Fishmeal bags storage facilities. (Photo: Copeinca)

China Fishery earnings fall due to lower fishmeal sales

The fishing company China Fishery Group Limited sold fishmeal for USD 81.1 million between April and June 2015, a figure which shows a drop of 33.1 per cent over the same period last year, when the turnover reached USD 121.1 million.

The company attributed the decline mainly to lower sales volumes, despite the fact that anchovy catches had a significant increase in the fishing season that ended on 28 June.

In the northern-central region, the company captured 421,800 tonnes equivalent to 97 per cent of its anchovy quota for this area while in the southern area the firm completed its quota of 31,179 tonnes.

"We were very pleased to achieve the highest anchovy catch for the last three years in Peru’s most important A fishing season. Overall, this has enabled us to produce nearly 150,000 tons of fishmeal from the A season," said Ng Joo Siang, Group Managing Director.

However, China Fishery informed that profits were USD 2.83 million in the second quarter, that is to say, seven times less than in the same period of 2014.

And in the first nine months of its fiscal year (from October 2014 to June 2015), the group's net profits were down by 59.4 per cent, to USD 21.5 million versus USD 52.9 million in the same period of the previous fiscal year.

Ng Joo Siang stressed that the process of the asset merger between China Fishery and COPEINCA generated greater operating efficiency. CFG acquired COPEINCA in September 2013 for USD 802 million.

"While significant synergies and efficiencies have already been delivered to date, more will be achieved when the full merger of the two businesses in Peru is completed over the next two quarters," he said.

He also assured that they will continue to focus on operational excellence and prudent management of revenues to be sure to be well positioned for future growth and to meet possible contingencies deriving from El Niño phenomenon.

Finally, he stressed that the Peruvian Government set a TAC of 450,000 tonnes for the second season of anchovy fishing in the southern zone of Peru, which means that the TAC for the full year is 825,000 tonnes, which is comparable to that from the previous years.

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By Analia Murias
[email protected]
www.seafood.media
 

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