Pingtan Marine Enterprise Ltd. (PME) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $6.69 million, or $ 0.08 a share in the quarter, against a net loss of $9.08 million, or $0.11 a share in the last year period. Revenue during the quarter dropped 5.87 percent to $13.15 million from $13.97 million in the previous year period. Gross margin for the quarter period stood at positive 75.11 percent as compared to a negative 63.99 percent for the previous year period. Operating margin for the quarter period stood at positive 62.50 percent as compared to a negative 70.69 percent for the previous year period.
Operating income for the quarter was $8.22 million, compared with an operating loss of $9.88 million in the previous year period.
Mr. Xinrong Zhuo, chairman and chief executive officer of the Company, commented, "In 2016 we were dedicated to expanding into new fishing territories, and we have achieved substantial progress in the fourth quarter. Since November 2016, we have deployed 13 of our fishing vessels to the Indo-Pacific waters, 2 large-scaled squid jigging vessels to the international waters of the Pacific and Atlantic Oceans, and 4 tuna longline vessels to the international waters of the Pacific Ocean. Through these efforts, we started to recover our production capacity to about 30%, returned to profitability by the fourth quarter, and finally ended the losses since the moratorium enacted by the Indonesian government. Looking forward, we will continue to focus on expanding our fishing regions to increase harvest volume and enrich product mix and to innovate and integrate our existing resources to further penetrate into mainland areas and the retail market."
Operating cash flow turns negative
Pingtan Marine Enterprise Ltd. has spent $4.95 million cash to meet operating activities during the year as against cash inflow of $40.85 million in the last year. The company has spent $13.08 million cash to meet investing activities during the year as against cash outgo of $66.19 million in the last year.
Cash flow from financing activities was $7.87 million for the year, down 67.04 percent or $16.01 million, when compared with the last year.
Cash and cash equivalents stood at $0.82 million as on Dec. 31, 2016, down 92.83 percent or $10.63 million from $11.45 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Pingtan Marine Enterprise Ltd. has turned negative to $5.90 million on Dec. 31, 2016 from positive $49.48 million on Dec. 31, 2015. Current ratio was at 0.91 as on Dec. 31, 2016, down from 2.17 on Dec. 31, 2015.
Debt moves up
Pingtan Marine Enterprise Ltd. has witnessed an increase in total debt over the last one year. It stood at $60.69 million as on Dec. 31, 2016, up 6.07 percent or $3.47 million from $57.22 million on Dec. 31, 2015. Total debt was 27.02 percent of total assets as on Dec. 31, 2016, compared with 24.68 percent on Dec. 31, 2015. Debt to equity ratio was at 0.44 as on Dec. 31, 2016, up from 0.34 as on Dec. 31, 2015.
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