An algae bloom and a fire at one of its processing plants negatively affected Chilean salmon farmer and fishing firm Blumar’s results during the first half of 2024.
An algae bloom at the beginning of the year at Blumar’s Victoria and Chivato I grow-out centers, located in the southern Aysén region, reduced projected harvests by more than 4,000 metric tons (MT) of salmon, the company said in its first half results. Meanwhile, in February, a fire completely consumed its Entrevientos plant, located in the Magallanes region, which is jointly owned by Blumar and fellow salmon-farming firm MultiX.
“It's been a very challenging year. We have faced events that have tested the company's resilience due to the impact they have had on the aquaculture segment,” Blumar's General Manager Gerardo Balbontín said. “However, we have taken different measures, such as a major operational excellence plan, that aims to achieve efficiencies across the value chain. We have also put into operation an alternative processing plant in Magallanes to be able to process our raw material produced in the region.”
Consolidated revenues for the first half of the year reached USD 300.5 million (EUR 272.2 million), of which 39 percent, or USD 118 million (EUR 107 million), came from aquaculture, and 60 percent, or USD 179 million (EUR 162 million), came from fishing activities.
Revenues in the period were down 23 percent compared to the USD 389.2 million (EUR 352.6 million) posted in the same six months in 2023. Over the same period, the firm’s EBITDA before fair value fell 37 percent from USD 90.8 million (EUR 82.3 million) to USD 57.3 million (EUR 51.9 million).
H1 net profits, meanwhile, plummeted 84 percent to USD 5.5 million (EUR 5 million). The fishing segment turned a USD 33.9 million (EUR 30.7 million) profit in the period, but aquaculture suffered a net loss of USD 28.4 million (EUR 25.7 million), which included a USD 11.5 million (EUR 10.4 million) provision for impairment losses on Entrevientos assets.
During the first half of 2024, the firm’s pelagic fishing capture also decreased by 17 percent compared to the same period of the previous year, going from 256 MT to 213 MT, which Blumar said was due to a lower catch by third-party suppliers.
Meanwhile, the harvest of Atlantic salmon fell 27.6 percent year over year, dropping from 12,645 MT during the first six months of 2023 to 9,153 MT in January to June of 2024. Over the same period, this led to a 39 percent drop in sales by volume to 16,533 MT of salmon.
In Q2 in particular, net revenues totaled USD 160.5 million (EUR 145.4 million), falling 22 percent from Q2 2023, EBITDA before fair value adjustments was down 33 percent to USD 34.4 million (EUR 31.2 million), and net profits dropped 63 percent to USD 7.4 million (EUR 6.7 million).
“We foresee a more visible improvement path during the remainder of the year and [plan to] consolidate a better position in 2025 as the effects of the situations in the aquaculture segment diminish,” Balbontín said.
Blumar’s most important products from its fishing operations are fishmeal and fish oil as well as frozen horse mackerel, while in the aquaculture segment, it produces and sells Atlantic salmon. Through its subsidiary PacificBlu SpA, it also produces and sells frozen and breaded products, mainly featuring hake that comes from the company’s own fishing fleet or is provided by artisanal fishermen.
In August, Blumar launched a new wellboat built by Puerto Montt, Chile-based Nachipa Wellboats. The vessel, Ronia Polaris, will perform sea lice treatments at Blumar's farming centers.
The state-of-the-art multipurpose wellboat can transport live harvest, move smolt, and perform anti-parasitic baths. The vessel runs with a more fuel-efficient engine than traditional wellboats, has a reverse osmosis plant onboard, and is equipped to perform hydrogen peroxide treatments.
“It is a significant milestone for Blumar to have a boat with these characteristics and with advanced technology. Treating fish mostly with fresh water and avoiding the use of chemicals is the path that the industry has to take,” Blumar Farming Manager Pedro Pablo Laporte said.
