Pacific Andes Resources Development's gains crash to HK$8.9m

It's a sharp dive.

According to OCBC, Pacific Andes Resources Development (PARD) delivered a sharply below expectations set of 4Q results. Net earnings plunged to HK$8.9m, down from HK$146.1m in 3Q12.

Here's more from OCBC:

This meant full year earnings of HK$627.7m, way below market expectations of HK$755.3m. Management explained the main reason for the sharp decline in earnings was largely due to lower-than-expected earnings from China Fishery Group (CFG), which was dragged down by several factors including lower activity in the North Atlantic as well as lower catch volume in the South Pacific Ocean.

In addition, overall average selling price (ASP) also fell 3%. This led to a sharp decline in margins. For PARD, operating margin fell from 10.2% in 4Q11 and 12.5% in 3Q12 to 6.4% in 4Q12. Other margins fell in tandem.

CFG disappointed and posted net earnings of US$78.1m for FY12 versus US$103.7m in the previous year. This also translated into lower dividend payout of 1.9 S cents for CFG shareholders versus 4.5 S cents previously.

Similarly, PARD shareholders will also see a cut in dividend payout from 1.08 S cents (which traditionally accounted for about one-third of its earnings) to 0.3 S cent (14.5% of earnings).