Marine Harvest (OSE:MHG) is tanking after releasing its interim report, despite the fact that recent update pretty much said what to expect as far as second quarter numbers are concerned. Operational EBIT was up 13% to 894 million Norwegian Kroner.
Sudden supply growth in EU market from increased harvest volumes in Scotland and Faroes brought a large supply shock to the industry. This was magnified by the Chilean market being re-built after fish disease issues have been largely solved. Marine Harvest is contractually in a good spot until the end of the year and should thus generate solid earnings.
Many investors were pretty much certain that there would be a second dividend this year. The comments in the report that working capital is highly seasonal in connection with seawater growth patterns and that dividend will be considered depending on the cash flow in the second half brought an uncertainty element into that as well.
Company's CEO Alf-Helge Aarskog commented that ” We are concerned about the market balance the coming quarters” He also said that the recent demand growth must now be used to grow volumes at a lower price level. The company plans to review production plans and step up marketing activities. Marine Harvest is down another 10% to 3.25 NOK per share. Interim presentation is available here.
No comments:
Post a Comment