EX-99.1 2 a6-kq32016exhibit991.htm EXHIBIT 99.1 Exhibit
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Q3
/
2016
/
THIRD QUARTER
MARINE HARVEST GROUP
All-time high Operational EBIT of EUR 180 million. Financial EBIT of EUR 274 million
Seasonally record high salmon prices on strong demand and decline in supply
Positive Operational EBIT in Chile
Record high production and operational result in Feed
Quarterly dividend of NOK 2.30 per share


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© Marine Harvest Group
 
1

 
 
Q3|2016

HIGHLIGHTS - THIRD QUARTER 2016
All-time high Operational EBIT of EUR 179.9 million. Financial EBIT of EUR 273.6 million.
Seasonally record high salmon prices on strong demand and decline in supply.
Harvest volume slightly above guidance for the third quarter.
Estimated harvest volumes for 2016 have been reduced from 400 000 to 381 000 GWE as a result of biological issues.
Production cost increased in Norway and Scotland.
Positive Operational EBIT in Chile.
Operational EBIT for Consumer Products negatively impacted by the substantial rise in raw material prices, but strong growth in several markets.
Consumer Products' UK plant at Rosyth with break-even results in the third quarter, in accordance with guidance.
Net cash flow per share of EUR 0.26, and Underlying earnings per share (EPS) of EUR 0.29.
Return on capital employed (ROCE) 29.5% and Net interest-bearing debt (NIBD) of EUR 876.7 million.
A quarterly dividend of NOK 2.30 per share, will be paid out to the shareholders as a repayment of paid in capital.
Main figures 1)
Q3 2016

Q3 2015

YTD Q3 2016

YTD Q3 2015

2015

EUR million
Operational revenue 2)
850.0

751.8

2 491.7

2 254.4

3 121.1

 
 
 
 
 
 
Operational EBITDA 3)
214.6

113.0

546.7

362.1

486.6

Operational EBIT 3)
179.9

77.9

440.8

257.1

346.8

 
 
 
 
 
 
EBIT
273.6

126.4

646.9

148.9

345.3

Net financial items
-44.7

-83.4

-163.5

-49.3

-95.2

Profit or loss for the period
157.9

22.5

328.4

66.6

158.3

 
 
 
 
 
 
 
 
 
 
 
 
Cash flow from operations
166.6

64.0

530.0

210.4

233.3

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
4 443.3

3 955.2

4 443.3

3 955.2

4 196.1

NIBD 4)
876.7

917.9

876.7

917.9

999.7

 
 
 
 
 
 
EPS (EUR)
0.35

0.05

0.73

0.15

0.36

Underlying EPS (EUR) 5)
0.29

0.12

0.71

0.39

0.52

Net cash flow per share (EUR) 6)
0.26

0.04

0.98

0.15

0.01

Dividend declared and paid per share (NOK)
3.20

1.30

6.30

3.80

5.20

ROCE 7)
29.5
%
12.1
%
23.5
%
12.8
%
13.1
%
Equity ratio
44.3
%
47.5
%
44.3
%
47.5
%
45.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Harvest volume (GWE, salmon)
97 215

105 963

280 987

309 598

420 148

 
 
 
 
 
 
 
 
 
 
 
 
Operational EBIT per kg (EUR) - Total 8)
1.85

0.73

1.57

0.83

0.83

 
 
 
 
 
 
Norway
1.98

1.25

1.99

1.33

1.37

Scotland
0.60

0.69

0.58

0.60

0.35

Canada
2.63

0.14

2.30

0.34

0.34

Chile
1.44

-0.72

-0.53

-0.67

-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, including realized gain/loss from currency derivatives related to contract sales of Norwegian origin, and 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. Operational EBIT also includes realized gain/loss from currency derivatives related to contract sales of Norwegian origin. 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

 
 
Q3|2016

PROFIT - FINANCIAL RESULTS IN THE QUARTER
The Group’s profit hinges 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)
Q3 2016
Q3 2015
Operational EBIT
179.9

77.9

Change in unrealized internal margin
-18.2

-2.9

Gain/loss from derivatives
-0.2

-1.7

Net fair value adjustment on biomass
91.5

46.4

Onerous contract provisions
5.6

-2.8

Restructuring costs
0.0

-0.9

Other non-operational items
0.0

-0.1

Income from associated companies
15.2

10.4

Impairment losses of fixed assets/intangibles
-0.3

0.0

EBIT
273.6

126.4

Operational EBIT amounted to EUR 179.9 million in the quarter (EUR 77.9 million). The contribution from Feed was EUR 12.4 million (EUR 8.2 million), and Farming contributed with EUR 151.9 million (EUR 46.1 million). Markets contributed with EUR 18.5 million (EUR 17.3 million) and Consumer Products contributed with EUR 2.2 million (EUR 4.6 million).

Operational EBIT of EUR 179.9 million in the period was negatively impacted by exceptional items in the amount of EUR 40.4 million (refer to Note 6).

Earnings before financial items and taxes (EBIT) was EUR 273.6 million (EUR 126.4 million), after a net increase in fair value on biological assets of EUR 91.5 million, mainly due to higher salmon prices.

Financial items
(EUR million)
Q3 2016
Q3 2015
Interest expenses
-12.1

-9.6

Net currency effects
14.2

-30.3

Other financial items
-46.8

-43.6

Net financial items
-44.7

-83.4

Other financial items include an increase in fair value of conversion liability component of the convertible bond of EUR 52.4 million and change in fair value of other financial instruments of EUR 6.0 million.



© Marine Harvest Group
 
3

 
 
Q3|2016

Cash flow and NIBD
(EUR million)
Q3 2016
Q3 2015
NIBD beginning of period
-832.4

-875.5

Operational EBITDA
214.6

113.0

Change in working capital
-19.7

-34.2

Taxes paid
-7.8

-2.1

Other adjustments
-20.5

-12.6

Cash flow from operations
166.6

64.0

Net Capex
-49.6

-43.1

Other investments
-0.3

-2.4

Cash flow to investments
-50.0

-45.5

Net interest and financial items paid
-5.3

-7.0

Other items
4.6

-1.3

Dividend / return of paid in capital
-155.2

-63.7

Translation effect on interest-bearing debt
-5.1

11.2

NIBD end of period
-876.7

-917.9


Cash flow from operations amounted to EUR 166.6 million (EUR 64.0 million), after a seasonal build-up of working capital. Other adjustments include non-cash effect of EUR 18.2 million (EUR 2.9 million) regarding change in unrealized margin which is included in Operational EBITDA.

Net Capex was EUR 49.6 million (EUR 43.1 million).

Currency effect on interest-bearing debt of EUR -5.1 million (EUR 11.2 million) during the quarter is mainly due to the weakening of EUR against NOK.

Quarterly dividend of EUR 155.2 million (EUR 63.7 million), as announced in the report for the second quarter of 2016, was distributed as repayment of paid in capital. This figure includes dividends related to divestment of shares in Grieg Seafood.

