From Seafood Intelligence – July 1st, 2011 - Bertrand Charron
Marine Harvest down 20%
As 3Q2011 begins a look at the performance of the 16-18 farmed salmon and seafood-related firms on the Oslo stock exchange shows many stocks have plunged in the past six months (H1). Typically, most of the salmon producers experienced buoyancy till May, after which salmon export prices started falling considerably, taking with them a substantial part of their market capitalisation. In fact, only one firm – World n°2 salmon farmer & fish feed producer Cermaq (i.e. Mainstream & Ewos) – has seen its stock stay in the black since the beginning of the year (+0.76%). All the others have plunged, with the overall ‘salmon shares’ worth on the Børs pulled downwards by heavyweight Marine Harvest: -20.55%. Overall (including those involved in other groundfish and pelagic fisheries, R&D; not taking into account newly-listed Norway Royal Salmon), the fall represents 23.04% of the January 1st market capitalisation, a “loss” of almost NOK 17 billion (€2.155 billion / US$ 3.134 billion); NOK 6.5 billion for MHG alone… This illustrates quite well the ‘panic’ gripping some investors as – after climbing for well over a year & reaching record levels at the end of April – Norwegian salmon prices have plummeted due notably the ‘comeback’ and further anticipation of Chilean salmon production & exports. After reaching a peak at NOK 43.61/kg in May, with some analysts predicting prices could reach NOK 50/kg, prices have steadily declined to NOK 31.61 – a 27.5% drop in 10 weeks..