MUSCAT, APRIL 15
Oman Fisheries Company reported mixed results for the first quarter of 2024, showing a decrease in losses compared to the same period last year, but revenue challenges persist.
Losses narrowed to RO 432,873, a 54% improvement from Q1 2023's RO 932,165 loss, Eng Nabeel al Rawaidhi, CEO, said a filing on the company’s initial unaudited financial results for Q1 2024.
Revenues reached RO 2.656 million but costs remained high at RO 3.089 million, reflecting an 18% year-over-year increase. The company previously cited rising shipping costs due to Red Sea instability as a contributing factor.
Publicly-traded Oman Fisheries, 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.
A subsidiary of the government’s fisheries investment arm Fisheries Development Oman (FDO), Oman Fisheries has been forging ahead with a three-stage ‘transformation plan’, first launched in August 2023, focusing on the following objectives: Increasing fish procurements from fishermen, Restructuring sales strategies to support demand; Optimizing logistics costs, and Developing value-added products for higher margins.
Company officials noted in the 2023 Annual Report that prevailing geopolitical tensions in the Middle East region had also impacted Oman Fisheries’ performance last year. 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.
In a bid to bolster its capabilities, Oman Fisheries partnered with Irish firm Atlantic Dawn last May aimed at capitalizing on fishing quotas and expanding operations. The company fell short of initial sales targets under the Atlantic Dawn partnership but is working on improvements.
A new management and marketing team is implementing improved sales, marketing, and operational strategies. At the same time, a dedicated procurement team has tasked with finding new sourcing channels to counter declining fish landings and rising raw material costs.
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