Seadragon shares swam against the market Wednesday, rising on the company's forecast for earnings to improve in the current financial year with solid demand for its fish oil products.
The shares rose 20 per cent, or 0.1 cents, to 0.6c on a day when the global rout caught up with New Zealand after Tuesday's holiday and driving a 1.3 per cent decline in the S/NZX All Index, with 79 of the 113 stocks down in early trading.
Seadragon was one of the 29 to gain after saying it shipped more than 100 tonnes of tuna oil to multiple customers in December and January and had solid demand in the pipeline for the year ahead.
"The minimum volume we have firm orders for is close to 400 tonnes of semi-refined tuna oil, with strong signals from these customers that their combined demand over the next year will increase further," chair Colin Groves said in a statement.
Nelson-based Seadragon reported a normalised ebitda loss of $2.2 million in the six months ended September 30 and said the full-year result would be linked to securing new customers, vaguer guidance than at the annual meeting when it was predicting a smaller ebitda loss than the $4.4m posted the year earlier.
In November, the company drew down on the last $1m of its convertible loan facility with shareholder Comvita and said it had enough funds to grow provided it met sales targets.
However, Mr Groves said Seadragon will need more cash to boost sales.
Seadragon has previously linked a breakeven position to when it sells 600-to-700 tonnes of fully refined tuna oil in a 12-month period.