Copeinca reported that has increased its quality of fishmeal production as well as increased its total yield (Photo: Copeinca)

Copeinca Gross Profit Increased Despite Reduced Capture Volume

Copeinca ASA (Public, OSL:COP), one of the largest fishmeal and fish oil producers in Peru, has recently published the company’s 4Q and Full Year Results for 2010.

Q4 2010 Financials
• Revenue decrease of USD 14.7 M (USD 15.5 M vs. USD 30.2 M in Q4’09)
• EBITDA decrease of USD 15.7 M (USD 8.2 M) vs. USD 7.5 M in Q4’09
• Key performance indicators (10,562 MT sold in Q4’10 vs. 32,909 MT in Q4’09) Average revenue per ton USD 1,468 MT in Q4’10 vs. USD 1,146 in Q4’09

Highlights 2010

• In 2010 both a moderate “El Niño” and “La Niña” occurred, which significantly reduced volumes by around 40 percent when compared to an average year (3,245,602 MT vs. 5,500,000 MT) since these phenomenon resulted in a late start and a reduced quota of the first fishing season and triggered a high presence of juveniles and consequently a suspension of the second fishing season before quotas were caught.

Copeinca produces its fishmeal and fish oil from anchovy harvested off the coast of Peru

• Copeinca has increased its quality of fishmeal production as well as increased its total yield. In 2010, 85 percent of the total fishmeal production was Steam Dried (SD), compared to 70 percent in 2009 (82,325 MT and 123,016 MT respectively).
• Out of the USD 55 million CAPEX budget, USD 54.8 million were executed. USD 21 million were used in the construction of 3 new vessels and USD 32.8 million were mainly used for the conversion of all Flame Dried (FD) processing lines to modern Steam Dried (SD) processing lines and USD 1 million in other business areas.

3 vessels under construction are 95 percent advanced

• As a result of the CAPEX invested and the restructuration of the utilization of assets, Copeinca will fully take advantage of the benefits under the Individual Transferable Quota (ITQ) law. In 2011 the Company will operate with 27 vessels, 5 plants and 1,200 employees as opposed to 64, 12 and 2,200 respectively in 2008. This will allow the Company to obtain better yields, produce 100 percent SD fishmeal, and therefore sell at higher prices.
• In line with the restructuring of the utilization of assets, Copeinca decided to close plants and write-off vessels, which will result in savings on fixed costs such as plant workers and maintenance. Along with this, the Company recognized an impairment loss of USD 20.6 million on plants and USD 21.8 million on vessels.

Copeinca recognized an impairment loss of USD 21.8 million on vessels

• EBITDA increased by 29 percent and reached USD 76.2 million on revenues of USD 233 million compared to an EBITDA of USD 59 million on revenues of USD 203.2 million in 2009 despite significantly lower sales volume (166,871 MT vs. 232,662 MT).
• EBITDA per ton improved from USD 254/MT in 2009 to USD 457/MT in 2010 due to the favourable price trends of fishmeal and fish oil linked to a sustained demand and a limited supply for these products.
• Gross profit increased from USD 58.5 million (29 PERCENT) in 2009 to USD 86.8 million (37 percent) in 2010.
• Negative operating profit of USD 1.5 million as a result of the recognition of impairment losses of non-operating fixed assets amounting to USD 42.4 million, crew layoffs expenses amounting to USD 12.8 million, the write-off of the costs of vessels amounting to USD 9 million and non-fishing period expenses of USD 14.1 million charged to the P/L.

About Copeinca ASA

Copeinca ASA is one of the largest fishmeal and fish oil producers in Peru. The Company produces its fishmeal and fish oil from anchovy harvested off the coast of Peru, and most of its production is exported. Key countries for export are China, Japan, Germany, Canada, Chile and Denmark. Typical customers are fish and animal feed producers as well as refineries for omega-3 products. Copeinca ASA runs its operations out of Lima and has its own fleet. Copeinca ASA operates 6 plants located in strategic locations all around the Peruvian coast line. 

Margaret E.L. Stacey
Editor Companies and Products
[email protected]
www.seafood.media

Address:	Calle Francisco Graña 155, Urb. Sta. Catalina
City:	Lima
State/ZIP:	(Lima 13)
Country:	Peru
Phone:	+51 1213 4000
Fax:	+51 1213 4034
E-Mail:	[email protected]
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