the second quarter, compared to 4 in the second quarter of 2015. There were no new sites diagnosed with PD in Scotland or Ireland in the second quarter of 2016 (one site in Ireland in the second quarter of 2015). PD was a cause of reduced survival in Norway, Scotland and Ireland in the second quarter.

Amoebic Gill Disease (AGD): High presence of a microscopic amoeba named Paramoeba perurans can cause AGD, with elevated mortality and reduced performance. Since 2013, the amoeba has also been found in Norway. The presence of the amoeba increases with higher seawater temperatures. Treatments were carried out in several of our farming entities. Marine Harvest's fish health teams and seawater production departments take immediate action when AGD appears.

Infectious Salmon Anaemia (ISA): In the second quarter of 2016, 1 new ISA case was confirmed in our Norwegian operations. Our monitoring and surveillance continues and we maintain strict measures to immediately harvest out sites with ISA.

Lice management
Marine Harvest actively works to reduce the sea lice load in all farming units. Canada, Ireland, Faroes and regions West and Mid in Norway reported lower sea lice levels at the end of the second quarter of 2016 compared to the end of the second quarter of 2015. Scotland and Chile (and to a lesser extent Regions South and North in Norway) reported increases compared to the second quarter of 2015.

Extensive commercial testing of non-medicinal tools and approaches continues in collaboration between Marine Harvest's Global R&D and Technical department and operating units.

SRS a growing concern for salmon farming in Chile
Salmonid Rickettsial Septicaemia (SRS) is caused by an intracellular bacterium. It occurs mainly in Chile and over the recent months we have seen a significant increase in the need for treatment. SRS is treated using licensed antibiotics and is the primary reason for our use of antibiotics in our operations. In the second quarter, treatment was carried out at several sites in Chile. SRS is currently a major biological concern in Chilean salmon farming. A new vaccine was launched in the first quarter. The industry has positive expectations, but the effect under commercial conditions is still to be verified.

Medicine use
Marine Harvest focuses on preventing the development and spread of infectious diseases. If fish get infected, they are treated with approved medicines. In the second quarter, our use of antibiotics was 47 grams per ton biomass compared to 67 grams per ton in the second quarter of 2015.

Additional farms ASC certified
In 2013, we announced our commitment to have 100% of our farms ASC certified by 2020. As of the close of the second quarter of 2016 we had 47 sites certified (36 in Norway, 3 in Chile, 3 in Ireland, 3 in Canada and 2 in Scotland). 31% of our active farms were certified as of the close of the second quarter. The corresponding figure for our active farms in Norway is 45%.

Several additional sites have been audited and are expected to be certified in 2016. Marine Harvest is taking the lead in ASC implementation and we are committed to demonstrate an environmentally responsible development in our organization.

For further information regarding sustainability and biological risk management, reference is made to the 2015 Annual Report.




© Marine Harvest Group
 
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Q2|2016

 
GUIDING PRINCIPLE - ISSUE
AMBITION
Q2 2016 Achievement
 
Ensure sustainable wild-farmed interaction in the farming activity
Zero escapes
One escape incident and approximately 30 fish lost (five incidents with 52 000 fish lost in the second quarter of 2015)
 
 
Ensure healthy stocks minimizing diseases and losses in the farming activities
Monthly survival rate of at least 99.5% within 2020
Average survival rate in the quarter of 98.9% (same as in the second quarter of 2015)
 
 

© Marine Harvest Group
 
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Q2|2016

EVENTS DURING AND AFTER THE CLOSE OF THE QUARTER
Divestment of shares in Grieg Seafood
On May 18, Marine Harvest sold its 28.8 million shares in Grieg Seafood with a realized gain of EUR 54.8 million. Please refer to note 7 for more information.
Divestment of the subsidiary Sterling White Halibut
In the second quarter, Marine Harvest sold all its shares in the fully owned subsidiary Sterling White Halibut. Following the sale of the shares, Sterling White Halibut has been deconsolidated from the group's financial statements.
Marine Harvest has entered into an aquaculture shipping joint venture
On December 11 2015, Marine Harvest announced an evaluation process to expand its business activity into aquaculture vessels. The group currently charters 44 vessels with a combined cost of approximately EUR 100 million per year, making Marine Harvest the industry's largest charterer of such vessels. To this end, Marine Harvest has established an aquaculture shipping joint venture with Deep Sea Supply.

