Australian aquaculture firm Seafarms Group Limited has sustained increased losses as the company continues investing in its Project Sea Dragon shrimp-farming project.
The company is also awaiting the result of a court decision on the potential liquidation of the project.
In its full-year results ending 30 June 2024, Seafarms Group reported after-tax losses of AUD 19.3 million (USD 13.1 million, EUR 11.9 million), increasing 26 percent from the AUD 15.3 million (USD 10.4 million, EUR 9.4 million) in losses it posted last year. According to an Australian Stock Exchange (ASX) announcement, the losses are largely reflective of the company’s ongoing investments in Project Sea Dragon.
“The past year has seen continued assessment and development of Project Sea Dragon, with several positive developments bringing this project closer to fruition,” Seafarms CEO Peter Fraser said in the ASX announcement.
Seafarms first signed a memorandum of understanding to build the first stage of Project Sea Dragon in 2021 in its push to build the largest black tiger prawn farm in the world – though that memorandum later caused problems for the company. The contractor it selected for the project, Canstruct, later sued Seafarms, claiming it failed to pay an owed AUD 13.9 million (USD 9.4 million, EUR 8.5 million). The lawsuit resulted in an Australian federal court ruling the project should be liquidated and its administration “brought to an end.”
A judge later granted a stay on the liquidation as Seafarms appealed. The appeal was heard on 12 and 13 August but a judgment is still pending.
“Despite this legal uncertainty, the group continues to ...
