Bakkafrost Group delivered total operational earnings before interest and taxes (EBIT) of DKK 206 million (EUR 27.6 million; USD 30.3 million) in the third-quarter of this year, a slight decrease compared with Q3 2014, which it has attributed to higher costs in the period.
In total, the Faroe Islands-based Atlantic salmon farmer harvested 12,982 metric tons (MT) gutted weight in the last quarter, an increase of 19 percent year-on-year. Its farming segment delivered an operational EBIT of DKK 183 million (EUR 24.5 million; USD 27 million), while its value-added processing (VAP) segment, which produced 3,745 MT, made an operational EBIT of DKK 9 million (EUR 1.2 million; USD 1.3 million).
The fishmeal, oil and feed (FOF) segment delivered earnings before interest, taxes, depreciation and amortization (EBITDA) of DKK 42 million (EUR 5.6 million; USD 6.2 million).
“The margins fell in this quarter and relates mainly to increased costs. Although higher costs, all segments delivered positive results in the quarter. With the delivery of the live fish carrier ‘Hans á Bakka’ in the third-quarter, Bakkafrost made a significant step forward in [its] strategy to reduce biological risk and improve efficiency. The outlook for the market remains tight because of [no] expected supply growth in 2016,” said Regin Jacobsen, CEO of Bakkafrost.
Bakkafrost released 2.8 million smolts in Q3 2015, which is in line with its smolt release plan. It expects the global supply of farmed Atlantic salmon to grow 4 percent in 2015, but to not grow any further in 2016.
Overall, the company expects to harvest 50,000 MT gutted weight in 2015. Its forecast for smolt release in 2015 is 10.4 million.
Next year, it expects to harvest 48,000 MT gutted weight and to release 10.5 million smolt.
Bakkafrost’s long-term strategy is to sell around 40 to 50 percent of its harvested volumes of salmon as value-added products on fixed price contracts. These contracts last for six to 12 months.
It has signed contracts covering around 78 percent of the VAP capacity for the rest of 2015.
Meanwhile, its fish feed sales are expected to reach 79,000 MT this year and 80,000 MT in 2016.
