Tuna help Sanford land a good result

A good squid season and strong market prices for tuna and orange roughy have helped offset the impact of a high New Zealand dollar for fishing company Sanford.

The company yesterday reported a net profit of $53.8 million for the year to September 30 - up 14 per cent on the previous year.

The high kiwi dollar lowered export returns, but was offset by a big currency hedging gain, said Sanford managing director Eric Barratt.

Hedging gains increased from $35.7 million to $55.2 million this year and look set to rise further next year.

But by the end of next September hedging contracts would have all but dried up, he said.

Sales revenue for the year fell from $374 million to $359 million.

There had been good catch and good market prices for strong squid, orange roughy and tuna, but aquaculture returns were down due to low market prices in the first part of the year.

The hoki catch continued to decline. Sanford sold one of its three hoki boats in anticipation of the industry wide 44 per cent cut in quota - which came in to force on October 1. The sale added a $5 million one-off gain to the result. On October 1, Sanford bought the assets of rival fishery Simunovich for $137 million.

This deal - and the purchase of a 25 per cent stake in Chinese seafood processing company Weihai Dong Won - will be included in the next result.

Barratt said Simunovich would boost profitability in the medium to long term and that company's scampi quota had been transferred to Sanford, allowing it to run a full-time fleet of six scampi boats.

Yesterday the Commerce Commission confirmed it had received an application from Sanford seeking clearance to acquire the surplus scampi quota.

Improved results in the coming year would depend on the size of the catch and market prices for a range of products caught around the world, Barratt said.

The hoki catch off the coast of Argentina, the toothfish catch in the Ross Sea and skipjack tuna in the Pacific were all important for increased earnings.

A successful squid season in New Zealand would also help, he said.

While aquaculture - predominantly mussel and salmon farming - was expected to remain steady, its profitability remained at the mercy of the New Zealand dollar.