Larger catches, improved efficiency boost Havfisk earnings

Published on
July 18, 2016

Havfisk ASA achieved operating revenues of NOK 386 million (USD 45.5 million, EUR 41.2 million) in the second-quarter of 2016, an increase of NOK 129 million (USD 15.2 million, EUR 13.8 million), compared with the corresponding period of 2015. The Norwegian fishing company also posted earnings before interest, taxes, depreciation and amortization (EBITDA) of NOK 130 million (USD 15.3 million, EUR 13.9 million) in the last quarter, up from NOK 84 million (USD 9.9 million, EUR 9 million).

The improved results reflect increased volume, higher catch efficiency and change in the product mix compared with Q2 2015, said Havfisk. In the quarter, it harvested more cod, haddock and saithe, but less shrimp.

Havfisk’s total catch in Q2 2016 increased by 3,255 metric tons (MT) year-on-year to 17,020 MT. Its harvest volume per operating day increased by 17 percent compared with Q2 2015, while the harvest value per operating day increased by 16 percent in the same period. Though the prices for cod and saithe were good in the quarter, the combined average prices for all species were 1 percent lower in the last quarter than in Q2 2015.

“More cod and haddock have been harvested in the quarter compared with the second quarter in 2015, and these are fisheries with good catch rates. Reduced maintenance stay at shipyards in the quarter has given more operating days and lower maintenance costs,” said Webjorn Barstad, CEO of Havfisk.

Operating revenues in the first-half of this year amounted to NOK 656 million (USD 77.3 million million, EUR 70.1 million), compared with NOK 504 million (USD 59.4 million, EUR 53.9 million) in H1 2015. EBITDA for the six-month period was NOK 225 million (USD 26.5 million, EUR 24 million), compared with NOK 174 million (USD 20.5 million, EUR 18.6 million) for H1 2015.

On 2 June, Aker Capital AS entered into an agreement for the sale of 53,501,793 shares in Havfisk to Leroy Seafood Group ASA at a price of NOK 36.50 (USD 4.30, EUR 3.90) per share. The transaction is conditional upon regulatory and third-party approval.

Also in June, the International Council for the Exploration of the Sea (ICES) gave its scientific advice for total cod, haddock and saithe quotas in 2017. The quota advice is for a reduction for cod and haddock of 10 and 5 percent respectively. It is recommended that the saithe quota north of 62 degrees is increased by approximately 7 percent, and in the North Sea the recommendation is for an increase in the total quota by as much as 62 percent. Final determination of quotas will be conducted by the Norwegian authorities during the autumn.

“Havfisk has a good quota position for the second-half of 2016 even if somewhat more of the cod and haddock quotas have been fished in the first-half of 2016 compared with 2015. The quota advice for 2017 [is] also in line with expectations and shows that the cod, haddock and saithe stocks are in good condition,” said Barstad. 

Contributing Editor reporting from London, UK

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