Bakkafrost de­liv­ers strong Q3 re­sults

Fish Farmer - - News -

FAROESE fish farmer Bakkafrost an­nounced strong third quar­ter re­sults and some of the low­est mor­tal­ity rates for many years.

Har­vested vol­umes rose by more than 5,000 tonnes to a to­tal of 12,900 tonnes and the com­bined farm­ing and VAP (value added prod­ucts) seg­ment saw its op­er­a­tional profit or EBIT rise from DKK 142.4 mil­lion in Q3 2018 to DKK 257.3 mil­lion this year – de­spite a 10 per cent fall in salmon prices be­tween July and Septem­ber this year.

The com­pany re­ported a to­tal op­er­a­tional EBIT of 303.4 mil­lion Dan­ish kroner (DKK), down from DKK 434 mil­lion last year.

Bakkafrost said salmon spot prices fell sig­nif­i­cantly dur­ing the pe­riod and while this had a neg­a­tive ef­fect on the farm­ing seg­ment, it did have a pos­i­tive im­pact on the op­er­a­tional EBIT in the VAP seg­ment.

The FOF seg­ment (fish­meal, oil and feed) made an EBITDA of DKK 94.5 mil­lion (DKK 41.4 mil­lion for Q3 2018)

These re­sults are likely to be the last before the in­clu­sion of the Scot­tish Salmon Com­pany, in which Bakkafrost ac­quired a 68.8 stake for an es­ti­mated £517 mil­lion last month.

CEO Re­gin Ja­cob­sen said Bakkafrost had cho­sen to in­crease the com­pany’s share cap­i­tal for the ac­qui­si­tion of SSC, which meant this was car­ried out with­out sub­stan­tial in­crease in its ex­ter­nal fi­nanc­ing.

Turn­ing to the third quar­ter per­for­mance, he said: ‘De­spite 10 per cent lower salmon spot prices dur­ing the third quar­ter for 2019, com­pared to the same quar­ter last year.’

The com­pany is ex­pected to har­vest around 54,500 tonnes of salmon. But with SSC pro­duc­ing around 50,000 tonnes a year, the new look Bakkafrost group’s to­tal har­vest should dou­ble in 2020.

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