Pingtan Stock Plunges 14% on Weak Sales, Net Income Drop
The stock in Pingtan Marine Enterprise Ltd. (Nasdaq: PME) plunged nearly 14% to $1.80 per American depositary share on Monday after the company reported declines in revenue and profit for the third quarter.
The Fuzhou-based fishing company said in a statement after the markets closed on Friday its revenue in the three months through September was $11.2 million, down 24% year-over-year. Net income slipped to $4.4 million, or 5 cents per ADS, compared with $13.7 million, or 16 cents per ADS, a year ago.
The revenue drop in the third quarter was attributed to the average unit sale price falling 49% year-over-year, the report said.
"During the quarter, the Company's highest sales revenue and volume by single fish species were from the one species with the lowest average price," Xinrong Zhuo, the chairman and chief executive officer of Pingtan, said in the statement.
He added, "Besides, it was monsoon season this quarter, which made it difficult to transport catches back, and our fish landings for the quarter decreased compared to the previous quarter this year, another factor impacting our revenue."
Pingtan also noted its fishing vessels in the Indonesian waters were not in operation since an incident in September 2017. At the time, the Ministry of Agriculture and Fisheries of the Democratic Republic of Timor-Leste alleged that Pingtan made false statements during the licensing and registration process of its vessels and placed a moratorium on its license renewal, according to the report. As a result, 13 vessels of Pingtan, have been temporarily suspended.
As of September, the company operated 141 fishing vessels.