Pacific Andes net profit up 23.5% to HK$775.2m in FY2013

Peruvian fishmeal operation tagged as growth engine.

Singapore Exchange Mainboard-listed Pacific Andes Resources Development Limited (PARD) announced its results for the full year ended 28 September 2013 (FY2013).

During the year under review, net profit attributable to shareholders increased by 23.5% from HK$627.7 million to HK$775.2 million. The FY2013 results included a maiden one month (from 31 August 2013 to 28 September 2013) contribution from Copeinca ASA (Copeinca), in which the Group acquired a 99.1% equity stake on 30 August 2013. The board of directors recommended the payment of a first and final dividend of 0.3 Singapore cent per share for FY2013 (FY2012: 0.3 Singapore cent).

Following the acquisition of Copeinca, the Group has become the largest fishmeal and fish oil producer in Peru and one of the leading exporters in the world.

"This advantageous position is a strong reflection of the success of the Group’s business strategy of consolidating operations and improving overall operational efficiencies for its Peruvian Fishmeal Operations. As aquaculture continues to grow its share of the global seafood market, the Group can expect to capitalise on this new position of strength as a major supplier of key feed inputs to the aquaculture industry, with the fishmeal and fish oil business generating additional revenue opportunities and driving significant cost savings," said Pacific Andes in its results release.

Mr Ng Joo Siang, Executive Director and Chairman of the Group, said, “The Group will focus on the realisation of synergies and cost savings from Copeinca in the year ahead. The Peruvian Fishmeal Operation is our engine for growth. The substantial improvement in Total Allowable Catch for the current and upcoming fishing seasons certainly will add an extra boost to this engine.

”With a currently robust Peruvian Anchovy biomass level estimated at between 10.8 million tonnes and 12.1 million tonnes, the Peruvian Government has increased the Total Allowable Catch (TAC) for the second fishing season (from November 2013 to January 2014) to 2.3 million tonnes, 2.8 times higher compared to the same fishing season last year. This is strong evidence that the Peruvian Anchovy resource is sustainable and well-managed under an effective fishery management policies adopted by the Peruvian Government.

“While the Fishery and Fish Supply Division is well positioned as our growth engine, the Frozen Fish Supply Chain Management Division provides the Group with stable returns. In addition, the Group has diversified its business mix with its investment in Australia’s largest salmon farming company, Tassal Group Limited. Tassal continued to provide positive contributions to the Group in FY2013. With our three strategic business pillars in place, PARD is on the right path to strengthen its position as a leading global supplier of high quality fish products.” Mr Ng concluded.

The Group will retain Copeinca’s listing status on Oslo Børs in this period when it is considering various strategic options for improving the Group’s organisational and capital structures. The Group remains committed in its efforts to strengthen its balance sheet in order to grow its business in the future. Barring any unforeseen circumstances, management is confident of achieving continued profitability for the next year.