Project Sea Dragon owner records $25.8m loss but says project on track
Seafarms has attributed its loss in FY2020-21 to its growth plans in Northern Australia, saying the pandemic has had minimal impact on its operations.
Northern Territory
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PRAWN producer Seafarms has released its 2020-21 financial year results, heralding construction was underway on the 1500-job Project Sea Dragon.
The company reported a $25.8m loss to the ASX on Thursday, but attributed the loss as a reflection of costs associated with the $1.87b aquaculture project.
Seafarms trumped up earning $21m in revenue and a 21 per cent increase in black tiger prawn production over the financial year.
It also successfully raised $107.5m in capital for Project Sea Dragon, allowing construction to begin on ponds at Legune Station and Bynoe Harbour in the NT, and in Exmouth in WA.
Seafarms said the project was expected to create 1500 jobs, including 700 at Legune Station, 300 at a Darwin hatchery and 500 jobs in Kununurra.
In its results on Wednesday, Seafarms said it was continuing “its transformation from one of Australia’s largest prawn producers into a significant global producer of black tiger prawns”.
“Local contractors have started building the grow out ponds at Legune Station in the Northern Territory that will make up the first stage of the project, covering includes 1080ha to produce 18,000 tonnes of black tiger prawns annually,” the company said.
Builder Canstruct has also started work on a construction camp at the station, moving 21 buildings to the site to house 74 people during construction.
The $25.8m loss was largely attributed to “investment being made by (Seafarm) in pursuing its expansion in aquaculture operations”.
The report said the company’s retail sales of seafood had showed “considerable resilience” during the Covid-19 pandemic, despite restaurant closures.
The $1.87b project has been heralded by the NT government as a major boost to the Territory’s aquaculture sector.
The first prawns produced at Seafarm’s Territory facilities will be harvested in 2023, once Project Sea Dragon’s first stage is complete.
Later stages will take the company’s NT operations up to 10,000ha of ponds.
In July, Chief Minister Michael Gunner said Project Sea Dragon would help build the sector in the NT.
“It is creating new opportunities for businesses and building up the Territory’s aquaculture sector and exports,” Mr Gunner said.
“Territorians love their seafood, and they especially love their prawns – but this project is really all about the hundreds of jobs we will generate.”
Originally published as Project Sea Dragon owner records $25.8m loss but says project on track
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