Our opinion on the current state of OCEANA(OCE)
Oceana is Southern Africa's largest fishing company, with additional interests in the US through its subsidiary, Daybrook Fishing, based in Louisiana. Listed on both the JSE and Namibian stock exchange, Oceana produces a range of fish products, including canned fish, fish meal, fish oil, hake, mackerel, lobster, and squid. The company operates under government-issued quotas, which are periodically influenced by regulations, including Black economic empowerment initiatives, and is also impacted by weather conditions affecting fish stock availability.
In the financial results for the six months ending 31st March 2024, Oceana reported a 12% increase in revenue and an 84.6% rise in headline earnings per share (HEPS). This growth was primarily driven by Daybrook Fishing's record earnings and improved canned food sales for Lucky Star in the second quarter. For the full year ending 30th September 2024, Oceana projected a HEPS increase of between 15% and 19%. It noted that the prior year's profit increase was significantly influenced by the disposal of CCS, which impacted earnings per share but not headline earnings.
Oceana’s share price has been trending sideways to downward since January 2023, trading on a relatively low price-to-earnings (P:E) ratio of around 6.39. The company remains fundamentally strong, though it is subject to volatility due to weather and regulatory factors. Oceana’s new CEO has indicated interest in expanding into aquaculture, though competition restrictions limit opportunities within South Africa. Additionally, Oceana obtained a secondary listing on the A2X exchange on 27th March 2023, offering more trading options for investors.
In the financial results for the six months ending 31st March 2024, Oceana reported a 12% increase in revenue and an 84.6% rise in headline earnings per share (HEPS). This growth was primarily driven by Daybrook Fishing's record earnings and improved canned food sales for Lucky Star in the second quarter. For the full year ending 30th September 2024, Oceana projected a HEPS increase of between 15% and 19%. It noted that the prior year's profit increase was significantly influenced by the disposal of CCS, which impacted earnings per share but not headline earnings.
Oceana’s share price has been trending sideways to downward since January 2023, trading on a relatively low price-to-earnings (P:E) ratio of around 6.39. The company remains fundamentally strong, though it is subject to volatility due to weather and regulatory factors. Oceana’s new CEO has indicated interest in expanding into aquaculture, though competition restrictions limit opportunities within South Africa. Additionally, Oceana obtained a secondary listing on the A2X exchange on 27th March 2023, offering more trading options for investors.
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