Bakkafrost posts lower Q1 profit

Fish Farmer - - European News -

THE Faroese salmon farm­ing group Bakkafrost an­nounced a first quar­ter op­er­at­ing profit (EBIT) of 267.7 mil­lion Dan­ish kro­ner (£30.6 mil­lion), marginally lower than the same pe­riod 12 months ago.

Har­vest vol­umes, how­ever, were up from 12,200 tonnes to 13,700 tonnes this year. The com­pany said that while salmon spot prices had picked up since the end of last year, they were still lower than those for Q1 2018 and this had a neg­a­tive ef­fect on the over­all op­er­a­tional EBIT.

The farm­ing seg­ment made an op­er­a­tional EBIT of DKK 229.7 mil­lion which cor­re­sponds to (Nor­we­gian) NOK 21.86 per kg.

The VAP seg­ment made an op­er­a­tional EBIT of DKK 1.3 mil­lion for Q1 2019. The VAP pro­duc­tion was 4,700 tonnes gut­ted weight in Q1 2019, com­pared to 2,100 tonnes in Q1 2018.

The com­bined farm­ing and VAP seg­ments made an op­er­a­tional EBIT of DKK 231.1 mil­lion for Q1 2019, which cor­re­sponds to NOK 21.99 per kg. The op­er­a­tional EBITDA for the fish­meal, oil and feed (FOF) seg­ment was DKK 65.3 mil­lion.

Com­ment­ing on the re­sults, CEO Re­gin Ja­cob­sen said: ‘The dis­rupted mar­ket bal­ance from Q4 2018 into Q1 2019 re­sulted in a weaker than ex­pected re­sult in the farm­ing seg­ment in the first part of Q1 2019.

‘We are pleased, how­ever, to ex­pe­ri­ence a bet­ter mar­ket de­vel­op­ment and more ac­tiv­ity in the VAP seg­ment.

‘Our new hatch­ery at Strond is now about to start the fourth batch, since the first eggs were hatched last sum­mer. The first smolts will be trans­ferred to sea sites in the sec­ond half of 2019.’

He added: ‘The bi­o­log­i­cal de­vel­op­ment was very pos­i­tive dur­ing Q1 2019. In­vest­ments in re­duc­ing risks, im­prov­ing ef­fi­ciency and cre­at­ing growth con­tinue with sev­eral new projects, mainly fo­cus­ing on smolt ca­pac­ity, in ad­di­tion to a new live fish car­rier and a new bio­gas plant.’

The out­look for the farm­ing seg­ment was good and Bakkafrost said it ex­pected to har­vest 54,500 tonnes gut­ted weight this year.

Above: Re­gin Ja­cob­sen

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