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GUIDING PRINCIPLE
AMBITION
ACHIEVEMENT
Profitability
ROCE of at least 12% over a cycle (4-5 years)
Q3
29.5%
 
 
YTD
23.5%
Solidity
Long term NIBD target:
September 30, 2016
 
EUR 1 050 million
EUR 877 million
 
Farming NIBD / kg EUR 1.8
Farming NIBD / kg EUR 1.6

© Marine Harvest Group
 
4

 
 
Q3|2016

PROFIT - OPERATIONAL PERFORMANCE AND ANALYTICAL DATA
 
Feed
Farming
Sales and Marketing
Other
Group 1)
 
 
 
 
 
Markets
Consumer Products
 
 
 
 
EUR million
Q3 2016

Q3 2015

Q3 2016

Q3 2015

Q3 2016

Q3 2015

Q3 2016

Q3 2015

Q3 2016

Q3 2015

Q3 2016

Q3 2015

External revenue
5.1

0.2

14.1

20.9

517.3

475.6

313.6

253.6

0.0

1.5

850.0

751.8

Internal revenue
135.4

114.1

551.1

440.5

169.2

88.1

7.6

6.4

3.1

9.8

0.0

0.0

Operational revenue
140.4

114.2

565.2

461.4

686.4

563.8

321.2

260.1

3.1

11.3

850.0

751.8

Operational EBIT
12.4

8.2

151.9

46.1

18.5

17.3

2.2

4.6

-5.1

1.7

179.9

77.9

Change in unrealized margin
0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-18.2

-2.9

Gain/loss from derivatives
0.0

0.0

-15.0

-8.0

-5.7

0.0

16.0

8.0

4.5

-1.7

-0.2

-1.7

Net fair value adjustment on biomass, onerous contract provisions
0.0

1.6

97.1

42.2

0.0

0.0

0.0

0.0

0.0

-0.2

97.1

43.6

Restructuring costs
0.0

0.0

0.0

0.2

0.0

0.0

0.0

0.1

0.0

-1.2

0.0

-0.9

Other non-operational items
0.0

0.0

0.0

-0.1

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-0.1

Income from associated companies
0.0

0.0

15.2

10.4

0.0

0.0

0.0

0.0

0.0

0.0

15.2

10.4

Impairment losses of fixed assets
0.0

0.0

0.0

-0.1

0.0

0.0

-0.3

0.1

0.0

0.0

-0.3

0.0

EBIT
12.4

9.8

249.2

90.9

12.8

17.3

17.9

12.7

-0.5

-1.5

273.6

126.4

Operational EBIT %
8.8
%
7.2
%
26.9
%
10.0
%
2.7
%
3.1
%
0.7
%
1.8
%
na

na

21.2
%
10.4
%
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 -5.1 million in the quarter (EUR 1.7 million). The currency effects of foreign currency purchases towards EUR are recognized as income/cost of EUR 0.1 million in Marine Harvest ASA and Marine Harvest Markets Norway respectively (in the third quarter of 2015, currency effects of foreign currency sales towards NOK amounted to EUR 5.5 million).
 
SOURCES OF ORIGIN
Other

Group

EUR million
Norway

Scotland

Canada

Chile

Ireland

Faroes

 
 
 
 
 
 
 
 
 
OPERATIONAL EBIT
 
 
 
 
 
 
 
 
Farming
103.8

3.1

25.0

6.9

4.6

8.6

 
151.9

 
 
 
 
 
 
 
 
 
Sales and Marketing
 
 
 
 
 
 
 
 
Markets
10.2

2.8

2.1

3.0

0.0

0.4

0.0

18.5

Consumer Products
1.9

0.0

0.0

0.0

0.0

0.0

0.3

2.2

Subtotal
115.9

5.9

27.0

9.9

4.6

9.0

0.2

172.6

 
 
 
 
 
 
 
 
 
Feed
12.4








12.4

Other entities 1)






-5.1

-5.1

 
 
 
 
 
 
 
 
 
Total
128.3

5.9

27.0

9.9

4.6

9.0

-4.8

179.9

 
 
 
 
 
 
 
 
 
Harvest volume (GWE, salmon)
64 640

9 811

10 284

6 894

2 901

2 684

 
97 215

 
 
 
 
 
 
 
 
 
Operational EBIT per kg (EUR) 2)
1.98

0.60

2.63

1.44

1.60

3.37

 
1.85

- of which Feed
0.19

0.00

0.00

0.00

0.00

0.00


0.13

- of which Markets
0.16

0.29

0.20

0.43

0.01

0.16

 
0.19

- of which Consumer Products
0.03

0.00

0.00

0.00

0.02

0.00

 
0.02

 
 
 
 
 
 
 
 
 
ANALYTICAL DATA
 
 
 
 
 
 
 
 
Price achievement/reference price (%) 3)
91
%
96
%
99
%
104
%
na

105
%
 
94
%
Contract share (%)
40
%
70
%
0
%
18
%
80
%
0
%
 
37
%
Quality - superior share (%)
91
%
94
%
88
%
95
%
91
%
89
%
 
91
%
Exceptional items incl in Operational EBIT
-33.7

-5.8

0.0

0.0

-1.0

0.0

 
-40.4

Exceptional items per kg (EUR)
-0.52

-0.59

0.00

0.00

-0.33

0.00

 
-0.42

 
 
 
 
 
 
 
 
 
GUIDANCE
 
 
 
 
 
 
 
 
Q4 2016 harvest volume (GWE)
62 000

14 000

10 000

7 000

2 500

4 500


100 000

2016 harvest volume (GWE)
234 000

47 000

44 000

37 000

8 000

11 000



381 000

2017 harvest volume (GWE)
252 000

51 000

42 000

45 000

9 000

4 000



403 000

Q4 2016 contract share (%)
54
%
55
%
0
%
24
%
82
%
0
%

45
%
1)
Corporate and Holding companies
2)
Including Corporate and Holding companies
3)
Sales and Marketing Price achievement

© Marine Harvest Group
 
5

 
 
Q3|2016

MARKET OVERVIEW
Industry

The historically high unprecedented salmon prices continued in the third quarter on strong demand and decline in global supply. The salmon price in Europe increased by 44% compared to third quarter 2015, while the salmon price in Miami and Seattle increased by 53% and 44% respectively.
 
Global harvest of Atlantic salmon amounted to 482 000 tonnes in the third quarter, a decrease of approximately 8% compared to the same quarter in 2015. This was in line with expectations and the volume reduction was mainly driven by Chile as a result of the algal bloom described in recent quarterly reports.
Supply
Q3 2016

Change vs

12 month

Q2 2016

 
Tonnes GWE

Q3 2015

change

Tonnes GWE

Norway
272 000

-0.7
 %
-2.5
 %
248 900

Scotland
36 600

-16.2
 %
0.9
 %
35 100

Faroe Islands
14 600

-12.6
 %
2.4
 %
17 800

Ireland
3 900

-4.9
 %
3.8
 %
2 900

Total Europe
327 100

-3.3
 %
-1.8
 %
304 700

Chile
100 000

-24.0
 %
-6.6
 %
93 100

North America
36 500

4.3
 %
9.6
 %
40 100

Total Americas
136 500

-18.0
 %
-3.3
 %
133 200

Australia
13 400

3.1
 %
10.6
 %
10 800

Other
5 000

11.1
 %
-2.6
 %
5 000

Total
482 000

-7.7
 %
-2.0
 %
453 700







Supply from Norway decreased by 1% compared to the third quarter of 2015 which was in line with expectations. Due to biological challenges, harvesting of smaller sized fish continues which is evident from the lower average harvest weights. In addition, more fish than expected were harvested which has reduced the growth potential for the 2015 generation salmon expected to be harvested in Q4 2016 and H1 2017.

Scottish volumes decreased by 16% compared to the same period last year which was slightly more than expected. Biological challenges related to sea lice and AGD impacted the harvesting volumes. Volumes from the Faroe Islands declined by 13% in the quarter compared to the same quarter in 2015.

Volumes from Chile decreased by 24% compared to the third quarter of 2015 which was slightly less than expected. The reduction was driven by the algal bloom earlier in March 2016.

