Bakkafrost Q4 earnings and profits up

THE Bakkafrost Group, the main fish farming company on the Faroe Islands, today unveiled substantially increased profits for the final quarter of 2016, despite slightly lower harvested volumes.
The total operating EBIT (earnings before interest and tax) of 349.6 million Danish kroners (DKK) compared to DKK 257 million for the fourth quarter in 2015.
Harvested volumes were 12,900 tonnes (13,675 tonnes in 2015) gutted weight. The company said the combined farming and VAP segments made an operational EBIT of DKK 340.9 million.
The farming segment made an operational EBIT of DKK 401.6 million, which corresponds to NOK 37.70 per kg. The VAP segment made an operational EBIT of DKK -60.8 million for Q4 2016.
Bakkafrost said in a statement: ‘Salmon spot prices increased in the quarter and had a positive effect on the farming segment.
‘The VAP segment realised higher prices, but the increase did not match the increase in the spot prices, thus the VAP segment still had negative margins.
‘The EBITDA for the FOF [fishmeal, oil and feed] segment was DKK 71.1 million.’
Commenting on the result, CEO Regin Jacobsen said: ‘The good development on the market had a positive influence on Bakkafrost’s result in 2016, although the harvested volumes decreased in 2016, compared to 2015.
‘Bakkafrost delivered a record high result for 2016. The farming and FOF segments had very good results, while the VAP segment had difficult circumstances in 2016.
‘In 2016, the harvest operation started in the new harvest/VAP factory at Glyvrar, and we expect to see operational savings when the VAP processing at the same factory will be up and running.’