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Salmon juvenile specimens. (Photo: AquaChile)
Salmon price recovery expected
CHILE
Friday, September 14, 2012, 23:50 (GMT + 9)
Entrepreneurs of the salmon industry expect that the salmon price recovery will boost the shares of companies in the sector by the end of the year.
The sharp decline in salmon price is causing a reduction in the value of several salmon companies listed on the Santiago Stock Exchange, but a growth is expected at the end of the first half of 2013, Diario Financiero reported.
Whereas Norwegian companies, which are the main competitors of the Chilean ones, have no further room for growth in biomass, those from Chile do, despite showing high leverage levels and low margins.
According to Andrés Galarce, EuroAmerica analyst, in the last month smolt prices for the future are obviously higher in their projection up to August 2013, so that "everything contributes for 2014 to be a good year."
Furthermore, he estimates that there is significant room for business mergers and acquisitions to take place.
From EuroAmerica, they are optimistic as to the roles played by AquaChile and by Multifoods, as "attractive investment alternatives" for the medium and long term.
So far this year, shares of the Norwegian salmon firms have recorded increases of up to 97 per cent, such as the case of Marine Harvest. Meanwhile, AquaChile shares have risen 12 per cent during 2012.
In the first half of this year, the results of the salmon sector companies showed the impact of the collapse of salmon prices. In the first seven months of 2012 this decline reached 17 per cent, and by comparing July this year with the same month in 2011, the decline was 28.2 per cent, reported InfoTrade.
This scenario is totally different from that provided by the salmon firms, brokers, investment banks and technical assessment agencies as to their balance of the first half of this year.
Related article:
- Salmon firms’ cash flow to remain under pressure in 2012
By Analia Murias
editorial@fis.com
www.fis.com
Photo Courtesy of FIS Member  AquaChile S.A. - Group Headquarters
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