Salmon companies listed on the stock exchange showed negative yields. (Photo: Stock File/FIS)
Salmon fisheries lose market capitalization of USD 750 million
Friday, February 10, 2012, 01:10 (GMT + 9)
The salmon companies sector index fell 1.1 per cent on Wednesday. This drop comes after the Superintendence of Securities and Insurance (SVS) requested the salmon industry companies listed on the Santiago Stock Exchange data in order to quantify the real value of business -- aquaculture concessions and water rights -- among other aspects.
A comparison between placement prices with the current ones shows that the yields of the salmon industry companies listed on the Chilean Stock Market were negative: market value losses are estimated to reach USD 750 million since mid last decade, when the companies went public, Estrategia informed.
The market capitalization losses reach USD 750 million for the respective placements at current levels.
With regard to the placement price, the first company with losses is Multifoods (Multiexport Foods), down 50.7 per cent.
Further back is Camanchaca S.A. (46.3 per cent), Australis Seafoods S.A. (31.4 per cent), Invertec Pesquera Mar de Chiloé (18.6 per cent), and Aquachile (9.5 per cent).
"When companies went public, the projections were different and the price level of the salmon was much higher, for example, when Aquachile and Australis began trading on the stock market last year," Andres Galarce, Euroamerica analyst explains. "Although a price drop was expected, it actually was sharper than previously thought.”
To Galarce, there are two factors that cause this situation:
- The crisis of the European Union (EU) encourages expectations of a fall in demand and an increased competition with Norway to gain market share;
- The unexpected health recovery of Chile after the ISA virus outbreak, which generated a global oversupply of salmon, as Norway had increased its production.
On the other hand, the SVS asked AquaChile, Multiexport Camanchaca, Australis Seafoods, Invertec, Blumar and Cultivos Marinos Chiloé details of their aquaculture concessions, their own water rights granted and pending, indicating leased operations and those in use, Estrategia informed.
Likewise, they must quantify in units and tonnes the biomass of their biological assets, distinguishing seawater and freshwater ones. And measure their assets in their revenues, specifying in turn, period yields, expressed in tonnes, and hectares of seawater -- and total -- in use, in percentage terms.
- Low salmon prices expected during 2012
By Analia Murias