Buys new freezer trawler for R181m, pur­sues growth or­gan­i­cally.

The Star Early Edition - - BUSINESS REPORT - Sandile Mchunu

JSE-LISTED Sea Har­vest has ac­quired a new freezer trawler, the MV Th­er­ney, from listed Ice­landic fish­ing com­pany, HB Grandi, for a con­sid­er­a­tion of $13.5 mil­lion (R181.85m).

Af­ter list­ing on the JSE in March, the seafood gi­ant said it wanted to pur­sue growth or­gan­i­cally and through ac­qui­si­tions in a move that is set to po­si­tion it as a global seafood pro­ducer.

As a re­sult the group man­aged to raise R1.33 bil­lion, with 42 per­cent of the com­pany floated at a trad­ing price of R12.50 a share when the group listed.

The share price has since moved to R13.35 in the past five months of trad­ing.

In­vest­ment hold­ing group, Brim­stone, still holds the ma­jor­ity stake of 52 per­cent in Sea Har­vest, which was re­duced from 85 per­cent af­ter the list­ing of Sea Har­vest.

Sea Har­vest said MV Th­er­ney was built in the Sterkoder yard in Nor­way.

“There are cur­rently three ‘sterkoder’ class ves­sels in South Africa, two owned by Irvin & John­son and one ac­quired by Sea Har­vest in 2014,” the group said.

Sea Har­vest has in­vested more than R300m in the past three years in ves­sel ac­qui­si­tions and fac­tory up­grades to en­hance mar­gins and cre­ate a world-class as­set base.

Sea Har­vest has a fleet of 29 ves­sels, of which 18 cur­rently op­er­ate in South Africa, mainly on hake, and 11 in Western Aus­tralia fish­ing for Shark Bay king and tiger prawns.

The com­pany’s fleet fish­ing from Sal­danha Bay cur­rently con­sists of four freez­ers and eight fresher trawlers.

HB Grandi said the dis­posal of Th­er­ney was part of HB Grandi’s long-term strat­egy to re­new its fleet.

Two new pelagic ves­sels have al­ready re­placed their old ones.

Brim­stone has in­vested R776m through ad­di­tional cap­i­tal and rein­vested prof­its, al­low­ing Sea Har­vest to in­vest con­sid­er­ably in new ves­sels and plant ef­fi­cien­cies.

Last year, Sea Har­vest used some of the cap­i­tal to ac­quire 56 per­cent of Aus­tralian-listed Mareter­ram for nearly R250m.

Sea Har­vest has demon­strated strong growth over the past five years, with 59 per­cent of its rev­enues gen­er­ated in hard cur­ren­cies with Europe and Aus­tralia its largest in­ter­na­tional mar­kets.

De­spite the news, the Sea Har­vest share price re­mained flat on the JSE on Fri­day. It traded at R13.35 a share, tak­ing the group’s mar­ket cap­i­tal­i­sa­tion to around R3.2bn.

Last week Sea Har­vest re­leased a trad­ing up­date in­form­ing the mar­ket that it ex­pected its maiden in­terim fi­nan­cial re­sults for the six months to end June with earn­ings per share to be be­tween 62 and 69 cents and head­line earn­ings per share of be­tween 53 and 60 cents.

The re­sults are ex­pected on or about Au­gust 23.

In the past five years Sea Har­vest has re­ported ex­cel­lent re­sults. The seafood gi­ant’s rev­enue grew at a com­pound an­nual growth rate (CAGR) of 15 per­cent and earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion grow­ing at a CAGR of 22 per­cent.


TRAWLER: One of Sea Har­vest’s ves­sels, the R130 mil­lion Har­vest At­lantic Peace. The com­pany has just ac­quired an­other one, the MV Th­er­ney, for R181m.

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