Photo: Oman Fisheries Co.

Oman Fisheries accumulated losses soar to $43 million

MUSCAT: Oman Fisheries Company SAOG, one of the largest and oldest fish processing companies in Oman, reported a net loss of RO 3,513 million (U$D 9.12M) for the financial year ended December 31, 2023, which effectively increased the accumulated losses to a total of 16,509 million RO (approximately U$D 43M).

Oman Fisheries was formed in 1989 and is the largest fishing company in the Sultanate. The company, which is listed in Oman and whose Ministry of Agriculture and Fisheries has a 24 percent stake in the company, reported a 30% decline in consolidated turnover to RO 8,894 million for fiscal 2023, against RO 12,797 million from the previous year. . Total quantities of various fish sold during the year fell to around 13,337 million tonnes, down from 19,566 million tonnes in 2022. Net loss (after tax) rose 200% to RO 3,513 million, down from a net loss of RO 1,168 million in 2022.

"Despite the losses, Oman Fisheries continues to make progress in the implementation of its 'transformation plan', first launched in August 2023," said Haitham Mohammed Ali al Fannah, president.

“Good progress has been made in the following areas: cost optimization, including logistics; Restructure the commercial team to improve supply/demand matching; Improve our participation in fish landings and commercial fishing; Expand market reach to new regions, including the US and Russia; Introduce value-added products to maximize unit value and profit margins; and The updating of all quality management systems resulted in the international HACCP certification of all the company's branches,” he stated in the Directors' Report.

Commenting on Oman Fisheries' financial and operational performance during 2023, the CEO said the company faced “global logistical and commercial challenges, high freight costs and higher fish procurement prices” during the year.

The 30% decline in revenue was due to "optimizing our product mix and prioritizing higher-margin products and fast-moving products, resulting in better profit margins for smaller quantities," the CEO said in the Management Discussions & Analysis report.

Significantly, the prevailing geopolitical tensions in the Middle East region also had an impact on Oman Fisheries' performance, according to the company. One of the factors was the shortage of refrigerated containers at the end of the year, due to political instability in the Red Sea area.

Other contributing factors, the company noted, were: insufficient volumes at landing sites; an Increase in product prices as a result of high competition from other companies; and Adverse weather conditions encountered at the beginning and end of 2023.

Exports to international markets accounted for the majority of Oman Fisheries' total revenue in 2023, according to the company. Of the total revenue of RO 8,894 million recorded in 2023, around 77% came from the following markets: Africa, Middle East, Europe, Asia-Pacific, North America, and Australia.

The dominant exports were the following types of fish: horse mackerel (30% of total exports in value), mackerel (10.7%), yellowtail horse mackerel (7.75%), Indian mackerel (7.6%), sardine, 7.2%), cuttlefish (6.5%). %), horse mackerel (5.4%), and rabbitfish (49%), as well as smaller quantities of ribbon fish, yellowfin tuna, Melva, and croaker.

Author/Source: Conrad Prabhu/Oman Observer

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Address:	P.O. Box 2900
City:	Ruwi
State/ZIP:	(112)
Country:	Oman
Phone:	+968 2450 9500/01
Fax:	+968 2459 7804
E-Mail:	[email protected]
Skype:	https://www.instagram.com/omanfisheries/
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