China Fishery Q2 profit falls 75.5%, parent Pacific Andes Q2 earnings drop 74%

SINGAPORE - Mainboard-listed China Fishery Group announced on Monday that its net profit for the second quarter ended March 28, 2015, fell 75.5 per cent to US$4.3 million from the same period last year, due to the Peruvian government's closure of fishing in the North Centre Anchovy fishery last year.

Because of that and the temporary warming of the water last year, there was "virtually no production of fishmeal or fish oil" in the six months leading up to 28 March this year, the company said.

As a result, group revenue fell 57.4 per cent to US$76.7 million.

Revenue from the China Fishery Fleet rose 36.2 per cent to US$22.3 million due to higher sales volume and selling prices as well as lower fuel costs and exchange gain, contributing 12.9 per cent of total revenue.

The group's earnings per share decreased from 0.85 US cents to 0.21 US cents. No dividend was declared.

China Fishery's parent, mainboard-listed Pacific Andes Resources Development, saw lower earnings as well.

Its net profit fell 74 per cent to HK$46 million (S$7.9 million) in the second quarter, while revenue dropped 41 per cent to HK$1.32 billion.

Its earnings per share fell from 3.57 Hong Kong cents to 0.59 Hong Kong cents. It did not declare a dividend.

Pacific Andes said its net-debt-to-equity ratio was now lower than it had been before its Copeinca acquisition in 2013. It anticipated a further reduction in gearing levels because of the completion of China Fishery's rights issue, as well as the redemption of the Copeinca notes.

It added that the reduced borrowings would have a positive impact on the group's interest expense and balance sheet.