Clean Seas' yellowtail kingfish is an optimal sashimi product, the company says. (Photo: Clean Seas)
Clean Seas Tuna hopes kingfish business will sustain it
Thursday, February 21, 2013, 04:30 (GMT + 9)
Clean Seas Tuna continues to lose money and has now reported AUD 34 million (USD 35.1 million) loss for the half that ended on 31 December, following AUD 7.1 million (USD 7.3 million) loss in the previous corresponding half, and an announcement of almost AUD 30 million (USD 31 million) in impairments made on 21 December.
Clean Seas has communicated that its feed-related kingfish health problems have been resolved.
"The company is confident that with its expertise and experience along with resolution of our fish health problems that it can build a fish production company centred on kingfish production," Clean Seas said.
However, it intends to keep its tuna broodstock in case it can take up that pursuit again after it builds a strong financial foundation to support it. This week, the company said it expects this decision to suspend the tune breeding tuna in the medium term is likely to bring profits earlier than expected, AAP reports.
Back in December, Clean Seas informed that the volume and quantity of its fertilised southern bluefin tuna (SBT) eggs had failed to meet expectations for the season despite the spawnings in October, and that therefore it would not be able to move fingerlings to sea cages for experimental grow-out in time for them to survive through the winter. The company then anticipated the suspension of its Tuna Propagation Programme for at least the 2013-14 summer, given its limited financial resources and the need to preserve liquidity.
Since then, it has focused solely on its yellowtail kingfish business.
"Kingfish has the potential to deliver good returns now that we have identified the major feed-related factor that interfered with the profitable production," the company voiced in a statement.
Clean Seas said it has worked to position its yellowtail kingfish as an optimal sashimi product, which can fetch premium pricing.
Underlying operations showed relatively cheerful numbers in the latest half, with AUD 4.4 million (USD 4.5 million) underlying loss compared to AUD 7.1 million (USD 7.3 million) loss for the same period the previous year. Revenue skid by 31 per cent to AUD 9.1 million (USD 9.4 million).
Clean Seas said it will use more surplus asset sales and existing cash reserves to support the company during this financially rough period.
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By Natalia Real