China Fishery's Q2 profit down 75.5% to US$4.3m

CHINA Fishery Group announced on Monday its net profit for the second quarter ended March 31, 2015, fell 75.5 per cent to US$4.3 million year on year, due to the impact of the Peruvian government's closure of the north-centre fishery.

As a result, the global industrial-fishing firm said "there was virtually no production of fishmeal or fish oil" over the first-half period.

On the back of that challenging quarter, revenue fell 57 per cent to US$76.7 million from US$180 million in the year-ago period.

Earnings per share fell to 0.21 US cents from 0.85 US cents. No dividend was declared.

China Fishery's parent, Pacific Andes Resources Development, reported a 74 per cent drop in net profit to HK$46 million (S$7.9 million) in the second quarter from HK$174 million a year ago.

Revenue fell 41 per cent to HK$1.32 billion from HK$2.23 billion.

Earnings per share fell to 0.59 Hong Kong cent from 3.57 Hong Kong cents.

No dividend was recommended.

The firm said its group net-debt-to-equity ratio was now below the levels in place before the major Copeinca acquisition in 2013. The completion of China Fishery's rights issue and redemption of the Copeinca notes will bring about a further reduction in gearing levels.

Pacific Andes said the reduced borrowings will have a positive impact on its interest expense and balance sheet.