Oceana’s Namibian performance declines 14% due to catch costs Chamwe Kaira Oceana Group reported a 14% drop in its Namibian performance, driven by higher catch costs, increased fuel prices, rising quota costs, and a larger share of lower-value bycatch. In its unaudited condensed consolidated interim results for the six months ended 31 March, the company said horse mackerel fishing in South Africa was limited. The Desert Diamond vessel operated in Namibia for most of the period due to low catch rates in South African waters. In Namibia, catch rates remained in line with the previous period, but sea days declined. This was due to the Desert Jewel undergoing a freon conversion and the completion of an engine overhaul on the Desert Ruby. The Desert Diamond, after being deployed to Namibia, provided extra catch capacity. Total horse mackerel sales volumes rose by 2.9% to 19,431 tonnes, up from 18,882 tonnes in March 2024. The company noted that market conditions stayed strong, with steady demand driving a 3.8% increase in the average US dollar sales price. Hake operations delivered solid results. Catch volumes increased by 14.6% due to more sea days and better catch rates following recent investments in the fleet. Sales volumes rose by 13.2% to 5,576 tonnes, up from 4,925 tonnes in March 2024. Demand and pricing for hake remained strong, supported by a shortage of other white fish species in Europe and globally. The focus on maximising catch volumes helped improve fixed cost recovery and profitability. Group revenue rose by 2.9% to N$5.2 billion, compared to N$5 billion in March 2024. The increase was driven by higher sales volumes in canned foods, fishmeal and fish oil, hake, and Namibian horse mackerel, along with strong pricing in wild-caught seafood. However, this growth was offset by lower pricing for fishmeal and fish oil. Gross profit margin dropped to Pall Reminder: ( books ) cher归 27.8%, down from 34.1% in March 2024. The decline was linked to lower fishmeal and fish oil prices, a higher proportion of low-value bycatch, and increased quota costs in the Namibian horse mackerel sector. The Lucky Star foods margin improved, supported by higher local production volumes and better efficiencies following cannery upgrades in the previous financial year. Net interest expense increased to N$144 million, up from N$93 million, due to higher borrowing levels. During the current period, these funds were used to support the capital expenditure program and working capital requirements. Capital expenditure stood at N$183 million, down from N$297 million in March 2024. Spending is focused on dry docks and further upgrades to the hake and horse mackerel fleet, including the freon conversion of the Desert Jewel.

#OceanaGroup #NamibiaFishing #CatchCosts #SustainableFishing #HorseMackerel

Allan Gray’s clients now own 10.34% of Oceana Chamwe Kaira Oceana Group Limited has received formal notice that clients of Allan Gray have increased their stake in the company. The asset manager’s clients now hold 10.34% of Oceana’s total issued ordinary shares. The company shared this update in a statement issued to shareholders. “Shareholders are hereby advised that Oceana has received formal notification that clients of Allan Gray have, in aggregate, acquired an interest in the ordinary shares of the company, such that the total interest in the ordinary shares of the company held by Allan Gray’s clients now amounts to 10.34% of the total issued ordinary shares of the company. The company has filed the required notices with the Takeover Regulation Panel. The board of directors of Oceana accepts responsibility for the information contained in this announcement accurate,” the company said. Oceana operates across South Africa and Namibia. It exports hake, lobster, squid, and horse mackerel through the Oceana Brand under the Blue Continent entity. In Namibia, horse mackerel is caught by Erongo Marine Enterprises and exported through the Erongo Marine Brand. For the year ended 30 September 2024, Oceana reported a 9.5% increase in operating profit to N$1.63 billion. The board declared a full-year dividend of 495 cents. Lucky Star products maintained strong sales despite pressure on consumers. Annual volumes reached 9.3 million cartons, slightly below the 2023 record of 9.6 million cartons. A breakdown on the Desert Diamond vessel reduced sea days and affected horse mackerel operations. In Namibia, rising costs and lower catch rates further impacted performance. In 2024, Namibia cut its Total Allowable Catch for a second year to support sustainability. Oceana said the country’s strategy to auction a large portion of the quota affects its ability to secure economically viable volumes. The company is working to strengthen relationships with rights holders in South Africa and Namibia to build long-term partnerships.

#AllanGray #OceanaGroup #Investing #Shareholders #FinancialNews

Ocean earnings drop by 49% CHAMWE KAIRA  Oceana Group Limited has warned shareholders to expect a decline in earnings for the six months ending 31 March 2025, mainly due to lower fish oil prices and increased operating expenses in its Namibian operations. In a trading statement released this week, the group said earnings per share (EPS) are expected to range between 300 cents and 350 cents, a drop of 40% to 49% compared to 587.6 cents reported during the same period last year.  Headline earnings per share (HEPS) are also expected to decline by 40% to 48%, compared to 578.8 cents in the prior comparative period. The company attributed the drop in earnings to a strong performance by Daybrook Fisheries in the previous period, which had been boosted by record high fish oil prices. Oceana said prices had since normalised due to a recovery in fish oil production in Peru. “Fish oil prices in the period normalised following a recovery in Peruvian production. The period’s lower earnings are partially offset by the improved performance in other segments. Lucky Star Foods delivered solid results, supported by steady consumer demand, increased local production volumes, and improved operational efficiencies. The Wild Caught Seafood segment benefited from improved hake catches during the second quarter, combined with strong pricing,” the company said. The group is currently finalising its financial results for the six-month period ending on 31 March, with a release date of 9 June anticipated.. Oceana stated in the 2024 Integrated Report that they reduced the Namibian TAC for the second consecutive year to manage the resource’s sustainability. It said the strategy of the Namibian fisheries to auction a big portion of the TAC impacts its ability to secure quotas at economically sustainable levels. The company said following a strong performance in 2023, Namibian horse mackerel performance was negatively impacted by higher operating expenses due to a combination of lower catch rates, increased fuel costs and higher quota usage fees. Sales volumes remained flat year-on-year, and pricing softened slightly from the prior year’s high level. Oceana said its Namibian business will ensure an ongoing focus on strengthening and enhancing stakeholder relationships to secure long-term sustainability. “In line with our investment and compliance strategy, one of the Namibian vessels will be converted from freon to a more environmentally acceptable gas, which will result in a shorter period of downtime and will impact catch capacity,” the company said. It said the focus is on strengthening rights-holder relationships in South Africa and Namibia to build long-term sustainable partnerships. Ocean stated demand for larger-sized South African horse mackerel in West Africa and Mozambique remained strong among price-conscious consumers.

#OceanaGroup #FishingIndustry #EarningsReport #FishOilPrices #Namibia