Q3-24 Financial report

14 Nov 2024 07:00 CET

Q3 2024 Highlights
- 69 MNOK in revenues, up 229% from 21 MNOK in Q3-23
- 73 MNOK in operating loss, up from 40 MNOK in Q3-23
- 1 348 tonnes WFE harvested, up from 146 tonnes WFE in Q3-23
- The financial results in Q3-24 were impacted by the marine heat wave and
unusually high temperatures during the summer. Extraordinary mortality related
to the same factors is quantified at MNOK 23 million as a non-recurring item
- Completed a new stocking of the Jamnungen site with further improvements in
biological results compared to previous cycles
- Expanded DNB credit facility with 75 MNOK to increase operational flexibility
going forward
- Strong market conditions with increased sales prices, opportunity pipeline and
accelerated sales processes

Post Q3 2024 Highlights
- Prepared new site Bjørnvika (Nesna) for first stocking in Q4
- Based on expected positive development in sales prices and production costs,
the company expects significant improvements in financial results in Q4-24
- Expected positive cash flow from operations in Q1-25 and throughout 2025
- During Q4-24 Norcod will assess and develop a revised growth strategy in line
with market demand at favourable sales prices

Market update
Norcod is experiencing strong market conditions with a 20 percent increase in
sales prices from Q1 to Q3 2024, strengthened opportunity pipeline, increased
contract coverage and accelerated sales processes due to the following factors:

- 80 per cent of volumes were sold on contract in Q324 and we expect a similar
ratio going forward
- Launch of the brand Snow Cod and measures to develop the market and position
our product in a premium niche category in key growth markets
- Increased awareness of the benefits of farmed cod, providing a reliable supply
of fresh, high-quality and sustainable cod all year round with the same benefits
as salmon in terms of product versatility
- A significant reduction in wild cod quotes and a corresponding drop in
available raw material
The market conditions and fundamentals for farmed cod have never been better,
supporting a positive outlook for farmed cod and Norcod.

Outlook
Based on positive developments in sales prices and strong market conditions, the
company expects significant top-line improvements in the upcoming quarters.
Although production costs were extraordinarily high in Q3-24 due to unusually
high sea temperatures, the company expects production costs to normalize at
significantly lower levels in the upcoming quarters, in line with the quarters
preceding Q3-24.
Norcod has also implemented measures to focus resources in key areas and improve
the company's financial performance, streamline operations and develop a more
efficient and commercially oriented business.
As a consequence, Norcod expects to deliver significantly improved financial
results in Q4-24 and is confident that positive cash flow from operations in
Q1-25 and throughout 2025 is within reach.
The company will therefore during Q4-24 assess and develop a revised growth
strategy in line with favourable market conditions.

Full report is attached, and is also available at Norcod's website at:
https://www.norcod.com/investor-relations/reports-presentations

For further information, please contact:
Christian Riber, CEO, phone: +47 905 37 990, e-mail: cr@norcod.no
Chris Guldberg, CCO, phone: +47 92 81 07 07, e-mail: cg@norcod.no

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act and the EU Market Abuse Regulation
(MAR).

About Norcod
Norcod AS’ core business is commercial sea farming of cod.
Norcod’s existing fish farms are located in Mid-Norway with ideal conditions for
cod. The company is contributing to blue ocean value creation with minimal
impact on the environment while supporting local communities. Norcod is listed
on Oslo’s Euronext Growth market.

More information:
Access the news on Oslo Bors NewsWeb site

632135_2024 Q3 Financial report.pdf