In the fourth quarter 2007, Copeinca ASA finished second in the second fishing season of the year
with a total own fleet catch of 235,841 MT, 11.03 percent of total catch and 16.53 percent of total
fish processed in its plants (includes fish from third parties). It is also noteworthy that fish oil
production had a 3.7 percent yield. Copeinca produced 78,384 MT of fishmeal and 12,982 MT of
fish oil.
Fourth quarter financials
· EBITDA was USD 9.8 million on revenues of USD 47.5 million (56,175 MT) compared to USD
14.5 million on revenues of USD 26.4 million (24,195 MT) for the same period in 2006.
· Operating profit was USD 2.3 million compared to the operating profit of USD 9.2 for the
same period in 2006.
Market situation
Fishmeal:
Due to a significant lower consumption of fishmeal in China traceable to the blue ear disease in
pigs and therefore higher stocks estimated at 300,000 MT in China, 100,000 MT in Chile and 80,000
MT in Peru, prices dropped to new low levels around FOB Peru USD 735/MT for old production
pulling down also the higher grades with a trading range between FOB Peru USD 735-900/MT for old
and new production in August-September ‘07.
At these price levels, in Q4 ’07, China market reactivated with an unexpected significant purchase
estimated to be around 200,000 MT out of a total 450,000 MT for the new season, reaching a new
support level at FOB Peru USD 800/MT for the lower grades. Therefore, the trading range lifted to
FOB Peru USD 800-950/MT for the balance of unsold stocks new season shipment December 2007-
March 2008.
Fishmeal prices have improved since then, and are currently trading at levels of USD 900-1,010/MT.
Fish oil:
The higher prices of fuel have significantly impacted the vegetable oil complex due to increased
demand for ethanol and biodiesel, reaching historical record high levels for rapeseed oil, soybean
oil and palm oil. Thus, fish oil price has also risen in tandem from FOB Peru USD 800/MT November-
December production to record high FOB Peru USD 1,150/MT for April production.
Furthermore, the higher consumer concern to eat healthier food has significantly impacted the
development of omega 3 products and there is an upward trend to divert more and more fish oil to
the nutraceutical business, which accounts so far, for 10% of the total consumption of fish oil.
Fish oil prices have increased in the first two months of 2008 and are currently trading at levels of
USD 2000– 2,500/MT.
Organization
During the fourth quarter, Wilfredo Caceres resigned form the Copeinca Board. The Board of
Directors accepted his resignation and recognized his agency during the last year. The resignation
was effective 1 January 2008.
About Copeinca ASA
Copeinca is one of the largest fishmeal and fish oil producers in Peru. The company produces its fishmeal and fish oil from anchovy
harvested off the coast of Peru. The majority of its production is exported. Key countries for export are China, Japan, Germany, Canada,
Chile and Denmark. Typical customers are producers of fish feed and animal feed. Copeinca runs its operations out of Lima and has its
fleet and five plants located in strategic locations from the centre to the north coast of Peru. The company has around 1,400 part and full
time employees.
