Fishing vessel belonging to China Fishery. (Photo Credit: CFO)
HONG KONGThursday, May 14, 2015, 00:50 (GMT + 9)
Leading global industrial fishing company, China Fishery Group reported a 38.3 per cent decrease in the Group’s revenue for the six-months ended 28 March, 2015, result that was mainly impacted by the lack of fishmeal or fish oil production during this period.
This situation was due to Peruvian Government’s closure of the 2014 B season fishing in the North Centre Anchovy fishery, which led to a drop in revenue from USD 325.1 million obtained a year earlier to USD 200.6 million as well as a net profit reduction of 44 per cent from USD 33.3 million to USD 18.6 million.
China Fishery also reported a 26.5 per cent reduction in the Group’s revenue from the frozen fish division mainly due to lower sales volume.
The decline in revenue led to a 53.4 per cent decrease in EBITDA, changing from USD 79.2 million in the same period of the previous financial year to USD 36.9 million.
Despite these challenges, the Group ensures it is well ahead of target in reducing its net-debt-to-equity ratio.
“In March 2014, we announced that we were targeting to reduce our net-debt-to-equity ratio to 75 per cent within 3 years. I am pleased to report that our net-debt-to-equity ratio has improved from 102 per cent in March 2014 to 73 per cent as of 28 March, 2015, well ahead of that target,” pointed out Ng Joo Siang, Group Managing Director.
“We are very pleased that our tight focus on improved efficiency, reduction in borrowings and reduction in interest expense is delivering early results. Net-debt-to-equity ratio will be further reduced as the Group will today make full payment to discharge all its obligations under the Copeinca Senior Notes,” Ng added
On the other hand, operations in Namibia achieved higher sales volume and selling prices during the analysed period, contributing 11.1 per cent of total revenue. The business benefited from lower fuel costs and the appreciation of the US Dollar against local currencies. There was abundance of jack mackerel, delivering higher catch volumes compared to the same time last year.
The Group expressed there are positive indicators for the second half of the year, since there has been a strong start to the important A season fishing in the North Centre anchovy fishery in Peru. Besides, the Group caught 50 per cent of its quota in the first month after the official start of the season.
China Fishery also remarked that during this period, the fish were also well located geographically, which allowed the Group to achieve a high level of efficiency in fishing operations and optimize the use of production facilities.
“China Fishery has successfully transformed from a Group heavily dependent on the Russian LSAs to one receiving most of its revenue and profit from Peruvian fishmeal operations. As we emerge from this important transition, our core strategies for FY2015 are to continue to realise synergies from the further integration of the Peruvian fishmeal operations and to become a world leader in the production of fishmeal and fish oil, reducing borrowings and strengthening our balance sheet,” the Group concluded.