Riyadh, Saudi Arabia-based producer and distributor of fresh and frozen seafood products Saudi Fisheries Co. (SFC) has signed a three-year fish supply agreement with Oman Fisheries effective 2 November, 2022.
The deal paves the way for Oman Fisheries Company (OFC), a publicly traded company in Oman with a 24 percent shareholding by Oman's Ministry of Agriculture and Fisheries, to supply 1,200 metric tons of fish to SFC in the first phase of the agreement in exchange for OMR 1 million (USD 2.58 million EUR 2.59 million).
The sales agreement comes shortly after the two companies signed a six-month non-binding memorandum of understanding, with an option for extension, to strengthen cooperation between them in the fields of fisheries and fish farming through the production, marketing and sale of seafood products.
In August 2022, SFC – which deals in fresh fish, frozen crab, fish fingers, fish burgers, and shrimp – announced a 34 percent increase in sales for the second quarter compared to similar period the previous year due to more sales from the company’s shrimp farm.
Despite the increase in sales, high costs of production caused its net losses widen to SAR 24 million (USD 6.4 million, EUR 6.3 million) for the six months ending 30 June 2022. The poor performance added to a string of poor results, which forced the company to seek additional financing.
For SFC, which is 40 percent owned by Saudi government and majority owned by the Arab country’s private sector, the sales agreement with OFC comes soon after it walked back extending a memorandum of understanding it had signed with the Arab Agricultural Services Company (ARASCO) to cooperate on the manufacturing and commercial operation of the company's aquaculture feed factory, which is currently under construction in Al-Huraydah, in the Asir region of Saudi Arabia.
Photo courtesy of Saudi Fisheries Company
