Santiago, Chile-based fishing and salmon-farming firm Blumar has posted first-quarter profits of USD 3.6 million (EUR 2.9 million), versus a scant bottom line of USD 300,000 (EUR 245,000) in the same quarter of 2020.
The company attained revenue of USD 133 million (EUR 109 million) in the period, which was 15 percent higher than the same quarter one year previous, particularly driven by the fishing segment that surged 31 percent to USD 57.3 million (EUR 46.8 million).
“The results show good performance in the fishing segment, which is a reflection of the good state of the resource and long-term business sustainability," Blumar Seafoods General Manager Gerardo Balbontín said in a release. “On the other hand, in the aquaculture sector, there was a 21 percent decrease in the price of Atlantic salmon given that the comparison period corresponds to before the start of the pandemic, when prices were at a good level. In the first quarter of this year, prices have recovered from the depressed levels during the pandemic, and are currently on the rise, with a very good projection for the remainder of this year.”
Of the total Q1 revenues, 57 percent came from the aquaculture segment, where Blumar mostly farms Atlantic salmon. The remaining 43 percent came from the fishing business, where frozen horse mackerel accounted for 23 percent, fishmeal and fish oil 11 percent, and white fish-derived products 9 percent.
The aquaculture sector saw turnover of USD 75.4 million (EUR 61.7 million), up 4 percent compared to Q1 2020. Harvested volume during the quarter jumped 32 percent, which Blumar attributed to the entry into full operation of its Magallanes operations.
Meanwhile, the fishing segment posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 22 million (EUR 18 million) for Q1 2021, up by USD 8.3 million (EUR 6.8 million) compared to the same period of 2020, thanks mostly to increased sales volumes and average sales price of frozen horse mackerel.
In March, Chile’s Superintendency of the Environment (SMA) brought Blumar up on four charges for breaches of environmental authorizations at the company’s Forsyth grow-out center, located in the Las Guaitecas National Reserve in the Aysén Region.
The charges are broken down into two categories, composed of one felony and three lesser infractions. The most serious charge was for exceeding the maximum authorized production at Forsyth during the production cycle between December 2016 and April 2018, as a result of which Blumar could be subject to revocation of its environmental qualification resolution (RCA), closure, and a fine of up to CLP 3.1 billion (USD 4.3 million, EUR 3.6 million).
The smaller infractions are related to locating salmon farming structures outside of the permitted aquaculture concession area; lacking the necessary elements to control a hydrocarbons spill, as outlined in the company’s contingency plan; and for failure to keep the SMA’s RCA monitoring system updated. For these offenses, Blumar may be subject to a written reprimand or an additional fine of up to some CLP 624 million (USD 857,000, EUR 728,000).
Photo courtesy of Blumar
