Cape Town, South Africa-based fishing company Oceana Group has advised shareholders its earnings per share for the period ending 31 March, 2022, will dip by between 53 percent and 63 percent to between ZAR 1.051 (USD 0.067, EUR 0.062) and ZAR 1.335 (USD 0.085, EUR 0.079).
In a trading statement issued to the Johannesburg Stock Exchange (JSE) on 19 April, 2022, Oceana Group said the earnings represent a decline from ZAR 2.84 (USD 0.181, EUR 0.168) reported for the previous comparative period.
A further decrease is also expected in headline earnings per share to between ZAR 1.146 (USD 0.073, EUR 0.067) and ZAR 1.407 (USD 0.090, EUR 0.083), a dip of between 46 percent and 56 percent compared to HEPS of ZAR 2.605 (USD 0.166, EUR 0.154) reported for the previous comparative period.
Oceana Group said it is currently finalizing its financial results for the six months ended 31 March, 2022, for release on roughly 2 June, 2022. The company told shareholders profit for the period “has been predominantly impacted by significantly lower levels of inventory carried into the period resulting from stock losses incurred during last year’s civil unrest in [KwaZulu-Natal], and weather-related fishing disruption.”
Earlier, in a 9 March, 2022, statement to shareholders, the group said it was “satisfied that a reasonable degree of certainty exists that the group’s basic headline earnings per share and basic earnings per share (EPS) for H1/FY22 will be more than 20 percent lower than the reported for the previously reported interim period ended 31 March, 2021, (H1/FY21).”
The company had a troubled 2021, with significant delays to its financial results after a whistleblower raised concerns regarding accounting procedures. At the same time as the company grappled with its delayed results, former CEO Imraan Soomra resigned and was replaced by Neville Donovan Brink.
The company has battled growth constraints it said are largely triggered by the impact of the COVID-19 pandemic and socio-political situation in South Africa, with the company saying in a 9 March, 2022, statement it was unable to “provide shareholders with a trading range due to the impact of the inherent uncertainty of fish catch rates for the remaining three weeks of the interim period.”
“The reduction in earnings from the prior year is due mainly to lower opening fishmeal and fish oil inventory levels, and exceptionally low canned fish inventory levels resulting from last year’s civil unrest in KwaZulu- Natal and ongoing global supply chain constraints,” Oceana said.
In the past year, Oceana has also experienced low horse mackerel and squid catches due to La Niña weather conditions in South African waters.
Nevertheless, the company is optimistic current strong local and global demand market and pricing across all its operating segments “will drive performance in the second half of the year ending 30 September, 2022, traditionally our stronger half.”
Photo courtesy of Oceana Group
