Frozen fish. (Photo: Pacific Andes)

Pacific Andes posts lower performance in its first quarter

Pacific Andes International Holdings Limited posted the results of its Singapore-listed subsidiaries, Pacific Andes Resources Development Limited (PARD) and China Fishery Group Limited in the first quarter of fiscal 2015.

The company acknowledged that in the quarter ended 28 December 2014, PARD recorded a reduced anchovy catch due to a temporary warming of the sea water in Peru. As a consequence, the firm saw its net profit go down by 11.7 per cent to HKD 128.2 million (USD 16.5 million), from HKD 145.2 million (USD 18.7 million) a year ago.

EBITDA moved down by 21.6 per cent to HKD 466.9 million (USD 60.2 million), while gross profit fell 22.3 per cent to HKD 309.1 million (USD 39.8 million).

Ng Joo Siang, Vice-Chairman and Managing Director of Pacific Andes said, “With the completion of the recent PARD Rights Issue, PARD has further enhanced its capital structure, and thus the net-debt-to-equity ratio has further reduced to below 70 per cent."

And he added, "While we have more work to do, our efforts to date have set the stage for the Group to execute on the elements of our strategic plan, including ongoing deleveraging."

Despite an increase in average selling prices of its products, the revenue from the frozen fish supply chain Management division decreased by 34.7 per cent.

As regards China Fishery, higher average selling prices of fishmeal and fish oil pushed up gross profit margin to 30.9 per cent, despite a 13.7 per cent decrease in gross profit to USD 38.2 million.

Nevertheless, net debt to equity ratio improved by 13.1 per cent, from 89.6 per cent to 77.9 per cent throughout the quarter.

China Fishery's fleet could use the total quota for 2014 operations in Namibia, while it has started trial fishing in Angola.

For the next quarter, the group hopes to consolidate the existing business and further improve its net-debt-to-equity ratio.

Conversely, it foresees that the results of the next quarter will be adversely affected by the decision of the Peruvian government not to open the second anchovy fishing season late last year. The measure was adopted on the recommendation of Peru Marine Institute (IMARPE) regarding anchovy dispersion and the presence of a high proportion of juvenile fish.

Nevertheless, the Peruvian authorities hope that the fishery will normalize progressively.

Pacific Andes’s main business area is composed of frozen fish products, as well as fishmeal and fish oil.

The group businesses span across the world with a particular emphasis on the People’s Republic of China and Peru. It also has processing plants and sizeable investments based in Germany, France and the U.S.

Related article:

- Confirmed: no anchovy second season to take place
 

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