Ocean Grown serves up higher revenue but wider costs amid expansion

Ocean Grown sold 24.3 tonnes of its abalone in just the past six months.

That’s 161 per cent more than the same period last year, leading to a 222 per cent in sales revenue to $1.34 million. Total revenue was $1.5 million.

Losses for the half widened to $1.6 million compared to a loss of $1.2 million in the same period last year.

Ocean Grown (ASX:OGA), which recently joined the local bourse, reported increases across the board in harvests and biomass.

However the shares were trading at 17c on Tuesday morning — down from its IPO issue price of 25c.

Ocean Grown told investors it was transitioning from a construction and development phase to full operations and production at its Flinders Bay ranch.

Just over 7000 of its abitats – abalone habitats – have been deployed so far, well on track for a target of 10,000 by the first quarter of FY 2019.

To date the company sells the delicacy live, quick frozen and vacuum sealed in a pouch – and says it’s working with its Asian customers to develop more.

Currently production is solely centred at its artificial reefs at Flinders Bay. But trials in Esperance — in conjunction with the Southern Ports Authority — are ongoing, with further potential at two sites in South Australia and one in Victoria.