Investments at Samherji hf have made a positive impact on profits, show the group’s financial report for 2016.
The profit of Iceland-based Samherji hf from the operations of its subsidiaries and associates in fifteen countries amounted to ISK14.3bn.
Þorsteinn Már Baldvinsson, CEO of Samherji hf, said: “Coordinated effort, diligence, hard work and faith among our employees and associates all over the world has once more returned gains, over which there is every reason to rejoice.”
ISK85bn revenue
The revenue of Samherji hf, which conducts more than half of its operations outside of Iceland, amounted to approximately ISK85bn and earnings before interest, tax, depreciation and amortization (EBITDA) came to approximately ISK17bn.
Mr Már Baldvinsson added: “It can be said that during the past year new investments have begun to turn a profit. Significant improvements to the onshore operation of Útgerðarfélag Akureyringa (ÚA) in 2015 have proved a success and during 2016 the group had six vessels under construction.
“Those investments will provide the foundation for a more successful and flexible operation in the years to come.”
Three vessels complete
Two of the commissioned vessels, Kaldbakur and Björgúlfur, have arrived in Iceland and a third, Cuxhaven, has begun fishing operations in Germany.
Samherji hf is also expected to strengthen its aquaculture operations through investments in Íslandsbleikja´s fishing station and salmon plant.
“The renewal of the fleet is ongoing and a new vessel will be added to our fleet here in the autumn and another to our subsidiary in Germany,” commented Mr Már Baldvinsson.
“In this way we shall continue to significantly improve Samherji’s competitive position. Another large project is the construction of new onshore facilities in Dalvík, an installation which is going to be unique on a world scale.
“Those facilities will include a fish processing plant, fitted with the latest high technology equipment which I believe will constitute a watershed in the Icelandic fishing industry.”
Challenging conditions
Mr Már Baldvinsson commented that a 2016-17 seamen’s strike adversely affected the company’s performance, but also led to “timely and important” improvements.
Conditions in foreign markets were unfavourable, notably in Russia and Nigeria, whose markets have been highly important for Samherji hf’s products, explained Mr Már Baldvinsson.
The strong currency value of the Icelandic króna will go on causing difficulties in export industries and tourism, he added.
