Pingtan Marine Receives 20 Fishing Vessels
Pingtan Marine Enterprise Ltd. PME -0.69% , an integrated marine services company in the People’s Republic of China (PRC), today announced the recent delivery of 20 newly-built fishing vessels, which were initially ordered by the Company in September 2012. With the addition of these vessels and the recent acquisition of 46 vessels in June 2013, the Company’s total current fleet has increased to 106. The Company expects these vessels will materially increase its fish harvest volume and revenue, while being immediately accretive to net income.
The vessels delivered to the Company (full list below), which were built in Shandong Province, were delivered to the Company in early September. These vessels have an expected run-in period of 3 – 6 months, in which each are placed into the sea for testing prior to full operation. At full operation, each vessel is capable of harvesting 900 to 1000 tons of approximately 30 types of species of fish from the Indian Ocean. At current prices and operating at full capacity, each vessel can generate annual revenue of approximate $3 million USD with annual net income of approximate $800,000 to $1 million.
Mr. Xinrong Zhou, Pingtan’s Chairman and CEO, stated, “We are pleased to announce the delivery of these new vessels. We believe that the expansion of our fleet will continue to create economies of scale for Pingtan. Increasing our volume will help in our negotiations with distributors and exporters, and also create the possibility of selling downstream directly to end markets. We expect to remain aggressive in increasing our fleet, and look forward to enhancing our leading position in China’s seafood industry.”
Press Release, September 13, 2013