MIXED FIRST QUARTER FOR BAKKAFROST
Mixed first quarter for Bakkafrost – The Bakkafrost Group delivered a total operating EBIT of DKK 267.7 million in Q1 2019. Harvested volumes were 13.7 thousand tonnes gutted weight. The combined farming and VAP (value added processing) segments made an operational EBIT of DKK 231.1 million. The farming segment made an operational EBIT of DKK 229.7 million. The salmon spot price increased in the quarter, compared to Q4 2018 and to Q1 2018.
Bakkafrost’s achieved prices in this quarter, however, were lower than in Q1 2018, and thus had a negative effect on the operational EBIT. The VAP segment made an operational EBIT of DKK 1.3 million. The EBITDA for the FOF segment was DKK 65.3 million.
The Group made a profit for Q1 2019 of DKK 212.8 million. The total volumes harvested in Q1 2019 were 13,707 tonnes gutted weight. Bakkafrost transferred 1.7 million smolts, and Havsbrún sourced 115.5 thousand tonnes of raw material in Q1 2019.
The farming segment made an operational EBIT of DKK 229.7 million for Q1 2019, which corresponds to NOK 21.86 per kg. The VAP segment made an operational EBIT of DKK 1.3 million for Q1 2019. The VAP production was 4.7 thousand tonnes gutted weight in Q1 2019, compared to 2.1 thousand tons gutted weight in Q1 2018. The combined farming and VAP segments made an operational EBIT of DKK 231.1 million for Q1 2019, which corresponds to NOK 21.99 per kg. The operational EBITDA for the FOF segment (fishmeal, oil and feed) was DKK 65.3 million for Q1 2019.
Commenting on the result, CEO Regin Jacobsen said: “The disrupted market balance from Q4 2018 into Q1 2019 resulted in a weaker than expected result in the farming segment in the first part of Q1 2019. We are pleased, however, to experience a better market development and more activity in the VAP segment.
“The new hatchery at Strond is now about to start the fourth batch, since the first eggs were hatched last summer. The first smolts will be transferred to sea sites in the second half of 2019.
“The biological development was very positive during Q1 2019.
“Investments in reducing risks, improving efficiency and creating growth continue with several new projects, mainly focusing on smolt capacity in addition to a new live fish carrier and a new biogas plant.”