Sea Forest fourth-quarter SeaFeed receipts rose 83% to $2.1m. 131,000 cattle under contract. Newcastle distribution hub commissioned. Carbon credit revenue expected from Q2 FY27.
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Sea Forest (ASX: SEA) posted an 83% jump in fourth-quarter SeaFeed revenue receipts to $2.1 million. The environmental technology company ended FY26 with 131,000 grain-fed cattle under agreement, up 11% from the prior quarter, underpinned by new contracts with Avondale Ag and New Agriculture.
Net operating cash inflows for the quarter came in at $0.7 million, including a one-off $1.9 million research and development tax incentive refund. Cash on hand rose from $8.4 million to $12.6 million.
Sea Forest has begun commissioning its first regional mixing and distribution centre in Newcastle. The 1,500-square-metre facility can process and distribute up to 5,000 tonnes of SeaFeed each year, enough capacity to service a further 300,000 cattle. The company expects the hub to reduce logistics costs and shorten delivery times across New South Wales and Queensland, which together account for 62% of Australia's cattle herd.
Avondale Ag signed a 12-month exclusive agreement covering about 5,000 feedlot cattle. The customer expects the cohort to be fully inducted onto SeaFeed by October 2026. New Agriculture's 36-month exclusive deal starts with an 8,000-head feedlot targeted for full induction by December 2026. It extends to a 25,000-head Wagyu grazing operation and a 198,000-head northern pastoral operation.
"Revenue has increased every quarter as more cattle come onto SeaFeed across an expanding customer base," chief executive officer Sam Elsom said.
Sea Forest has started commercial-scale trials with barramundi producer Mainstream Aquaculture to test Asparagopsis in formulated feed at the producer's Victorian facility. The work follows research by the University of the Sunshine Coast and Deakin University that identified growth improvements in salmon and barramundi.
From the second quarter of FY27, Sea Forest expects carbon trading to provide a new revenue stream. The company has registered a Verra carbon project. Each 100,000 cattle using SeaFeed is expected to abate more than 100,000 tonnes of carbon dioxide equivalent annually and generate tradeable carbon credits.
Mr Elsom said Sea Forest enters FY27 "on a stronger financial footing than ever."
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