Santiago, Chile-based salmon farmer Salmones Camanchaca has called an extraordinary general shareholders' meeting to initiate a vote on a proposed capital increase of up to USD 30 million (EUR 25.9 million), the company announced to the Chilean market regulator CMF.
The increased funds would go towards supporting Camanchaca’s 2021-2023 investment plan, which includes increasing water-renewal and -circulation at its farming centers, implementing a series of risk mitigating technologies, recovering the biomass it lost in the first half of 2021, and strengthening its financial position.
The company had reported previously two algae bloom incidents at its operations in Reñihue fjord and Comau fjord, and the resulting mortalities, took a heavy toll and diminished the company’s existing harvest capacity and sales volume, affecting its financial results. During the first half of the year, Camanchaca's net losses widened to USD 23.6 million (EUR 20 million), 62.2 percent further into the red from the same period of 2020. The firm's harvest for the full year 2021 is estimated in the 42,000 to 43,000 metric tons (MT) of whole-fish equivalent (WFE), coho included, and it committed to a plan to reach 70,000 MT in annual harvests.
During the second quarter of 2021, operating revenue amounted to USD 51 million (EUR 43 million), flat compared to USD 50 million (EUR 42 million) in Q2 2020; while harvest costs for the quarter reached USD 4.92 (EUR 4.17) per kilogram live fish, jumping 48 percent higher compared to the same period in the previous year. Earnings before interest, taxes, depreciation, and amortization for the quarter represented a loss of USD 10.6 million (EUR 9 million), compared to a loss of USD 5.8 million (EUR 4.9 million) in Q2 2020. The company largely attributed the lower margins and increased costs to the algae bloom mortalities, with extraordinary losses of USD 3.1 million (EUR 2.6 million) in Q2.
“As is public knowledge, the last few quarters have been challenging for Salmones Camanchaca as a result of the pandemic and blooms, but today demand and prices have good prospects, and we believe that there is a good plan to diversify and mitigate inherent risks of the harvest,” Camanchaca General Manager Ricardo García, said. “For this reason, we welcome the capital increase … Without ruling out buying more shares if they are offered to us.”
The board at parent company Camanchaca S.A. already held an extraordinary session to discuss the proposed capital increase and said it will vote favorably on the proposal. The general shareholders’ meeting is scheduled for 18 October.
Photo courtesy of Camanchaca
