BioMar has reported that is coming out of the third quarter with a 5% increase in volumes year-on-year. The increase in volumes, combined with a strong product strategy, is driving up results, explained from the company. Being almost through 2023, BioMar raises expectation for EBITDA for the full year, driven by the operational results.
“So far, we have experienced a very satisfying 2023. Building upon a solid first half year, we have accelerated our sales and improved the results, mainly due to our focus on developing the product offerings in the markets. We are looking at a very strong product pipeline with new concepts such as Blue Impact,” explained CEO, Carlos Diaz.
Across the divisions, BioMar shows solid results in the third quarter of 2023. The quarterly reporting reveals that the business is ready to deliver on all-time-high volumes and EBITDA for the year. However, the expectation to the full-year revenue is reduced due to lower raw material prices in several categories.
Proud of the engagement
Based on the good momentum and solid outlook, they raise the full-year EBITDA expectations for 2023 to a USD 168-174 million range from previously USD 158-168 million. “This will be a record result in the history of BioMar. I am proud of the engagement from our employees across the globe, which form the basis for turning a challenging year with volatile raw material prices into a success for BioMar and our customers”, added Diaz.
“On top of the strong growth in our consolidated companies, I am proud to see that our JV feed companies are contributing significantly to the results of the group. Both in China and Turkey, we are in a good market position, and we have managed to increase volumes sold significantly. This enables us to be more efficient and brings us in a position where we can invest in building new products and open new market segments. I am confident, that we are entering into a positive cycle”, concludes the CEO of BioMar.
BioMar and Stornes Skip continue their collaboration
Sometime before the good news, BioMar reported MS Borgenfjord was back in Norwegian waters after undergoing an extensive refit in Tallinn. The upgrade includes, among other things, a new propulsion system based on a diesel electric/hybrid solution, as well as an extension of the vessel’s length by a full 17 metres. “This has not only resulted in a significant reduction of CO2 and NOx emissions per kilogram of transported feed, but also increased the loading capacity by up to 870 tons per load,” explained Heidi Halvorsen, Director of Finance and responsible for Outbound Logistics at BioMar.
Borgenfjord is owned and operated by Stornes Skip and was originally built in Tallinn in 2009. The ship has been part of BioMar‘s feed fleet since 2013, and delivers fish feed along the Norwegian coast. The upgrade the vessel has now undergone at Netaman Ship Repair in Tallinn is a significant milestone for both the shipping company and BioMar.
“The boat has been lengthened by a full 17 meters and has increased the cargo capacity from 1,500 tones to 2,370 tones. The propulsion machinery has also been upgraded with the strictest requirements for NOx emissions with an associated NOx cleaning system as well as a new electrically driven propeller and new gearbox system,” said Bengt Stornes, General Manager in Stornes Skip.
Improves efficiency and reduces impact on the environment
According to the companies, this is a significant investment, as it not only improves efficiency, but also significantly reduces our impact on the environment. “This transition is estimated to reduce NOx emissions by 45,000 kilograms per year and CO2 emissions by as much as 900,000 kilograms per year, or about 39% per ton transported. This is part of our commitment to reduce our environmental impact and promote sustainable transport solutions,” says Halvorsen.
In February 2024, the ship will be fitted with a new electric excavator from Senebogen. This will run on shore power during loading and has a far lower noise level than today’s diesel-powered machine. From before, the ship has dynamic positioning (DP), which means that the ship’s position is maintained without ordinary engine power being used during delivery. With the new electric battery pack, you get both a noise-free delivery and lower energy consumption.
“This upgrade of Borgenfjord clearly shows our intention to achieve the climate goals, and with the hybridization in February this will be another milestone for us. With a significant increase in cargo capacity and a planned transition to battery and electric operation, Borgenfjord will deliver sustainable solutions for maritime transport – now and in the future,” concludes Halvorsen.