The share prices of Huon Aquaculture Group Ltd (ASX: HUO) and Tassal Group Ltd (ASX: TGR) are reeling from some negative news.
Both Huon and Tassal are large fish farming businesses predominately in the waters of Tasmania, but it’s some news announced today that has sent investors trawling for other opportunities.
Huon’s Fishy Update
Two events are going to impact Huon’s FY19 result according to today’s ASX announcement.
The water temperature in Southern Tasmania has been persistently warmer than average, which means it wasn’t quite the optimal temperature.
There was also a moon jellyfish bloom which initially caused higher fish mortalities but has also caused gill necrosis, meaning it has taken longer than expected for normal fish growth rates to resume.
Forecast harvest tonnage has reduced from 20,000 tonnes to 19,000 tonnes. FY19 Operating EBITDA is now expected to come in between $50 million to $55 million, down from guidance of $64 million to $68 million (click here to learn what EBITDA means).
Investors seem to be thinking that Tassal Group Ltd (ASX: TGR) may also have been affected by the warmer temperatures.
The Huon share price is down 4.8% and the Tassal share price is down almost 6%.
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