AquaChile recorded a strong increase in profits in the first three quarters of the year.

AquaChile doubles net profit in first three quarters

In the first nine months of 2018, Empresas AquaChile registered a net profit of USD 71.3 million, more than double the amount obtained in the same period last year, a result attributed mainly to the net effect of the valorization of biomass at fair value and the sale of shares of Salmones Chaicas.

The company reported that as of September 30 of this year, its "consolidated sales" increased by 31 per cent compared to the same period of 2017, while its "operating costs" and "other costs and operating expenses" increased by 38 per cent and 41 per cent, respectively.

In its financial report to the Commission for the Financial Market (CMF), AquaChile explains that these differences are due to a large extent to the incorporation in 2018 of the figures of Salmones Magallanes.

With the above, the operating result before fair value adjustments (EBIT pre FV) reached USD 72.6 million, compared to USD 67.1 million recorded in the same period of 2017.

Consolidated EBITDA before fair value adjustments was USD 95.9 million as of September 30, 2018, higher than the USD 91.9 million recorded in the same period of 2017. This higher EBITDA is mainly due to the increase in the volume sold of Atlantic salmon (increase of 20,825 tonnes WFE).

The company also reported that until the end of the third quarter, its net profit from the value of biomass at fair value was USD 15.2 million, compared to a loss of USD-4.4 million recorded for this concept in the same period of the year 2017.

The above is mainly due to the recognition of the valuation adjustment of the biomass of fish in breeding of USD 92.9 million, higher than the USD 50.2 million registered in the same period of the previous year. In turn, this is explained by the greater volume of Atlantic salmon in valued valorised at fair value as of September 30, 2018 and by the recognition in the results of USD 59.1 million attributable to the fair value of the harvested biomass destined to product finished and for sale during the period, higher than the USD 31.3 million recorded on the same date of the previous year.

AquaChile also points out that this result was influenced by the reversal of the provision for lower realization value of finished product as of September 30, 2018, of USD -8.9 million, lower than the provision of USD -1.5 million recorded up to 30 September 2017, as well as the recognition of a higher cost due to the fair value of biomass effectively sold through September 2018 of USD -68.8 million, lower than the USD -53.1 million registered in same period of the previous year. The latter was due, to a large extent, to the highest volume sold of Atlantic salmon and trout during the first nine months of 2018 compared to the same period of 2017.

Source: Bloomberg

The Non-Operating Result presented a profit of USD 2.3 million, compared to a loss recorded as of September 30, 2017. This is mainly explained by the recognition of a profit of USD 18.2 million in the "Other non-operating income" generated by the sale of 49 per cent of the property of Salmones Chaicas to Benchmark Chile.

Meanwhile, the increase of USD 3.8 million in financial costs during the third quarter of 2018, compared to the same period of the previous year, was mainly due to the interest associated with the bridge loan of USD 240 million obtained to finance the purchase of Salmones Magallanes and for the debt consolidation of the latter.

Thus, as of September 30, 2018, Empresas AquaChile registered a net profit of USD 71.3 million, which compares with the USD 33.7 million profit recorded as of September 30, 2017. This better result is mainly explained by the net effect of the valorization of the biomass at fair value and the sale of shares of Salmones Chaicas indicated above.

Related article:

- AquaChile will buy Salmones Magallanes and Pesquera Eden for USD 255 million

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Address:	Sector Cardonal S/N Lote B.
City:	Puerto Montt
Country:	Chile
Phone:	+56 65 433550
Fax:	+56 65 433551
E-Mail:	info@aquachile.com
Skype:	https://www.instagram.com/aqua_chile/
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