Company update: Bakkafrost Q2

The result reflects a continuing sustainable biological operation and good market prices during the period.

 

The farming segment made substantial profit, but the VAP segment also contributed with a positive operational result.

 

The total harvested volume in Q2 2011 was 8,092 tonnes gutted weight (5,341 tonnes in Q2 2010). In H1 of this year 13,552 tonnes gutted weight (11,085 tonnes H1 2010) were harvested.

 

Commenting on the results, CEO Regin Jacobsen says: "Bakkafrost obtained a good result for the quarter in a market with prices dropping. The operational performance was high and the veterinary situation is good.

 

“Salmon prices have been dropping through the quarter, but we believe the outlook is promising with increased production and a significant share of the harvest for 2011 already sold on satisfying long term contracts."

 

Following the acquisition of Havsbrún, Bakkafrost has expanded and improved its value chain with increased farming activities and an additional platform with production of fish meal and fish oil and own production of fish feed.

 

Havsbrún’s production of fish meal and fish oil goes into its own production of fish feed. Havsbrún’s main market for fish feed is sale to the Faroese farming industry, including Bakkafrost.

 

The market outlook for Havsbrún’s sale of fish feed is good. The management and Board expects that the Faroese farming industry will increase its production in the coming years, from 39,100 tonnes in 2010 to 57,000 tonnes in 2012, an increase of 46%, which means an increase in the demand for fish feed.

 

Havsbrún expects to sell around 72,000 tonnes of fish feed in 2011.