We don't own fishing quotas in Russian waters: Pacific Andes

It issued clarifications to media reports.

According to OCBC, following certain media report that Pacific Andes International Holdings (PAIH) and subsidiaries have gained Russian fishing assets without the relevant approval, the group has issued a joint announcement.

Here's more from OCBC:

In it, it states that “it does not own any fishing quotas in Russian waters” and “believes that the group’s supply of fish is in compliance with existing Russian law”.

However, we have also spoken to management to get further clarity. The group has not received any official notification from the authority, but is planning to set up a meeting to get further clarification.

It also reiterated that there is no change to its current operations. However, in the worst case scenario, and if they are not permitted to get fish from there, this could result in a premature termination of its prepayment contracts, and the counterparties will have to refund the investments back to the group.

Pending official clarity on this issue, we expect PARD’s shares to remain under pressure as fishing forms a critical part of its operations. While we have a medium-term HOLD rating on this stock and S$0.143 fair value, this uncertainty is likely to cap its price performance.