sharetrader
Page 1 of 17 1234511 ... LastLast
Results 1 to 10 of 169
  1. #1
    Senior Member
    Join Date
    Aug 2002
    Location
    auckland, , New Zealand.
    Posts
    769

    Default Sanford Earnings FC effected by FX changes

    SAN exports practically all its produce and will therefore significantly benefit from
    a lower exchange rate. A 1c movement in the NZD versus either the USD or JPY
    will boost after tax earnings by NZ$2m.

    The above quote is from Aspect Huntly research 4 Dec 08.

    I like to state a few facts : Average exchange rate in San 2008 financial year (to 30 Sep).
    1NZ$ approximately US 0.75
    1NZ$ approximately Jap Yen 81

    First 8 months 2009 financial year
    1NZ$ approximately US 0.56
    1NZ$ approximately Jap Yen 54

    San NPAT in the 2008 Fin year was NZ$31.5 mil.

    English is not my first language and I fail to be able to work out what San NPAT will be in 2009 fin year (assuming everything else stays the same).With other words I do not get the above sentence 'A 1 cent movement in the.....'.

    Would be great if somebody can put some light on this.

    Thanks in advance.

    Forest

  2. #2
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    Quote Originally Posted by forest View Post
    SAN exports practically all its produce and will therefore significantly benefit from
    a lower exchange rate. A 1c movement in the NZD versus either the USD or JPY
    will boost after tax earnings by NZ$2m.

    The above quote is from Aspect Huntly research 4 Dec 08.

    I like to state a few facts : Average exchange rate in San 2008 financial year (to 30 Sep).
    1NZ$ approximately US 0.75
    1NZ$ approximately Jap Yen 81

    First 8 months 2009 financial year
    1NZ$ approximately US 0.56
    1NZ$ approximately Jap Yen 54

    San NPAT in the 2008 Fin year was NZ$31.5 mil.

    English is not my first language and I fail to be able to work out what San NPAT will be in 2009 fin year (assuming everything else stays the same).With other words I do not get the above sentence 'A 1 cent movement in the.....'.

    Would be great if somebody can put some light on this.

    Thanks in advance.

    Forest
    The report is saying that if the NZD/USD rate were to average .56 for the full year, as it has for the first 8 months of the financial year ( and if all SAN's earnings were USD exports - which of course they are not ) then the impact on SAN's after tax earnings would be an additional NZD 38m - 19c exchange difference at NZD2m per 1 cent movement.
    The Yen effect is a bit more complicated but you will get the idea. The main point is that a decidedly weaker NZD increases SAN's earnings considerably when the USD and YEN receipts are converted to NZD.

  3. #3
    Senior Member
    Join Date
    Aug 2002
    Location
    auckland, , New Zealand.
    Posts
    769

    Default

    Thanks macduffy. Yes I get the idea. It would have been nice if there would have been a bit more info so the change in FX could have been quantified in NPAT.

  4. #4
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    We can't be too exact about this.
    We don't know what volumes/values of product are sold from month to month and of course the exchange rates are moving constantly. We also don't know how much forex forward cover the company is taking, or not taking from time to time so the revenue as it converts to NZD is also unknown. You may have some idea of how the price of product (fish) has moved in USD terms in this period. I don't.
    What we can be sure about is that the lower NZD is beneficial to SAN.


  5. #5
    Member tobo's Avatar
    Join Date
    Apr 2007
    Location
    Auckland, NZ
    Posts
    451

    Default

    anyone following SAN?
    is the sustained downtrend just due to the exchanges rate, or is there something else?
    - declining fishstocks?
    - declining demand? (declining prices?)
    - efficiency? (but cost of oil has dropped!)

  6. #6
    Member
    Join Date
    May 2008
    Location
    Wellington NZ
    Posts
    408

    Default

    Quote Originally Posted by tobo View Post
    anyone following SAN?
    is the sustained downtrend just due to the exchanges rate, or is there something else?
    - declining fishstocks?
    - declining demand? (declining prices?)
    - efficiency? (but cost of oil has dropped!)
    I follow SAN - but not that closely - only opinion: it's the strong kiwi although I wonder if buying the mussel farm off sealard was a trigger for the sp slide - -or just a coincidnece.
    At any rate - SAN is a long term hold becuase the planets fish stocks are going belly up but NZ econ zone is comparitively well managed - and Sanford owns a lot of quota.
    The sp slide is just an opportunity to buy into something that the world is running out of.
    Last edited by Casa del Energia; 05-10-2009 at 07:48 AM. Reason: speling musake

  7. #7
    Member tobo's Avatar
    Join Date
    Apr 2007
    Location
    Auckland, NZ
    Posts
    451

    Default

    Thanks, Casa,
    Yes it makes sense that NZ fish stocks will be under relatively good control and will be valuable into the future, hence a good LT industry to be in.