In North America the supply increase of 4% compared to the third quarter of 2015 was in line with expectations. Supply originating from Canada continues to be relatively stable and growing modestly.
Reference prices
Q3 2016
Change vs
Q3 2016
Change vs
Market
Q3 2015
NOK
Q3 2015
Norway 1)
EUR 6.41
43.9%
NOK 59.54
46.2%
Chile 2)
USD 5.45
52.9%
NOK 45.33
54.8%
Chile, GWE 3)
USD 6.35
63.7%
NOK 52.85
65.7%
North America 4)
USD 3.39
43.7%
NOK 28.21
45.5%
North America GWE 3)
USD 6.94
48.6%
NOK 57.77
50.5%
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




© Marine Harvest Group
 
6

 
 
Q3|2016

In the market currency, EUR, prices in Europe increased by 44% compared to the third quarter of 2015. Salmon prices increased by 53% in Miami and 44% in Seattle in USD terms.
Market
Q3 2016

Change vs

12 month

distribution
Tonnes GWE

Q3 2015

change

EU
246 800

-0.7
 %
0.5
 %
Russia
15 700

-46.4
 %
-33.1
 %
Other Europe
17 100

-15.3
 %
-12.8
 %
Total Europe
279 600

-6.2
 %
-3.6
 %
US
87 800

-4.1
 %
6.1
 %
Brazil
18 500

-28.3
 %
-9.9
 %
Other Americas
23 900

-20.1
 %
-4.1
 %
Total Americas
130 200

-11.6
 %
1.4
 %
China/Hong Kong
22 200

11.0
 %
7.8
 %
Japan
14 000

-4.8
 %
13.0
 %
South Korea / Taiwan
9 200

-20.7
 %
-8.9
 %
Other Asia
14 100

-3.4
 %
12.3
 %
Total Asia
59 500

-2.3
 %
6.9
 %
All other markets
25 900

3.2
 %
8.0
 %
Total
495 200

-6.8
 %
-0.5
 %

Global consumption declined by 7% in the third quarter compared with the same period in 2015. Release of approximately 13,000 tonnes of frozen inventory primarily from Chile into the Asian, Russian and American markets have contributed to higher consumption than supply in the quarter.

Consumption declined by 1% in the EU in the quarter. On a value basis the salmon category continues to grow , which is evidence of the favorable demand for the product. The continued market developments, in key markets such as Germany and UK, are encouraging. In Russia consumption decreased by 46% compared to the third quarter of 2015, primarily as sourcing from Chile became increasingly challenged by the higher paying fresh US market.

In the US consumption decreased by 4% compared with the same quarter in 2015. The demand developments in the US are positive and salmon continues to gain popularity amongst both distributors and customers. The growth in importation of large sized fresh European salmon to the US market continues. In Brazil consumption declined by 28% compared to the same quarter in 2015. The lack of available Chilean salmon and the higher paying US market are the key drivers.
 
Consumption in the Asian market decreased by 2% in the quarter compared to the same period last year. The lack of large sized salmon from Europe is the main driver for the decline. The majority of volumes sold into Asia are spot priced based, hence in value terms the Asian market continue to grow at healthy rates.

Source: Kontali and Marine Harvest

© Marine Harvest Group
 
7

 
 
Q3|2016

Marine Harvest
Geographic market presence
Total salmon revenues in the third 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 (71%). 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 and Chile.
a6-kq32016e_chartx04160.jpg
Sales by product
The Group’s main species is Atlantic salmon. The sales revenue distribution across products was as follows in the third quarter:

a6-kq32016e_chartx05513.jpg


Fresh whole salmon represented 45% of total sales revenues (44%), while fresh smoked salmon and fresh and frozen elaborated salmon combined accounted for 43% (44%). The share of smoked and elaborated products decreased somewhat from the first and second quarter, as well as the third quarter of 2015. As the share of sales contracts are higher for these products than for fresh whole salmon, the effect of significant market price increase is higher for whole salmon than for smoked and elaborated products.

Branding and product development efforts
In the third quarter we continued our effort to further develop existing brands, including Mowi and Ducktrap. Our premium brand, Mowi, continued the positive development in the Asian market in the beginning of the third quarter of 2016, but as market prices have increased significantly, it has been challenging to maintain the momentum for this premium product in the third quarter.

Ducktrap, 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 a 5% increase in sales volumes in the third quarter of 2016 compared to the third quarter of 2015.

We are experiencing strong demand in the US market, and several retailers are showing great interest in our products. Our new Dallas plant is expected to open towards the end of the fourth quarter. The new plant will improve market access to an area of the US which today has limited access to fresh fish. Another benefit from the new plant is specially designed machinery for value added products, which will be utilized in our product development efforts for new and existing customers.


© Marine Harvest Group
 
8

 
 
Q3|2016

Price achievement
Prices in the European market were significantly higher than in the third quarter of 2015 due to strong demand and lower volumes available for harvest. Supply contraction contributed to higher prices in Americas in the third quarter. Sales in the third quarter of 2015 were also impacted by the market disruptions caused by the Russian ban on salmon of Norwegian and Scottish origin starting in August 2014.
a6-kq32016e_chartx06881.jpg
* Price achievement to the five farming units, Norway, Scotland, Canada, Chile and Faroes.

The global reference price was 45% higher in the third quarter of 2016 compared to the third quarter of 2015. The combined global price achieved was 6% below the reference price in the period. In the third 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 third quarter of 2015, but negative in the third quarter of 2016.
Markets
 
 
 
 
Q3 2016
Norwegian

Scottish

Canadian

Chilean

Contract share
40
%
70
%
0
%
18
%
Quality - superior share
91
%
94
%
88
%
95
%
Price achievement
91
%
96
%
99
%
104
%
The average price achievement is measured vs reference prices in all markets (NASDAQ for Norwegian and Faroese, derived NASDAQ (NASDAQ + EUR 0.41) 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

 
 
Q3|2016

PROFIT - OPERATIONAL PERFORMANCE
Salmon of Norwegian origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
128.3

73.5

EBIT
194.9

125.0

 
 
 
Harvest volume (GWE)
64 640

58 873

 
 
 
Operational EBIT per kg (EUR)
1.98

1.25

- of which Feed
0.19

0.14

- of which Markets
0.16

0.15

- of which Consumer Products
0.03

0.06

 
 
 
Exceptional items incl in op. EBIT
-33.7

-17.9

Exceptional items per kg (EUR)
-0.52

-0.30

 
 
 
 
 
 
Price achievement/reference price
91
%
104
%
Contract share
40
%
43
%
Superior share
91
%
93
%
 
 
 

Financial results
Operational EBIT amounted to EUR 128.3 million (EUR 73.5 million) in the third quarter, which was 1.98 EUR per kg (EUR 1.25). The profitability of the four Norwegian regions showed significant variation in the third quarter with EUR 0.67 per kg separating the best performing region (Region West) from the lowest performing region (Region Mid). Results from the two lowest performing regions are significantly impacted by sea lice challenges (Region Mid), and costs related to ISA (Region North).

Financial EBIT amounted to EUR 194.9 million (EUR 125.0 million).

Spot prices in the third quarter were higher than in the corresponding period in 2015. However, contracts 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 33.7 million in the third quarter (EUR 17.9 million).

Price and volume development
The reference price for Salmon of Norwegian origin increased by 44% compared to the third quarter of 2015 due to strong demand and lower supply. The average reference price in the third quarter was EUR 6.41 per kg.

Marine Harvest had a contract share of 40% for salmon of Norwegian origin in the third quarter, compared to 43% in the third quarter of 2015.

The overall price achieved was 9% below the reference price in the quarter (4% above), mainly due to negative contract contribution in a market with an increased spot price. The superior share was 91% (93%).

Harvested volume in the third quarter was 64 640 tonnes gutted weight (58 873 tonnes gutted weight). The harvest volume was higher than in the comparable quarter last year. This is mainly due to early harvest caused by biological challenges.

© Marine Harvest Group
 
10

 
 
Q3|2016

a6-kq32016e_chartx07698.jpg
Costs and operations
The biological cost of harvested fish increased by 17% compared to the third quarter of 2015. The cost of feed per kg harvested salmon was up by 16% 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 third quarter of 2016 increased by 36% compared to the corresponding quarter in 2015. The estimated exceptional cost related to sea lice mitigation and losses amounted to EUR 27.2 million (EUR 17.6 million) in the third quarter of 2016. Per kg harvested, exceptional sea lice mitigation costs amounted to EUR 0.42 (EUR 0.30) in the quarter.

Incident based mortality losses in the amount of EUR 11.5 million were recognized in the quarter, of which EUR 5.1 million is included in the cost of lice mitigation and losses above. Losses from incident based mortality in the third quarter of 2015 were EUR 3.3 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.

ISA in Region North has negatively impacted Operational EBIT in the third quarter by approximately EUR 7.5 million due to culling and harvest of low weight fish. Operational EBIT for the fourth quarter of 2016 is expected to be negatively impacted by approximately EUR 4 million related to ISA.

