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- Release Date: 09/08/13 17:03
- Summary: FORECAST: SAN: Sanford Limited - Continuous Disclosure
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SAN
09/08/2013 15:03
FORECAST
REL: 1503 HRS Sanford Limited
FORECAST: SAN: Sanford Limited - Continuous Disclosure
SANFORD LIMITED
SUSTAINABLE SEAFOOD
9 August 2013
Continuous Disclosure Notice
Second half trading for year ending 30 September 2013
Tuna and Toothfish catches and Greenshell Mussel volumes not up to
expectations
Sanford Limited advised at the half year that if catch and aquaculture
production was achieved as planned in the second half, profitability would be
at a similar level to the first half year result. Catches in two important
fisheries and Greenshell mussel production are lower than planned and will
impact the year-end profit result. It will therefore likely be in the $23m to
$25m range (last year $21m).
Catches in the skipjack tuna fishery in the Pacific have been much lower than
planned. The high cost of operating three large purse seiners has a
significant effect on profitability when catches drop to low levels. With the
closure season of Fish Aggregation Devices (FADs) extending through to the
end of October 2013, the likelihood of improvement in catch rates from these
vessels is low.
This year we were able to deploy two freezer longliners to fish for toothfish
in the South Georgia fishing zone. While the San Aspiring catch results were
close to expectations and past years' catch, the second vessel's (San Aotea
II) catch results were below expectations and the vessel is now returning to
New Zealand. The cost of deploying these vessels to this remote fishery is
extremely high and when catch rates are poor, profitability declines quickly.
The period of slow growth in our main mussel growing area in the Marlborough
Sounds has resulted in harvest and production volumes being below planned
levels and those mussels able to be harvested have generally been of a
smaller average size. This lowers revenue per kilogram and increases
production costs. The lack of volume is disappointing as market demand for
mussels is strong and prices are high.
Catching of quota species in New Zealand has been in line with plans and is
likely to meet expectations for the year. The demand for our retail packed
products is increasing and the increased sales in the domestic market for our
Stewart Island farmed salmon is very pleasing as they reduce our reliance on
commodity markets in Asia. Markets for most species are strong and prices
are firm.
Eric Barratt
Managing Director
Phone: +64 21 325 209
End CA:00239504 For:SAN Type:FORECAST Time:2013-08-09 15:03:09
