Falling cod prices hit Havfisk (Aker) profits – Fishupdate.com

Falling cod prices hit Havfisk (Aker) profits Published:  06 May, 2013

LOW cod prices helped to dent the profits of the Norwegian fishing company Havfisk (former Aker seafoods) during the first quarter of this year.

Havfisk achieved an EBITDA (earnings before interest, tax and amortisation) of 41 million Norwegian kroners. This was NOK 29 million down on the corresponding three months in 2012.

Operating revenues during the totalled NOK 172 million, a fall of NOK 69 million. Cod prices fell by 26 per cent during the period while saithe was down by 29 per cent. Only haddock showed an increase and that was marginal at just three per cent. Havfisk, which has a third of Norway’s cod quota, changed its name from Aker only last month.

The company said in a statement: “The catch rate (harvested per operating day) is 29 per cent higher compared to the same period in 2012. Decreased prices for cod and saithe resulted in a weak profitability in the quarter. The total catch volume is reduced by six per cent in the first quarter compared to the same period last year. The fleet has less operating days this period, due to fewer vessels operating in the quarter.

CEO Olav Holst-Dymes said: “We have a record in harvested volume per operating days this quarter. The operations of the trawlers have been good and operating costs are lower than same period in 2012. The prices are still low, and the profitability has been week in the quarter,” says CEO Olav Holst-Dyrnes. The company added that the reduction in revenue came from lower prices for white fish.

Mr Holst Dymes added: “The remaining quota is good throughout the year. We have a larger part of the cod quota left than at the same time in 2012. Our first new-building “Gadus Poseidon” has arrived in Norway to be finalised and will come into operations in the third quarter.”