The cost development is concerning, and we expect high costs also in the fourth quarter of 2016 for Marine Harvest Norway.

The contract share in the first half of 2017 will be impacted by the reduction of estimated harvest volumes, and is expected to be 52%.





© Marine Harvest Group
 
11

 
 
Q3|2016

Salmon of Norwegian origin by region
Regions
South
West
Mid
North
Total
EUR million
Q3 2016

Q3 2016

Q3 2016

Q3 2016

Q3 2016

 
 
 
 
 
 
Operational EBIT
22.4

47.1

27.5

31.2

128.3

 
 
 
 
 
 
Harvest volume (GWE)
11 171

20 168

16 480

16 822

64 640

 
 
 
 
 
 
Operational EBIT per kg (EUR)
2.01

2.34

1.67

1.86

1.98

 
 
 
 
 
 
 
 
 
 
 
 
Superior share
94
%
97
%
83
%
91
%
91
%
 
 
 
 
 
 
 
 
 
 
 
 
Regions
South
West
Mid
North
Total
EUR million
Q3 2015

Q3 2015

Q3 2015

Q3 2015

Q3 2015

 
 
 
 
 
 
Operational EBIT
8.2

25.5

17.0

22.8

73.5

 
 
 
 
 
 
Harvest volume (GWE)
8 061

18 980

14 660

17 172

58 873

 
 
 
 
 
 
Operational EBIT per kg (EUR)
1.02

1.34

1.16

1.33

1.25

 
 
 
 
 
 
 
 
 
 
 
 
Superior share
94
%
96
%
96
%
86
%
93
%

Region South
Operational EBIT was EUR 22.4 million in the third quarter (EUR 8.2 million), or EUR 2.01 per kg (EUR 1.02).
Biological costs per kg harvested fish in the third quarter increased from the comparable quarter in 2015 due to 11% increase in feed costs as a result of increased feed conversion rate, as well as 72% increase in lice mitigation and treatment costs.
Volume harvested was 11 171 tonnes gutted weight (8 061 tonnes). The volume increase is due to higher stocked number of fish in the generation currently being harvested, although this is somewhat offset by lower average harvest weight.
Incident based mortality in the amount of EUR 1.6 million was recognized in the quarter due to losses caused by strong sea currents.
Seawater production was lower than in the comparable quarter in 2015 due to higher mortality and treatments.
Sea lice pressure continues, and sea lice level at the end of the third quarter was higher than at the end of the second quarter, as well as the third quarter in 2015. Non-medicinal lice treatment tools are expected to provide better control going forward.








Region West
The best performing region in Marine Harvest Norway in the third quarter of 2016 measured in Operational EBIT per kg. Operational EBIT was EUR 47.1 million in the third quarter (EUR 25.5 million), or EUR 2.34 per kg (EUR 1.34).
Biological costs per kg harvested fish in the third quarter increased from the comparable quarter in 2015 due to 16% increase in feed costs and 43% increase in lice mitigation and treatment costs.
Volume harvested was 20 168 tonnes gutted weight (18 980 tonnes). The volume increase is due to higher biomass in sea at the start of the quarter, as well as some early harvest due to biological issues.
Incident based mortality in the amount of EUR 1.5 million was recognized in the quarter due to lice treatment losses.
Seawater production was at the same level as the comparable quarter in 2015.
Sea lice is still a challenge for this region. Corrective measures are being implemented in order to reduce lice challenges and mortality losses relating to treatments, including increased smolt weight to reduce time in sea, increased use of non-medicinal lice treatment tools and lice prevention measures.

© Marine Harvest Group
 
12

 
 
Q3|2016

a6-kq32016e_chartx09318.jpg

Region Mid
Operational EBIT was EUR 27.5 million in the third quarter (EUR 17.0 million), or EUR 1.67 per kg (EUR 1.16).
The cost per kg harvested fish remains high also in the third quarter. Health cost increased 13 % compared to the third quarter of 2015. Compared to the third quarter of 2015 feed cost increased by 23%, mainly caused by higher feed conversion rate.
Incident based mortality in the amount of EUR 4.6 million was recognized in the quarter mainly due to lice treatment losses.
Volume harvested was 16 480 tonnes gutted weight (14 660 tonnes). The increased volume is mainly due to early harvesting caused by biological issues.
Seawater production was lower than the comparable quarter in 2015 due to high mortality and early harvesting in addition to low growth caused by lice treatment.
The region experiences significant challenges related to sea lice, and we continue our efforts to keep adult females at target levels. We are highly focused on lice levels, lice counting and cleaning of cages and nets. Our focus on fish welfare and the optimization of non-medicinal lice treatment tools remains a top priority.

















Region North
Operational EBIT was EUR 31.2 million in the third quarter (EUR 22.8 million), or EUR 1.86 per kg (EUR 1.33).
Biological costs per kg harvested fish in the third quarter increased from the comparable quarter in 2015 due to 11% increase in feed costs and 7% increase in health costs. The increase in feed costs is mainly due to higher feed conversion rate.
ISA outbreak has negatively impacted Operational EBIT in the third quarter by approximately EUR 7.5 million due to culling and harvest of low weight fish.
Incident mortality in the amount of EUR 3.9 million was recognized in the quarter due to ISA outbreak, HSMI disease and CMS disease.
Sea lice levels at the end of the third quarter were higher than at the end of the comparable quarter in 2015.
Volume harvested was 16 822 tonnes gutted weight (17 172 tonnes).
Seawater production was lower than in the comparable quarter in 2015 due to higher mortality, culling and early harvest of fish with ISA.

© Marine Harvest Group
 
13

 
 
Q3|2016

Salmon of Scottish origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
5.9

11.5

EBIT
17.9

6.1

 
 
 
Harvest volume (GWE)
9 811

16 586

 
 
 
Operational EBIT per kg (EUR)
0.60

0.69

- of which Markets
0.29

0.29

- of which Consumer Products
0.00

0.02

 
 
 
Exceptional items incl in op. EBIT
-5.8

-2.1

Exceptional items per kg (EUR)
-0.59

-0.13

 
 
 
 
 
 
Price achievement/reference price
96
%
110
%
Contract share
70
%
34
%
Superior share
94
%
92
%
 
 
 





Financial results
Operational EBIT amounted to EUR 5.9 million in the third quarter (EUR 11.5 million), which was EUR 0.60 per kg (EUR 0.69). Results in the quarter have been impacted by low harvest volume and high cost due to biological issues.

Financial EBIT amounted to EUR 17.9 million (EUR 6.1 million).

Price and volume development
The reference price in local currency was up by approximately 59% in the third quarter of 2016 compared to the third quarter of 2015. This is due to strong demand and lower supply.

High contract share for the quarter, following the reduction in harvest volume, negatively impacted the price achievement for the third quarter compared to spot prices. In the third quarter of 2015, contract contribution was positive.

The third quarter harvest volume was 9 811 tonnes gutted weight which is a significant decrease from the corresponding quarter in 2015 (16 586 tonnes). Harvest volumes in the third quarter of 2016 were negatively impacted by health issues and early harvest due to gill disease and sea-lice challenges in prior quarters. Growth has improved in the third quarter due to a reviewed feeding strategy, but this was more than offset by high mortality in certain areas.


a6-kq32016e_chartx11225.jpg








© Marine Harvest Group
 
14

 
 
Q3|2016

Costs and operations
Several of the sites harvested in the quarter had a high cost level. Biological costs per kg increased by 36% in the third quarter of 2016 compared to the corresponding quarter in 2015. This is mainly caused by increased health and feed costs. Other seawater costs have also increased due to negative scale effects.

Non-seawater costs per kg harvested increased in the third quarter of 2016 compared to the third quarter of 2015 due to higher costs related to incident based mortality. Incident based mortality of EUR 5.8 million was recognized in the quarter (EUR 2.1 million), mainly related to gill disease and sea-lice treatment losses. Although the sea-lice situation in the third quarter has been challenging, increased efficiency of treatments has resulted in a significant reduction of sea-lice numbers compared to the second quarter of 2016 and the third quarter of 2015.

