Better cod prices contributed to Havfisk's good results. (Photo: Havfisk )

Havfisk increases profits thanks to better cod and haddock results

Havfisk achieved operating revenues of NOK 270 million (USD 32.6 million) in the first quarter this year, which was NOK 23 million (USD 2.7 million) higher than the corresponding period last year. The firm explains that this better performance is mainly due to the higher quantity of cod and haddock as well as better prices for cod.

The firm also had profit before depreciation and amortisation (EBITDA) of NOK 95 million in the first three month period this year, reflecting both increased prices and increased volume during the quarter.

"Operations have been good during the quarter, with good harvest volumes and harvest value per operating day. We have had a great deal of maintenance however, which means fewer available vessel fishing days and higher maintenance costs than usual for the quarter," pointed out the firm’s CEO Webjørn Barstad.

The Group’s operating revenues reached NOK 270 million (USD 32.7 million) in the first quarter of 2016, compared with NOK 247 million (USD 29.9 million) in the same quarter in 2015; and its EBITDA was NOK 95 million (USD 11.5 million), compared with NOK 90 million (USD 10.9 million) for the corresponding period in 2015.

Havfisk’s EBIT in the first quarter was NOK 65 million (USD 7.8 million) compared with NOK 59 million (USD 7.1 million) in the corresponding period last year and the profit before tax was NOK 54 million (USD 7.9 million) for the quarter, compared with NOK 45 million (USD 5.4 million) for the first three months of 2015.

During the period, the Group settled an agreement with Norway Seafoods for the delivery of approximately 2,000 tonnes of cod, which will be delivered during the second quarter.

The Group’s total volume harvested in the first quarter this year was 16,169 tonnes, representing a 9 per cent increase compared to the same three-month period last year.

Havfisk also reported that during the first three-month period this year it won the court case against Hermes AS after Nord-Troms District Court concluded that the claim against the Group should be dismissed and that it awarded costs. This verdict was appealed by Hermes AS and the case is scheduled for June 2016.

As to the risks the Group must face, one of them is related to the operation of the Group's trawlers, including the size of the quotas, availability of fish and operational costs, especially bunker oil costs.

In addition, Havfisk is exposed to risk relating to the prices obtained for the group's products and stable framework conditions. The group is also exposed to financial risk in the form of interest rates and liquidity and, indirectly, foreign exchange.

The Group’s executives explained that during the second quarter, fishing will be partly devoted to shrimp, redfish and other species, and to a lesser extent fishing for cod, haddock and saithe.

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Address:	Løvenvoldg 11
City:	Ålesund
State/ZIP:	(NO-6002)
Country:	Norway
Phone:	+47 70 11 86 00
Fax:	+47 70 11 86 80
E-Mail:	[email protected]
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