As of 30 June 2010, volumes of production are lower than in previous years for Peruvian fish meal producer Copeinca, due to a moderate "El Niño" during January and February, US$24 million out of the US$55 million CAPEX budget have already been executed, and the construction of the 3 new vessels is 70% advanced.
Copeinca ASA 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, and most of its production is exported.
Typical customers are fish and animal feed producers as well as refineries for omega-3 products.
Copeinca ASA runs its operations out of Lima and has its own fleet. It operates 6 plants located in strategic locations all around the Peruvian coast line. The company has around 2,000 part and full time employees.
Volume sold down
In the first half of the year, volumes sold were 79,799 MT, down from 120,084 MT in H1'09 due to shipments delayed to July resulting from the late beginning of the first fishing season.
A higher percentage of steam dried fishmeal was sold (79% of total volume equivalent to 62,844 MT) in H1'10 vs. 47% in H1'09 equivalent to 56,294 MT.
Revenue per ton sold was $1,475 in the first half of 2010 (up 72%) and in the second quarter revenue per ton averaged $1,577 (up 77% compared to Q2´09).
Fishmeal price had an average of $1,494/MT in H1'10 vs. $834/MT in H1'09 and fish oil price was $876/MT in H1'10 vs. $694/MT in H1'09.
Operating profit for the six months ended on 30 June 2010 was $9.5 million after a $10 million provision due to a reduction in the number of vessels used, compared to the operating profit of $10.9 million for the same period in 2009.
Copeinca finished its first fishing season and it processed 13.13% of the total Peruvian quota (2,466,236 MT), of which 10.88% came from own fleet and 2.25% from third parties.
During the season Copeinca produced 76,139 MT of fishmeal and 22,625 MT of fish oil.
Fishmeal production had a 23.5% yield while fish oil production had a 7.0% yield. The total production yield was 30.5%.
More steam drying
"Increased focus in our own fleet production has contributed to have 80% SD (steam dried) fishmeal production, of which over 80% was high quality Super Prime and Prime fishmeal which results on higher efficiency, prices and margins.
“Once the vessels under construction and the investment on the plants are ready in 2011, we expect to have over 95% SD production," says Samuel Dyer Coriat, CEO of Copeinca ASA.