PAFCO made a $1.6M before tax profit last year

Pacific Fishing Company or PAFCO made a $1.6 million dollars before tax profit last year.

PAFCO Chairman Iqbal Janiff confirmed this in a presentation to the Public Accounts Committee.

Janiff says they are expected to make a profit of $1.6 million again this year despite the damages done by Tropical Cyclone Winston.

He says their main export is fish loins which are exported to Bumble Bee in US and PAFCO produces 120 tonnes of fish loins per hour over five days.

Opposition MP Aseri Radrodro then asked him how he can be confident that they will make a good profit this year.

Janiff says that last year they received 21,700 tonnes of fish from Bumble Bee to process fish loins and this year they expect to receive 22,000 tonnes of fish.

It was also revealed that PAFCO is also facing some of the biggest challenges and one of them is to pay their bank loan.

Janiff says that as their revenue increases their financial cost for the next few years will also increase.

The company is also trying to get leases for two land titles since 2009.

Janiff says they have titles for seven leases out of which five are renewed and they are waiting for two titles from the Lands Department and they are seeking assistance from the Ministry of Public Enterprises to solve the issue.

He says they are also trying to secure a ten year agreement with Bumble Bee since their agreement with the company expires next year.

He revealed that the total maintenance and repair cost after Tropical Cyclone Winston was $5 million.

Janiff also highlights that they suffered a loss of more than $5 million when the PAFCO cargo in MV Suilven sank at the Suva harbour last year.

He says all the recoveries were made through insurance.

There are eight management positions, 35 permanent staff and 1,100 hourly paid staff in PAFCO.