Bakkafrost announces Q1 earnings

Bakkafrost’s earnings before interest and taxes (EBIT) were lower in Q1 2018 than in Q1 2017 – DKK 268m in Q1 2018 versus DKK 335m in Q1 2017.

The price of farmed salmon increased in the first quarter of 2018, compared to the previous quarter.

The company harvested a total of 12,200 tonnes gutted weight in Q1 2018, compared to 13,200 tonnes in Q1 2017.

Bakkafrost has signed contracts covering some 13% of the expected harvested volumes for the rest of 2018. The contract coverage is reduced compared to the previous year, although the contract share has not changed significantly in Q1 2018.

The company expects to harvest a total of 51,000 tonnes gutted weight in 2018.

Havsbrún’s new salmon meal and salmon oil production facilities are expected to be up and running during Q2, with full production starting later this year. This operation will increase the value of offcuts from salmon harvested and processed in the new harvest/VAP plant at Glyvrar.

The Bakkafrost Group’s net interest-bearing debt amounted to DKK 102m at the end of Q1 2018.

In January 2018, Bakkafrost made an agreement with its existing lender, Nordea, to refinance its existing DKK 850 million bank facility and its outstanding NOK 500 million bond loan, which had a maturity and was paid on 14 February 2018, with a senior secured five-year EUR 200 million credit facility. This facility includes an accordion increase option, which provides flexibility for the parties to agree an increased size of the facility by up to a further EUR 200 million during the term of the facility.

Translated by prosa.fo