Peruvian fishmeal hurts Pacific Andes in 2Q
Pacific Andes International Holdings Ltd. on Thursday released its second-quarter results for fiscal 2011, which ended on 28 March.
The Hong Kong-listed fishing and seafood company’s revenues were up 6.2 percent to USD 185 million in the second quarter, while its EBITDA (earnings before interest, tax, depreciation and amortization) was up 1.3 percent to USD 67.2 million.
However, the company’s gross profit was down 8 percent to USD 65.5 million, due to a 32.1 percent increase in vessel-operating expenses associated with the deployment of more fishing vessels to Mauritania, in addition to higher fuel costs. According to the company, Mauritania is a new fishing ground rich in target species such as horse mackerel and sardines, and its Mauritania trawling operations made a maiden contribution of USD 4.9 million, or 2.7 percent of total revenues.
Pacific Andes’ Peruvian fishmeal operations didn’t fare well in the second quarter, reporting a 53.9 percent decline in revenues to USD 14.8 million due primarily to lower sales volume resulting from lower inventory carried over from the first quarter. Additionally, the Peruvian government closed some fishing grounds in December and January to protect juvenile fish, resulting in a lower catch volume.
“In view of the expected benefits from the higher catch volume in Peru, as well as the core organic growth strategies that are in place for the group’s trawling operations, we are confident of continued growth and improved operating results in 2011,” said Ng Joo Siang, the company’s managing director.
Pacific Andes’ North Pacific trawling operations performed well, posting a 16.4 percent increase in revenues to USD 165.3 million, attributed mainly to higher sales volume.
As far as the crisis in Japan, the company said its sales in general have not been hurt by the earthquake and tsunami. However, the delivery of fish roe to Japan in March was delayed, causing fish roe sales to Japan in March being recorded in the next quarter.