Pescanova products (Photo: Pescanova)

Pescanova earns EUR 1.8 billion in first nine months

SPAIN
Friday, November 14, 2014, 23:30 (GMT + 9)

Pescanova recorded a net profit of EUR 1,786 million between January and September this year, thanks to the debt relief applied to two of its companies whose creditors’ agreement has already been approved.

The Galician multinational submitted unaudited accounts and clarified that the problems it went through in recent years did not allow it to determine "with precision the results for the interim periods of the financial year 2013, thus this comparable information was not included," Reuters reported.

The Spanish group is going through a crisis for more than a year ago, when its industrial project collapsed due to mismanagement. At that time, debts higher than EUR 3,600 million and an equity hole of almost EUR 1,700 million were known, according to the official receiver.

After the adoption of the arrangements with creditors, the multinational accounts reflect debt relief. In September, Pescanova reported a turnover of EUR 706 million, that is to say, 7.5 per cent less than the same period of 2013.

Operating income before amortization and depreciation amounted to EUR 54 million, according to the information of the fishing firm to the National Securities Market Commission (CNMV).

Furthermore, Pescanova reported that between January and September it did not make significant investments or divestments.

During the third quarter of 2014, its subsidiaries Pescanova Alimentacion, Frivipesca Chapela, Frigodis, Bajamar Septima, Pescafina Bacalao, Fricatamar, Pescafresca, Insuiña y Novapesca Trading declared themselves into voluntary insolvency proceedings.

However, despite the crisis in which Pescanova is involved, it is maintaining its strength in the market, and proof of this is that it has reopened recruitment in several of its subsidiaries to meet the increased production in this last quarter of the year, La Voz de Galicia reported.

Union officials say about 50 jobs were created in September so far, bringing its total workforce to 1,500 employees. Most of the posts are in subsidiaries specialized in products with higher demand during the Christmas season, a vital period for the group's finances.

Related article:

- Pescanova’s former president faces asset seizure
- Novapesca becomes another Pescanova’s subsidiary undergoing creditors meeting

By Analia Murias
[email protected]
www.seafood.media

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