The recent weakening of the GBP towards the NOK is expected to have positive market effects for Marine Harvest Scotland. Prior biological challenges continue to contribute to a high cost level for salmon of Scottish origin. The ongoing restructuring process and a strong focus on feeding and improved growth aim to make Marine Harvest Farming Scotland more streamlined and cost-efficient. However, we expect high costs also in the fourth quarter of 2016.






© Marine Harvest Group
 
15

 
 
Q3|2016

Salmon of Canadian origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
27.0

1.2

EBIT
41.7

6.4

 
 
 
Harvest volume (GWE)
10 284

8 668

 
 
 
Operational EBIT per kg (EUR)
2.63

0.14

- of which Markets
0.20

0.14

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
0.0

-1.2

Exceptional items per kg (EUR)
0.00

-0.14

 
 
 
 
 
 
Price achievement/reference price
99
%
100
%
Contract share
0
%
0
%
Superior share
88
%
91
%
 
 
 

Financial results
Operational EBIT amounted to EUR 27.0 million in the third quarter (EUR 1.2 million), which was EUR 2.63 per kg (EUR 0.14). The increase in Operational EBIT compared to the third quarter of 2015 is to a large extent due to improved spot market prices. However, improved growth resulting in larger fish and a higher harvest volume, as well as larger fish fetching a higher price, also contributed significantly to the improved results.

Financial EBIT amounted to EUR 41.7 million (EUR 6.4 million).

Price and volume development
The North American market for fresh whole Canadian salmon remained strong in the third 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 3.39 per lb, which is an increase of 44% from USD 2.36 in the third quarter of 2015.
Price achievement in the third quarter was 1% below the reference price (price achievement was at the reference price in the third quarter of 2015). There were no contracts for salmon of Canadian origin in the third quarter of 2016 or 2015. The superior share was 88% in the quarter (91%).
a6-kq32016e_chartx12664.jpg
Harvested volume was 10 284 tonnes gutted weight in the third quarter, an increase from the comparable quarter last year (8 668 tonnes). The increase is due to improved growth and larger size of harvested fish, as well as a slight increase in production compared to the third quarter of 2015.


© Marine Harvest Group
 
16

 
 
Q3|2016

Costs and operations
Marine Harvest Canada has reduced cost in the third quarter of 2016 compared to the same period last year. Biological costs per kg salmon harvested in the quarter decreased by 1.5% compared to the third quarter of 2015. The main drivers for the positive cost development are better growth, better feed conversion rate, less time spent in sea and improved health cost. Biological cost per kg was at the same level as in the second quarter.

Health costs still remain low in Canada. No incident-based mortality has been recognized in the quarter (EUR 1.2 million).












© Marine Harvest Group
 
17

 
 
Q3|2016

Salmon of Chilean origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
9.9

-13.3

EBIT
15.4

-13.5

 
 
 
Harvest volume (GWE)
6 894

18 425

 
 
 
Operational EBIT per kg (EUR)
1.44

-0.72

- of which Markets
0.43

0.13

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
0.0

0.0

Exceptional items per kg (EUR)
0.00

0.00

 
 
 
 
 
 
Price achievement/reference price
104
%
114
%
Contract share
18
%
9
%
Superior share
95
%
87
%
 
 
 

Financial results
Operational EBIT amounted to EUR 9.9 million in the third quarter (EUR -13.3 million) which was EUR 1.44 per kg (EUR -0.72). A strong price increase compared to the third quarter of 2015 is the main driver behind the increased results. The price increase is mainly caused by significant reduced harvest volumes as a result of the algal bloom described in the previous quarterly reports.

Financial EBIT amounted to EUR 15.4 million (EUR -13.5 million).

Price and volume development
The Urner Barry reference price for Chilean salmon was up by 53% compared to the third quarter of 2015. This is mainly a result of lower harvesting volumes in the industry following the algal bloom.

North America remains the most important market for salmon of Chilean origin. Shortage of Chilean salmon in general has driven prices to record-high levels. Increased prices in the US and Asia have reduced Brazilian consumption in the quarter.
a6-kq32016e_chartx14042.jpg
Price achievement for Chilean salmon exceeded the reference price in the quarter. The contract share was 18% in the quarter, equal to the third quarter of 2015.

Harvested volume was 6 894 tonnes gutted weight in the third quarter (18 425 tonnes). The significant reduction from the comparable quarter in 2015 is a result of the algal bloom.

Costs and operations
Compared to the third quarter of 2015, costs per kg harvested fish in our Chilean operations have increased in the third quarter of 2016, due to negative scale effects on costs following lower harvest volumes. Cost in box was USD 5.32 per kg in the third quarter of 2016. Production has been lower than the comparable quarter due to less biomass in sea.
There were no incident based mortality losses in the third quarter of 2016 or 2015.

© Marine Harvest Group
 
18

 
 
Q3|2016

Salmon of Irish origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
4.6

3.1

EBIT
1.9

-5.0

 
 
 
Harvest volume (GWE)
2 901

3 411

 
 
 
Operational EBIT per kg (EUR)
1.60

0.90

- of which Markets
0.01

0.00

- of which Consumer Products
0.02

0.04

 
 
 
Exceptional items incl in op. EBIT
-1.0

-2.4

Exceptional items per kg (EUR)
-0.33

-0.71

 
 
 
 
 
 
Price achievement/reference price
na

na

Contract share
80
%
76
%
Superior share
91
%
84
%
 
 
 

 
Operational EBIT amounted to EUR 4.6 million in the third quarter (EUR 3.1 million), which was EUR 1.60 per kg (EUR 0.90 per kg). Achieved prices were 15% higher in the third quarter of 2016 than in the third quarter of 2015, and at the same level as in the second quarter of 2016.

Financial EBIT amounted to EUR 1.9 million (EUR (5.0) million).

The challenges due to harsh weather conditions from the first quarter still continue to impact the cost. Compared to the same quarter last year, cost per kg is up by 4.5%. The application of biological controls to minimize sea lice and AGD have also contributed towards increased costs but are proving to be highly effective. Harvest volume was 2 901 tonnes gutted weight (3 411 tonnes).

Incident based mortality of EUR 1.0 million was recognized in the third quarter of 2016 (EUR 2.4 million).





















© Marine Harvest Group
 
19

 
 
Q3|2016

Salmon of Faroese origin
EUR million
Q3 2016

Q3 2015

 
 
 
Operational EBIT
9.0

-0.1

EBIT
10.4

1.6

 
 
 
Harvest volume (GWE)
2 684

0

 
 
 
Operational EBIT per kg (EUR)
3.37

0.00

- of which Markets
0.16

0.00

- of which Consumer Products
0.00

0.00

 
 
 
Exceptional items incl in op. EBIT
0.0

0.0

Exceptional items per kg (EUR)
0.00

0.00

 
 
 
 
 
 
Price achievement/reference price
105
%
0
%
Contract share
0
%
0
%
Superior share
89
%
0
%
 
 
 


Operational EBIT amounted to EUR 9.0 million (EUR -0.1 million), which was EUR 3.37 per kg. There was no harvesting in the first three quarters of 2015.

Financial EBIT amounted to EUR 10.4 million (EUR 1.6 million).

The majority of the harvested salmon in the third quarter of 2016 was sold to Russia, USA and China. The prices in Russia remain high due to the boycott of the Norwegian salmon.

Cost on harvested fish is down by 16% compared to the second quarter. This is mainly caused by reduced health cost, partially offset by increased feed cost.

In 2016, a 4.5% fee on harvesting revenue has been applied by the authorities in the Faroe Islands. In the third quarter of 2016, the fee negatively impacted Operational EBIT by EUR 0.7 million.



© Marine Harvest Group
 
20

 
 
Q3|2016

Consumer Products
EUR million
Q3 2016

Q3 2015

 
 
 
Operating revenues
321.2

260.1

 
 
 
Operational EBIT
2.2

4.6

Operational EBIT %
0.7
%
1.8
%
EBIT
17.9

12.7

 
 
 
 
 
 
Volume sold (tonnes product weight)
29 621

25 116

 
 
 
Exceptional items
0.0

0.0

 
 
 
Volume share salmon
78
%
73
%
Revenue share salmon
82
%
78
%
 
 
 
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 2.2 million (EUR 4.6 million). The Operational EBIT margin was 0.7% (1.8%). The significant increase in raw material prices adversely impacted earnings in Consumer Products.

