The company plans to cut costs significantly for the remainder of 2011.

Genomar's Q4 sees dramatic losses

NORWAY
Wednesday, March 02, 2011, 23:00 (GMT + 9)

Norwegian group Genomar saw deep losses in the fourth quarter of last year as a result of high mortalities of tilapia in Malaysia.

Other causes of the negative figures that quarter were the obtainable export prices versus the current high unit costs being less, as well as colossal floods and weather damages in China last October.

Genomar’s revenues that quarter reached NOK 9.89 million (EUR 1.3 million) in the fourth quarter of last year compared to NOK 4.36 million (EUR 565,042) in the corresponding quarter of 2009, and the company experienced a negative EBITDA at NOK 18.74 million (EUR 2.4 million) against NOK 5.37 million (EUR 694,879) in Q4 of the year prior.

Furthermore, the firm had substancial operating losses (EBIT) at NOK 20.10 million (EUR 2.6 million) compared to Q4 2009’s NOK 4.16 million (EUR 538,376).

The Board of Directors has collaborated to set up a strategy meant to cut costs in 2011 and finalise short-term financing of NOK 16 million (EUR 2.1 million), in order to get the company ready for more permanent financing for the year.

The mass die-offs of tilapia in Trapia, Malaysia during October occurred with regards to harvesting, logistics and transportation of the fish to the factory. There were quality problems and volumes were lower than originally anticipated, which led to high unit costs.

Genomar’s operations there launched during the first quarter of 2010. The company was forced to take over the plant from its partner Eastern Global in late May.

“Therefore, both revenues (double Q4 2009 vs 4Q 2010) and operational cost (triple 4Q 2009 vs 4Q 2010) is due to this ship in the company’s mix of business. As stated in the 3Q report, the set-backs experienced after the summer 2010 will affect the company in 2011 as well,” Genomar informed in a statement.

Moreover, total tilapia output in GenoMar Supreme Hatchery China (GSHC) is foreseen to drop by 13 per cent versus 2009, primarily as a result of the drought and heat prevalent in Q2 and Q3 and cold weather in Q4.

Tilapia exports last year reached 280,000 tonnes – 9 per cent higher than 2009’s 256,000 tonnes. 

“GSHC has been able to produce eggs and fingerlings throughout the fourth quarter and is ready to meet the demand in 2011. GSHC is potentially selling into better market conditions in 2011 than in 2010,” the company added.

Additionally, the firm was awarded China’s highest national standard in aquaculture: the status of “National Health Breeding Demonstration Farm” by the Ocean & Fishery Bureau of the Ministry of Agriculture.

By Natalia Real
[email protected]
www.seafood.media

Print