Iwi fish business annual profit falls after ‘challenging’ year

Aotearoa Fisheries, which manages more than $530 million of fisheries assets for its iwi shareholders, reported a 27 per cent decline in annual profit on reduced earnings from its half-stake in Sealord Group. Net profit fell to $16 million in the year ended September 30, from $21.9 million a year earlier.

Aotearoa said the contribution from Sealord, which it jointly owns with Nippon Suisan Kaisha, was lower than the $12.7 million it received in 2014.

“It has been a challenging year with a poor crop of mussels, softening global white fish pricing in the last quarter and vessel breakdowns, leading to a below-expectation profit,” said Sealord chief executive Steve Yung. “Our fishing capacity was restricted due to vessels being off the water . . .”

Sealord has started working with rival Sanford sharing catch and costs. Sanford this month called for more

It has been a challenging year with a poor crop of mussels, softening global white fish pricing in the last quarter and vessel breakdowns, leading to a below-expectation profit.

Steve Yung, Sealord chief executive

collaboration with other fishing industry players to help reduce costs.

In June, the majority of mandated iwi rejected dismantling Te Ohu Kaimoana, despite an independent review advising it should be scrapped, while unanimously voting in favour of transferring all Aotearoa shares to iwi control. Under the Maori Fisheries Act in 2004, Te Ohu Kaimoana was set up to manage the fishing quota awarded to Maori in the 1992 fisheries settlement.

“The company is fundamentally in a sound position as the 58 iwi organisations ready themselves to take direct ownership of the company,” said Te Ohu Kaimoana chief executive Peter Douglas. “While we think the medium-term future for seafood is positive, we are dealing with natural systems with all the variations that go with that. We also work in high-value markets that are susceptible to global and local conditions.”

The board declared a $6.4 million dividend, down from $8.8 million a year earlier.