Subsequent to the establishment, the joint venture has entered into two ship building contracts. One contract is for a 3 000 m3 well boat for our Canadian farming operations at a price of NOK 225 million. The contract includes an option for three more vessels. The other contract is for a harvest vessel for our farming operations in Region South in Norway, at a price of NOK 179 million (after receiving a NOK 20 million grant from Innovation Norway). The harvest vessel will have an annual capacity to kill and transport approximately 40 000 GWT. The contract includes an option for one more vessels.

Marine Harvest has applied for 6 new development licenses in Norway
Marine Harvest has applied for six new development licenses for salmon production in a converted cargo ship in Norway, "The Ship". In total, the converted ship will have the capacity to farm approximately 950,000 salmon over a farming cycle, divided between six tanks.
To date, Marine Harvest has applied for 34 development licenses for four concepts.
Chilean authorities have introduced new regulations
In June, the Chilean Undersecretary for Fisheries and Aquaculture introduced amendments in regulations for salmon fish farming in Chile. The new regulations include a set of complex rules on both neighborhood and site level regarding sanitary conditions based on mortality, smolt transfer and environmental impact. Further, through a matrix of scores a maximum stocking density is determined. Marine Harvest Chile has opposed the new regulations. Even though Marine Harvest Chile has advocated for improved regulations of the Chilean fish farming industry for a long time, Marine Harvest Chile considers the new regulations to have major deficiencies. Among other things, the amendments are expected to increase costs and make the Chilean salmon industry less competitive in the global salmon market. In addition, the regulations may undermine and disadvantage the sustainability of salmon farming in Chile. All of the details of the new regulations in Chile are not determined yet and shall be presented to the Chilean salmon industry in the coming months. The details of the regulations are expected to be determined and implemented next year.
Accordingly, Marine Harvest Chile has terminated its membership in SalmonChile over the cited disagreement on regulations. Marine Harvest Chile will continue to advocate for a regulatory framework in Chile similar to the Norwegian regulatory framework, i.e. a separation of licenses and locations, capped biomass on total number of licenses and a system of "traffic lights" to determine growth.
Amendment in regulations of Maximum Allowed Biomass (MAB) in Norway
In June, the Norwegian Ministry of Fisheries announced an amendment in regulations of Maximum Allowed Biomass (MAB). The new regulations enable fish farmers to apply for increased MAB in certain periods of the year, offset by a corresponding decrease in other periods. Fee per license is NOK 1.5 million (EUR 0.16 million).
This system of flexible MAB is a pilot scheme expiring year-end 2019. The application deadline is September 1 2016, and Marine Harvest Norway is yet to decide whether or not it will apply.
Norwegian regulations and future growth
In March 2015, a White Paper on Aquaculture was released. The Norwegian Ministry of Fisheries has now issued a proposal through a general hearing process for such new regulations to be implemented. Future growth shall be governed through a traffic light signal based on environmental indicators. The proposal also suggests to divide the Norwegian coast line into 12 different production areas. Deadline for submitting input to the hearing process is September 21 2016. Marine Harvest will give its feedback within the set timeframe.

Capital Markets Day
On 1-2 June, Marine Harvest held a Capital Markets Day. Please refer to www.marineharvest.com for presentation material.

Marine Harvest launched the 2016 Industry Handbook
In June, Marine Harvest launched the 2016 version of the Industry Handbook. Please refer to www.marineharvest.com for details.
Annual General Meeting
The Annual General Meeting (AGM) in Marine Harvest ASA was held on June 9 2016. Please refer to the protocols available on www.marineharvest.com for details.

© Marine Harvest Group
 
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Q2|2016

Lisbet K. Nærø was elected as Deputy Chair of the Board, replacing Leif Frode Onarheim. Paul Mulligan, Jean-Pierre Bienfait and Birgitte Ringstad Vartdal were elected as new Board members. Heléne Vibbleus left the Board. Unni Sværen replaced Kjellaug Samland as employee representative in the Board. The Board wishes to thank the outgoing Directors for their contributions.
The following Directors have been appointed by the Board as members of the Audit Commitee: Birgitte Ringstad Vartdal (Chair), Lisbet K. Nærø and Cecilie Fredriksen.
Dividend of NOK 3.20 per share
The Board of Directors has decided to pay out a quarterly dividend of NOK 3.20 per share, of which NOK 1.10 is related to divestment of shares in Grieg Seafood, to the shareholders in the form of repayment of paid in capital.