    I'd better take Phaedrus's general advice and wait for the downtrend to turn, first, before buying

  8. #8
    Member tobo's Avatar
    Join Date
    Apr 2007
    Location
    Auckland, NZ
    Posts
    451

    Default Charges laid against Sanford's detained tuna fishing ship

    Is this the reason for the sp decline from $4.20 to 3.80 last 2 days

    (What happened 6 weeks ago? Was $4.80)

    http://www.nbr.co.nz/article/charges...ship-ng-106028

    Impacts could include:
    • Lost production (vessel out of action)
    • Legal costs to defend
    • Potential fines
    • Diversion of management attention




    NBR
    Charges laid against Sanford's detained tuna fishing ship


    Nevil Gibson | Wednesday December 07, 2011 | 3 comments

    Seafood company Sanford is facing seven sea pollution and other charges in American Samoa over the operation of tuna fishing boat.

    The San Nikunau has been detained since July 2011, when the US Coast Guard began an investigation into allegations it had been illegally dumping "oily bilge waste" for the past four years.

    The US Deartment of Justice also alleges Sanford to maintain accurate oil records, obstruction of justice by presenting false documents and deceiving the US Coast Guard during an inspection.

    If convicted, the DoJ says, the company could be fined up to $US500,000 per count plus the "gross gain or loss that resulted from the ciminal conduct." The indictment also seeks "criminal forfeiture" of more than $US24 million from proceeds that Sanford derived from its actions.

    Sanford denies the allegations and says it would never permit discharges of pollutants into the ocean or obstruct a reasonable investigation.

    "We will be vigorously defending all the charges and continuing our efforts with authorities in American Samoa to get the vessel released to enable it to return to fishing," Sanford managing director Eric Barratt says.

    Earlier reports have said Sanford petitioned the High Court there to release the ship on grounds it has not violated any laws and the detention is illegal.

    The San Nikunau is one of Sanford's three large-scale tuna purse seiners, which catch mainly skipjack tuna, some of which is processed by one of the two canning factories in Pago Pago.

    Sanford says the vessels operate under New Zealand maritime law but are also subject to regulations in American Samoa.
    - ToBo - GNE-CEN, HLG, OCA, NTL + Ax: ARU, GAL, HRZ, NWE,

  9. #9
    Member tobo's Avatar
    Join Date
    Apr 2007
    Location
    Auckland, NZ
    Posts
    451

    Default

    further - "since July when the US detained the vessel San Nikunau in American Samoa"

    http://tvnz.co.nz/national-news/sanf...harges-4610582

    Sanford vows to fight US pollution charges

    Commercial fishing boat - Source: ONE News

    Fishing company Sanford has vowed to vigorously defend US Government charges of polluting waters around American Samoa.

    Sanford said it learned today that the US Department of Justice will serve the company with indictments alleging failure to maintain an accurate oil record book, and consequent illegal pollution discharges and obstruction during the investigation.

    Sanford said it has been conducting its own investigations in conjunction with its legal advisers since July when the US detained the vessel San Nikunau in American Samoa.

    "We will be vigorously defending all the charges and continuing our efforts with authorities in American Samoa to get the vessel released to enable it to return to fishing," Sanford said in a statement.

    "Sanford Limited takes its responsibilities to respect the ocean and its resources extremely seriously and would never permit discharges of pollutants into the ocean and nor would we obstruct any reasonable investigation into any allegations made against the company."

    The company said it has publicly reported its environmental, economic and social performance in the form of a Sustainable Development Report for the last 10 years.
    - ToBo - GNE-CEN, HLG, OCA, NTL + Ax: ARU, GAL, HRZ, NWE,

  10. #10
    Dilettante
    Join Date
    Mar 2010
    Location
    Down & out
    Posts
    5,407

    Default

    [QUOTE=tobo;362978]Is this the reason for the sp decline from $4.20 to 3.80 last 2 days

    (What happened 6 weeks ago? Was $4.80)

    http://www.nbr.co.nz/article/charges...ship-ng-106028

    Impacts could include:
    • Lost production (vessel out of action)
    • Legal costs to defend
    • Potential fines
    • Diversion of management attention




    [COLOR="#4B0082"][I]NBR
    Charges laid against Sanford's detained tuna fishing ship


    Yes tobo I think this is obviously the reason for the sharp decline in sp in the last couple of days. The charges are fairly serious but I am sure SAN would not deliberately do any of the issues they are charged with. I think SAN has been oversold as a result of this bad news story. The facts remain that SAN in a strong company in an industry that is finding its products increasingly "easy" to sell and prices for most products are steadily rising. The mussel farm purchases are apparently intergrating well and I think we can expect a benefit from this to flow through fairly quickly. Hoki quotas are likely to increase further in coming years, access for toothfish in South Georgia and multi year agreement with East Coast Maori tribes about use of their quota should all strengthen SAN results in the medium to long term. The main issue of concern for me is that their local deepwater fleet is getting old and out of date and will require replacement in the next few years. The other concern is the politically motivated attack in the media recently about use of foreign charter vessels. Yes they need to be better and more humanely managed but they should and will remain an important part of the NZ fishing industry for the foreseeable future. SAN relies on this for a reasonable part of their catches. Overall, I am positive about SAN medium-long term.
    Discl; Hold SAN and have been adding in the last 2 days
    Last edited by iceman; 10-12-2011 at 08:58 AM. Reason: spelling

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •