Good Namibian Catches Drive Oceana Results

OCEANA Group’s earnings for the year ended 30 September 2013 showed that earnings per share increased by 10% and headline earnings per share increased by seven percent compared to the previous year.

Group revenue improved by eight percent to N$4,9 billion in 2013.

Incorporated in 1918, Oceana is the largest fishing company in South Africa, and a participant in Namibia’s fishing industry. It is listed on both the Johannesburg (JSE) and Namibian Stock Exchange (NSX).

Oceana said growth was achieved from improvements in each of our four operating segments, led primarily by an increase of 14% in the horse mackerel and hake division.

Revenue growth in the second half of the year was affected by the continued constraints felt by South African consumers, resulting in a slowdown in canned fish sales volumes and a significant decline in industrial fish landings, the report said.

Overhead expenditure includes a charge to the statement of comprehensive income of N$152,4 million compared to N$75,6 million in 2012.

Operating profit before abnormal items increased by five percent compared to the previous year.

Inventory levels increased by 64% in 2013 as a direct result of intentional canned fish stock build in anticipation of continued demand, further impacted by a downturn in domestic canned fish volumes in the second half of the year as a consequence of pressure on consumers.

The company said canned fish sales volumes of 8,6 million cartons were marginally below 2012 levels of 8,7 million cartons.

The South African total allowable catch (TAC) for pilchard in 2013 was 90 000 tonnes compared to 100 595 tonnes. Additional pilchard quota was contracted to offset the shortfall in TAC and maintain production volumes at the St Helena Bay cannery.

The Namibian pilchard TAC for 2013 was 25 000 tonnes compared to 31 000 tonnes in 2012.

“The full Namibian quota was landed before year end. This, in addition to improved cannery performance and yields, resulted in an overall increase in local supply during the period.

The South African anchovy TAC for 2013 was 450 000 tonnes compared to 472 718 tonnes in 2012,” Oceana said.

The Namibian horse mackerel TAC for 2013 increased to 350 000 tonnes compared to 320 000 tonnes in 2012.

Oceana said the Ministry of Fisheries and Marine Resources continued to allocate further quota to new rights holders. This resulted in lower managed quota in Namibia of 87 709 tonnes compared to 107 761 tonnes in 2012.

“Catch rates in Namibia remained good. In South Africa the precautionary maximum catch limit for directed catch of horse mackerel increased by 10% to 34 650 tonnes compared to 31 500 tonnes.”

Oceana said catch rates in South Africa improved significantly contributing to higher sales volumes. It said the resource in both countries remains healthy and well managed.

Horse mackerel prices remained reasonably firm in our major markets with higher prices being achieved for certain sizes.

Oceana said revenue was further enhanced by a favourable exchange rate. As a result, profit from horse mackerel showed an increase.

Hake quota available to Oceana for deep sea trawl was improved due to an increase in TAC of 7,8%.

Revenue increased by 15% due to improved and consistent occupancy levels at most stores.

Source : The Namibian