Camanchaca obtains profits for USD 2.4 million thanks to salmon
2017-05-16 16:57:54   copyfrom:    hits:

Salmon farming centre (Photo: Stock File)CHILEMonday, May 15, 2017,22:40 (GMT + 9)Compañia Pesquera Camanchac

 
Salmon farming centre. (Photo: Stock File)

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Monday, May 15, 2017, 22:40 (GMT + 9)

 

Compañia Pesquera Camanchaca SA reported that between January and March 2017 it earned USD 2.4 million, a figure that favourably compares with the USD 2.7 million loss recorded in the same period of 2016.

EBITDA (earnings before interest, taxes, depreciation and amortization) showed an even more favourable trend, changing from a negative result of USD 7.3 million to a positive one of USD 15.3 million, an increase of USD 22.6 million.

The company explains that the evolution of the results compared to last year recounts a substantially different context in these first quarters: the most severe peak of the most severe El Niño in 65 years in 2016 versus normal oceanographic conditions in 2017; in addition to a salmon price floor coupled with a severe harmful algae bloom (HAB) in 2016 versus recovered prices and benign sanitary conditions.

The most significant changes were translated into:

  • Better salmon prices, which rose 69 per cent, and lower harvest costs, which fell 24 per cent.
  • Smaller volumes sold of its own salmon, which fell 53 per cent, product of decisions of two situations: i) reduction of stockings of two farming centres in 2015 once, reported on that date, whose impact is being reflected in the first half of 2017 on lower harvests, and ii) the impact on lower inventories at the beginning of 2017 that left the lowest salmon harvests in the fourth quarter of 2016, when the HAB impacted approximately 12 thousand tonnes of lower harvests.
  • After El Niño phenomenon, larger catches in the northern anchovy fishery, which increased 40 times compared to the first quarter of 2016, and which are the largest in this part of the year in the last six years, leaving inventories at the end of the quarter at low cost.

The Salmon business left a profit of USD 6.7 million, benefitted from better sold salmon prices and lower production costs. The result of this division was tempered by a negative net effect on its biomass of USD 6.3 million, which is USD 20.8 million lower than that obtained in the same period of 2016. The evolution of the PV net margin is a reflection of margins of fish sold this quarter, which had been recognized as of December 31, 2016. Thus, the gross margin before FV as of March 31, 2017 of Salmon was USD 22.2 million, which favourably compares with negative USD 3.1 from the previous year.

The Fishing Division suffered a loss of USD 4.6 million which compares unfavourably with the loss of USD 3.6 million in the same period of 2016. Camanchaca stresses that this loss must be understood in a context of catches far more favourable than in the first quarter of 2016, and that is a consequence of:

A) Delay in catches of horse mackerel in the quarter compared to the previous year, which meant that the costs associated with this fishery could not be absorbed in production and had to be taken directly to results in South Fisheries (USD 6.1 million versus USD 3.4 million in the same period 2016).

B) In the sardine fishery, and following the trend towards normalization of catches, there was a recovery of artisanal catches, reaching 33,000 tonnes up to March 2017, in contrast to 22,000 in the same period in 2016, when conditions for artisanal fishing in the VIII region were adversely affected by El Niño.

C) In North America, there were the highest catches in the last 11 quarters, with 40,000 tonnes, which although it was not reflected in sales it allowed lower costs to be taken directly to results (USD 2.2 million versus USD 5.4 million in the same period 2016).

In the Other Farmed Products division, the company earned a profit of USD 274,000 compared to a loss of USD 526,000 in the first quarter of last year.

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