Chamwe Kaira
The Oceana Group, which harvests horse mackerel in Namibian waters, says it plans to engage Namibian regulators to establish a sustainable industry framework.
The group says concerns persist about the sustainability of the horse mackerel industry framework in Namibia.
Oceana noted that the South African industry recorded good landings in the first half of the year against an interim total allowable catch (TAC) allocation of 35 000 tonnes.
The final TAC increased to 44 000 tonnes in November.
In Namibia, the government issued a TAC of 10 000 tonnes as part of its policy objectives.
This marked the first quota allocation after the moratorium period from 2018 to 2024.
Oceana reported that horse mackerel performance showed improvements but remained below optimal levels.
Catch cost per unit benefited from lower fuel prices during the year. Average US dollar sales prices rose by 12%, driven by strong demand for affordable protein in key markets.
The group said its effective tax rate increased as African operations contributed a larger share of earnings, with South African and Namibian profits attracting higher tax rates.
In terms of group revenue and non-current assets by geographic segment, Namibia contributed N$799 million, while South Africa contributed N$4.7 billion.
South Africa reported N$179 million in non-current assets, excluding deferred tax assets, while Oceana reported N$107 million in Namibian assets.
Chief executive officer Neville Brink reported a mixed operating and financial performance for the year ended 30 September 2025.
Lower revenue and profitability were partly offset by operational improvements and stronger market demand for affordable protein.
Lower US dollar fish oil prices offset the positive impact of higher sales volumes across all segments and firm pricing, leading to a decline in revenue.
Gross margin also declined, mainly due to weaker margins in the fishmeal and fish oil segment. This was partly offset by improved margins at Lucky Star, supported by higher local production volumes and operational efficiency gains.
Improved catch rates and strong market prices for hake and horse mackerel further bolstered margin growth in those categories.
Operating profit declined year over year, although overhead was reduced due to lower employment costs and insurance savings.
Interest expense increased as a result of higher borrowings in South Africa to fund recent capital expenditure and working capital needs, as well as the prior-year renewal of a US interest rate swap at higher rates.
Brink said the group remains focused on expanding its market reach in South Africa and beyond by leveraging brand strength and its established distribution network.
The group plans to benefit from rising demand for affordable protein, pursue opportunities in adjacent food categories, improve production processes and the global supply chain to reduce costs, and diversify raw fish supply to reduce risks to cannery throughput and costs.
In fishing operations, the group aims to benefit from sustained demand and improving resource availability.
Plans include introducing a dual-purpose vessel for hake and horse mackerel to reduce operating costs and earnings volatility.
The group also plans to rationalise the squid fleet through licence and capacity optimisation while retaining the strongest-performing vessels.
In the horse mackerel segment, the Desert Diamond spent most of the first half of the year fishing in Namibian waters before returning to South Africa, where catch rates remained sporadic for much of the period.
A consistent improvement was recorded in September, although fishing was limited to a small area.
After a substantial loss in the prior year, when mechanical failure kept the vessel docked for an extended period, the South African horse mackerel operation broke even, though performance remained below optimal levels.
Namibian horse mackerel vessels operated with similar fishing days and catch rates to the previous year but delivered higher profitability.
This was mainly due to lower fuel costs and higher average US dollar sales prices.
Despite the improvement, Brink said concerns remain about the long-term sustainability of the horse mackerel industry framework in Namibia.
Caption
Oceana Group says concerns persist about the sustainability of the horse mackerel industry framework in Namibia.
- Photo: Oceana Group
