Namibia’s horse mackerel operations helped lift earnings at Oceana Group during the six months ended 31 March 2026, as improved pricing and lower operating costs offset weaker catch rates in the country.
The fishing and food processing group reported a 7.7% increase in headline earnings per share despite a 6% decline in revenue to R4.9 billion, supported by stronger performances from its Lucky Star and Wild Caught Seafood divisions.
In Namibia, Oceana said lower fuel prices and reduced quota usage fees helped contain operating costs within its horse mackerel business, while stronger average Rand selling prices and fuel-hedging gains boosted profitability.
Horse mackerel sales volumes across the group increased by 13%, with South African operations benefiting from improved catch rates, although Namibian catch rates weakened during the period.
The group’s Wild Caught Seafood segment delivered improved earnings overall, driven by higher hake volumes, stronger European demand and better pricing supported by reduced global white fish supply.
Oceana said investment in fleet upgrades improved vessel reliability and increased days at sea, helping hake sales volumes rise by 10%.
The company also announced it has acquired a new dual-purpose vessel capable of catching both hake and horse mackerel, which is expected to become operational in January 2027 following refurbishment work.
At group level, operating profit remained broadly flat at R665 million, while gross profit margin improved by 30 basis points to 28.1%. The company maintained its interim dividend at 110 cents per share.
Net debt declined significantly to R1.7 billion, down from previous levels, contributing to a R45 million reduction in net interest expenses. Oceana’s net debt-to-EBITDA ratio improved to 1.1 times from 2.2 times in the prior period.
Chief Executive Officer Neville Brink said the company’s diversification strategy and operational investments helped cushion the business against volatile market conditions.
“Investing in our fleet and factories, paying down debt and controlling what we can has ensured resilience in this unpredictable environment,” Brink said.
Oceana’s African fishmeal and fish oil operations came under pressure during the period due to lower landings of industrial fish and fewer pilchard trimmings from Lucky Star canneries. Sales volumes in the segment declined by 90%, significantly reducing earnings.
In the United States, weaker US dollar pricing for fishmeal and fish oil, together with the stronger Rand, weighed on profitability despite stable fishmeal sales volumes.
The company said it expects recent global supply disruptions, including lower anchovy quotas in Peru and emerging El Niño weather risks, to support firmer global fishmeal and fish oil prices going forward.
Brink said Oceana remains positioned to benefit from improving resource availability and stronger market demand following recent investments across the business. “Following investments in assets and moves to reduce unpredictability in the business in recent years, Oceana is in a good position to capitalise on cyclical improvements in resource availability, market demand and stronger pricing,” he said.
