Iceland Mag

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Iceland Mag


Kristján Loftsson‘s whaling generates a 7.5 million USD in losses

By Staff

  • Kristján Loftsson, CEO of Hvalur hf According to analysis of the financial statements of Hvalur hf, the company has made massive losses on its whaling operations in the past years. Photo/Anton Brink

According to the financial statements of Hvalur hf, the largest Icelandic whaling company, its whaling operations generated roughly a billion ISK in losses (7.5 million USD/6.8 million EUR). A shipment of whale products which Hvalur hf sent to Japan earlier this summer has caused a considerable stir, as it is in defiance of international agreements which ban international trade in whale products.

Loss generating whaling
According to analysis by the local news site which acquired the financial statements of Hvalur hf, revenues from the sale of whale products in 2014 were roughly one billion krona. At the same time the cost of whaling operations exceeded two billion (15 million USD/13.6 million EUR). The company‘s whaling operations therefore generated a billion ISK loss in 2014. The year before the loss on whaling operations was 600 million ISK (4.5 million USD/4.1 million EUR).

Hvalur hf operates a whaling base in Hvalfjörður fjord, just north of Reykjavík, where its products are processed. According to the company‘s statements it caught 134 fin whales in 2013 and 137 in 2014.

Losses from whaling covered with profits from other operations
Despite the fact that its whaling operations generated massive losses the company Hvalur hf made profit of three billion krona in 2014 (22.4 million USD/20.5 million EUR), thanks in large part to its ownership of investment company Vogun hf, which owns a third of the fishing giant HB Grandi.

The cargo ship Winter Bay recently left harbour in Tromsö Norway with a cargo of 1,800 tonnes of whale products from last year’s catch. Yesterday we reported that the catch is valued at 15 million USD.


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