Cape Town, South Africa-based Oceana Group has released a trading update for the 11 months ending 27 August, 2022, indicating a 16.2 percent increase in the company’s canned pilchard/sardine fish sales volumes, as demand surges and supply networks continue to normalize following the COVID-19 pandemic.
The company has seen its year-to-date sales of pilchard increase to 8 million cartons, up from 7.9 million in 2021, which the company said was an indication of easing straing on the company's operations. Oceana said its canning production increased by 50 percent over the 11-month period, mitigating cost pressures including increased freight costs and the South African rand weakening against the U.S. dollar.
Oceana Group also posted a 24 percent increase in production volumes from its African fishmeal and fish oil operations, despite poor winter weather conditions that impeded available fishing days in July and August.
The company estimated it sold 23,105 metric tons (MT) of fishmeal and fish oil during the period, a 5 percent increase.
“Strong fish oil pricing and the weaker rand against the U.S. dollar resulted in a 40 percent increase in average rand selling prices for the 11-month period,” Oceana said.
At its U.S. operations, Oceana posted a strong performance as landings increased 63 percent for its affiliate Westbank to 650 million fish, on the back of favorable fishing and weather conditions during the 28-week season ending 30 September, 2022. Westbank's catch total is 28 percent above the company’s long-term average of 509 million fish.
“Inventory levels available for sale in September and into the new financial year are currently well above the five-year average,” Oceana said.
Meanwhile, the company’s hake and horse mackerel operations continue to be negatively affected by “high fuel and quota costs and poor catch rates.”
Maintenance required for its fleet in Namibia during the first half of year triggered a 10 percent decline in sales volumes, although the company said horse mackerel demand and pricing in the African market remains strong, and Europe’s demand for hake “remains stable.”
Oceana’s board expects to release the provisional reviewed results for the year ended 30 September, 2022, in December 2022, with audited results expected not later than 31 January, 2023.
Last year, Oceana Group struggled to post its financial results on time, delaying their release for months. Amid the lengthy delays, the company’s external auditor, PriceWaterhouseCoopers, abruptly resigned a day before the company’s board had a scheduled consultation to discuss its next actions, after the company decided against reappointing the firm as an external auditor.
Amid the turmoil, the company replaced its CEO after the previous CEO, Imraan Soomra, resigned on 14 February. Around the same time ,Oceana Group CFO Hajra Karrim was suspended for gross misconduct, and just a few months later, the company fired her following a disciplinary process.
During its results announcement, Oceana Group announced it has found a replacement for Karrim and that it has appointed Zafar Mahomed as company’s chief financial officer designate and executive director. Mahomed will eventually replace Ralph Buddle, who has served in the role on an interim basis since Karrim’s firing.
The appointment of Mahomed – a telecommunication, food franchise, and furniture retail industry veteran – will be effective 1 November, 2022, with him taking over the role on a permanent basis in 2023.
“Following an extensive search and recruitment process conducted by a delegated selection panel comprising of designated non-executive directors of the Oceana board, Mr. Mahomed will assume office as Oceana’s CFO and executive director of the Oceana Board effective from 1 February, 2023,” Oceana’s announcement said.
Photo courtesy of Oceana Group
