Bakkafrost has 'satisfying' 3Q
Faroese salmon farmer Bakkafrost's 3Q 2013 report shows what the company called a "satisfying performance and result," with strong salmon prices giving overall figures a boost.
Quarterly profits totaled DKK 199.6 million (USD 35.7 million, EUR 26.8 million), up from the DKK 25.8 million (USD 4.6 million, EUR 3.5 million) recorded in 3Q 2012. Year-to-date figures were also up, with profits totaling DKK 451.4 million (USD 80.7 million, EUR 60.5 million), up from the DKK 133.2 million (USD 23.8 million, EUR 17.9 million) recorded at this time last year.
"We are satisfied with the performance and result for Q3 2013," said CEO Regin Jacobsen. "The strong salmon prices especially in July and August and a good biology are the main reasons for the strong result."
The company's fishmeal, oil and feed segment also did well, with earnings before interest, taxes, dividends and acquisitions totaling DKK 48.8 million (USD 8.7 million, EUR 6.5 million), which is up from the DKK 41.3 million (USD 7.4 million, EUR 5.5 million) recorded last year. The first nine months were up, too, totaling DKK 104.4 million (USD 18.7 million, EUR 14 million) compared to the DKK 66.1 million (USD 11.8 million, EUR 8.9 million) recorded at the same time last year. The company cited higher production as a primary factor.
Spot prices were an issue for value-added products (VAP), the only real negative spot on the report. The VAP segment operated at a loss of DKK -19.6 million (USD -3.5 million, EUR -2.6 million), but combined EBIT for both VAP and farming were still well into the black.
"The farming operation delivers a continuing strong performance, while the VAP production still have negative operating results, because of the high spot prices," Jacobsen said. "However we are very satisfied with the production efficiency in VAP segment."