Loss-making Oceanus Group unveils major restructuring drive

Can its business get back on track?

Abalone breeder Oceanus Group has unveiled a major restructuring plan to bring its loss-making business back on track.

In a release to the SGX, Oceanus revealed aggressive cost-cutting measures that are expected to halve the group’s expenses in as little as two months.

Oceanus will now work with sea farmers instead of competing with them. The group will supply farmers abalone spawns instead of breeding its own.

“Sea farmers can offer abalones at prices that are 30 to 40 per cent lower than what land farming can offer. Based on price competitiveness alone, it is clear that sea farmers have an upper hand. In view of this, the Group has made a collective decision to restructure our way of business to ensure its viability,” said CEO and Executive Director Peter Koh.

Oceanus plans to purchase full-grown abalones from these sea farmers for redistribution, which mitigates the high risks the company faces due to natural abalone deaths.

The freed up farm space due to the restructuring will be redeployed for other joint ventures, such as prawn and fish farming.