Salmones Camanchaca posts $15.2 million loss in first quarter

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Algae blooms impacted harvest and profitability.

Salmones Camanchaca posted a revenue of USD 70 million for the first quarter of the year, down 17.1 per-cent from Q1 2020. EBIT in Q1 2021 was USD 11.4 million, USD 22.8 million lower than in the same period the year before.

Algea losses were approximately 3,700 tonnes and the direct financial impacts, including insurance claims, deductibles and mitigation and removal costs, amounted to USD 12.1 million.

The estimated 2021 harvest volume for Atlantic salmon decreased to between 41,000 and 44,000 tonnes. Pacific harvest volumes remain at 2,000 tonnes.

Salmones Camanchaca notified creditor banks that it did not comply with the Net Financial Debt to EBITDA ratio covenant as the latter was negative, and a waiver has been obtained from the banks.

“The incidents of harmful algae blooms in the Reñihue and Comau fjords had severe implications for operations during the quarter and combined with the repercussion of the Islotes incident last year and overall weak market conditions due to the Covid-19 pandemic, earnings were heavily impacted during the quarter,” said Salmones Camanchaca vice chairman Ricardo García.

“Losses from the incidents will also have implications on harvest volumes going forward. However, the market conditions are favorable with a solid recovery of demand and a double-digit decline in Chilean supply by 2021,” he said.

“As proven by the handling of the pandemic, Salmones Camanchaca has the necessary willpower and ability to address challenges when arising. Combined with high operational and financial flexibility we are determined to bring our operations back on track towards our long-term goals of being a sustainable, low-cost producer with clear growth and value creation potential,” added García.