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August 1, 2015

Latin America

Pescanova’s Shrimp Farms

 

Pescanova, the troubled Spanish fishing and seafood company that owns several shrimp farms in Latin America, posted a $27.7 million loss in the first five months of 2015, as falling shrimp prices and currency effects had a significant impact on its operations.  Nonetheless, according to its latest financial results, by the end of May 2015, the company had increased its sales to $550.7 million.  The growth in sales indicates “the strength of the group’s businesses” and the “positive trend” in the company’s activities since it overcame the crisis following its filing for bankruptcy two years ago.

 

“The group’s businesses profitability has been hit significantly by...variables such as the euro/dollar price index in...key products like shrimp,” Pescanova said.

 

These factors have a “relevant impact” on the profitability of Pescanova’s operations, since the majority of the company’s fishing and aquaculture activities are located in regions with dollar influence—mainly in Latin America and southern Africa—which increases costs.

 

In addition, lower prices for farmed shrimp have impacted prices of wild-caught species, like red shrimp, which Pescanova captures off the coast of Argentina.

 

Pescanova’s shrimp farming unit consists of the Latin American subsidiaries Promarisco, Camanica, Serviconsa, Nova Guatemala and Nova Honduras.

 

Also See: Pescanova, Manuel Fernandez de Sousa Assembles the Largest Shrimp Farming Venture in the Western Hemisphere.  Larry Drazba Put It Together and Tells the Story.

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Pescanova Reports €25m Loss as Falling Shrimp Prices, Currency Issues Hit Profitability.  Alicia Villegas (alicia.villegas@undercurrentnews.com).  July 31, 2015.

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