Faroe Marine Products reports big deficit

Fish processing plant Faroe Marine Products is still awaiting payment for products sold to Nigeria during the African country’s financial crisis.

“The situation in Nigeria has had a heavy impact on us,” says CEO Eirikur á Húsamørk, referring to the low oil prices, which have significantly reduced the purchasing power in Nigeria.

Nigeria is the Leirvík-based company’s main market, and the 2017 annual accounts show that DKK 14.5 million has been written off for products sent to Nigeria in 2015 for which no payment has yet been received.

This has caused serious problems for Faroe Marine Products, which was forced to shut down for a short period. The company has had to freeze and restructure its loans, as well as find a new investor.

However, despite red figures on the balance sheet, Eirikur á Húsamørk, remains optimistic.

“Increasing oil prices and a more stable political landscape in Nigeria indicate that our previous customers might get back on their feet. We are also looking into new markets.”

Faroe Marine Products currently has about 40 employees, compared to 70 when production was at its highest.

Translated by prosa.fo