Sea Harvest takes another bite out of Viking Aquaculture

Sea Harvest has now acquired a further 28% shares and loan claims in Viking Aquaculture, which owns the Tuna Marine, Luderitz Mariculture, the Buffelsjag abalone farm, West Coast Oyster Growers and other aquaculture operations, for about R210-million, from minority shareholders Viking Fishing Group Administration Proprietary Limited and Odin Investments Proprietary Limited (“Odin”), which hold an 18% and a 10% interest in Viking Aquaculture respectively.

Viking Aquaculture is a sustainable abalone producer with farms in Buffeljags in the Western Cape and Kleinzee in the Northern Cape producing 500 tons of abalone a year, which are sold in Far East markets in live, dried, canned and frozen formats. Viking also has two oyster farming operations in South Africa and Namibia.

Sea Harvest’s ownership of Viking Aquaculture thereby increases from 54% to 82%.

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On Tuesday, Sea Harvest revealed it had a challenging year to 31 December 2022. The Brimstone subsidiary lost 10% in volumes from the fishing rights allocation process and a reduction in the total allowable catch, although revenue was well up in all segments, with firm demand in all its markets and strong pricing. 

This demand was offset by extraordinary cost inflation, supply chain disruptions – which include those caused by blackouts – and the steep rise in freight rates. Fuel, which rose by 93% over the year, cost Sea Harvest an additional R247-million.

For the year, Sea Harvest’s revenue increased by 27% to R5.88-billion (up from R4.62-billion in 2021), with earnings before interest and tax decreasing to R500-million (from R670-million).

The aquaculture segment benefited from increased sales volumes and firmer pricing, with revenue increasing by 29% to R118-million, despite continued lockdown restrictions in China and Hong Kong and the curtailment of international travel for most of 2022. 

Revenue in its Australian segment increased 69% to R938-million, benefiting from firm pricing, good growth in the trading division, and the inclusion of MG Kailis from 23 May 2023. 

The relaxation of stringent Covid policies in the Far East – particularly China – and increased international flight options bode well for the recovery of the segment. BM/DM