Copeinca ASA significantly increased its earnings before interest, taxes, depreciation and amortization in 2008 compared to 2007, at the same time near doubling its revenues. The transition to an individual quota system in Peru and increased focus on cost reductions and efficiency gains are expected to take these improvements even further.
“Copeinca is now preparing for the 2009 fishing season, the first in Peruvian history with individual quotas. The transition will yield significant improvements in fleet and plant efficiency as well as in fishmeal quality. Copeinca has been positioning for ITQ through several acquisitions over the past few years, and we are now ready to reap the harvest of our investments, which is to be fully delivered within 2010”, says CEO Samuel Dyer Coriat.
For the full year 2008, Copeinca ASA achieved an EBITDA of USD 75.3 million and revenues of USD 249.4 million. The corresponding figures in 2007 were USD 28.6 and USD 129.1 million, respectively.
In the fourth quarter of 2008 Copeinca ASA achieved an EBITDA of USD 12.8 million and revenues of USD 44 million. This compares to an EBITDA of 11.2 million and revenues of USD 48.5 million in the same period the year before. Operating profit was USD 4 million in the fourth quarter of 2008 compared with a profit of USD 4.2 million in the same period of 2007. Volume sold during the fourth quarter was 47,331 MT. This compares to 56,175 MT in the corresponding period in 2007. The higher volumes in Q4 2007, are explained by sales of inventory from acquired companies. Part of this effect will also be seen in Q1 2008 volumes when compared with Q1 2009 sales. Starting in Q2 2008, sales are basically from own production, so quarterly volumes are comparable again.
Cost of goods sold during the fourth quarter was USD 633/MT, compared to USD 615/MT in the same period of 2007, and USD 636/MT for the full year 2008.
Average prices of fishmeal in the fourth quarter were USD 930/MT, whereas for the full year average prices were USD 968/MT. The average prices of fish oil were USD 1,015/MT and USD 1,334, for the fourth quarter and full year 2008, respectively. Fishmeal prices are currently recovering from low levels in the fourth quarter, with strong sales mainly to China in January 2009. Half of the Peruvian first fishing season’s production is already sold. Fish oil prices continue downward trend.
Copeinca finished second in the 2008 fishing season with an aggregate participation of 14.3 percent and a total own fleet catch of 10.4 percent. In sum, Copeinca produced 170,000 MT of fishmeal and 35,500 MT of fish oil during the year. Aggregate fish oil yield was 4.7%.
During the fourth quarter Peruvian President Alan Garcia approved ITQ regulation which signifies that capture quotas in the Center-North of Peru will be awarded to each vessel based on capacity and catch statistics going forward. The individual quota system will be in place starting on the first fishing season of 2009. Copeinca has been awarded 10.7 percent of the quota for 2009, equal to 588,500 MT of anchovy, based on an estimated total quota of 5.5M MT.
Copeinca reiterates its previous prediction of an EBITDA improvement of 30-40% under an individual quota system, to be achieved through fleet and plant optimization and improvement in fishmeal quality within 2010.
