Bakkafrost posts better than expected 3Q results
Faroe Islands-based farmed salmon producer Bakkafrost on Tuesday reported higher than expected margins for the third quarter of 2012.
Operating revenues totaled DKK 457.1 million (USD 79.1 million), up from DKK 369.3 million (USD 63.9 million) in the third quarter of 2011. The company attributes the increase to higher harvested volumes at a lower price and an acquisition completed in the summer of 2011.
Operational EBIT was DKK 86.2 million (USD 14.9 million), compared to DKK 70 million (USD 12.1 million) during the same time period last year. The combined farming and value-added segment had an operational EBIT of DKK 78.5 million (USD 13.6 million), up from DKK 53.9 million (USD 9.3 million) in 2011.
The total harvested volume in the quarter was 9,730 metric tons (MT) gutted weight compared to 9,243 MT in 2011. Bakkafrost expects to harvest 45,000 MT gutted weight in 2012, compared to the previous estimate of 42,000 MT to 44,000 MT gutted weight.
The company expects salmon prices to rebound in the fourth quarter.
“The result for Q3 2012 was good, as the margins were higher than we expended earlier. All segments had positive results and thus contributed to the Group’s result,” said CEO Regin Jacobsen. “During the quarter we were able to utilize the marked situation and had relatively large salmon to harvest that gave a higher margin. The outlook are also good as we expect 4Q to be the point, where the market balance tips over for the benefit of the supply site, resulting in salmon prices to increase.”
Bakkafrost is the largest salmon farmer in the Faroe Islands. The Group is fully integrated from feed production to smolt, farming, VAP and sales. The Group has production of fishmeal, fish oil and salmon feed in Fuglafjørður. The Group operates licenses on 16 farming sites located in 15 different fjords. The Group has primary processing in Klaksvík, Kollafjørð and Strendur and secondary processing (VAP) in Glyvrar and Fuglafjørður.
For more detailed information on Bakkafrost’s 2Q results, click here.