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Fishing vessel belonging to Pingtan. (Photo: Pingtan Marine Enterprise)
Pingtan faces strong revenue drop due to moratorium from Indonesia
(CHINA, 3/11/2016)
Pingtan Marine Enterprise (PME) experienced a 74 per cent drop in revenues in 2015, compared to the previous year, a result it attributes to a six-month moratorium on issuing new fishing licenses and renewals introduced by the Indonesian government in early December 2014.
The firm informed that in 2015 its revenues reached USD 60.7 million compared to USD 233.4 million in the previous year. In addition, it experienced a gross loss amounting to USD 2.8 million compared to a gross profit of USD 77.6 million in 2014.
The rationale behind this moratorium was that the country's Ministry of Maritime Affairs and Fisheries (MMAF) could monitor the operations of existing fleets and fight illegal fishing activities. Therefore, all licensed fishing vessels operating in Indonesian waters had to operate within strict guidelines and subsequently to cease operation in order to avoid potential enforcement actions by the Indonesian Navy such as boat seizures.
To cooperate and comply with the Indonesian government's fishing license check procedures, in January 2015, PME reduced its operation; and from February 2015, Pingtan temporarily ceased operations of the 117 vessels which are licensed to operate in Indonesian waters, which caused a significant drop in production and a reduction in sales.
This situation implied an important reduction in the net income of its fishing division, which reached USD 19.6 million against USD 85.8 million in the previous year.
Commenting on the results, the company’s CEO, Xinrong Zhuo, pointed out: "As a fully licensed fishing company, we look forward to operating in a more secure and protected environment and to those benefits associated with a more highly regulated market in upcoming months.”
“In 2015, we expanded our fleet with six fishing vessels into Western and Central Pacific Ocean of international waters to focus on higher margined products like tuna and squid. We seek to continue to expand into new fishing territories to help reduce our dependency on a single region, diversify our revenue stream and fulfill the needs of our customers," the CEO added.
PME expanded its fleet through the purchase of 4 longline fishing vessels and 2 squid jigging vessels and its total current fleet has increased to 135 vessels.
Currently, PME catches nearly 30 different species of fish including ribbon fish, Indian white shrimp, croaker fish, pomfret, Spanish mackerel, conger eel, squid and red snapper.
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Information of the company:
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Address:
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CN11 Legend Town No 1 Balizhuandongli, Chaoyang District
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City:
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Beijing
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State/ZIP:
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10-65503186 (BEJ 100025)
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Country:
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China
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