Growth trajectory: Company back in black after impressive turnaround -
Oman Fisheries Co SAOG (OFC), the Sultanate’s largest fish processing enterprise owned 24 per cent by the Omani government, says it plans to establish an integrated fisheries hub at Ghala in Muscat Governorate that will serve as an ‘iconic destination’ for the fisheries industry in Oman and the wider Gulf region.
The ambitious initiative is a key part of the company’s strategy to build on an impressive turnaround in its financial and operational performance that has seen Oman Fisheries turning a profit for the first time after four successive years in the red. Net profit for the financial year ended March 31, 2017 soared to RO 1.652 million versus a loss of nearly RO 0.455 million posted a year earlier.
“The turnaround has been quite commendable considering the global and regional economic downturn due to oil price volatility, which has affected most of the companies in Oman and also to a great extent the agricultural sector,” commented Oman Fisheries CEO Dr Khalid Mansoor al Zadjali, in a management review of the company’s 2016-2017 performance.
In the review, Dr Al Zadjali outlined his vision for positioning OFC, currently in the final year of a three-year Strategic Growth Plan, for profitability over the long term. Notable is a proposal to develop its Ghala facility into an integrated end-to-end destination for fish processing.
It centres on the establishment of a “star plant” in Ghala as an “icon and complete destination for fisheries in Oman and the GCC”, said Dr Al Zadjali. “As an ultimate hub, it will encompass the entire value chain model of fish processing from the sea to the platter,” he stated.
The proposed project is part of a raft of initiatives envisaged for “rapid implementation”, according to the CEO. Further, with a view to growing its international presence and developing new international market, Oman Fisheries is pursuing discussions with international firms for potential collaboration in the areas of commercial fishing, coastal fisheries operations, offshore processing ventures, and knowledge sharing, said Dr Al Zadjali. Discussions are ongoing with Japanese, Italian and other commercial fisheries companies from around the world, he noted.
These efforts come against a backdrop of surging sales of processing fish to overseas markets, bolstered by the creation of a dedicated trading division. Exports climbed 11 per cent over the previous year’s high of 34,809 metric tonnes as OFC posted a new record in overseas sales. Major export markets include countries of the Far East, Latin America, Europe and the MENA region.
Also contributing to the company’s turnaround is a strong uptick in fish landings in the domestic market, thanks in part to a successful offtake arrangement with local fishermen. This arrangement, which provides a regular source of revenue for the fishermen in question, also ensures a stable supply of feedstock for OFC.
Complementing this effort is a similar system of supply arrangements with small and medium fish processors that market OFC branded frozen fish. This is in line with a broader effort by the company to collaborate in synergistic fashion with other elements of the fisheries industry, said Dr Al Zadjali.
At the same time, OFC is ramping up its processing, refrigeration and storage capacity in line with its growth ambitions. A shuttered plant in Buraimi has been reopened and is slated to come into commercial operation later this month.
All other five processing plants of the company, located in Ghala, Masirah, Soqra, Al Ashkarah and Salalah, have been operating at optimum capacity, he said
Similarly, the warehousing capacity of its wholly owned subsidiary, Al Ameen Refrigeration, is being expanded to 9,000 metric tonnes, up from 6,000 metric tonnes presently.
The expanded facility is due to be commissioned next month. Additionally, the size of the company’s fishing fleet, deployed in the seas off Oman’s southern coast, has been boosted to 13 vessels, he stated.
The government’s stake in OFC is represented by Oman Food & Investment Corporation (OFIC), a wholly government-owned strategic agricultural and food related investment holding company.
Conrad Prabhu
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