SeaDragon First Half 2014 Revenue to rise by 17%
SeaDragon First Half 2014 Revenue to rise to $2.445m up 17% on prior year
Gains consent for new fish oil refinery and agrees lease; targets June 2015 factory completion
New Zealand’s largest refiner and blender of high-quality fish oils SeaDragon today announced that strong squalene sales in the second quarter have lifted revenue for the six months to 30 September 2014 to $2.445m, up 17% on the prior year.
Furthermore, sales for the month of September were $1.055m, a record for any one month for the company and an indication of the existing plant’s potential when sufficient raw material can be sourced.
SeaDragon also announced that the application for the building consent for its new refined fish oil plant (RFO) has been approved. SeaDragon has also entered into a long-term lease with the factory’s landlord, clearing the way for construction to commence within the coming weeks. The new facility, which will be built for a total cost of around $7.5 million, is to be shared between its landlord and SeaDragon, will open a new frontier of growth for the company. When completed, the RFO will have the capacity to produce in excess of 5,000 tonnes of refined Omega-3 rich fish oil, primarily from Hoki sourced from the Southern Ocean.
SeaDragon is now targeting completion of the factory in June 2015 with the new facility expected to make a meaningful contribution to SeaDragon’s second half 2016 financial year.
SeaDragon Chief Executive Ross Keeley said: “SeaDragon’s strong trading and the success in securing the outstanding consents for the new refined fish oil facility represent significant achievements for the first half of the current financial year.
“Our squalene operation is now delivering on its strong potential. New raw material supply agreements secured earlier this year enhance the likelihood of this performance continuing into the second half of the year and into the future.
“Meanwhile, the new factory will allow us to take advantage of the strong and growing demand we see for New Zealand-sourced Omega-3 fish oils. We believe our refined fish oils can attract a premium over the anchovy-based oils (which dominate the industry globally) due to international confidence in SeaDragon's food manufacturing capabilities and New Zealand’s clean-green image.
SeaDragon Chief Executive Ross Keeley said: “SeaDragon is growing and we are taking this opportunity to strengthen the bench ahead of commissioning our new fish oil refining facility in Nelson next year. This team equips us to convert into firm orders the strong expressions of interest we have received for our New Zealand sourced Omega-3 rich fish oils.