03 June 2010
MUSCAT -- Oman Fisheries Company (OFC) has put into operation four new coastal fishing vessels as part of an energetic push by the Sultanate's leading fisheries firm to strengthen operations and boost earnings.
The new acquisitions coincide with a significant turnaround in OFC's fortunes, with the company turning an operational profit for the first time after four successive years of operational losses.
Total revenues for the financial year ended March 31, 2010, rose nine per cent to RO 11.829 million, compared to earnings of RO 10.855 million during the preceding year, OFC Chairman Mohammed bin Hamad al Masrouri stated in the Director's Report issued earlier this week.
The company posted a net profit of RO 1.485 million for the 2009-2010 financial year, as against a net loss of RO 1.634 million during the previous year.
Also underscoring the company's performance during the year was a 13 per cent increase in turnover, which jumped to 16,029 metric tons from 14,185 metric tons a year earlier.
With a view to building on OFC's performance last year, the company recently purchased four coastal fishing vessels to help augment raw material supplies for its processing activities, as well as increasing availability of fresh fish for domestic sales.
The acquisition of the smaller fishing vessels follows a government ban on trawler fishing that comes into force in May 2011.
The ban, announced by the Ministry of Fisheries last year, is aimed at supporting the sustainable exploitation of fish stocks.
In light of the impending restrictions on trawler-based fishing in Omani waters, Oman Fisheries submitted a five-year strategy to the Ministry of Fisheries setting out, among other things, a plan for the ownership and operation of a fleet of fishing vessels. The first four vessels have since been acquired and put into operation in Oman's coastal waters.
While a part of the catch will be go towards meeting the raw material requirements of OFC's processing operations, the bulk will be earmarked for sale to the local market in support of the government's efforts to enhance availability of fresh fish for local consumption, said Al Masrouri.
The catch will be marketed either through the company's outlets and mobile vans, or through the establishment of new fish shops in the different regions of the country, he added.
Significantly, the new boats will also help OFC achieve its fishing quotas granted under a concession agreement reached with the government. Under the agreement, OFC can catch 20,000 metric tons of demersal fish and 30,000 metric tons of large pelagics per year. Volumes fished over the past years have generally fallen short of these quotas for a number of reasons, according to the Chairman.
In addition, OFC is also studying a number of initiatives planned for launch during the course of this financial year. Among the initiatives is a proposal to support local fishermen through fish procurement arrangements, establishing fish collection points, and supplying fishermen with ice, bait and other requirements.
The goal is to increase fish procurements from the present 10 per cent of total domestic production (15 per cent in value terms) to 25 per cent over the next three years.
Also envisaged is a five-year Business Plan to oversee the accelerated growth of the company. The plan, due to be rolled out in October, will be shortly presented to the board for approval, said Al Masrouri. The company is also looking to expand its processing and value added plant at Al Buraimi.
Established by Royal Decree in 1979, Oman Fisheries is 24 per cent owned by the Ministry of Fisheries.
MUSCAT -- Oman Fisheries Company (OFC) has put into operation four new coastal fishing vessels as part of an energetic push by the Sultanate's leading fisheries firm to strengthen operations and boost earnings.
The new acquisitions coincide with a significant turnaround in OFC's fortunes, with the company turning an operational profit for the first time after four successive years of operational losses.
Total revenues for the financial year ended March 31, 2010, rose nine per cent to RO 11.829 million, compared to earnings of RO 10.855 million during the preceding year, OFC Chairman Mohammed bin Hamad al Masrouri stated in the Director's Report issued earlier this week.
The company posted a net profit of RO 1.485 million for the 2009-2010 financial year, as against a net loss of RO 1.634 million during the previous year.
Also underscoring the company's performance during the year was a 13 per cent increase in turnover, which jumped to 16,029 metric tons from 14,185 metric tons a year earlier.
With a view to building on OFC's performance last year, the company recently purchased four coastal fishing vessels to help augment raw material supplies for its processing activities, as well as increasing availability of fresh fish for domestic sales.
The acquisition of the smaller fishing vessels follows a government ban on trawler fishing that comes into force in May 2011.
The ban, announced by the Ministry of Fisheries last year, is aimed at supporting the sustainable exploitation of fish stocks.
In light of the impending restrictions on trawler-based fishing in Omani waters, Oman Fisheries submitted a five-year strategy to the Ministry of Fisheries setting out, among other things, a plan for the ownership and operation of a fleet of fishing vessels. The first four vessels have since been acquired and put into operation in Oman's coastal waters.
While a part of the catch will be go towards meeting the raw material requirements of OFC's processing operations, the bulk will be earmarked for sale to the local market in support of the government's efforts to enhance availability of fresh fish for local consumption, said Al Masrouri.
The catch will be marketed either through the company's outlets and mobile vans, or through the establishment of new fish shops in the different regions of the country, he added.
Significantly, the new boats will also help OFC achieve its fishing quotas granted under a concession agreement reached with the government. Under the agreement, OFC can catch 20,000 metric tons of demersal fish and 30,000 metric tons of large pelagics per year. Volumes fished over the past years have generally fallen short of these quotas for a number of reasons, according to the Chairman.
In addition, OFC is also studying a number of initiatives planned for launch during the course of this financial year. Among the initiatives is a proposal to support local fishermen through fish procurement arrangements, establishing fish collection points, and supplying fishermen with ice, bait and other requirements.
The goal is to increase fish procurements from the present 10 per cent of total domestic production (15 per cent in value terms) to 25 per cent over the next three years.
Also envisaged is a five-year Business Plan to oversee the accelerated growth of the company. The plan, due to be rolled out in October, will be shortly presented to the board for approval, said Al Masrouri. The company is also looking to expand its processing and value added plant at Al Buraimi.
Established by Royal Decree in 1979, Oman Fisheries is 24 per cent owned by the Ministry of Fisheries.
By Conrad Prabhu
© Oman Daily Observer 2010
