Cape Hake demand boosts Sea Harvest

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Cape Hake demand boosts Sea Harvest

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Published Date: 2018-02-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Cape Hake demand boosts Sea Harvest

The fisheries group says its performance has been significantly enhanced by the investments made in its Saldanha Bay processing plants

Sea Harvest says it will post a sharp rise in full-year earnings thanks to strong global demand for Cape Hake and the benefits of investments made in its Saldanha Bay processing plants.

The fisheries group says basic earnings per share for the year to end December will be between 28% and 44% higher than the previous year, while basic headline earnings per share will be 74% to 98% higher.

Sea Harvest listed last March and used some of the funds raised to deleverage its balance sheet. It has also benefited from an improved fleet and the purchase of Australian agribusiness Mareterram, in which it took a controlling stake in 2016.

Meanwhile, the company is leading a consortium of black investors who are in talks to buy the entire fishing business of Viking Fishing and its subsidiaries. Viking was founded in 1980 catches and supplies fish to local and international markets. The deal includes a 51% stake in fish farming business Viking Aquaculture. Sea Harvest says the deal is subject to a comprehensive due diligence of Viking Fishing and Viking Aquaculture and the approval of the government and competition authorities. It also needs to raise third-party funding for a portion of the settlement price.

Its shares gained 3.8% to R12.45.



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