China Fishery Group benefited from trial operations undertaken in the South Pacific since June. (Photo: China Fishery Group)

China Fishery Group revenue up

HONG KONG
Monday, November 30, 2009, 10:30 (GMT + 9)

Industrial fishing company China Fishery Group Limited on Thursday reported its annual results from 1 January to 28 September. Its revenue rose by 7.9 per cent to USD 383.4 million due to larger catch volumes in its trawling operations plus higher fish prices and fishmeal sales.

Trial operations in the South Pacific since June contributed a revenue of USD 7.8 million and gross profit jumped by 5.8 per cent to USD 127.6 million along with revenue growth. Basic earnings per share stood at USD 9.08 cents.

The Board of Directors recommended a final dividend of SGD 4.2 cents (USD 3.04) per share for the period that ended on 28 September payable in cash to allow shareholders to reinvest in the Group. Each new share will be issued at USD 1.16.

Trawling operation revenues leaped by 8.8 per cent to USD 292.3 million. The firm enhanced its fleet’s efficiency and margin by postponing some of its fishing activity to the fourth quarter of this calendar year.

The company was thereby able to substantially slash its costs while still utilising its annual catch volume. This strategic move enabled the firm to re-deploy excess vessel requirements in the North to its South Pacific activities and capitalise on future quota allocation.

Revenues for fishmeal and fish oil operations got a 5.3 per cent boost to USD 91.2 million despite lower prices caused by increased sales. The gross margin of the trawling operations climbed from 28.6 to 34.2 per cent due mainly to the improved utilisation of vessels in the North Pacific.

Nonetheless, this was counteracted by a drop in gross profit margin from fishmeal and fish oil corresponding to reduced commodity and fishmeal prices. Gross profit margin was maintained at 33.3 per cent for the period.

Net debt to equity ratio dipped from 92.2 to 84.3 per cent despite the USD 85 million new bank loans raised to fund the South Pacific expansion. The company's cash and cash equivalent on 28 September stood at USD 17.3 million.

“Looking ahead, we will continue to strive for higher profit through efficient fleet deployment planning and higher catch volume in our North Pacific trawling operations,” Group Managing Director Ng Joo Siang observed.

“Currently, about one-third of the world’s ocean resources are under-utilised, with these resources being used to produce fishmeal for aquaculture and animal farming industries. With proper marketing, we believe these under-utilised resources can be introduced for human consumption,” he concluded.

By Natalia Real
editorial@fis.com
www.fis.com