Canning factory. (Photo Credit: Oceana Group)
Oceana Group Limited achieved a 7 per cent increase in revenue, from ZAR 4,700 million (USD 420.8 million) in 2013 to ZAR 5,039 million (USD 451 million) this year for the year ended 30 September. The firm considers this result is due to improvements in the canned fish and fishmeal division.
Canned fish volumes grew from 8,6 million cartons in 2013 to 8,8 million cartons in the current year.
“Overall pricing remained firm in our major markets despite the impact of oversupply due to the Nigerian import embargo. Higher prices have been achieved for certain fish sizes and revenue was further enhanced by favourable currency exchange rates,” the firm’s report reads.
However, this growth was affected by lower horse mackerel catch rates in the second half of the year, which were offset by the positive effect of a weaker rand exchange rate on exported products
The Group also informed that operating profits increased by 18 per cent compared to the previous year.
Besides, pilchard landings at the St Helena Bay cannery have been good for the period and additional pilchard quota were contracted to increase production, changing from 25,000 tonnes in 2013 to 30,000 tonnes this year.
Furthermore, the current season landings of anchovy and redeye herring of 81,000 tonnes (36,700 tonnes in 2013) to the group's fishmeal plants were significantly higher than in the previous season resulting in improved production efficiencies and lower costs per ton of manufactured product.
The Group considered that as a result of the fact that The Ministry of Fisheries and Marine Resources continued to allocate further horse mackerel and hake quota to new right holders, theirs was reduced, which had a negative effect on revenue and cost recovery.
On the other hand, the lobster quota available to Oceana for the current season amounted to 288 tonnes (327 tonnes in 2013). Nevertheless, the effect of lower sales volumes was offset by higher sales prices and a favourable rand exchange rate resulting in profits being consistent with the prior year.
As to the squid sector, the Group’s experienced loss due to the continued decline in landings.
In May the firm acquired the fishing interests of Foodcorp Proprietary Limited but there is a decision still pending by the court of appeal.
The Group plans to assess the viability of opportunities in Angola and have already started fishing after obtaining a mid-water trawl license in October. There are also plans to set up a fishmeal plant in the country in 2015.