Windhoek — Oceana, the fishing company with operations in Namibia and South Africa said this week that headline earning per share went up by 18% in the year ended 30 September.

Revenue for the year ended increased by 10% over the previous year and operating profit before abnormal items improved by 29%. The canned fish and horse mackerel businesses showed exceptional improvement over the prior year whilst some of the other business units were negatively affected by the global downturn and the strong rand in the second half of the year.

Earnings per share and headline earnings per share for the year increased by 18%. A final dividend of 153 cents per share has been declared which, together with the interim dividend of 31 cents, brings the total dividend for the year to 184 cents per share, an increase of 18% on the 2008 total dividend of 156 cents.

In its review of operations, Oceana said the company's 2009 Total Allowable Catch (TAC) for pilchard is 90 000 tons (2008: 90 776 tons).

"The size and quality of fish landed was good, resulting in improved canning yields. Canned fish production at the St Helena Bay cannery was accordingly above the prior year level. The Namibian pilchard TAC was the same as in 2008 at 15 000 tons, but production at the Etosha Fishing cannery was lower due to a re-alignment of quota holders which provide quota to the company.

Sales of canned pilchards on the local market increased in volume terms although insufficient products were available to fully meet demand. Additional supplies were imported from several international suppliers to help meet market demand and maintain Lucky Star's market leadership position. This in turn gave rise to significantly increased working capital requirements," Oceana said.

The company said volumes and margins declined at Glenryck Foods in the United Kingdom as a consequence of depressed economic conditions. Overall, profitability from canned fish was above that of the previous year.

Export prices were lower in foreign currency terms and with the effect of the stronger rand exchange rate during the second half of the financial year resulted in lower turnover. Lobster profits were lower for the full year, the company said. "A protracted strike by fishermen in the squid industry caused squid catches to be lower than those of last year. The low volumes and significantly lower Euro selling prices resulted in a loss being recorded.

Sales volumes in the French fry business were lower than the prior year, with the economic downturn having affected all major clients. Profits and margins were negatively impacted by high raw potato prices," the company said.

The South African and Namibian horse mackerel TAC's were unchanged at 31 500 tons and 230 000 tons respectively. Catches were very good, with excellent catch rates per trip and an improved mix of larger fish. Volumes in Namibia were significantly up on last year as a result of the introduction of a third mid water trawler in August last year. The higher turnover from own vessels was offset by a large decline in the trading of fish purchased from foreign fleets operating in Mauritania and the Pacific, resulting in overall turnover increasing by 8%. Operating profit, however, was significantly better due to the improved fishing performance, higher prices and improved margins.

"Despite a good hake fishing performance operating profits from this sector, in which Oceana has a minor interest, declined, as a result of weak markets," the company said.