Financial Report Q4 2022 and preliminary figures 2022

21 Feb 2023 07:00 CET

Financial Report Q4 2022 and preliminary figures 2022

Revenues for Q4 22 were 3.798 MNOK (Q4 2021: 2.882 MNOK). EBITDA was 661 MNOK in
Q4 22 (Q4 2021: 350 MNOK). Profit before tax was 538 MNOK in Q4 22 (Q4 2021: 239
MNOK). YTD revenues were 11.282 MNOK as per Q4 22 (YTD Q4 2021: 9.862 MNOK).
EBITDA were 1.703 MNOK YTD 22 (YTD 2021: 1.018 MNOK). Profit before tax was
1.173 MNOK in YTD 22 (YTD 2021: 649 MNOK). YTD 2021 figures included a one-off
gain of 139 MNOK related to the purchase of Hordafor.

In Q4 22 Pelagia had a decrease in raw material volume in the FOOD division
compared to Q4 2021. The reduction is explained by an increase in delivery of
Norwegian Spring-Spawning Herring for FEED purposes. The reduction to FOOD
purposes can partly be explained by uncertainties related to the Eastern
European-market. There is still no full fishing agreement between UK and Norway
in place after Brexit. The Norwegian fishing fleet do not have the usual access
to fish Mackerel in the UK fishing zone going into 2023.

Pelagia generates revenue worldwide and, for the FOOD division in particular,
Eastern Europe remains an important market. The current war in Ukraine increases
the risk related to the operations in the FOOD division somewhat. Further, due
to the world economy challenges in 2022 and into 2023 it seems to be an
increasing challenge in several countries to have access to f.ex USD for
international payments.

For the FEED division the above mentioned increase in volume of Norwegian
Spring-Spawning Herring for FEED purposes increases the volume in Q422 vs Q421.
A significant increase in the quota for Blue whiting is expected in 2023. The
margins for the FEED division have increased during 2022 due to the increasing
prices of fish meal and fish oil during the year. A similar effect cannot be
expected for 2023. In December 2022 Pelagia increased the ownership in Aquarius
AS from 66 to 100%. The plan is to merge Aquarius AS into Pelagia AS in 2023 to
fully integrate the operations of Aquarius into the Pelagia FEED division.

The market demand for the HEALTH division products has remained solid also
through Q4 2022. In 2H 2021, the HEALTH division completed a major milestone in
its project to increase overall production capacity. A significant price
increase for the raw material in the HEALTH division could negatively affect the
markets and the margins going forward, but due to the factory upgrade the HEALTH
division should be well prepared to compete in the market.

Pelagia signed a new 5-year bank financing agreement in November 2022.

The Group's ability to utilise its production capacities depends on the supply
of raw materials in the North Atlantic and thus the size of the global quotas
that are distributed between the countries which have a share of these fish
resources. The prospects for the fisheries on which the group bases its
operations in total remain stable going forward. The long-term goal of Pelagia
is to favour the sustainable management of the main fish stocks. At the moment
Pelagia do not see a significant climate risk that should affect the fisheries
and the related value of its assets. Still, long-term it could be a risk that
the fisheries in the North Atlantic are are impacted by climate changes.

In common with many other companies, we have experienced higher costs related to
energy, international freight, logistics and cost increases in general related
to the operations during 2022. Due to hedging of energy costs and with a
significant share of the operations in the Middle and North of Norway the
negative impact of higher energy costs has been limited. Also, the cost of
international freight seem to normalise after significant increases during the
period 2020-2022 due to the Covid-19 situation. Still, we experience higher
costs related to new equipment and technical services.

No events have occured after the balance sheet date that have material impact on
the presented quarterly report.


For further information see attached 4Q 2022 Financial Report.

For any questions, please contact:

CEO Egil Magne Haugstad emh@pelagia.com
CFO Rolf Andersen ran@pelagia.com

See www.pelagia.com for further information about the company.

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

More information:
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583029_Financial Report Pelagia Q4 2022.pdf