Nordic Aqua Partners - Results for the third quarter 2022

01 Dec 2022 07:01 CET

· Project on time and on budget, stage 1 with fixed capex
· Good biological performance, first batch is now 50 grams
· Installation of RAS 3 completed, RAS 4-5-6 ongoing
· Salmon prices in China supports long term business opportunity
· Capex of 51 MDKK in Q3 2022, accumulated 238 MDKK of total project capex of
370 MDKK (CAPEX at 125 NOK/kg)
· Available liquidity of 379 MDKK as of 30.09.2022, including cash and undrawn
credit facilities

Stage 1 of the project, with an annual capacity of 4,000 tonnes continues to
develop according to plan and within budget. The Hatchery was completed on time
for the first inlay of eggs in March 2022, with freshwater production and
startfed in RAS 1 in May. Installation of RAS 3 was completed in October, and
fish was transferred from RAS 2 to RAS 3 in November. Fry from Batch 1 is now 50
grams. Batch 2 was introduced to RAS 1 and startfed at the end of August, and
eggs for Batch 3 were introduced to the hatchery in September. Biological
performance has so far been very good for both batches, with survival and growth
rates exceeding budgeted levels.

Commenting on the development, Chairman Ragnar Joensen, said:

"Project execution has been excellent during the third quarter, and both
constructions and installations of RAS equipment are developing according to
schedule. Biological performance has been very good for both batches. Survival
and growth rates are exceeding budgeted levels and the first batch of salmon is
now 50 grams. It is still early stages, and we are very much looking forward to
watching the fish growing into healthy and robust Atlantic salmon, ready for
harvest in Q1 2024."

Nordic Aqua Partners finds it encouraging to register that salmon prices remain
at seasonally high levels, driven by solid demand from both the HoReCa market
and the fast growing retail segment. In Q3, estimated Wholesale prices in China
averaged 173 NOK/kg HOG, which compares to FOB-Oslo prices at 72 NOK/kg HOG.

Construction of infrastructure and facilities are carried out under a lease
agreement with the local government. The terms under the agreement for Stage 1
and 2 (8,000 t) are fixed, significantly reducing capex risk to Nordic Aqua
Partners. Initial discussions with the local government on principle terms and
conditions to expand the annual capacity to reach 20,000 tonnes as per current
lease principles and on current location and contracted land area are in
process.

Total capital expenditure during the third quarter was 51 MDKK million, mainly
related to AKVA Group RAS technology. As per 30 September 2022, accumulated
project capex was 239 MDKK, out of a total project capex of 370 MDKK. Capex
remains on budget. Nordic Aqua Partners' financial position remains strong, and
by the end of the quarter the company has available liquidity of 379MDKK.

Outlook

Due to expectations of limited global supply and stable demand growth over the
next years, Nordic Aqua Partners believes the outlook for salmon prices in China
remains solid. Nordic Aqua Partners therefore expects to see attractive margins
for locally farmed Atlantic salmon also in 2024, the first year of harvest.

At listing in Q4 2020, Nordic Aqua Partners secured equity funding for expansion
up to 8,000 tonnes capacity. Infrastructure and building of the administration
and the hatchery facility were completed in February 2022, with eggs introduced
immediately after. With an estimated production cycle of two years, the first
harvest of locally farmed Atlantic salmon is expected early 2024. When the
company reaches full production capacity in 2024, a total of 8 batches will be
in production simultaneously. Stage 2 and 3 are expected to bring total annual
production to 20,000 tonnes by the end of 2026.

Due to the inflationary pressure seen recent 12-18 months, the company's capex
estimates for stage 2 and 3 is increased by some 15% to 145 NOK/kg. Inflation
effects are somewhat offset by optimization, standardization and increased local
sourcing. Moreover, the recent sharp increase in prices on feed and other
operational input factors has resulted in an upward revision of production cost
assumptions. A decline in feed prices will bring about a corresponding downward
revision of estimated production costs.

Result presentation

Ragnar Joensen, Chairman Nordic Aqua Partners, Ove Nodland, CEO Nordic Aqua
Ningbo and Hjalti Hvítklett, CFO Nordic Aqua Partners, will present the results
live by webcast today, December 1, 2022 at 10:00 a.m. CET.

The webcast can be accessed at www.nordicaquapartners.com, or with the following

link: https://attendee.gotowebinar.com/register/5029919778229600270

For further information please contact

Hjalti Hvítklett, CFO Nordic Aqua Partners

hjalti@nordicaquapartners.com

+298 221222

About Nordic Aqua Partners

Nordic Aqua Partners is a Nordic land-based salmon farming company, using
cutting-edge Nordic technology and expertise to set up the first fully
integrated and commercially scaled Recirculating Aquaculture System [RAS] farm
for Atlantic salmon located in Ningbo, China. With operations in place, Nordic
Aqua Partners will be the first local producer of truly sustainable and fresh
salmon to the Chinese market. The current business plan is for an annual
production of 20,000 tonnes HOG. Nordic Aqua Partners A/S is listed at Euronext
Growth under the ticker NOAP.

To learn more, please visit www.nordicaquapartners.com

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

577125_NOAP_2022_Q3_Report.pdf
577125_NOAP_2022_Q3_Presentation.pdf
577125_Release.pdf