© Marine Harvest Group
 
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Q2|2016

OUTLOOK STATEMENT FROM THE BOARD OF DIRECTORS
 
The quarterly operational result was a new record for Marine Harvest. Unprecedented high salmon prices due to strong demand and reduced supply were the main drivers for the positive result. The Board is very pleased to see the strong demand response in the market and the continued price resilience. Farming results in Norway, taking into account the high contract share, and Canada were particularly encouraging. Comparatively, Marine Harvest Chile suffered from low volumes and high cost. The high raw material prices were negatively impacting the Consumer Products business unit and this led to a loss in the quarter.
Marine Harvest Norway delivered an impressive result despite lower harvest volumes compared to the same quarter last year. Significant regional differences were seen in earnings in the period; Region North’s EBIT/kg of EUR 2.52 was the best whereas Region Mid delivered EUR 1.54/kg. Although Region North is facing some challenges related to ISA in two sites, biological performance has improved in general, as non-medicinal lice treatment tools are becoming more effective in this region. Operating results in Region Mid were negatively impacted by low volumes and high lice mitigation and treatment costs. All regions in Norway continue the efforts of keeping adult female sea lice at target levels and the company continues to increase the use of non-medicinal lice treatment tools.
Notwithstanding the price surge in Scotland, the business unit’s high contract share and high cost put pressure on earnings in the second quarter. However, the ongoing restructuring process is progressing and the Board expects operational performance to improve. The Canadian operations delivered once again very good results. Favorable biological performance, steady operations and a surging spot market contributed to healthy profits. In Chile the operational performance continues to be negatively impacted by the algal bloom earlier this year. Declining volumes and high production cost are not sustainable. The Board believes that the recently announced new proposed regulations will not solve the industry challenges. Hence, the Board believes that the company should continue to promote the Norwegian biomass regulations which have shown to work over time.
Despite all time high salmon prices, farming costs have become unacceptably high and the cost trend is not satisfactory. The Board promotes the utmost focus on cost reduction throughout the organization and supports new methods and innovative solutions to combat the cost escalation. The Board believes that Marine Harvest has the right people, passion and organizational culture to succeed. Coupled with new farming concepts and equipment, the Board is optimistic that such efforts will eventually drive down operational costs. Accordingly, Marine Harvest has submitted applications for 34 development licenses in Norway comprising four different concepts.

Financial performance within Consumer Products is currently hampered by high raw material prices. However, underlying efficiency improvements across many of the processing sites continue and key performance indicators are showing improved figures. Operations at Rosyth were still loss making in the second quarter but improving and on track to reach break even results.

The market demand is impressive and several consumer markets continue to grow. In key markets such as UK, Germany and Southern Europe the favorable development continues. Product offerings of convenient and tasty fresh salmon are reaching more and more consumers and penetration rates are encouraging. Market conditions in France, however, are increasingly difficult as a result of high salmon prices. Demand in Asia is good and consumption grew by an impressive 13% in the second quarter. However, a lack of available salmon impacts the sale of salmon in the region.
The Board is also pleased by the developments within Feed. Feed is about 50% of the cost base of salmon production, hence the Board encourages the Feed organization to continue to source alternative marine ingredients where suitable. R&D efforts are also progressing in this area, however, it will take time to develop new marine substitutes with the right EPA and DHA (omega-3) balance.
The Board is pleased to see that Marine Harvest and Deep Sea Supply have established an aquaculture shipping joint venture. The announced newbuild contracts of one well boat and one harvest vessel position Marine Harvest in the forefront of potentially changing this part of the aquaculture industry. The joint venture represents an interesting opportunity to reduce cost and at the same time improve biology.
The market balance for 2016 is expected to be tight. Kontali Analyse forecasts global supply growth to decline by approximately 6%. The magnitude of the supply contraction is the largest ever in absolute volumes. The 12 month Nasdaq forward price continues to increase to new records. The forward price for the next 12 months is currently EUR 6.4 per kg (NOK 59 per kg), up by EUR 0.5/kg in the last quarter.
A quarterly dividend of NOK 3.20 per share, of which NOK 1.10 is related to divestment of shares in Grieg Seafood, will be issued under the authorization granted by the Annual General Meeting. The dividend will be distributed in the form of repayment of paid in capital.

