P/F Bakkafrost logo

BAKKAo - P/F Bakkafrost News Story

NOK731.2 0.0  0.0%

Last Trade - 07/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £3.61bn
Enterprise Value £3.88bn
Revenue £528.3m
Position in Universe 161st / 1836

Norway fish farming shares hit as Russia's ban threatens biggest market

Thu 7th August, 2014 1:59pm
OSLO, Aug 7 (Reuters) - Shares of Oslo-listed fish farming 
stocks tumbled on Thursday after Russia announced plans to ban 
fish imports, depriving salmon producers of their biggest market 
and threatening a solid year buoyed by record high fish prices. 
    Norway's Marine Harvest  MHG.OL , controlled by shipping 
tycoon John Fredriksen, tumbled 10 percent, Salmar  SALM.OL  
fell 9 percent and Grieg Seafood  GSFO.OL  fell 7.4 percent on 
the likely loss of a key export market and the expected price 
falls caused by reduced demand. 
    Fredriksen's offshore drilling firm Seadrill  SDRL.OL  last 
month signed a $4.25 billion Arctic rig deal with Russia's 
Rosneft  ROSN.MM  just hours before Western sanctions that could 
potentially have prevented the deal kicked in.  ID:nL6N0Q56BW  
    Russia's move, which includes a total ban on imports of many 
Western foods, is a retaliation for Western measures imposed 
over Russia's role in the Ukrainian conflict.  ID:nL6N0QD41M  
    "It looks like the import ban will affect most Norwegian 
seafood exports," Are Kvistad, a spokesman for the Norwegian 
Seafood Federation, said. "This will have serious consequences 
for Norwegian seafood businesses in the short term." 
    Norway accounts for around half of global farmed salmon 
production and a tenth of its total seafood exports go to 
Russia. Norway's seafood exports totalled 6.5 billion crowns 
($1.04 billion) last year and were set to rise sharply this year 
as salmon prices, which is the biggest export group, remain high 
after hitting a record at the start of the year. 
    "For now volumes for today and tomorrow are scheduled for 
shipment," Salmar CEO Leif Inge Nordhammer said. "If it becomes 
a total ban, fish exports have to find other markets, other 
countries. That would be challenging in the short term."  
    Other shares to record big drops included Bakkafrost 
 BAKKA.OL , down 7.6 percent, and Norway Royal Salmon  NRSM.OL , 
down 7.3 percent.     
 
 (Reporting by Ole Petter Skonnord and Camilla Knudsen, editing 
by David Evans) 
 ((Balazs.Koranyi@thomsonreuters.com; +47 2331 6596; Reuters 
Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) 
 
Keywords: UKRAINE CRISIS/SANCTIONS FISH
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.