Oceana reports surge in canned fish sales

Benefits from own power generation
There is still strong market demand for affordable protein, the company said.
    - 2023-03-01 00:00:00
Karl Gernetzky - Fishing group Oceana has reported a surge in canned fished volumes due to improved inventory levels and strong demand, while it is also benefiting from the fact its fishing fleet relies on its own power, while its Western Cape fishmeal operation used coal boilers.
Oceana, which fishes off the coasts of the US, SA and Namibia, yesterday flagged profit growth of at least a fifth for the four months to 29 January, with canned fished volumes rising 33% to 3.5 million cartons, largely due to improved inventory levels.
There was still strong market demand for affordable protein, the company said, although the price was insufficient to offset cost pressures, requiring another price increase towards the end of January.
Early season anchovy landings have been better than the prior period and South African fishmeal and fish oil sales volumes were 23% higher, the company said.
Chinese demand
In the US, fishing is off season, but stronger Chinese demand together with lower anchovy landings and oil yields in Peru have continued to drive US dollar pricing resulting in an average 11% increase in fishmeal US dollar sales prices and a 61% increase in fish oil US dollar sales prices compared to the prior period.
Performance also benefited from the effect of the weaker exchange rate on the translation of US dollar earnings and the receipt of an additional R72 million insurance payout following from its 2021 Hurricane Ida insurance claim.
South African catch rates remained poor however, impacted by continued La Nina weather conditions in South African waters, but strong demand-led pricing and the weaker rand/US dollar exchange rate contributed positively to the performance.
Oceana's shares were unchanged at R68.40 on Tuesday, having risen almost 27% over the past year. – Fin24