February 14, 2012

 

Pacific Andes achieves higher net profit

 

 

Pacific Andes Resources Development Limited (PARD), a Singapore-based subsidiary of Pacific Andes International Holdings Limited, has achieved a net profit  jump of 38.6% on-year to HKD139.6 million (US$18 million) during its first quarter, according to its parent company.

 

Revenues climbed by 41.3% to HKD2.45 billion (US$316 million) from HKD1.73 billion (US$223.6 million) during the same period a year ago, with higher revenue contributions stemming from both the frozen fish supply chain management and fishing division.

 

EBITDA escalated by 21% to HKD500.3 million (US$71 million), mainly due to lower operating costs.

 

Pacific Andes' earnings per share for the quarter were HKD0.44 (US$0.06) compared to HKD0.36 (US$0.05) a year prior, representing a rise of 23.1%.

 

Revenue from the frozen fish division, which made up 60% of total revenue, rose by 75.6% to HKD1.47 billion (US$189.6 million), thanks to higher average selling prices and sales volumes.

 

The fishing division, making up 40% of total revenue, took a 9.3% hike to HKD981.3 million (US$126.5 million) with help from the North Pacific and Peruvian fishmeal operations. The former profited from better selling prices and the latter from higher sales volumes despite dipping prices.

 

China remained the main market with sales accounting for 73.4% of total revenue at HKD1.8 billion (US$232.1 million). Sales to Africa and Europe made up 13.5% and 10.7% of total revenue, respectively.

 

China Fishery's revenue spiked by 9.3% to US$125.8 million and net profit surged by 20.8% to US$23.8 million. Basic earnings per share jumped by 18.3% to US$0.02.

 

Revenue from the North Pacific operations went up by 9% to US$75 million because of higher average selling prices, and revenue from the South Pacific fleet rose by 3.3% to US$36.6 million due to the sale of fish inventory from the previous quarter.

 

Peruvian fishmeal operations contributed US$14.2 million, a 31.3% rise, due to better sales volumes.

 

"Looking ahead, we expect our fishing division to benefit from the recent acquisitions of two Peruvian fishing companies in November 2011 and the continuous improvements in operational efficiencies and utilisation of the fishing fleet", stated Vice-Chairman and Managing Director, Ng Joo Siang. "We will continue to identify new and sustainable fishing grounds with rich resources. We also expect the frozen fish SCM division to further increase its sales through market expansion to better capture the growing demand in various markets."

 

In October 2011, Pacific Andes finalised a contract with Marel to create a new processing system. This company agreed to design, build and install a new system including defrosting, cooling, grading and trimming capabilities for use at the Pacific Andes plant in Qingdao.

 

The move was meant to give Pacific Andes the flexibility to compete with the best players in the markets of Europe and the US, as it would gain quality control insurance and full product traceability throughout the processing chain.