Oceana increases earnings

OCEANA Group Limited has reported a substantial growth in headline earnings for the financial year ended September 30 2007.

Earnings per share increased by 46 per cent compared to the previous year following improved results in horse mackerel, fishmeal and lobster. Headline earnings per share were 44 per cent above last year.Group turnover increased by three per cent whilst operating profit before abnormal items increased by 29 per cent.Investment income declined due to lower average net cash balances following the group’s contribution of R126,7 million to the funding of its black economic empowerment transaction during September 2006.Commenting on inshore fishing operations, CEO Andrew Marshall said that profitability from canned fish was well below the previous year.As a result of lower total allowable catches (TACs) in South Africa and Namibia, and lower pilchard landings, production and supply of canned fish from other local producers, there was insufficient supply of product, despite increased imports, to satisfy demand on the domestic market.Sales volumes were lower and turnover declined.Reporting on fishmeal operations, Marshall said that profits improved substantially.Profits from the lobster business improved.”Oceana’s quotas were landed in full by close of season.Production costs per unit were lower mainly as a result of increased volumes and rationalisation of production facilities and vessels.Higher export prices and the weaker rand exchange rate resulted in increased profitability.”In the mid-water and deep-sea fishing division, Marshall said that profitability from horse mackerel operations was significantly higher than the previous year.Despite a lower Namibian TAC, higher catches by the group’s own vessels and improved vessel efficiencies impacted favourably on fishing costs.In South Africa, Oceana’s vessels incurred lower costs per tonne of fish caught due to fuel efficiencies and increased catch volumes.Turnover declined by three per cent due to lower volumes sourced from external fleets and the lower Namibian quotas but good prices in African markets, combined with the weaker rand exchange rate, resulted in overall improved profitability.Headline earnings per share were 44 per cent above last year.Group turnover increased by three per cent whilst operating profit before abnormal items increased by 29 per cent.Investment income declined due to lower average net cash balances following the group’s contribution of R126,7 million to the funding of its black economic empowerment transaction during September 2006.Commenting on inshore fishing operations, CEO Andrew Marshall said that profitability from canned fish was well below the previous year.As a result of lower total allowable catches (TACs) in South Africa and Namibia, and lower pilchard landings, production and supply of canned fish from other local producers, there was insufficient supply of product, despite increased imports, to satisfy demand on the domestic market.Sales volumes were lower and turnover declined.Reporting on fishmeal operations, Marshall said that profits improved substantially.Profits from the lobster business improved.”Oceana’s quotas were landed in full by close of season.Production costs per unit were lower mainly as a result of increased volumes and rationalisation of production facilities and vessels.Higher export prices and the weaker rand exchange rate resulted in increased profitability.”In the mid-water and deep-sea fishing division, Marshall said that profitability from horse mackerel operations was significantly higher than the previous year.Despite a lower Namibian TAC, higher catches by the group’s own vessels and improved vessel efficiencies impacted favourably on fishing costs.In South Africa, Oceana’s vessels incurred lower costs per tonne of fish caught due to fuel efficiencies and increased catch volumes.Turnover declined by three per cent due to lower volumes sourced from external fleets and the lower Namibian quotas but good prices in African markets, combined with the weaker rand exchange rate, resulted in overall improved profitability.