Financial EBIT amounted to EUR 17.9 million (EUR 12.7 million).

For our Fresh operations in France, Operational EBIT has increased compared to the third quarter of 2015 as a result of improved sales prices and increased volume. In the UK, results for our Rosyth plant were at break-even for the third quarter of 2016. This is a significant improvement from the previous quarter, as well as the third quarter of 2015, when the results were impacted by preparation costs and start-up costs. Operational EBIT for our Fresh operations in Benelux in the third quarter of 2016 were slightly below the comparable quarter of 2015.

For our Chilled operations, record-high raw material prices heavily impacted the results in the third quarter of 2016 compared to the third quarter of 2015. However, during the quarter we have achieved operational improvements as well as increased sales prices.

Price and volume development
Consumer Products’ operating revenues were EUR 321.2 million (EUR 260.1 million). As for the previous quarters in 2016, average price achieved per sold volume in the third quarter increased compared to the corresponding quarter in 2015 for both our Chilled and Fresh operations.

Total volume sold in the third quarter of 2016 was 29 621 tonnes product weight, which is an increase of 18% compared to the third 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%).
a6-kq32016e_chartx15644.jpg



© Marine Harvest Group
 
21

 
 
Q3|2016

We are experiencing good growth in the German, Benelux and South European markets. In the French market, sales to traditional retail customers are increasingly difficult following the high prices. This is reflected in reduced promotions and decreased salmon consumption in France. A compensating effect is increased sales to French discount retailers. 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.

Costs and operations
Our Fresh operations were profit-making, while our Chilled operations were loss-making in the third quarter.




Consumer Products
Q3 2016
EUR million
Fresh

Chilled

Total

Volume sold (tonnes prod wt)
12 810

16 811

29 621

Operational EBIT
2.6

-0.4

2.2

Operational EBIT per kg (EUR)
0.20

-0.02

0.07

 
 
 
 
 
 
 
 
Consumer Products
Q3 2015
EUR million
Fresh

Chilled

Total

Volume sold (tonnes prod wt)
10 262

14 854

25 116

Operational EBIT
-1.7

6.2

4.6

Operational EBIT per kg (EUR)
-0.16

0.42

0.18


For our Fresh operations, higher raw material prices and processing costs have been compensated by improved sales prices. For our Chilled operations, record-high raw material prices significantly offset the effects of factory improvements.






© Marine Harvest Group
 
22

 
 
Q3|2016

Feed
EUR million
Q3 2016

Q3 2015

 
 
 
Operating revenues
140.4

114.2

 
 
 
Operational EBIT
12.4

8.2

Operational EBIT %
8.8
%
7.2
%
EBIT
12.4

9.8

 
 
 
 
 
 
Feed sold volume
114 685

97 897

Feed produced volume
95 342

91 082

 
 
 
Exceptional items
0.0

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 12.4 million (EUR 8.2 million) in the third quarter of 2016. The Operational EBIT margin was 8.8% (7.2%).

Financial EBIT amounted to EUR 12.4 million (EUR 9.8 million).

Price and volume development
Operating revenues were EUR 140.4 million in the third quarter (EUR 114.2 million). Volumes sold in the third quarter were 114 685 tonnes, compared to 97 897 tonnes in the third quarter of 2015.

Volumes sold in the third quarter of 2016 accounted for 87% of total feed delivered in our Norwegian farming operations (85% in the third quarter of 2015). The volume increase from the third quarter of 2015 is mainly a result of further improved operational efficiency.

We maintain our focus on further continuing our efficiency improvement projects and our latest plant upgrades have resulted in an annual production capacity of ca. 320 000 tonnes.
a6-kq32016e_chartx17353.jpg
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.

Costs and operations
Operational EBIT per kg increased in the third quarter of 2016 compared to the same quarter last year. The margin in the third quarter was negatively impacted by the increased material prices on feed produced in the second quarter, but sold in the third quarter. The increase on raw material prices in the second quarter was caused by uncertainty regarding the fish meal and oil market following the Peruvian fishing quota for 2016. Other operating costs have been stable compared to the third quarter of 2015.

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.



© Marine Harvest Group
 
23

 
 
Q3|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 were 2 escape incidents in the third quarter. The incidents occurred in Norway, and the estimated number of escaped fish was 6 (in the third quarter of 2015, there were 4 escape incidents in Norway and 1 in Scotland, with 3 900 escaped fish in total).

Fish health
Pancreas Disease (PD): 2 new sites were diagnosed with PD in Norway in the third quarter, compared to 4 in the third quarter of 2015. 2 new sites were diagnosed with PD in Ireland in the third quarter, compared to 1 in the third quarter of 2015. No new sites were diagnosed with PD in Scotland in the third quarter of 2016 or 2015.

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 third quarter of 2016, ISA has been a concern in Region North in Norway, with increased cost and losses due to the ISA outbreak confirmed in the second quarter. 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 and regions North, South and West in Norway reported higher sea lice levels at the end of the third quarter of 2016 compared to the end of the third quarter of 2015. Scotland, Chile, Ireland, Faroes and Region Mid in Norway reported decreases compared to the third quarter of 2015.

The capacity of non-medicinal solutions has increased in the operating units, reducing the dependency on medicinal treatments. Extensive development and testing of non-medicinal tools and methods 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 third 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 third quarter, our use of antibiotics was 19 grams per ton biomass produced compared to 41 grams per ton in the third 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 third quarter of 2016 we had 52 sites certified (41 in Norway, 3 in Chile, 3 in Ireland, 3 in Canada and 2 in Scotland).

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
 
24

 
 
Q3|2016

 
planet01va03.jpg
GUIDING PRINCIPLE - ISSUE
AMBITION
Q3 2016 Achievement
 
Ensure sustainable wild-farmed interaction in the farming activity
Zero escapes
Two escape incidents and 6 fish lost (four incidents with 3 900 fish lost in the third 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 98.3% (98.8% in the third quarter of 2015)
 
 

© Marine Harvest Group
 
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Q3|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 third quarter, the Group recorded 72 Lost Time Incidents (LTIs), which is a decrease from 81 in the third quarter of 2015. Measured in LTIs per million hours worked (rolling average), the figure is 9.43 (12.47). Absenteeism has increased to 6.6% from 5.3% in the same quarter of 2015. Initiatives have been made to reduce sick leave in relevant entities.

Global employee survey
In the third quarter, the results of the Global Employee Survey “Share your views” were presented and shared with the business units. The response rate across the group was 82%, and all Business Units participated, in total 8 353 employees in 21 countries. The survey shows organizational strengths in areas of training and resources, and development opportunities in areas of leadership and collaboration across units. Our employees will be involved in the action planning for improvements going forward.

Qmarine
Qmarine is Marine Harvest’s global system for group standards. The aim of Qmarine is to ensure that we act in a responsible and consistent way throughout the company, by the use of Group Policies, Required Approaches and Best Practices.

In the third quarter, we launched an updated version of Qmarine, with a new structure in line with our 4P’s; Profit, People, Planet and Product. The areas of HR, Communication and Finance are now added into the system.

Code of Conduct
Our Code of Conduct applies for employees, subsidiaries, affiliates and suppliers. Marine Harvest has launched a separate Code of Conduct for Suppliers, based on the principles in the general code of conduct, with the aim of raising awareness and simplifying implementation and follow-up audits.

International Mobility
During the third quarter, a total of 37 employees were on different types of international assignments in the group.
 
people03va03.jpg
GUIDING PRINCIPLE - ISSUE
AMBITION
Q3 2016 Achievement
 
Safe jobs
No lost time incidents (LTI)
LTIs per million hours worked was 9.43. Programs are in place to reduce the number.
 
