MUSCAT: Oman Fisheries Company, a subsidiary of Fisheries Development Oman (FDO) – part of Oman Investment Authority (OIA), has announced the formulation of a ‘transformation plan’ to strengthen its finances and improve its bottom-line.
The transformation plan, currently being spearheaded by the company’s newly appointed Chief Executive Officer, Eng Nabil bin Salim al Ruwaidi, is due for submission to the Board by around mid-year.
“The main highlight of the plan shall be to achieve financial stability and setting up strong foundation for sustainable growth,” the CEO stated in the Management Discussion & Analysis report, accompanying the annual audited financial statements of Oman Fisheries for fiscal 2022.
Publicly-traded Oman Fisheries posted a net loss of RO 1.168 million in 2022 compared to a net loss of RO 1.526 million a year. (The latter figure includes a gain of RO 2.6 million from the sale of its Al Ameen warehousing and logistics subsidiary that was accounted for in the 2021 financials.) Its improved operational performance in 2022 was also reflected in the achievement of a consolidated turnover of RO 12.797 million versus revenue of RO 11.716 million during the previous year.
A key operational highlight of the 2022 financial year was the company’s activation of new arrangements with operators of commercial fishing vessels for the procurement of fresh fish for its resource needs. Around 1,215 metric tonnes of small pelagics were purchased from Irish fishing firm Atlantic Dawn under a procurement agreement signed earlier with the commercial fishing company. It represents a small part of a quota of 30,000 MT per year allocated by the Ministry of Agriculture, Fisheries and Water Resources earlier last year to Atlantic Dawn, one of Europe’s largest producers of frozen pelagic fish.
Similarly, Oman Fisheries procured 2,918 MT of fish from Al Wusta Fisheries Industries – a subsidiary of FDO – under a separate agreement signed by the two sides last year.
However, a dominant share of its resource requirements came from Omani artisanal fishermen and other sources. Procurements from this segment of the market totaled 21,207 MT in 2022 compared with 21,458 MT a year earlier.
Significantly, the vast proportion of Oman Fisheries’ total sales was exported to international markets (80.92 per cent), while the remaining 19.08 per cent was marketed locally.
Haitham Mohammed Ali al Fannah, Chairman, also underscored the company’s continuing contribution to Oman’s food security and the wider food sector during the year.
“The fisheries sector is a major contributor to food security in the country and holds prime importance in terms of production, distribution, conservation of food for the national interest, particularly during the catastrophic periods as experienced by the world post 2021,” the Chairman stated in the Directors’ Report.
“In addition to its commercial operations, your Company works closely with several regulatory bodies including Ministry of Agriculture, Fisheries and Water Resources towards value building of this sector as well as contributing to food safety and security.” Another notable highlight of fiscal 2022 was the acquisition by Gulf Japan Food Fund (GJFF), an international private equity fund focused on the food and beverage industry, of a 31.4 per cent stake in of Oman Fisheries. GJFF’s role as a strategic partner is anticipated to support the company’s financial turnaround and transformation into a leading player in this key sector.
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