Title: Analysis of profitability of trawl fleet investment in Liberia

Final project
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trawl fleet; Liberia; profitability; investment; strategic position


Analysis of profitability of trawl fleet investment in Liberia looks at the measurement of financial performance of trawl fleets with special attention drawn to stern freezer trawlers that fish for pelagics and demersal species with sizes ranging from 20 – 50 m in length. Interviews were conducted with managers of trawl fishing companies for the collection of primary data in addition to information provided based on the personal experience of the author who had served on board trawlers for six months as a Fisheries Inspector. Secondary data were gathered from the Bureau of National Fisheries, Monrovia and also by reviewing available printed and electronic publications. A profitability module developed by Professor Pall Jenson of the University of Iceland was used to calculate profitability, draw up financial statements and calculate financial ratios. Sensitivity analysis with price, sales, equipment and vessel considered as input variables was performed, scenario analysis was conducted looking at best case, worst case and normal case scenarios and a Monte Carlo simulation was carried out to ascertain the probabilities, with data based on assumptions and hypotheses. Gaining strategic position in the industry in Liberia and on a global level was considered. This paper reveals that the net present value (NPV) and internal rate of return (IRR) of both types of trawl investment are acceptable. An adequate cash flow for the investment was indicated.

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