Tassal (ASX:TGR) share price slips on facility gas leak incident

The Tasmanian salmon group's share price is down after a workplace safety scare.

| More on:
Factory health and safety inspector in blue scrubs and mask looks at clipboard while standing next to a large machine

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tassal Group Ltd (ASX: TGR) share price is slipping today after a gas leak incident at the salmon producer's Strathblane facility yesterday.

At the time of writing, the Tassal share price is trading 1.87% lower at $3.68.

Incident impacting the Tassal share price

Media reports indicate more than 20 people were hospitalised for medical assessment after a suspected gas leak at Tassal's processing plant in the Huon Valley.

Tasmania Fire Services' initial on-site assessment indicated the most likely cause was carbon monoxide from forklift operations inside the building.

Fire Services Acting District Officer Barry Bones said:

On arrival [the crews] found that people had evacuated the building and there were some people that presented there with some respiratory illness and some people that had been vomiting. A few people started to present with more illness and that's a classic way this gas affects people.

ABC News reported six people were in a stable condition yesterday afternoon, suffering suspected carbon monoxide poisoning. Three people were held overnight at the Royal Hobart Hospital.

WorkSafe Tasmania is now investigating.  

Safety at Tassal

According to Tassal's 2020 Sustainability Report, the company recorded 20 injuries requiring medical treatment in FY20. This was a reduction from FY19's 31.

This was despite the company's number of employees increasing by more than 100 to 1,458.

Tassal also reports its total recordable injury frequency rate (TRIFR) has dropped each year since FY16. This metric measures the number of injuries requiring medical treatment per million hours worked.

In FY20, Tassal recorded 8.03 injuries per million hours worked.

The company is yet to provide a market update on the incident, despite the Tassal share price impact.

Tassal share price snapshot

It's been a challenging 12 months for the salmon and prawn producer. The Tassal share price has underperformed the S&P/ASX 200 Index (ASX: XJO) by 33.3% over a trailing 12-month period.

Consequently, Tassal's market capitalisation now stands at $781 million.

Motley Fool contributor Mitchell Lawler owns shares of Tassal Group Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

Happy couple doing online shopping.
Consumer Staples & Discretionary Shares

The best ASX retail shares to buy in FY26

Bell Potter thinks these shares could be top additions to an investment portfolio in the new financial year.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Consumer Staples & Discretionary Shares

Woolworths shares slip amid $100 million cost closure news

Woolworths announced a closure that’s expected to cost the supermarket giant some $100 million.

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Opinions

Bull vs. Bear: Guzman Y Gomez shares

Guzman Y Gomez shares peaked at $45.99 in February and closed at $28.04 yesterday. Where to now?

Read more »

Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.
Consumer Staples & Discretionary Shares

With a projected 7% dividend yield in FY29, is the Coles share price a buy?

Should this supermarket stock go in the shopping basket for passive income?

Read more »

kid with headphones using an electronic device with man looking at it
Consumer Staples & Discretionary Shares

Kogan shares just hit a 52-week low – is it time to buy?

Bargain hunters might want to monitor this ASX 300 company

Read more »

Young fruit picker clipping bunch of grapes in vineyard.
Broker Notes

How much upside does Macquarie see for Treasury Wine shares?

Macquarie has a neutral view on Treasury Wine shares, with an $8.50 price target and 11% upside.

Read more »

A man stands with his arms folded in front of banks of unused poker machines in a darkened gaming room.
Share Market News

Broker tipping 50% upside for this consumer discretionary company

This ASX 200 company could be set for a rebound

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Is Treasury Wine ripe for a turnaround?

With China’s door once again open for Australian wine importers, Treasury Wine’s fortunes are improving.

Read more »