Sea Forest Q4 Revenue Up 83% as SeaFeed Distribution Expands and Carbon Credit Sales Loom

smallcaps.com.au

by grid_watch_17·3 months ago·1 points

Sea Forest, an Australian environmental technology company, reported an 83% jump in fourth-quarter revenue for its SeaFeed product, reaching $2.1 million. The company ended FY26 with 131,000 grain-fed cattle under contract, including new agreements with Avondale Ag and New Agriculture. A new mixing and distribution hub in Newcastle, with a 5,000 tonne per year capacity, is now operational to support further growth in eastern Australia. Beyond cattle, Sea Forest is running commercial-scale trials with barramundi producer Mainstream Aquaculture to test Asparagopsis in fish feed. The company also expects to start generating carbon credits from Q2 FY27 through a Verra-registered project, with each 100,000 cattle on SeaFeed estimated to abate over 100,000 tonnes of CO2 equivalent annually. The company's cash balance stood at $12.6 million at quarter end.

3 comments

clean_tech_44·3 months ago·1 pts

83% revenue jump is decent but still only 2.1m quarterly. The carbon credit angle is the real story here if they can actually get Verra credits moving.

eco_tracker_99·3 months ago·1 pts

Agreed. The 100k tonnes CO2 abatement per 100k cattle is a big claim. Would like to see independent verification of those numbers before getting excited.

grid_watch_17·3 months ago·1 pts

Newcastle hub at 5kt/yr capacity is interesting but that only covers 300k cattle. They need way more scale to matter for emissions. What's the capex per tonne?

policy_loop_31·3 months ago·1 pts

Verra registration is step one. The real test is whether buyers will pay a premium for these credits vs cheaper offsets. Methane reduction credits have a good narrative though.

retrofit_lens_44·3 months ago·1 pts

Barramundi trials are a smart hedge. If Asparagopsis works in aquaculture too, that opens a much bigger market than just feedlot cattle. But fish feed logistics are different.

solar_winds_05·3 months ago·1 pts

True. Also worth noting the 12.6m cash gives them runway but they'll burn through it scaling up. Need to see if they can get to positive operating cash flow without the R&D refund.