Aquaculture profits stung

HUON Aquaculture shares have sunk after a late-year jellyfish outbreak stung the company’s salmon harvest and knocked first-half profits lower.

The Tasmanian fish farmer reported a 4.5 per cent slide in net profit to $26.35 million for the six months to December 31, with revenue down 20 per cent to $139.3 million on lower harvest volumes and increased production costs, mitigated by strong prices for salmon.

As well as dealing with November’s jellyfish problem, Huon chief executive Peter Bender said summer bushfires across the state’s southeast proved a logistical hurdle, though there was no disruption to the harvest schedule and no loss of assets or damage to infrastructure.

“Huon Aquaculture’s disappointing financial performance in the current half highlights the challenges we face every day when working with nature,” Mr Bender (pictured) said yesterday.

“There are not too many levers we can pull when we are faced by the weather events from last year and the jellyfish bloom.” Huon said full-year costs from the moon jellyfish bloom in the Huon River and D’Entrecasteaux Channel – an event last seen in the summer of 2012-13 – are expected to reach between $8 million and $10 million.

Mr Bender said staff worked “around the clock” to keep the jellyfish away from the salmon during the outbreak, with staff manually towing sea pens through the water.

The event affected fish growth, while some affected salmon are now suffering from gill necrosis, which could see residual fish deaths until the water cools further into the year.

The company has flagged a 5-10 per cent dip in full-year operating earnings on last year’s $71.8 million record result, while cutting its interim dividend to 3.0 cents, partially franked, from 5.0 cents a year ago.

A full-year harvest target of 20,000 tonnes has, however, been reaffirmed. “As the biomass is rebuilt over 2019 we expect to see a return to production volumes in FY2020 of at least 25,000 tonnes,” Mr Bender said.

Huon said it currently had fish in production that will support a 30,000 tonne salmon production in FY2021, while it will continue its push into Yellowtail Kingfish farming on both the east and west coasts.

Shares in the company dipped more than six per cent to $4.80 yesterday, which was still higher than $4.53 a year ago.