Bakkafrost in­vests £360m in fu­ture

Fish Farmer - - European News -

BAKKAFROST, the big Faroese salmon farm­ing com­pany, un­veiled plans to in­vest at least three bil­lion Dan­ish kro­ners (about £360 mil­lion) in its op­er­a­tions over the next five years.

The an­nounce­ment came as the com­pany revealed its re­sults for the sec­ond quar­ter, which were de­scribed by CEO Re­gin Ja­cob­sen as good de­spite a fall in the price of salmon dur­ing the pe­riod.

The com­pany plans to con­struct a new hatch­ery in Suðuroy for large smolt pro­duc­tion, with build­ing due to start in early 2019.

Its in­vest­ments in its smolt op­er­a­tion over the next five years will be around DKK 1 bil­lion over­all, partly to sup­port the large smolt strat­egy for the new farm­ing ar­eas.

The group also in­tends on build­ing a bio­gas plant as part of its 2020 Healthy Liv­ing Plan.

Bakkafrost de­liv­ered a to­tal op­er­at­ing EBIT of DKK 407.9 mil­lion in the three months be­tween April and June.

Har­vested vol­umes to­talled 12,900 tonnes gut­ted weight, com­pared with 18,400 tonnes in the same pe­riod last year. The com­pany ex­pects to har­vest 49,000 tonnes for the en­tire year.

It ex­pects to re­lease 13.9 mil­lion smolts in 2018, com­pared with 9.9 mil­lion smolts in 2017 and 11.7 mil­lion smolts re­leased in 2016.

The group over­all de­liv­ered a profit for Q2 2018 of DKK 338.8 mil­lion (DKK 398.1 mil­lion in Q2 2017). But for the 2018 half year, the profit was DKK 611.1 mil­lion, com­pared to DKK 477.1 mil­lion in the first six months of 2017. Turn­ing to Bakkafrost’s in­vest­ment plans, Ja­cob­sen said: ‘Bakkafrost ex­pects to make in­vest­ments of around DKK three bil­lion dur­ing this pe­riod. The salmon farm­ing busi­ness has de­vel­oped dra­mat­i­cally since it started in the Faroe Is­lands. We fore­see great op­por­tu­ni­ties for de­vel­op­ment in the fu­ture and to be able to trans­fer these op­por­tu­ni­ties into re­al­i­ties, large in­vest­ments are needed.’

He said the in­vest­ment will be de­signed to re­in­force Bakkafrost’s in­te­grated busi­ness model, to min­imise bi­o­log­i­cal risk, in­crease ef­fi­ciency and cre­ate sus­tain­able or­ganic growth.

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