Algae take bloom of Regal Salmon result

Press, 17 May 1989, Page 34

Algae take bloom of Regal Salmon result

The alga bloom at Stewart Island in January caused Regal Salmon to incur a $871,000 total loss in the six months ended March 31. This compares with a $75,000 profit in the previous corresponding period. The managing director of the Blenheim-based listed salmon farmer, Mr Terry Shagin, told the Stock Exchange that an extraordinary loss of $1,478 million was caused entirely from salmon that were killed by the algae bloom. The profit, before the extraordinary item, was $607,000. There were no extraordinaries in the previous corresponding period. Regal Salmon had started

an algae surveillance and early warning programme at both its salmon sea ranching ventures at Big Glory Bay, in the Stewart Island, and Ruakaka Bay, in the Marlborough Sounds, he said. The company had prepared staff at both farms to move the entire salmon farm to “safe” waters if the algae bloom struck again. It has been estimated that the five companies involved in salmon ranching in Big Glory Bay could have lost up to S6M because of the toxic algae bloom, called heterosigma. Mr Shagin said that in spite of the extraordinary loss, all divisions of the company had continued to run profitably.

The directors had no reason to change their previous statement that in the 18 months to March 31, 1990, the company could expect a $2.4M profit. Regal Salmon has altered its annual balance date from September 31 to March 31. The directors also expected to pay a 5c a share (20 per cent) dividend for the 18 month period. Turnover rose from $908,000 to $3.808M, and after expenses the pre-tax profit was ahead $659,000 ($75,000 previously). No tax was payable in either period. Minority interests took $52,000 (nil), and there were no equity earnings in either period.