Samherji´s profit 1.879 million ISK in the year 2002

The operating revenue of the group, which consists of the mother company and daughter companies Onward Fishing Company Ltd. in Scotland, Íslandslax hf., Sæsilfur hf., Íslandsbleikja ehf., Silfurstjarnan hf. and Víkurlax ehf., totalled 13.000 million ISK and operating expenditure was 10.003 million ISK.  Profit before depreciation and financial expenses (EBITDA) was 2.997 million ISK.  Depreciation was 1.244 million ISK, thereof  a 202 million discontinued operations write-off.  Financial expenses were positive by 410 million ISK, these included 200 million ISK special reduction of owned shares in other companies.  Profit before taxes was 2.273 million ISK, but income tax was 414 million ISK.  Profit after taxes and including the minority shares was as afore said, 1.879 million ISK.  Net cash provided by operating activities was 2.245 million ISK and working capital from operations totalled up to 2.762 million ISK. 
Price level accounting is not used in the financial statement.  If it had been used the profit for the year 2002 would have been 63,9 million ISK higher and stockholders equity 205,5 million ISK higher.

The groups total assets were put down at 22 milliards ISK at the end of the year 2002.  Fixed assets were around 15,8 milliards ISK and current assets around 6,1 milliards ISK.  Net liabilities were around 13,6 milliards ISKand stockholders equity was 8,2 milliards.  Stockholders equity ratio was 37% and floating capital ratio was 1,17.

Baldvin Þorsteinsson EA 10.  Photo by Myndrún

The year featured great ownership changes
The year 2002 featured great ownership changes for Samherji.  The company invested in other companies for around 3,3 milliards ISK, there of 2,5 milliards in daughter  and subsidiary companies.
Considerable changes were also made in the company´s fleet.  Three ships were sold, Kambaröst, Hjalteyrin and Baldvin Þorsteinsson as well as Samherji´s daugher Company Onward Fishing Company Ltd. bought Akureyrin.  Seley and Hríseyjan were written off in the Company´s register.  Samherji bought two ships in the year 2002; Baldvin Þorsteinsson (former Hannover), which was lenghened and transformed into a multipurpose vessel, and Akureyrin (former Sléttbakur).  Net investment in the above changes in the fleet amounted to 1,4 milliard ISK.

Changes in the exchange rate lowered the contribution margin
Thorsteinn Már Baldvinsson, Director of Samherji, says that the outcome for the year is a little worse than expected.  “It is clear that the contribution margin is lower than presumed in the plan we introduced in the annual meeting last year, where EBITDA was estimated 3400 million ISK but the outcome was 3000 million ISK.  The difference can be traced to the strengthening of the Icelandic Krona.  However the profit is according to the plans published following the 6 months report, taking into account the special reduction of shares and other assets which totalled 400 million ISK,”says Thorsteinn Már.
 

Fishfarming in Mjóifjörður

Shares in fishfarming consolidated
We have also been investing in fishfarming in Iceland and early this year Samherji bought shares in the Norwegian Company Fjord Seafood, which I think will give us significant knowledge for ongoing structuring of the fishfarming in Iceland,”says Thorsteinn and adds that the fishfarming operations of Samherji are now for the first time taken into the Group´s Financial Statements.  He also says that a decision has been made to consolidate Samherji´s fishfarming Companies.

Over five hundred million ISK in taxes
Samherji´s salary payments were around 3,5 milliards ISK for about eight hundred posts.  Thorsteinn Már Baldvinsson says, that in light of the discussion in the society that the fishing industry pays insubstantial amounts to the community it is a reason to mention that Samherji pays, this year over 500 million ISK in tax related payments, thereof around 270 million ISK in income tax.

Strong Icelandic Krona a threat to the economy
Thorsteinn Már Baldvinsson says that the outlook for this year is reasonable.  “I think that the strengthening of the Icelandic Krona is unnatural and has a considerable effect on the earnings and growth possibilities of Icelandic export and tourist industry.  I think it´s bad for the economy that the Central Bank of Iceland doesn´t try to have more influence on the exchange rate and stability of the Icelandic Krona that we have seen in the last two years.”

Stockholders Annual meeting 3rd April
Stockholders Annual meeting will be held Thursday 3rd April in Nýja bíó, Akureyri at 15.00.  The Company´s Board of Directors will propose a  20% dividend to stockholders for the year 2002.