Higher finance costs drag down China Fishery's Q2 net profit

SINGAPORE - Fishing group China Fishery said on Monday its net profit for its second quarter ended March 28 fell 58.4 per cent from a year ago to US$17.4 million (S$21.7 million), mainly due to higher finance costs.

Such costs jumped 91.3 per cent from the previous year to US$22.8 million, as a result of the consolidation of senior notes issued by its subsidiary Copeinca, and the loan it took to partially fund the acquisition of Copeinca last year.

Revenue rose 10.6 per cent in the quarter over the year before to US$179.9 million, as takings from the group's peruvian fishmeal operations jumped almost seven times to US$129.7 million.

But revenue from its contract supply business dropped 66.1 per cent to US$46.3 million while revenue from its fleet fell 58.7 per cent to US$3.9 million.

The group's earnings per share for the second quarter plunged to 0.85 US cents, from 4.09 US cents a year ago.

Net asset value per share edged up to 58 US cents as at March 28, from 57 US cents as at Sept 28 last year.