 
Healthy working environment
Absenteeism < 4%
Absenteeism of 6.6% in the quarter.
 
 

© Marine Harvest Group
 
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Q3|2016







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 October, a large Dutch retail chain responsible for approximately 60 % of the sales of fresh fish in the Netherlands, made salmon their “hero” in the "Think Fish" campaign promoting sustainably sourced fish.
"Think Fish Week" is a common initiative of Marine Stewardship Council (MSC), Aquaculture Stewardship Council (ASC) and World Wildlife Fund (WWF). The objective of this initiative is to encourage consumers to choose fish from certified sustainable fisheries and responsible aquaculture. By making a conscious choice for certified sustainable fish, fish lovers contribute to keeping fish stocks in the oceans and seas at a healthy level and to protect vulnerable coastal areas. For the first time this year, "Think Fish Week" was held in the Netherlands and Belgium at the same time.
Marine Harvest supplied the salmon coming from our ASC approved farms and was featured in a TV commercial which aired on several Dutch TV channels.
salmonburgersa01.jpg
Our branding and product development efforts continue
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 a 5% increase in sales volumes in the third quarter of 2016 compared to the third quarter of 2015.

Skin-packed products in the US
Our fresh skin-packed products in the US market continue the positive development with a growth of 4.3% compared to the second quarter of 2016. Third quarter sales were approximately
1 560 tonnes product weight for all species.

New Dallas plant to open in the fourth quarter
We are experiencing strong demand in the US market, and several retailers are showing great interest in our products. Our new Dallas plant is expected to open towards the end of the fourth quarter. The new plant will improve market access to an area of the US which today has limited access to fresh fish. Another benefit from the new plant is specially designed machinery for value added products, which will be utilized in our product development efforts for new and existing customers.

Rebel Fish
We continued our efforts to grow Rebel Fish in the third quarter. The Rebel Fish packaging has undergone a makeover, with a positive effect on the sale of the product. With our new Dallas plant, we will also be able to reach middle America with our Rebel Fish products.



© Marine Harvest Group
 
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Q3|2016

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kendallbrooka01.jpg

Mowi
Our premium brand, Mowi continued the positive development in the Asian market in the beginning of the third quarter of 2016, but as market prices have increased significantly, it has been challenging to maintain the momentum for this premium product in the third quarter.


ASC
Marine Harvest is a proud partner of ASC which aims to be the world's leading certification and labeling program for responsibly farmed seafood. The ASC's primary role is to manage the global standards for responsible aquaculture, which were developed by the WWF Aquaculture Dialogues. Currently, Marine Harvest has 52 certified ASC farms, and we are aiming to have all our farms ASC certified by 2020. ASC certification is important for Marine Harvest, because we will be certified against the strictest environmental standard available for farmed salmon.

 
product01va03.jpg
GUIDING PRINCIPLE - ISSUE
AMBITION
Q3 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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Q3|2016

EVENTS DURING AND AFTER THE CLOSE OF THE QUARTER
Marine Harvest Norway has not applied for flexible MAB scheme
As described in the report for the second quarter, the Norwegian authorities made an offer to Norwegian salmon farmers for a pilot scheme of flexible maximum allowed biomass. After due consideration, including length of the trial period, cost, potential output and sustainability, Marine Harvest decided to not apply.

Status for development licenses in Norway
Marine Harvest Norway has applied for a total of 34 development licenses for 4 concepts. In total, Norwegian authorities have received applications for 353 development licenses for 41 concepts. The Norwegian Directorate for Fisheries is still working on processing applications for 320 licenses for 36 of the concepts, including all of Marine Harvest Norway's applications.

New COO Farming Norway and Chile
Marine Harvest has decided to strengthen the management team within the Farming segment. Due to biological challenges and succession plan for the current COO Farming, the Farming segment within Marine Harvest will be divided into two areas. Per-Roar Gjerde has been appointed new COO Farming Norway and Chile. Per-Roar Gjerde will be part of Marine Harvest's Group management team and report to the CEO. Marit Solberg will continue to lead the farming activities in Scotland, Canada, Ireland and the Faroe Islands. The organizational change will be effective from 1 January 2017.

Regulations in Chile
Chilean authorities have presented part two of the amended regulations for the salmon fish farming industry. Part one of the regulations was described in the report for the second quarter. The industry is yet to assess the full consequences of all the recent complex regulatory changes in Chile, which include a cap on growth, a system of rules regarding sanitary conditions and limitations on maximum stocking density.

Although the intention is good, there is reason to believe that the new regulations will increase the number of sites and cost accordingly. Marine Harvest has encouraged Chilean authorities to develop a regulatory framework which will not jeopardize the competitive power of the Chilean salmon industry, and we will continue to seek a constructive dialog with regulators on this basis.

Submitted planning application for new feed plant
Marine Harvest has submitted planning application to build its new feed plant in Kyleakin, Scotland. The plant is expected to create 55 full time permanent jobs. Estimated capacity is 170 000 tonnes per year, and we expected the plant to be completed in 2018.

Marine Harvest with Leadership classification
CDP is the only global disclosure system for companies, cities, states and regions to manage their environmental impacts and for investors or purchasers to access environmental information for use in financial decisions. Top scores indicate a high level of transparency in the disclosure of climate change-related information, providing investors with a level of comfort to assess corporate accountability and preparedness for changing market demands and emissions regulation. Marine Harvest has been classified with a score of A- meaning that our company's actions represent the best practice to advance environmental stewardship.

Marine Harvest took part in a delegation to Iran
In October, Marine Harvest was part of an official delegation including a number of other Norwegian seafood companies to promote Norwegian seafood in Iran. The delegation was led by Norway's Minister of Fisheries, the Norwegian Ministry of Trade, Industry and Fisheries, and the Norwegian Seafood Council. A number of western sanctions against Iran have recently been lifted. The Iranian salmon market is growing fast and has a huge potential, with 80 million inhabitants looking for healthy alternatives.

HRH Prince Charles visited Marine Harvest Scotland
In October, HRH The Prince of Wales visited Marine Harvest Scotland and the sea site Loch Leven in Scotland. He heard about their use of wrasse, a type of cleanerfish, and its success in reducing sea lice, as well as the part it played in helping the farm meet the tough requirements of ASC certification. In 2015, Loch Leven became the first salmon farm in the UK to achieve ASC certification. For more information about lice management and ASC certifications, please see the Planet section of this report.


© Marine Harvest Group
 
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Q3|2016

charles2.jpg


Photo: Iain Ferguson © 2016

Marine Harvest awarded for the annual report
Marine Harvest was awarded bronze in the Farmand Award, the annual event to name the best annual report in Norway. For the third year in a row, Marine Harvest was on the podium in the Farmand Award.

Dividend of NOK 2.30 per share
The Board of Directors has decided to pay out a quarterly dividend of NOK 2.30 per share to the shareholders in the form of repayment of paid in capital.

