Bakkafrost Q4 earnings up

THE Bakkafrost Group, the main fish farming company on the Faroe Islands, unveiled substantially increased profits for the final quarter of 2016, despite slightly lower harvested volumes.

The total operating EBIT (earnings before interest and tax) was 349.6 million Danish kroners (DKK) compared to DKK 257 million for the fourth quarter in 2015.

Harvested volumes were 12,900 tonnes (13,675 tonnes in 2015) gutted weight. The company said the combined farming and VAP segments made an operational EBIT of DKK 340.9 million.

The farming segment made an operational EBIT of DKK 401.6 million, which corresponds to NOK 37.70 per kg. The VAP segment made an operational EBIT of DKK -60.8 million for Q4 2016.

Bakkafrost said: ‘Salmon spot prices increased in the quarter and had a positive effect on the farming segment. The VAP segment realised higher prices, but the increase did not match the increase in the spot prices, thus the VAP segment still had negative margins.

‘The EBITDA for the FOF [fishmeal, oil and feed] segment was DKK 71.1 million.’