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Disease Causes Rreview At Clean Seas Tunaff

19 April 2012 Australia

Source:  The Australian

An outbreak of enteritis among yellowtail kingfish is causing financial concerns at Clean Seas Tuna.

The South Australian aquaculture company is reviewing the future of its yellowtail kingfish operations in the Spencer Gulf after 35 per cent of juveniles were wiped out by an infection of the intestines. Tests are continuing to determine the cause of the health problems. A strategic review will look at the impact of the problems and other options for its future, Clean Seas says.

“The final findings of this strategic review may require the company to consider writing down the carrying value of specific kingfish assets,” it says in a statement.

Shares fell 0.2c to 4.6c.

The company posted a loss of $7.7 million in the six months to December 31, a smaller loss than in the previous corresponding period. It has forecast further improvements in its trading performance for the full 2011-12 financial year, outside of the potential writedown.

The company is also working towards commercial production of southern bluefin tuna, and says trials are progressing well. About 100 tuna are currently in an on-land facility, and ways of improving the quality of the facility to accelerate growth rates are being explored, Clean Seas says. The company has also appointed the former chief financial officer of aquaculture company Tassal, Nick Burrows, to its board as a non-executive director.