© Marine Harvest Group
 
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Q3|2016

OUTLOOK STATEMENT FROM THE BOARD OF DIRECTORS
 
The quarterly operational result was another new record for Marine Harvest with positive earnings contributions from all business segments and all farming regions. Seasonally record high salmon prices on the back of strong demand and reduced supply were the main drivers for the unprecedented operational result. The Board is very encouraged by the demand resilience displayed across several key markets. The Board is also pleased to see that Marine Harvest Chile delivered positive operational results. The Feed business area had another record quarter with solid operational performance.
Notwithstanding the impressive earnings from the Farming business area, the challenges in relation to biology and sustainable salmon farming are concerning. In Norway and Scotland the ongoing sea lice pressure is the major concern. Mortality rates have been higher than forecast, average harvest weights have been reduced and overall biomass growth has been curtailed. 2016 has therefore been an extraordinary year for both Marine Harvest and the market in general. The Board acknowledges the passion amongst the people in Marine Harvest to bring the company and the industry forward. The efforts of keeping adult female sea lice at target levels are a prerequisite to overcome the challenge and the organization embraces the deployment of several non-medicinal lice treatment tools.
The Board is pleased to see that the Chilean farming operation delivered a profitable quarter. Salmon prices in the American and Asian markets have increased significantly and production costs have recently been reduced subsequent to the algal bloom in March 2016. However, the biological issues seen in Chile over the past few years remind us of the lack of adequate industry structure and area management. Biological and sanitary control are of utmost importance to bring the Chilean salmon industry forward. The Board acknowledges the recent initiatives by the Chilean authorities to amend the regulations of the industry and would welcome any potential additional changes mirroring the regulations currently in place in other salmon producing countries.
The Canadian operations continue to deliver very good results. Earnings were solid and the biological performance remains favorable. The seawater temperature in Canada is colder than in many other farming regions which alleviate some of the biological pressures evident in other farming regions. The Faroes also experiences very good results with sound environmental control. 2016 harvest volumes in both of these regions have been good. The Board believes that sharing of best practices and exchange of competence amongst the farming regions will continue to be important in the periods ahead. Marine Harvest’s strategy of being present in all key salmon farming regions globally reinforce the company’s ability to overcome the current challenges and lead the way forward.
The Board is pleased to see that many of the business entities within Consumer Products deliver satisfactory results in a market with high raw material prices. The quarterly break-even results of the Rosyth plant in Scotland were comforting and show that the new management team has executed well on the improvement plan. The factories within Consumer Products which produce fresh elaborated products are better positioned as sales are mostly spot based. The dynamics are different within the chilled elaborated segment where many of the customer relationships are contract based with fixed prices. Nonetheless, the product development and innovative packaging seen within Consumer Products enhance customer satisfaction and drive penetration rates of salmon.
The market demand for salmon has been unparalleled in 2016. The market has shown impressive demand resilience on high salmon prices which has emphasized the unique and strong position salmon has gained. Lack of large sized salmon from Norway and Scotland, and a shortage of volumes from Chile have changed some of the product flows of salmon. European processors have adapted to lower sized fish and capitalized on the opportunity to promote tailored made elaborated products. Despite the global supply reduction, consumption in Asia continues to grow. The growth is even more impressive taking into account that the market is predominantly spot based, hence in value terms Asia is developing very favorably. Progress in the US market is also encouraging and the Board is pleased to see that the new Dallas plant will open soon. The tremendous market potential in the US is undisputed and the new plant will capture some of that opportunity by improving market access to an area of the US which today has limited availability of fresh fish.
Feed continues to set new production and earnings records. The Board is pleased to see how the Feed operation develops and the recent progress made on the new planned feed factory in Scotland.
The supply growth for 2017 is expected to increase by approximately 3% by Kontali Analyse. As such, the market balance is expected to remain tight. The 12 month forward Nasdaq price continues to increase to new records. The forward price for the next 12 months is currently EUR 7.4 per kg (NOK 68 per kg), up by EUR 1.0/kg in the last quarter.
A quarterly dividend of NOK 2.30 per share 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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Q3|2016

SUMMARY YEAR TO DATE

Operational EBIT of EUR 440.8 million. Financial EBIT of EUR 646.9 million.
Harvest volume of 280 987 GWE.
Estimated volumes for 2016 have been reduced from
400 000 to 381 000 GWE as a result of biological issues.
Unprecedented salmon prices on strong demand and reduced supply.
Production costs for all regions except Canada have increased in 2016 due to 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 in the second quarter.
Establishment of DESS Aquaculture Shipping, a joint venture between Marine Harvest and Deep Sea Supply. The joint venture has contracted a total of two wellboats and one harvest vessel.
Net cash flow per share of EUR 0.98, Underlying earnings per share (EPS) of EUR 0.71 and EPS of EUR 0.73.
Return on capital employed (ROCE) 23.5%.
Net interest-bearing debt (NIBD) of EUR 876.7 million.
Dividend of NOK 6.30 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.



Bergen, November 1, 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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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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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
Q3 2016

Q3 2015

YTD Q3 2016

YTD Q3 2015

2015

 
 
 
 
 
 
 
Revenue
4
849.1

747.8

2 485.6

2 251.4

3 112.4

 
 
 
 
 
 
 
Cost of materials
 
-425.0

-425.3

-1 294.1

-1 258.6

-1 770.3

Fair value uplift on harvested fish
5
-212.2

-105.4

-567.4

-345.5

-457.6

Fair value adjustment on biological assets
5
303.7

151.8

781.0

240.0

467.7

Salaries and personnel expenses
 
-109.3

-103.9

-318.0

-308.3

-427.1

Other operating expenses
 
-118.5

-110.3

-342.6

-329.4

-443.2

Depreciation and amortization
 
-34.7

-35.1

-105.9

-105.0

-139.8

Onerous contract provisions
 
5.6

-2.8

-10.8

7.8

-0.7

Restructuring cost
 
0.0

-0.9

-4.6

-15.4

-15.2

Other non-operational items
 
0.0

-0.1

1.3

2.5

2.4

Income from associated companies
 
15.2

10.4

41.6

12.6

23.4

Impairment losses
 
-0.3

0.0

-19.4

-3.1

-6.8

 
 
 
 
 
 
 
Earnings before financial items (EBIT)
 
273.6

126.4

646.9

148.9

345.3

 
 
 
 
 
 
 
Interest expenses
7
-12.1

-9.6

-36.2

-35.3

-46.5

Net currency effects
7
14.2

-30.3

13.0

-0.7

4.2

Other financial items
7
-46.8

-43.6

-140.3

-13.3

-52.9

 
 
 
 
 
 
 
Earnings before tax
 
229.0

43.0

483.4

99.7

250.1

 
 
 
 
 
 
 
Income taxes
 
-71.1

-20.5

-155.0

-32.8

-91.6

 
 
 
 
 
 
 
Earnings for the period, continued operations
 
157.9

22.5

328.4

66.8

158.5

 
 
 
 
 
 
 
Profit from discontinued operations, net of tax
 
0.0

0.0

0.0

-0.2

-0.2

 
 
 
 
 
 
 
Profit or loss for the period
 
157.9

22.5

328.4

66.6

158.3

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

-1.2

0.0

-3.7

-3.6

Income tax effect fair value of cash flow hedges
 
0.0

0.3

0.0

1.0

1.0

Currency translation differences
 
43.8

-100.9

54.6

-47.8

-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:
 
43.8

-101.8

54.6

-50.5

-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
 
0.1

0.3

0.0

-0.9

2.1

 
 
 
 
 
 
 
Items not to be reclassified to profit and loss:
 
0.1

0.3

0.0

-0.9

1.2

 
 
 
 
 
 
 
Other comprehensive income, net of tax
 
43.9

-101.4

54.6

-51.4

-55.8

 
 
 
 
 
 
 
Total comprehensive income in the period
 
201.8

-78.9

382.9

15.2

102.5

 
 
 
 
 
 
 
Profit or loss for the period attributable to
 
 
 
 
 
 
Non-controlling interests
 
0.0

0.0

-0.2

0.0

0.1

Owners of Marine Harvest ASA
 
157.9

22.6

328.6

66.6

158.2

 
 
 
 
 
 
 
Comprehensive income for the period attributable to
 
 
 
 
 
 
Non-controlling interests
 
0.0

0.0

-0.2

0.1

0.1

Owners of Marine Harvest ASA
 
201.8

-78.9

383.1

15.1

102.4

 
 
 
 
 
 
 
Basic and diluted earnings per share (EUR)
8
0.35

0.05

0.73

0.15

0.36

Dividend declared and paid per share (NOK)
 
3.20

1.30

6.30

3.80

5.20



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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited, in EUR million
Note
9/30/2016

6/30/2016

12/31/2015

9/30/2015

ASSETS
 
 
 
 
 
Licenses
 
757.6

748.4

746.6

724.1

Goodwill
 
270.5

263.5

259.0

260.5

Deferred tax assets
 
7.7

10.6

11.5

17.3

Other intangible assets
 
29.4

28.3

27.6

18.3

Property, plant and equipment
 
972.7

949.5

963.7

951.7

Investments in associated companies
 
158.2

133.7

123.9

107.2

Other shares and other non-current assets
 
5.6

4.9