Clean Seas Tuna reports $34m loss
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PERTH, Feb 20 AAP
February 20 2013, 6:49PM
Clean Seas Tuna has gone further in the red, reporting a $34 million first half loss as the company works to expand its troubled Kingfish business.
Clean Seas reported a $34.1 million loss in the half year to December 31 following a $7.1 million loss in the previous corresponding half.
The latest result follows an announcement of almost $30 million in impairments on December 21.
Green Seas said it had now resolved substantive feed-related Kingfish health problems.
"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.
The company plans to maintain its tuna broodstock to allow for a potential return to tuna propagation once it establishes a strong financial base to support the tuna program.
The company on Wednesday said its decision to suspend tuna propagation in the medium term and concentrate on other activities was more likely to deliver profitability in the near term.
"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 said in a statement.
Clean Seas says it has positioned the Yellowtail Kingfish as an excellent sashimi product, which has a sizeable market with a premium pricing.
Underlying operations improved in the half, with the company recording a $4.4 million underlying loss after the company reported a $7.1 million loss for the same period the previous year.
Revenue was down 31 per cent to $9.1 million.
Clean Seas owns a 400-hectare site at Arno Bay in South Australia on the Eyre Peninsula.
The company say it expects to use further surplus asset sales and existing cash reserves for financial support.
Clean Seas shares were flat at 1.6 cents.
The company's shares have been punished recently, after trading as high as $2 in March 2008.