AquaChile shrinks losses, after positive quarter
2016-11-28 17:54:28   copyfrom:    hits:

Salmon processing and packing (Photo: AquaChile)CHILEFriday, November 25, 2016,22:40 (GMT + 9)The positive results
 

Salmon processing and packing. (Photo: AquaChile)

 

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Friday, November 25, 2016, 22:40 (GMT + 9)

 

The positive results that AquaChile obtained in the third quarter of this year improved its balance sheet, but were not enough to get the company out of the red.

According to the company's report to the Superintendency of Securities and Insurance (SVS), as of September 30, the result was a loss of USD 28.7 million, which favorably compares with the loss of USD 68.9 million experienced in the first nine months of last year.

Meanwhile, in the June-September quarter of 2016 it recorded a profit of USD 8.9 million while in the same period last year it faced a loss of USD 21 million.

According to AquaChile, the decrease in the loss is mainly due to the recognition of a net effect of biomass valuation at fair value of USD 57.7 million (versus an adverse effect of USD -19.8 million in the same period of 2015), due to the rise in international prices of salmon observed since the second quarter and reductions in production costs.

These positive effects were offset in part by the effect of harmful algal blooms (HABs) in the first quarter, which resulted in a USD 43.5 million loss from salmonid mortality and associated costs.

Regarding sales, the company reported that through September 30 they totalled USD 403.6 million, representing a decrease of 15 per cent over the same period last year.

This drop is attributed to lower sales of Atlantic salmon, trout, tilapia, salmon feed and "other business", partially offset by higher sales of Pacific salmon.

The consolidated EBITDA (gross operating profit calculated before the deductibility of financial expenses) accumulated up to September was USD -6.3 million, higher than the USD-39.8 million registered in 2015. This result reflects the higher margins registered in the Atlantic salmon, trout and tilapia businesses, which were offset in part by a smaller margin in the sale of Pacific salmon.

AquaChile reported that the cumulative operating income (EBIT pre-fair value adjustment) of the Salmon and Trout segment reached USD -27.0 million, a figure that compares favourably with the USD 60.6 million loss recorded in the same period of 2015.

Meanwhile, the Tilapia business had lower sales revenues by 19 per cent compared to the same period last year, explained by lower volumes and sales prices. And the accumulated operating income for the period reached USD -3.4 million, compared to a loss of USD 4.0 million in the first nine months last year.

editorial@fis.com

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