SEAFOOD GIANT EXPANDS
Buys new freezer trawler for R181m, pursues growth organically.
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.