© Marine Harvest Group
 
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Q2|2016

SUMMARY YEAR TO DATE

Operational EBIT of EUR 260.9 million. Financial EBIT of EUR 373.3 million.
Harvest volume slightly above guidance.
Estimated volumes for the second half of 2016 have been reduced as a result of biological issues.
Unprecedented salmon prices on strong demand and reduced supply.
Production costs for all regions increased compared to the first half of 2015 as a result of challenging biology and higher feed costs.
Operational EBIT in Marine Harvest Chile impacted by exceptional items due to the algal bloom incident.
Initiated restructuring process for Marine Harvest Chile. Recognized impairment of fixed assets of EUR 19 million million and a restructuring provision of EUR 2.2 million in the second quarter.
Operational EBIT for Consumer Products negatively impacted by increased raw material prices and losses at the Rosyth plant in Scotland.
Divestment of all shares in Grieg Seafood with a realized gain of EUR 54.8 million.
Establishment of an aquaculture shipping joint venture between Marine Harvest and Deep Sea Supply.
Net cash flow per share of EUR 0.72, Underlying earnings per share (EPS) of EUR 0.42 and EPS of EUR 0.38
Return on capital employed (ROCE) 21.1%.
Net interest-bearing debt (NIBD) of EUR 832.4 million.
Dividend of NOK 3.10 per share has been paid out in 2016, as a repayment of paid in capital.

RISKS

Marine Harvest has not identified any additional risk exposure beyond the risks described in note 3 of this report and the 2015 Annual report.

Reference is also made to the Planet section and the Outlook section of this report for other comments to Marine Harvest’s risk exposure.

CONFIRMATION FROM BOARD OF DIRECTORS AND CEO

We confirm, to the best of our knowledge, that the interim financial report for the first half of 2016 has been prepared in accordance with IFRS as issued by IASB and as adopted by EU, and gives a true and fair view of the Group's consolidated assets, liabilities, financial position and result for the period. Furthermore, we confirm that the interim management report includes a fair view of the information required under the Norwegian Securities Trading Act § 5- 6, fourth paragraph.


Bergen, August 17, 2016
The Board of Directors of Marine Harvest ASA

Ole-Eirik Lerøy
Lisbet K. Nærø
Cecilie Fredriksen
Ørjan Svanevik
CHAIRMAN OF THE BOARD
DEPUTY CHAIR OF THE BOARD
 
 
 
Paul Mulligan
Jean-Pierre Bienfait
Birgitte Ringstad Vartdal
 
Lars Eirik Hestnes
Stein Mathiesen
Unni Sværen
Alf-Helge Aarskog
 
 
 
CHIEF EXECUTIVE OFFICER


© Marine Harvest Group
 
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Q2|2016

Forward looking statements

This report may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest’s goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, future capital expenditures and investments and the expected returns therefrom, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market,  demographic and pricing trends, strategic initiatives, financial target (including ROCE and NIBD), planned operational expenses, product demand and trends, supply trends, expected price levels, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Marine Harvest's business and results. Forward-looking statements are typically identified by words or phrases, such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are Marine Harvest’s current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Marine Harvest ASA’s annual report on Form 20-F for the year ended December 31, 2015, including the section captioned “Risk Factors,” contain additional information about factors that could affect actual results, including: changes to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this report are based on information available at the time of the release, and Marine Harvest assumes no obligation to update any forward-looking statement.



