Oman Fisheries accumulated losses soar to RO 16.509 million
Published: 03:03 PM,Mar 17,2024 | EDITED : 07:03 PM,Mar 17,2024
The newly opened Duqm Fisheries harbour is expected to drive up fish landings .
MUSCAT: Oman Fisheries Company SAOG, one of Oman’s biggest and oldest fish processing businesses, posted a net loss of RO 3.513 million for the financial year ended December 31, 2023, effectively boosting accumulated losses to a total of RO 16.509 million.
The publicly traded company – a subsidiary of the government’s fisheries investment arm Fisheries Development Oman (FDO) – reported a 30% decline in consolidated turnover to RO 8.894 million for fiscal 2023, down from RO 12.797 million for the previous year. Total quantities of assorted fish sold during the year slumped to around 13.337 million tons, down from 19.566 million tons in 2022. The net loss (after tax) surged 200% to RO 3.513 million, up from a net loss of RO 1.168 million in 2022.
Notwithstanding the losses, Oman Fisheries continues to make headway in the implementation of its ‘transformation plan’, first launched in August 2023, said Haitham Mohammed Ali al Fannah, Chairman.
“Good progress has been made in the following areas: Cost optimisation including logistics; Restructuring the commercial team to improve supply/demand matching; Improving our fish landing and commercial fishing share; Expanding market reach to new regions including USA and Russia; Introducing Value Added Products to maximise the value per unit and profit margins; and Upgrading all quality management systems resulted in HACCP international certification of all company branches,” he stated in the Directors’ Report.
Commenting on Oman Fisheries’ financial and operational performance during 2023, the CEO said the company was up against “logistical and global trade challenges, high freight costs and higher fish purchase prices” during the year.
The 30% decline in revenue was “due to the optimisation of our product mix, and prioritizing products with higher margins and fast-moving products resulting in better profit margins for less quantities,” the CEO stated in the Management Discussions & Analysis report.
Significantly, prevailing geopolitical tensions in the Middle East region also had an impact on Oman Fisheries’ performance, according to the company. A shortage of reefer containers towards the end of the year, stemming from the political instability in the Red Sea area, was one factor.
Other contributory factors, the company noted, were: Insufficient volumes at landing sites; Increased prices of products as a result of high competition from other companies; and Adverse weather conditions encountered at the start and at the end of 2023.
Exports to international markets accounted for the lion’s share of Oman Fisheries’ total revenues in 2023, according to the company. Of total revenues of RO 8.894 million recorded in 2023, around 77% came from the following markets: Africa, Middle East, Europe, Asia & Pacific, North America and Australia.
Dominating exports were the following fish types: Horse Mackerel (30% of total exports by value), Chub Mackerel (10.7%), Yellowtail Scad (7.75%), Indian Mackerel (7.6%), Sardine, 7.2%), Cuttlefish (6.5%), Jack Mackerel (5.4%), and Rabbit Fish (49%), and well as smaller quantities of Ribbon Fish, Yellow Fin Tuna, Frigate Tuna, and Croaker.
The publicly traded company – a subsidiary of the government’s fisheries investment arm Fisheries Development Oman (FDO) – reported a 30% decline in consolidated turnover to RO 8.894 million for fiscal 2023, down from RO 12.797 million for the previous year. Total quantities of assorted fish sold during the year slumped to around 13.337 million tons, down from 19.566 million tons in 2022. The net loss (after tax) surged 200% to RO 3.513 million, up from a net loss of RO 1.168 million in 2022.
Notwithstanding the losses, Oman Fisheries continues to make headway in the implementation of its ‘transformation plan’, first launched in August 2023, said Haitham Mohammed Ali al Fannah, Chairman.
“Good progress has been made in the following areas: Cost optimisation including logistics; Restructuring the commercial team to improve supply/demand matching; Improving our fish landing and commercial fishing share; Expanding market reach to new regions including USA and Russia; Introducing Value Added Products to maximise the value per unit and profit margins; and Upgrading all quality management systems resulted in HACCP international certification of all company branches,” he stated in the Directors’ Report.
Commenting on Oman Fisheries’ financial and operational performance during 2023, the CEO said the company was up against “logistical and global trade challenges, high freight costs and higher fish purchase prices” during the year.
The 30% decline in revenue was “due to the optimisation of our product mix, and prioritizing products with higher margins and fast-moving products resulting in better profit margins for less quantities,” the CEO stated in the Management Discussions & Analysis report.
Significantly, prevailing geopolitical tensions in the Middle East region also had an impact on Oman Fisheries’ performance, according to the company. A shortage of reefer containers towards the end of the year, stemming from the political instability in the Red Sea area, was one factor.
Other contributory factors, the company noted, were: Insufficient volumes at landing sites; Increased prices of products as a result of high competition from other companies; and Adverse weather conditions encountered at the start and at the end of 2023.
Exports to international markets accounted for the lion’s share of Oman Fisheries’ total revenues in 2023, according to the company. Of total revenues of RO 8.894 million recorded in 2023, around 77% came from the following markets: Africa, Middle East, Europe, Asia & Pacific, North America and Australia.
Dominating exports were the following fish types: Horse Mackerel (30% of total exports by value), Chub Mackerel (10.7%), Yellowtail Scad (7.75%), Indian Mackerel (7.6%), Sardine, 7.2%), Cuttlefish (6.5%), Jack Mackerel (5.4%), and Rabbit Fish (49%), and well as smaller quantities of Ribbon Fish, Yellow Fin Tuna, Frigate Tuna, and Croaker.