Text size:

  • Small
  • Normal
  • Large

Fish farming company in Dubai posts sinking profit

What's Down: The country's only publicly traded fish farming business said profits fell by two thirds as revenues halved and continued costs from discontinued operations.

The country's only publicly listed fish farming business said first-quarter profit fell by two thirds as revenue halved and costs from discontinued operations continued.

Net income at the International Fish Farming Holding Company, better known as Asmak, dropped to Dh3.66 million in the first three months of the year compared with Dh10.11m last year.

The company recorded a loss of Dh128,000 as it continued to be hurt by a halt to farming operations in Oman and the UAE. Revenue fell to Dh58.7m from Dh101.75m. Asmak initially focused on farms in the Emirates, butended operations in the UAE and Oman in 2009 because of huge blooms of oxygen-depleting algae that suffocate fish, The National previously reported.

The company now buys fish from around the world to supply local supermarkets.

It also diversified into other sectors, mainly property and construction. It retains a fish farm in Ajman.

After the weak results, Asmak sought to reassure shareholders yesterday in a statement on the website of the Abu Dhabi bourse.

"The management confirms its commitment to support and enhance the core activities of the company to attain continuous growth," Asmak said. Analysts were sceptical about the statement. "The core business, which is farming fish, hasn't worked," said Mohammed Ali Yasin, an independent analyst in Abu Dhabi. "They haven't made any money on fish, but rather the other businesses they are involved in."

Asmak's stock has surged 418 per cent on the Abu Dhabi Securities Exchange (ADX) since January. After the sudden rise, the ADX made an inquiry on April 17 into the share activity. The company responded by saying it was "fully committed to the laws and regulations of the Securities and Commodities Authority and has no information or explanation behind the sudden interest in the stock".

The shares declined 8.6 per cent on the ADX last Wednesday and 9.2 per cent on Thursday in the lead-up to first-quarter results.

The shares fell 9.8 per cent yesterday to close at Dh15.55.


Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National