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Provider: Reuters Investment Profile
Provider: Auerbach Grayson & Co., Inc.

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Bakkafrost P/F Announces Optimization of Value Chain; to Build New Well Boat

Monday, 8 Jul 2013 03:03am EDT 

Bakkafrost P/F announced a five-year plan for optimizing its value chain, resulting in savings, increased production and reduced biological risk. All business activities will be retained, but the main changes to the value chain, are centralization of the production units Packaging, Harvest and VAP on Glyvrar in the Faroes. The investments for the centralization amounts to between DKK 300 million and DKK 350 million and will result in savings of between DKK 50 million and DKK 70 million per year, when the plan is fully implemented in 2017. In addition to the centralization, Bakkafrost will build a new 2,500 cubic meter well boat, which will be owned and operated by Bakkafrost. The new well boat is expected to be contracted shortly and planned to be delivered in 2015. Another part of the plan is related to organic growth. The plan is to increase smolt production, in terms of number and size of the smolts. In the Farming division, the plan is to increase capacity and fish welfare by being able to farm salmon on more weather exposed areas with better water conditions. Finally Bakkafrost plans to increase salmon feed production. The optimization plan requires investments of up to DKK 170 million per year in the period from 2013 to 2017, in addition to the investment in the well boat, exceeding DKK 1 billion. The investments will be financed with cash flow from the operations, by the Company's existing financing facilities and partly with additional financing if this is beneficial. 

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-0.5 -0.32%
24 Oct 2014