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Montevideo, March 28th 2024 - 11:27 UTC

 

 

Salmon disease and risky krill fishery, investors' nightmare

Wednesday, January 16th 2008 - 20:00 UTC
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Krill fishing vessel operating in the Antartica.<br> (Photo: Aker BioMarine) Krill fishing vessel operating in the Antartica.<br> (Photo: Aker BioMarine)

The Norwegian born shipping and salmon farming magnate, now living in Cyprus, Kjell Inge Røkke, not only has recorded heavy losses on his large share in the world's largest salmon farming company, Marine Harvest ASA.

Also his investments in Aker BioMarine ASA, a company fishing krill in the Antarctica, have turned sour. So bad is the situation that the largest financial daily in Norway refers to it as "a nightmare for the shareholders". After hitting NOK 57.00 early last summer, the shares have been in a down hill slide, and were sold at NOK 16.80 Wednesday at midday. There was sign of a slight recovery after falling nearly 6% in early hours of trading on Wednesday. After hitting NOK 16.80 an interest for buying at NOK 17.00 appeared, but traded volumes were low. The low hit during Wednesday represents a fall of 70.5% from the top recorded eight months ago. The company market value is down from NOK 5.2 billion (EUR 660 million) to only NOK 1.5 million (EUR 190 million). There is in fact trouble in understanding why the shares are falling so dramatically. There are no changes to the company plans and the production in 2007 was a bit lower than expected due to difficult ice conditions. On the other hand, an operation in the Antarctica is usually difficult to predict year by year. The latest fall is probably more due to the general fall in share values mainly related to the trouble in the US economy. Investors are collecting money from what many consider exotic and high-risk investments like the pioneering development in krill fishery being done by Aker BioMarine.(FIS)

Categories: Fisheries, International.

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