Seafarms Group (SFG ) H1 2023 earnings summary

Executive summary

• Revenue increased 5% to $15.9 million for the half-year ended 31 December 2022, driven by improved Queensland prawn operations.

• Net loss after tax narrowed to $12.6 million, a $24.9 million improvement year-over-year, mainly due to reduced Project Sea Dragon (PSD) construction expenditure.

• All construction on PSD ceased; the company is maintaining permits and approvals while revising the business case.

• Project Sea Dragon Pty Ltd was placed into voluntary administration in February 2023, with SFG proposing a Deed of Company Arrangement.

• Queensland operations showed a significant operational and financial turnaround, with 594 tonnes of banana prawns produced in H1.

Financial highlights

• Revenue from ordinary activities rose 5% to $15,925,138 compared to the same period last year.

• Net loss after tax was $12,640,637, down from $38,613,511 year-over-year.

• Basic loss per share from continuing operations was 0.26 cents, compared to 0.89 cents loss in the prior period.

• Cash and cash equivalents at 31 December 2022 were $20.4 million, down from $36.2 million at 30 June 2022.

• Net cash outflow from operating activities was $13.2 million for the half-year.

Outlook and guidance

• Directors are unable to provide further comment or predictions on future financial performance beyond existing ASX releases.

• The business remains committed to finalising a new business case for Project Sea Dragon.

• Banana prawn program in FY2023 is expected to drive regrowth in operations volume and profitability.