Samherji’s successful operation in year 2016
“We are proud of the operating performance of Samherji hf. 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” says Þorsteinn Már Baldvinsson, CEO of Samherji hf. when the group´s annual financial statements for the year 2016 were presented, after Samherji’s Annual General Meeting.
The profit of Samherji hf. from the operations of the company’s subsidiaries and associates in fifteen countries amounted to ISK 14.3 billion. More than half the group´s operations are abroad. Subsidiaries returned dividends to the parent Company. Large investments have both been ongoing and lie ahead and therefore the Annual General Meeting of Samherji hf. agreed not to pay dividends on the basis of the operational year 2016.
“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. Two of those vessels, Kaldbakur and Björgúlfur, have already arrived in Iceland and Cuxhaven has begun fishing operations in Germany. In addition, Íslandsbleikja´s considerable investments in will strengthen the aquaculture operations,” says Þorsteinn Már Baldvinsson.
In the year 2016 Samherji and its employees paid ISK 6.8 billion to the authorities in Iceland. Taxes on company revenue and fishing fees amounted to a total of ISK 3.1 billion and the company’s employees paid ISK 2.4 in income tax based on their salaries.
“In many respects the year 2016 has been a remarkable operational year. A lengthy seamen’s strike began during the year and lasted into 2017. This strike adversely affected the company’s performance, but it also led to timely and important improvements. Conditions on foreign markets were in many respects unfavourable, not least in Russia and Nigeria; markets which have been highly important for our products. Our staff have, however, managed to overcome those obstacles through singular astuteness and resilience. Obviously, however, the strong currency value of the Icelandic króna will go on causing difficulties in export industries and tourism,” says Þorsteinn Már Baldvinsson.
The revenue of Samherji hf., a consolidated group of companies mostly operating in the fisheries sector in Iceland and abroad, amounted to approximately ISK 85 billion and earnings before interest, tax, depreciation and amortization (EBITDA) came to approximately ISK 17 billion. The annual accounts of Samherji hf. are presented in euros, but converted into ISK in this report.
“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. 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. I am optimistic and I look forward to continue working with Samherji’s outstanding employees. Our people have, in the past years, carried out invaluable work which is of great importance to the entire Icelandic nation and for this I remain grateful,” says Þorsteinn Már Baldvinsson CEO of Samherji.
The annual accounts of Samherji hf. may be accessed in the Register of Annual Accounts within the next few days. Below, however, key figures are presented from the company’s operation in 2016.
