China Fishery Group on Wednesday reported a 28.7 percent drop in third quarter net profit to USD 15 million (EUR 11.3 million).
Revenue remained stable, decreasing by just 1 percent to USD 152.4 million (EUR 114.4 million) compared to USD 152.6 million (EUR 114.5 million). Revenue from the company’s Peruvian fishmeal operations accounted for 33.8 percent of the company’s total revenue, increasing to USD 51.5 million (EUR 38.7 million) compared to USD 47 million (EUR 35.3 million). The increase is due to higher average selling prices of fishmeal and fish oil products on the back of the reduction in total allowable catch in Peru for the second fishing season in 2012.
Revenue from China Fishery Fleet (CF Fleet) operations accounted for 4.2 percent of total revenue decreased to USD 6.4 million (EUR 4.8 million) compared to USD 7.3 million (EUR 5.5 million). The company said its newly established fishing operations in Namibia were able to partially offset the reduction in the revenue contribution.
For the first nine months of the year, China Fishery’s revenue fell to USD 423.2 million (EUR 317.6 million) compared to USD 498 million (EUR 373.7 million) during the same time period in 2012.
Revenue from fishmeal operations fell to USD 83.3 million (EUR 62.5 million) compared to USD 109.2 million (EUR 81.9 million) and CF Fleet revenue also dropped to USD 19.1 million (EUR 14.3 million) from USD 46.2 million (EUR 34.7 million).
The company said the “recent fluctuations in TAC of Peruvian anchovy are expected to continue to have an impact on the group’s results for the rest of FY2013.”
On 31 July, China Fishery announced it acquired an additional 56,530,639 shares in Copeinca, bringing its total to about 98 percent of the shares and votes in the company.
“The group expects to benefit from the Copeinca acquisition in FY 2014. This acquisition presents a long-term value proposition for the growth of the group’s business and represents a transformative progression to elevate the group to become Peru’s largest producer of fishmeal and fish oil,” said Ng Joo Siang, managing director. “The group would also be amongst the world’s largest producers of fishmeal and fish oil.”
