SANford Chart

[macduffy]

Many restaurants will go to the wall, and if this drags on they will have very few customers even when the lock down is over. This is situation I like as generally buy with a Ten year time frame, and the cheaper it gets the better.

Yes, many restaurants will go to the wall but many others will start up when this is all over. And fish dishes will be as popular as ever!

[iceman]

My understanding is probably pretty limited but with quota I understand you have to use it or lose it. I assume selling the boats and leasing the quota wasn't an option?

No not at all a use it or lose it situation. Most Iwi for example always lease out their quotas. The boats had no value (or very little) on their own.

[Marilyn Munroe]

No not at all a use it or lose it situation. Most Iwi for example always lease out their quotas. The boats had no value (or very little) on their own.

My suspicion, though I have no direct information, is Sanford became happy and comfortable leasing their quota to the Koreans with their slave Asian crews.

Their response to kiwi-isation of deep water fisheries has been mixed.

Boop boop de do
Marilyn

[Waikaka]

Still learning about the business. Iceman reckons the vessels might have some issues so thought I might do a lay person check.

Hard to know who to compare it too but Sealord might fit the bill, slightly smaller revenue overall but seems a close competitor.

Both have about the same number of deep water vessels.

Sanford have an average age of 1989, Sealord have average of 1990 but that is heavily skewed by the two ukranian beasts from the 1970's. If I exclude the 2 oldest from both fleets then Sealord average age is 1996 vs Sanford 1991.

Would I be correct in assuming newer vessels are generally more efficient, need less crew and have less repairs required?

I realise it is expensive but perhaps they need to have a long term vessel renewal plan in place?

The brand new $70 Million Sealord one looks like a epic unit. Hopefully less injuries and a happier crew as well.
https://www.sealord.com/nz/newsroom/...new-home-town/


Dont hold me to it but tables below.

		Built	Capacity cubic m
Sealord	FV OTAKOU	1989	130
Sealord	FV THOMAS HARRISON	1989	180
Sealord	FV AUKAHA	1997	390
Sealord	FV OCEAN DAWN	1991	560
Sealord	FV REHUA	1997	660
Sealord	FV WILL WATCH	1972	530
Sealord	FV TOKATU	2018	1300
Sealord	FV MERIDIAN-1	1991	1200
Sealord	FV PROFESOR MYKHAYLO ALEKSANDROV	1970	1200

vs Sanford

		Built	Capacity cubic m
Sanford	San Waitaki	1990	940
Sanford	San Enterprise	1990	940
Sanford	San Discovery	1992	940
Sanford	San Aspiring	2001	725
Sanford	San Aotea II	1993	515
Sanford	Albatross II	1984	35
Sanford	Christmas Creek	1981	25
Sanford	Drysdale	1986	35
Sanford	Venture K	1985	40

Saw a few photos from when I was looking up the details and I am no expert but the older ones are pretty terrible looking.

[iceman]

Good accurate summary Waikaka. Vessels built today according to owners of new vessels I have spoken to is that they are around 50-70% more efficient than 20 year old vessels, including huge reductions in emissions and much less cost per Value Per Unit Effort
The last 4 vessels on your list for SAN are their scampi vessels that fish parts of the year in the Southern Ocean. This is not only stupid on these vessels but also very dangerous. SAN is planning an urgent replacement of them.
The 2 above it are their toothfish vessels that are also up for replacements, at least one of them. They fish in an olympic (competitive) quota fishery in the Antarctic and are being left behind by newer and much better vessels from Norway and other countries.

But the big need for change is in the inshore fleet which is so old and outdated that it is not possible for SAN and the CEO to achieve the increased quality and freshness he is aiming for with this pathetic equipment. This is now holding back his plan called "focus on fresh", which in any case has now been held back by the huge change caused by COVID.
Another side issue is that it has become impossible for SAN to hire good young people on their vessels. That will not happen until they are more up to date with good accommodation and crew comfort and constant high speed internet connections.
The industry has seen the change this has made in both Iceland and Norway when they made a major upgrade to their fleet in the last 5-10 years, all of a sudden young people became interested to make this a career again.

[Waikaka]

Not a terrible briefing,

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SAN/351240/320303.pdf

I still cant find out how much of their trade goes to restaurants but hopefully most can be redirected to retail customers, without too much hit to margins.

[kiora]

"Sanford says $20m 'marine extract' facility will create 30 jobs in Marlborough"
https://www.stuff.co.nz/business/117...rlborough?rm=m

[Apathy]

Good accurate summary Waikaka. Vessels built today according to owners of new vessels I have spoken to is that they are around 50-70% more efficient than 20 year old vessels, including huge reductions in emissions and much less cost per Value Per Unit Effort
The last 4 vessels on your list for SAN are their scampi vessels that fish parts of the year in the Southern Ocean. This is not only stupid on these vessels but also very dangerous. SAN is planning an urgent replacement of them.
The 2 above it are their toothfish vessels that are also up for replacements, at least one of them. They fish in an olympic (competitive) quota fishery in the Antarctic and are being left behind by newer and much better vessels from Norway and other countries.

But the big need for change is in the inshore fleet which is so old and outdated that it is not possible for SAN and the CEO to achieve the increased quality and freshness he is aiming for with this pathetic equipment. This is now holding back his plan called "focus on fresh", which in any case has now been held back by the huge change caused by COVID.
Another side issue is that it has become impossible for SAN to hire good young people on their vessels. That will not happen until they are more up to date with good accommodation and crew comfort and constant high speed internet connections.
The industry has seen the change this has made in both Iceland and Norway when they made a major upgrade to their fleet in the last 5-10 years, all of a sudden young people became interested to make this a career again.

There have been some pretty good - informed comments in the section but I think its been a bit generous in terms of current management. The fleet is a mess, they have sold quota (only to find out they needed it and have had to lease it back at exorbitant premium) and are investing in a vertical integration program which they have no experience in.... great industry but lack of focus in terms of core business is going to hold them back.

[bull....]

lower profits and reduced dividend , wont be the only company reporting these type results

[Marilyn Munroe]

From the SAN half year report;

"The projects we have underway in our diverse fishing division, both inshore and in the deep sea fleet are going well, but they are substantial undertakings requiring significant investment of capital, time and expertise and therefore require our patience as we tackle the move from commodity to added value, species by species."

Buenos días Iceman, would you care to comment?

Boop boop de do
Marilyn