Cape Town, South Africa-based Oceana Group has selected Mazars to serve as the company’s new external auditor, and also announced mixed results in terms of production volumes.
The company announced a 10 percent decline in its hake and horse mackerel operations for the nine-month period ending 26 June, 2022, on the back of high fuel costs, quota costs, and poor South African catch rates.
“Sales volumes for the nine months are 10 percent lower than the prior period, mainly due to scheduled vessel maintenance in the first half,” the company said in its 21 July 2022 voluntary trading update.
Despite the drop in catch the demand for mackerel in Africa remains strong, while demand for hake in Europe is improving, according to Oceana/
“Continued demand for affordable, healthy protein, good pilchard catch rates, and continued strong pricing in our fishmeal and fish oil businesses, have delivered a strong operational third quarter,” Oceana Group CEO Neville Brink said.
Oceana’s performance for the nine months is signaling a H2 recovery. The company’s canned fish sales volumes for the third quarter rose 14.5 percent compared to similar trading period last year.
Oceana Group also reported a positive performance in its African fishmeal and fish-oil production volumes, which were 28 percent higher than in Q3 2021.
“Sales volumes year-to-date are now in line with the prior period, having recovered from the impact of lower opening inventory levels,” Oceana said.
Meanwhile, the company’s operations in the U.S. reported improvements, with third-quarter gulf menhaden landings coming in 83 percent higher than in the comparative period last year, with total landings for the nine months up 62 percent thanks to all 12 of the company’s vessels being fully operational.
“As a result, fishmeal and fish-oil inventory available for fourth quarter shipment is 115 percent higher than it was going into the fourth quarter in the previous period,” Oceana said, adding that “international [U.S.] dollar pricing for fishmeal and fish oil is extremely strong.”
At the same time as the new results, the board of directors announced it has appointed South Africa-based Mazars as the company’s new external auditors, following a tender process. The appointment of Mazars, a top-tier firm accredited by the Johannesburg Stock Exchange (JSE) as an auditor and reporting accountant with 16 listed clients, takes effect immediately.
Mazars replaces PricewaterhouseCoopers (PwC), which abruptly resigned from the position on 27 May, 2022 – barely a day before a scheduled meeting of Oceana Group shareholders that planned to discuss the company’s next actions after a majority of its board of directors voted against reappointing of PwC as the group’s external auditor. Oceana acknowledged a strained relationship with PwC after extensive delays in the preparation and release of the group’s 2021 full-year results.
On 21 July, 2022 Oceana Group said it expects the new auditor will produce more-timely results.
“The board expects to report provisional reviewed results for the year ending 30 September, 2022, by no later than 31 December, 2022, and to release audited results by no later than 31 January, 2023,” it said.
Oceana Chairman Mustaq Brey said the appointment should provide reassurance to shareholders.
“Mazars is an internationally respected audit firm with a large and well-established business in South Africa and we are confident that with this appointment, we can provide shareholders and key stakeholders with assurance that financial reporting will continue to be impartial and rigorous,” Brey said.
Photo courtesy of Oceana Group
