Multiexport and Invertex shares rose by 147 per cent and 136 per cent, respectively. (Photo: Multiexport)

Salmon companies recover value

CHILE
Thursday, August 19, 2010, 23:00 (GMT + 9)

Between January and August 2010, the bonds of the firms Multiexport Foods and Invertec Pesquera Mar de Chiloé (Invermar) accumulated strong gains, after their production had been affected by the infectious salmon anemia (ISA) virus. 

This disease, which appeared in several centres in the country in 2007, not only caused a high mortality of fish but also a decline in the value of the shares of the salmon farms. 

On the one hand, Multiexport shares rose 147 per cent in the first eight months of this year, while shares of Invertec rose by 136 per cent. 

Despite having regained some of what was lost by the ISA virus, the shares of both salmon listed on the Stock Exchange fell 10 per cent in the last two days, reports El Mercurio. 

According to risk assessment agencies Humphreys and Feller Rate, the Chilean salmon business has the potential to recover from the recent sanitary, labour and economic crisis. 

"The salmon industry as a whole, beyond the particular situation, has the ability to reverse in the medium term the poor results that have occurred lately, with a change in relation to the business model developed to date," said Humphreys in a report on Invertec.

The assessor clarified that the changes in the sector and access to working capital will determine the long term profitability, which “is likely to decrease in relation to what was shown in the past.”

For his part, Feller Rate explained that Multiexport still has a weak financial and operational profile, but shows signs of recovery thanks to the implementation of sanitary measures and appropriate production practices. 

"This, coupled with a positive restructuring of its bank liabilities, the upward trend in salmon prices and stable demand in its main markets, would continue with the recovery of its cash flow with the necessary financial flexibility," continued the agency.

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

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