Bakkafrost hit by ‘dif­fi­cult con­di­tions’

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THE Faroese salmon farm­ing com­pany Bakkafrost an­nounced lower than ex­pected re­sults for the fi­nal quar­ter of 2018, blam­ing ‘dif­fi­cult mar­ket con­di­tions’.

To­tal op­er­at­ing in­come be­fore in­ter­est and tax (EBIT) fell by al­most a third to 230.5 mil­lion Dan­ish kro­ner (DKK) com­pared to DKK 331.2 mil­lion in Q4 2017.

But har­vested vol­umes were up from 11,500 tonnes to just over 12,200 tonnes, gut­ted weight.

The com­bined farm­ing and VAP seg­ments made an op­er­a­tional EBIT of DKK 207.7 mil­lion ( DKK 265.4 mil­lion in Q4 2017) while the farm­ing seg­ment made an op­er­a­tional EBIT of DKK 204.4 mil­lion (DKK 228.8 mil­lion).

CEO Re­gin Ja­cob­sen said: ‘Dif­fi­cult mar­ket con­di­tions and limited mar­ket ac­cess for a pe­riod re­sulted in a weaker than ex­pected re­sult in the farm­ing seg­ment for the fourth quar­ter.

‘We are pleased, how­ever, to ex­pe­ri­ence more ac­tiv­ity in the VAP seg­ment, due to in­creased con­tracts for our VAP prod­ucts.’

He said 2018 had been an ‘event­ful year with dif­fer­ent chal­lenges’, but the com­pany was sat­is­fied with the op­er­a­tion and the re­sults for 2018.

‘A lot of ef­fort has also been put into our ex­pan­sion ac­tiv­i­ties in 2018, and we have now started op­er­a­tions in our new har­vest­ing plant in Suðuroy. We plan to fur­ther ex­pand our farm­ing op­er­a­tion in Suðuroy this year.

‘Bakkafrost’s har­vest­ing plant in Glyvrar faced banned ac­cess to the Rus­sian mar­ket in Q4 2018 and ex­pe­ri­enced dis­rup­tion in de­liv­er­ies to other high-end mar­kets from the new har­vest plant in Suðuroy, due to de­lay in the is­sue of cer­tifi­cates to these mar­kets.,’ the group said im a state­ment.

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