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Lower costs played a part in more than doubling Salmones Camanchaca's net profits for Q4 2018.
Lower costs played a part in more than doubling Salmones Camanchaca's net profits for Q4 2018.

Chilean fish farmer Salmones Camanchaca more than doubled its net profit to US$10.4 million in the last quarter of 2018 compared to the same period the year before.

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The company harvested 13,944 tonnes WFE (whole fish equivalent) in Q4 2018, 14.4% more than in Q4 2017. The average sales price did not vary significantly at $5.90 per kilo WFE, up 3.8% in the period, reflecting a stable Chilean supply condition, according to Camanchaca’s latest income statements reported to the Financial Market Commission (CMF).

The company’s revenue increased 22.3% to $95.7m, driven by the 16.8% increase in the volume sold of Atlantic salmon, with inventory reduction compared to the end of the third quarter of 2018, and a slight rise in price of 3.8%.

Lower costs

EBITDA of $27.5m in Q4 2018 was 74% higher than Q4 2017, due to higher sales volumes and lower costs. Ex-cage live fish cost was lower than expected at $2.83 / Kg, 3.7% lower than in the fourth quarter of 2017 and 5.7% better than the long-term objective established by the company.

For 2018, the ex-cage cost of live fish was $3.06 / Kg, slightly above the long-term target value.

EBIT / Kg WFE for Camanchaca’s Atlantic salmon operation was $1.58 in the fourth quarter of 2018, which compares favourably with $0.99 / Kg WFE of the same period of 2017.

Trout deficit

As a result of all the above, the net profit of the salmon farmer reached $10.4min Q4 2018, more than doubling from $4.9m in Q4 2017.

A joint venture with Caleta Bay for trout farming in sites owned by Salmones Camanchaca (in force between 2016-2022), reported a loss for the company of $319,000 in the period, a bigger loss than the $122,000 deficit in Q4 2017, mainly due to the price drop of more than one dollar per kilo WFE (-18.3%), mitigated by a reduction in unit costs of 50 cents per WFE kilo.

The trout harvest volume for Q4 2018 was 4,828 tonnes WFE, the company reported to the CMF.

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