Pingtan Marine Enterprise (PME) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $12.82 million, or $ 0.16 a share in the quarter, against a net profit of $20.68 million, or $0.26 a share in the last year period. Revenue during the quarter plunged 57.35 percent to $1.17 million from $2.74 million in the previous year period.
Operating loss for the quarter was $13.07 million, compared with an operating loss of $7.55 million in the previous year period.
Mr. Xinrong Zhuo, chairman and chief executive officer of the Company, commented, "In the third quarter 2016, we continued to reach out to different countries and regions seeking to expand our fishing territories. We are pleased to announce that 13 of our fishing vessels are on the way to their fishing destination in the sea area of Timor-Leste, and we expect to put these vessels in full operation the upcoming weeks. Meanwhile, we are also in the process of negotiating with delegates from several countries with fertile fish resources, and we have already looked into opportunities outside of Asia-Pacific. We are committed to providing a variety of natural seafood products around the world to Chinese consumers."
Operating cash flow drops significantlyPingtan Marine Enterprise has generated cash of $3.03 million from operating activities during the nine month period, down 93.31 percent or $42.35 million, when compared with the last year period. The company has spent $30.09 million cash to meet investing activities during the nine month period as against cash outgo of $18.19 million in the last year period.
Cash flow from financing activities was $16.46 million for the nine month period as against cash outgo of $18.82 million in the last year period.
Cash and cash equivalents stood at $0.57 million as on Sep. 30, 2016, down 97.31 percent or $20.52 million from $21.09 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Pingtan Marine Enterprise has turned negative to $8.20 million on Sep. 30, 2016 from positive $42.04 million on Sep. 30, 2015. Current ratio was at 0.86 as on Sep. 30, 2016, down from 1.75 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 1433 days for the quarter from 800 days for the last year period. Days sales outstanding went up to 1314 days for the quarter compared with 774 days for the same period last year.
Days inventory outstanding has increased to 126 days for the quarter compared with 38 days for the previous year period. At the same time, days payable outstanding went down to 8 days for the quarter from 12 for the same period last year.
Debt moves up marginally
Pingtan Marine Enterprise has witnessed an increase in total debt over the last one year. It stood at $73.06 million as on Sep. 30, 2016, up 3.94 percent or $2.77 million from $70.29 million on Sep. 30, 2015. Total debt was 32.44 percent of total assets as on Sep. 30, 2016, compared with 26.43 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.39 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
