Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Sanford annual profit to miss forecast on lower harvest

Sanford annual profit to miss forecast on lower skipjack tuna, toothfish and mussel harvest

By Tina Morrison

Aug 9 (BusinessDesk) – Sanford, New Zealand’s largest listed fishing company, said annual profit will fall short of its forecast after lower catches of skipjack tuna and toothfish and slow growth in its main Marlborough mussel growing area. The shares fell.

Profit will probably be $23 million to $25 million in the year ending Sept. 30, from $21 million last year, the Auckland-based company said in a statement. That’s less than Sanford forecast in May when it said second half profit would probably match the $14 million posted in the first half.

Sanford profits are being crimped as it faces high costs of operating its vessels while its catches fail to meet expectations in the Pacific skipjack tuna fishery and for toothfish in the remote South Georgia fishing zone. Slower growth in Marlborough mussels means those that are able to be harvested are generally smaller, resulting in lower revenue per kilogram and increased production costs.

Shares in Sanford fell 1.7 percent to $4.60, reducing its gain this year to 9.4 percent.

Still, catching of quota species in New Zealand is likely to meet expectations and demand for the company’s retail packed products is increasing, Sanford said.

Increased domestic sales of Stewart Island farmed salmon is reducing reliance on Asian commodity markets while markets for most species are strong with firm prices, the company said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>

ALSO:

Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>

ALSO:

Research: Climate Change Throws Tree Seeding Out Of Sync – New Study

Climate change is negatively affecting tree reproduction by throwing seed production systems out of synchronisation, according to a new international study co-authored by a University of Canterbury scientist. Many tree species worldwide produce large ... More>>

ALSO:


Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>

ALSO:

Science Media Centre: Flooding could release toxic gas – Expert Reaction

A chemical substance known as ouvea premix stored at an old paper mill in Mataura could release toxic ammonia gas if it comes in contact with water.More>>

ALSO: