Illegal fishing by foreign fishermen, lower global demand from key markets and some export restrictions adversely impacted Oman Fisheries Co’s profitability in the first quarter of this year.
Oman Fisheries reported a net loss of RO782,554 for the quarter ended March 31, 2019 as against a net profit of RO65,246 in the corresponding period of last year, according to the company’s quarterly results submitted to the Muscat Securities Market.
The company’s overall revenue fell 28 per cent to RO4.1mn in the period under review, compared to RO5.67mn in the same period last year.
Oman Fisheries in its quarterly report cited a number of reasons for the fall in earnings and the loss it suffered in the first quarter. ‘The government took strong action against illegal foreign fishermen involved in small pelagic fishing (sardines) which was representing more than 60 per cent of our commercial targets. As a result, the company was able to export less than 600 tonnes per month of sardines instead of the 2,500 tonnes per month as budgeted’, the company said.
Oman Fisheries said its first quarter earnings were also impacted by a number of restrictions imposed on export of tuna fish in whole round form by regulatory authorities since the beginning of this year.
‘Moreover, landings have been very sporadic during the quarter, inducing high procurement prices not suitable for canning market and quality inconsistencies for the fresh market. As a result, the company was able and authorised to export only 300 tonnes of tuna since January instead of targeted 2,000 tonnes’, the company said.