Russian Aquaculture is the integrated first salmon firm in Russia. (Photo: Russian Aquaculture/FIS)
Salmon and trout producer plans to increase production
RUSSIAN FEDERATION
Thursday, July 27, 2017, 00:50 (GMT + 9)
Salmon and trout farming company Russian Aquaculture plans to widen its production capacity thanks to its profit growth last year and to consumption recovery.
The announcement was made by the firm’s Chief Executive Ilya Sosnov in statements to Reuters, adding that the firm is now set to benefit from an import ban in 2014 on Norwegian fish.
After making a loss in 2015 due to fish disease, Russian Aquaculture, which farms salmon and trout in the Barents Sea and in the northern Karelia region, returned to profit in 2016 and obtained RUB 1 billion (about USD 17 million).
In addition, the company reported a more than nine-fold increase in the first half’s revenue, to RUB 3.3 billion (USD 55 million) and RUB 1.5 billion (USD 25 million) in earnings before interest, taxes, depreciation and amortisation.
Sosnov stressed after having overcome biological issues, now they intend to widen its business, which means they will eventually deploy hatchlings to seven or eight farms compared with three farms this year. The aim is that over five to ten years, the company will produce 25,000-30,000 tonnes of fish, compared with 8,400 tonnes in the first half of 2017.
Russian Aquaculture's shareholders approved the issue of around 33 million new shares in April, which could raise up to USD 50 million to help finance its investment programme.
The executive told Reuters the company was in talks to acquire two or three fish farming cages from Norwegian producers and that the investment programme also envisages expanding the company's fleet.
The company's recent acquisition of a smolt plant in Norway was a move to secure the quality of planting stock and reduce the risk of diseases.
Sosnov highlighted that the company does not rule out building its own feed production plant either, probably by becoming a shareholder in a joint venture, and may branch into fish processing.
Related article:
- Russian Aquaculture acquires Norwegian smolt company
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