Nordic Aqua - Results for the third quarter 2024

14 Nov 2024 07:00 CET

Highlights

· Good underlying operational and biological performance for all batches with
excellent fish health and welfare
· No commercial harvest in the third quarter. 651 tonnes biomass taken out in
the quarter to optimize stock
· Geosmin issue in July 2024, continuing into Q3 2024 causing lower turnover
and no expected commercial harvest in H2 2024
· Q3 2024 biomass production of 1,005 tonnes and total biomass of 2,786 tonnes
by quarter end, which is satisfactory given the reduced feeding due to geosmin
· Stage 2 is on schedule and the first egg inlay for Stage 2 was successful
· New equity of NOK 350 million that, together with indicative debt financing
and cash on hand will secure full funding of Stage 2 and other general corporate
purposes

Nordic Aqua operations during the third quarter were impacted by previous
incidents of elevated geosmin levels. No commercial harvest was executed during
the period, impacting results negatively.

However, underlying operational and biological performance was good for all
batches. Total biomass production exceeded 1,000 tonnes during the quarter
bringing total biomass to nearly 2,800 tonnes by the end of the period. Fish
health and welfare was good, and mortality rates were low.

Commenting on the development, CEO Ragnar Joensen, said:

"We are encouraged by the progress made in recent months and are pleased to see
the resilience of our operations as we rebound from the geosmin setback. With
rigorous measures in place and strengthened biological performance, we are now
positioned to continue expanding our Nordic PureAtlantic brand in the Chinese
market."

Despite the adjustments to handle the biological situation, construction of the
farming operation of Stage 2 continues as planned. Extra capacity for hatchery,
start-feeding, parr unit and smolt unit are finished and operational and the
first egg inlay was successfully completed in September 2024.

In September the company successfully completed a private placement raising new
equity of NOK 350 million. Combined with the company's strategic agreement with
Bank of China this will secure funding through completion of Stage 2 in addition
repayment of short-term debt, capex related to geosmin improvements, working
capital and other general corporate purposes.

"We are well underway with the buildout of Stage 2, which will double our
capacity to 8,000 tonnes. The technical installations are expected to start in
January 2025 with first harvest scheduled for the second half of 2026.
Preparations for Stage 3, expanding capacity to 20,000 tonnes are ongoing, and a
final decision on the timeline will be made during H1 2025", Ragnar Joensen
commented.

Outlook

Nordi Aqua expects to bring the geosmin situation under control over the next
months. Efforts to further ramp up production will continue and harvesting of
the best quality and taste salmon will resume.

In line with previous announcement and as part of the handling of the biological
situation about 2,000 tonnes of salmon is expected to be culled, and no
commercial harvest is expected in the fourth quarter 2024. Alongside a gradual
normalization of operations, Nordic Aqua expects to harvest about 4,000 tonnes
for the full year 2025, and together with its customers, the company is
continuing its efforts of building a long-term position with unparalleled
freshness and high-quality Atlantic salmon in the growing Chinese salmon market.

Results presentation

CEO Ragnar Joensen, CFO Tom Johan Austrheim, and managing director for Nordic
Aqua's operational activities in China, Andreas Thorud, will host a webcast to
present the results today at 10:00 a.m. CET. The webcast can be accessed at
www.nordicaquapartners.com, or with the following link:
https://channel.royalcast.com/landingpage/hegnarmedia/20241114_8/

Following the presentation, Nordic Aqua will take questions from the audience.
Webcast participants need to register to post questions. The presentation and
subsequent Q&A will be held in English.

For further information please contact:

Ragnar Joensen, CEO

ragnar@nordicaquapartners.com

+298 599 112

Tom Johan Austrheim, CFO

tom@nordicaquapartners.com

+47 98 20 98 73

About Nordic Aqua

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.

More information:
Access the news on Oslo Bors NewsWeb site

632147_Release.pdf
632147_NOAP_2024_Q3_Presentation.pdf
632147_NOAP_2024_Q3_report.pdf