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Bakkafrost CEO Regin Jacobsen. (Photo: Bakkafrost)
Bakkafrost celebrates first positive margin of the VAP segment since 2015
FAROE ISLANDS
Wednesday, February 21, 2018, 00:50 (GMT + 9)
Although the fall in the salmon price affected the Bakkafrost Group's operations in the last quarter of 2017, the company's executives say they are satisfied with the results achieved.
“Bakkafrost had an excellent performance in the quarter, considering that the salmon spot price has decreased over 25 percent, compared to the same quarter last year. The VAP segment had a positive margin in the quarter for the first time since 2015,” CEO Regin Jacobsen said.
The Bakkafrost Group informed a total operating EBIT of DKK 331.2 million (USD 55,2 million) in Q4 2017, 5,2 percent lower that in the same term in 2016. The total harvest volumes was 11.5 thousand tonnes of salmon (gutted weight), lower than the 12,940 tonnes harvested in the same period the previous year.
The company also indicated that it transferred 3.4 million smolts, and hightlighted that Havsbrún acquired 50,900 tonnes of raw material in the last term in 2017, a record in its 50 years of history.
The farming segment made an operational EBIT of DKK 228.8 million (USD 38.1 million), which corresponds to NOK 25.76 per kg (USD 4.29). This result reflects a negative impact associated with the fall in the spot price of salmon with respect to the corresponding quarter of the previous year, when the EBIT was DKK 401.6 million.
The VAP segment made an operational EBIT of DKK 36.5 million (USD 6,1 million) for the last term in 2017, which implies an improvement with respect to the fourth quarter of 2016 (DKK -60.8 million), derived from the decrease in the price of salmon.
The combined farming and VAP segments EBIT was of DKK 265.4 million for last year´s fourth term, which corresponds to NOK 29.88 per kg. This result is lower than in the last quarter of 2016, when the EBIT was DKK 340.9 million.
The FOF segment (fishmeal, oil and feed) obtained an EBITDA of DKK 93.6 million for the same period, against DKK 71.1 million in the last three months of 2016.
In the fourth quarter of 2017 the group suffered a loss of DKK -21.9 million, compared to a profit of DKK 555.5 million in the corresponding quarter of 2016.
Last year, Bakkafrost signed an agreement with P/F Fiskaaling and the Faroese Ministry of Foreign Affairs and Trade about the Faroese brood stock program, which will start operating on April 1 this year.
“Looking forward, we are excited about the agreement we have made with P/F Fiskaaling and the Faroese Authorities about the Faroese brood stock program. To develop the Faroese brood stock program will demand effort and resources for Bakkafrost, but we believe this might be an exciting project, which can benefit us in the long run,” Jacobsen said.
During the next three years, the company will examine the feasibility of the program and determine whether investments in a new brood stock facility will be needed. According to the agreement, the genome rights in the Faroese brood stock program will be transferred to Bakkafrost in 2021.
(1 DKK = USD 0.16659)
editorial@seafood.media
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