July 11, 2012

 

Oceana reports increased profit

Fishing firm, Oceana Group, has brought in revenue of US$253.95 million in the six months that ended on March 31.

 

The result represents a 21% rise on year, compared to US$217.7 million that was obtained in the same six-month period last year.

 

The official operating profit of US$32 million was 25% ahead of the last half year number of US$25.7 million.

 

Oceana's inshore division more than doubled its profits to US$13.2 million despite an 11% hike in revenue to US$157.2 million in the six months that ended on March 31.

 

Pilchard landings and processing yields at the St Helena Bay cannery were positive, Oceana CEO, Francois Kuttel, said, and the profit from canned fish sales volumes on the domestic market surpassed that of the same period last year.

 

Oceana's West Coast lobster had lower catch rates and higher production costs per kilogramme, so profits were lower, CBN reports.

 

Squid catches fell well below the first half of last year and the squid business suffered a small loss.

 

In contrast, landings of anchovy and redeye herring to the group's fishmeal plants being significantly higher than in the previous season led to better production efficiencies and lower costs per tonne of manufactured product. Local sales increased although export volumes were lower due to weak international demand and prices, Kuttel explained.

 

Fishmeal made a loss but it was materially lower than the previous interim period. The mid-water and deep-sea fishing segment saw a 24% increase in profits to US$21 million.

 

Kuttel said the initial allocation of Namibian horse mackerel quotas to existing rights holders of about 100,000 tonnes was lower than in the previous year so as to accommodate new rights holders. Catches were higher for the six-month period as a result of additional quota being made available in the fourth quarter of 2011 when the company had four vessels out at sea.

 

He highlighted that increases in fuel and other costs were contained on a per tonne basis due to higher volumes caught, but said the firm was facing notable additional costs in contracting the catching and marketing of quota allocated to new rights holders.

As Oceana enters the second half, one major worry is that the proposed acquisition of hake, horse mackerel and south coast lobster fishing rights as well as cold storage business from the Lusitania group still remains subject to the approval of the Minister of Agriculture, Forestry and Fisheries and the Competition Commission. The deal would give Oceana significant leverage in the hake and south coast lobster segments.