Oceana (OCE) is Southern Africa's largest fishing business with significant fishing interests in the US through its Louisiana-based subsidiary Daybrook Fishing. It is listed on both the JSE and the Namibian stock exchange. The company produces canned fish, fish meal, fish oil, hake, and mackerel, as well as lobster and squid. It is subject to quotas issued by the government periodically, which can be affected by moves towards Black economic empowerment. Additionally, weather conditions can significantly impact the size of the catch.
In its results for the six months to 31st March 2024, the company reported revenue up 12% and headline earnings per share (HEPS) up 84.6%. The company said, "The growth was primarily driven by US-based Daybrook delivering record first-half earnings as well as a pleasing Lucky Star performance following improved second-quarter canned food sales volumes." Technically, the share has been rising since July 2022. It trades on an earnings multiple (P:E) of around 9.45.
In our view, this is a solid blue-chip, which has been made more volatile by its exposure to weather conditions and regulation. The new CEO says that the company is looking to make an acquisition in aquaculture but is precluded from doing so in South Africa because of competition restraints. On 27th March 2023, the company announced that it had obtained a secondary listing on the A2X exchange.
Oceana appears to be a well-managed company with strong growth prospects, particularly with its US operations performing well. However, potential investors should be aware of the volatility that comes with its dependence on weather conditions and regulatory changes. The company's strategic moves, including potential acquisitions in aquaculture, suggest a forward-thinking approach to growth. Overall, Oceana is a good investment but requires consideration of its inherent risks.
In its results for the six months to 31st March 2024, the company reported revenue up 12% and headline earnings per share (HEPS) up 84.6%. The company said, "The growth was primarily driven by US-based Daybrook delivering record first-half earnings as well as a pleasing Lucky Star performance following improved second-quarter canned food sales volumes." Technically, the share has been rising since July 2022. It trades on an earnings multiple (P:E) of around 9.45.
In our view, this is a solid blue-chip, which has been made more volatile by its exposure to weather conditions and regulation. The new CEO says that the company is looking to make an acquisition in aquaculture but is precluded from doing so in South Africa because of competition restraints. On 27th March 2023, the company announced that it had obtained a secondary listing on the A2X exchange.
Oceana appears to be a well-managed company with strong growth prospects, particularly with its US operations performing well. However, potential investors should be aware of the volatility that comes with its dependence on weather conditions and regulatory changes. The company's strategic moves, including potential acquisitions in aquaculture, suggest a forward-thinking approach to growth. Overall, Oceana is a good investment but requires consideration of its inherent risks.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.