© Marine Harvest Group
 
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Q2|2016

INTERIM FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Presentation currency for the Group has been changed from NOK to EUR from January 1, 2016. Please refer to Note 13 for further information.
Unaudited, in EUR million
Note
Q2 2016

Q2 2015

YTD Q2 2016

YTD Q2 2015

2015

 
 
 
 
 
 
 
Revenue
4
831.7

767.1

1 636.5

1 503.6

3 112.4

 
 
 
 
 
 
 
Cost of materials
 
-426.1

-429.4

-869.1

-833.3

-1 770.3

Fair value uplift on harvested fish
5
-188.9

-112.0

-355.2

-240.1

-457.6

Fair value adjustment on biological assets
5
222.9

33.4

477.3

88.2

467.7

Salaries and personnel expenses
 
-99.0

-99.4

-208.8

-204.4

-427.1

Other operating expenses
 
-118.8

-117.0

-224.0

-219.1

-443.2

Depreciation and amortization
 
-35.3

-35.5

-71.1

-69.9

-139.8

Onerous contract provisions
 
-2.2

0.9

-16.3

10.6

-0.7

Restructuring cost
 
-2.1

-14.6

-4.6

-14.5

-15.2

Other non-operational items
 
1.3

2.5

1.3

2.5

2.4

Income from associated companies
 
16.2

0.7

26.5

2.1

23.4

Impairment losses
 
-19.0

-3.2

-19.1

-3.1

-6.8

 
 
 
 
 
 
 
Earnings before financial items (EBIT)
 
180.5

-6.4

373.3

22.5

345.3

 
 
 
 
 
 
 
Interest expenses
7
-12.2

-9.2

-24.1

-25.8

-46.5

Net currency effects
7
-0.2

-20.1

-1.2

29.6

4.2

Other financial items
7
-78.0

39.6

-93.5

30.3

-52.9

 
 
 
 
 
 
 
Earnings before tax
 
90.0

3.8

254.4

56.7

250.1

 
 
 
 
 
 
 
Income taxes
 
-47.5

0.6

-83.9

-12.4

-91.6

 
 
 
 
 
 
 
Earnings for the period, continued operations
 
42.5

4.4

170.5

44.3

158.5

 
 
 
 
 
 
 
Profit from discontinued operations, net of tax
 
0.0

-0.1

0.0

-0.2

-0.2

 
 
 
 
 
 
 
Profit or loss for the period
 
42.5

4.3

170.5

44.1

158.3

 
 
 
 
 
 
 
Other comprehensive income
 
 
 
 
 
 
Change in fair value of cash flow hedges
 
0.0

-1.3

0.0

-2.5

-3.6

Income tax effect fair value of cash flow hedges
 
0.0

0.7

0.0

0.7

1.0

Currency translation differences
 
7.7

-21.0

10.8

53.1

-54.4

Currency translation differences non-controlling interests
 
0.0

0.0

0.0

0.1

0.1

 
 
 
 
 
 
 
Items to be reclassified to P&L in subsequent periods:
 
7.7

-21.6

10.8

51.3

-57.0

 
 
 
 
 
 
 
Actuarial gains (losses) on defined benefit plans, net of tax
 
0.0

0.0

0.0

0.0

-0.9

Other gains and losses in comprehensive income
 
3.7

-0.8

-0.1

-1.3

2.1

 
 
 
 
 
 
 
Items not to be reclassified to profit and loss:
 
3.7

-0.8

-0.1

-1.3

1.2

 
 
 
 
 
 
 
Other comprehensive income, net of tax
 
11.4

-22.5

10.7

50.1

-55.8

 
 
 
 
 
 
 
Total comprehensive income in the period
 
53.9

-18.1

181.2

94.1

102.5

 
 
 
 
 
 
 
Profit or loss for the period attributable to
 
 
 
 
 
 
Non-controlling interests
 
-0.1

0.0

-0.1

0.1

0.1

Owners of Marine Harvest ASA
 
42.6

4.4

170.6

44.0

158.2

 
 
 
 
 
 
 
Comprehensive income for the period attributable to
 
 
 
 
 
 
Non-controlling interests
 
-0.1

0.0

-0.1

0.1

0.1

Owners of Marine Harvest ASA
 
54.0

-18.1

181.3

94.0

102.4

 
 
 
 
 
 
 
Basic and diluted earnings per share (EUR)
8
0.09

0.01

0.38

0.10

0.36

Dividend declared and paid per share (NOK)
 
1.70

1.30

3.10

2.50

5.20



© Marine Harvest Group
 
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Q2|2016

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited, in EUR million
Note
6/30/2016

3/31/2016

12/31/2015

6/30/2015

 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Licenses
 
748.4

738.4

746.6

758.3

Goodwill
 
263.5

261.9

259.0

273.7

Deferred tax assets
 
10.6

9.4

11.5

25.6

Other intangible assets
 
28.3

27.6