Bakkafrost profit €33.8 Mn on lower prices

Aslak Berge

The Bakkafrost Group delivered a total operating profit of €33.8 million after slaughtering 11,600 tonnes of salmon in the third-quarter. 

Salmon spot prices decreased in Q3 and had a negative impact on the farming business compared with previous quarters. Despite lower prices, the processing division had to report a small operating loss, while the EBITDA for the fishmeal, oil and feed division was €10,7 milloin. While Bakkafrost transfered 3.2 million smolt, the feed factory Havsbrún sourced 21,900 tonnes of raw material during the quarter, a note to shareholders on Tuesday said.

Lower price
The farming segment achieved an operating profit of €29,1 or NOK 23.51 per kilogram.

Managing Director Regin Jacobsen said he was pleased by the quarterly result.

“Although the price of salmon decreased in the quarter, Bakkafrost had a satisfactory result. The salmon spot price in the third quarter this year was significantly lower than in the same quarter last year. We still have a good outlook for the salmon market, but there is a risk for lower salmon prices in the future.”

Service vessels
The farming service vessel ‘Roland’ started operation in this quarter, armed with lukewarm seawater treatment against sea lice. Together with ‘Martin’, Bakkafrost now has two service vessels. In addition ‘Hans á Bakka’, whose primary operation is the transportation of live fish, can be used in treatment against sea lice with freashwater treatment. 

“Bakkafrost is well-equipped to combat sea lice with good solutions. Another positive trend in the quarter was the improvement in the VAP operation after having experienced start-up issues in the first half of 2017,” said Jacobsen.

The Bakkafrost Group expects to harvest 54,500 tonnes of salmon this year. In 2018, a 51,000-t, gutted-weight harvest is expected.


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