Oceanus sets up unit to start warehouse service, distribution of frozen food
FOOD technology company Oceanus Group 579 has incorporated a new wholly-owned subsidiary, Oceanus Tradelog, to expand its business capabilities to include warehousing and logistics solutions.
Oceanus Tradelog will service the group's various distribution subsidiaries, such as Season Global Trading, Sino Food Group and Asia Fisheries, the group said in a bourse filing on Tuesday (Nov 9).
Oceanus said it has plans for the unit to manage around 600,000 square foot of warehousing facilities in the region within the next 2 to 3 years.
The unit will also look into the distribution of frozen food products.
Oceanus noted that since the beginning of October 2021, it has secured distribution deals totalling 875 tonnes for the export of frozen meat to neighbouring countries in South-east Asia, while subsidiary Sino Food will be supplying up to 100 containers of frozen food every month to China.
In a separate filing, the group also announced that Oceanus Tradelog has secured a contract to provide SATS subsidiary Country Foods with both warehousing and logistics services for its frozen meat products, as part of plans to build an external customer base comprising international food industry players.
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Oceanus expects the contract will improve its financial performance over the next few years, although it will likely not have any material financial impact on the group's consolidated net tangible assets per share and consolidated earnings per share for the current financial year ending Dec 31, 2021.
Oceanus chief executive officer Peter Koh said Oceanus Tradelog will be focused on logistics solutions and food distribution in the region.
"Together with the group's recently established Sino Food whose target market is China, Oceanus is set to become a revolutionary forward-thinking food tech company to bolster the global food supply chain and food security," he said.
The investment in Oceanus Tradelog is funded through internal resources, and is not expected to have any material financial impact on the group and company's consolidated net tangible assets per share and consolidated earnings per share for the current financial year.
Shares of Oceanus resumed trading on Tuesday afternoon, and were up S$0.001 or 2.6 per cent at S$0.04 as at 1.05 pm. The group had called for a trading halt at Monday's midday break pending the release of an announcement.
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