The farming segment made an operational EBIT of DKK 139.6 million (£16.3m) on harvest volumes of 7,200 tonnes gutted weight (Q3 2017: 11,585 tgw).
Chief executive Regin Jacobsen said: “The activity in the third quarter this year has been somewhat lower, compared to the same quarter last year. The quarter has also been affected by the elevated mortality level at farming site A-81 Kolbanagjógv in September, which resulted in higher costs and a negative effect on next year’s harvest volumes. Despite challenges and a decreasing salmon price in the quarter, the operational result for the Group was DKK 168 million for the quarter.
“The new harvest factory in Vágur, Suðuroy, was delayed in start-up, compared to the timetable, but we now look forward to see how the increased activity in Suðuroy will be, after the harvest factory started operation in October.”
Lower harvest volumes
The Group made a profit for Q3 2018 of DKK 355.9 million (Q3 2017: DKK 56.2m). For the first nine months of 2018, the profit was DKK 966.9 million (DKK 533.3m).
The total volumes harvested in Q3 2018 were 7,217 tonnes gutted weight (11,585 tgw). Total harvested volumes in the first nine months of 2018 were 32,356 tonnes gutted weight (43,145 tgw). The guidance for harvest in 2018 is reduced by 3,000 tonnes gutted weight, from 49,000 to 46,000 tonnes gutted weight. In 2019, Bakkafrost expects to harvest 53,000 tgw.
Bakkafrost’s value-added products (VAP) segment made an operational EBIT of DKK 2.8m (DKK -4.5m) for Q3 2018. For the first nine months of 2018, the operational EBIT was DKK -25.8 million (DKK -112.0 million).
More smolts in 2019
Its FOF segment (fishmeal, oil and feed) made an EBITDA of DKK 41.4m (DKK 79.5m) for Q3 2018, and the EBITDA margin was 11.7% (23.2%). The EBITDA was DKK 193.9m for the first nine months of 2018 (DKK 172.5m), corresponding to an EBITDA margin of 19.8% (18.4%).
As the company has postponed one million smolts from expected smolt release in Q4 2018 to Q1 2019, it expects to release 12.9m smolts in 2018, compared to 9.9m smolts in 2017 and 11.7m smolts released in 2016. In 2019, Bakkafrost expect to release 13.5m smolts.
The production of fishmeal and fish oil in 2018 will not reach the same level as in 2017. Bakkafrost expects a decrease in production volumes of fishmeal and fish oil in 2019, compared to 2018, following an 18% reduction in the recommended catch quota for blue whiting.