Pelagia Holding AS - Financial Report Q1 2025

15 May 2025 07:00 CEST

Revenues for Q1 25 were 3.759 MNOK (Q1 2024: 2.960 MNOK). EBITDA was 292 MNOK in
Q1 25 (Q1 2024: 272 MNOK). Profit before tax was 120 MNOK in Q1 25 (Q1 2025: 41
MNOK).

In Q1 25 Pelagia had a decrease in raw material volume in the FOOD division
compared to Q1 2024. The main explanation for the decrease is the lower quota of
Norwegian Spring-Spawning herring and especially Mackerel compared to 2024.The
mackerel quota in the North Atlantic will be reduced about 22% from 2024 to 2025
and there will be a zero quota for Capelin. The demand seems to be good for most
FOOD products in 2025. The FOOD stock values increased significantly in 2024 due
to very high prices, especially for mackerel. The FOOD stock value is expected
to be reduced gradually through 2025 due to lower quotas. These reductions in
production will give challenges for the FOOD division in 2025.

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. As per today
Pelagia has no material assets related to Ukraine recorded in the balance sheet.
In relation to the current turmoil on possible trade tariffs the effect is
uncertain. Following the landing obligations introduced in UK/Scotland a part of
the raw material historically landed in Norway by UK/Scottish vessels now partly
must be landed in Scotland. In 2025, the obligation to deliver in Scotland
increases from 40 to 55%. This increases the competition between the Norwegian
bidders for raw material. Pelagia is present with factories in both markets.

The FEED division also has a decrease in raw material volume in Q1 25 vs Q1 24.
This is explained by a reduction of Blue Whiting and Capelin (zero quota).
Coming out of the El Niño situation in the Pacific the last anchovy fishing
seasons in Peru gave a more normalised production volume. Due to the better
production of oil, the market price for fish oil has weakened. The Peruvian 2025
quota is high, but oil yield will decide the direction of the market price. The
current demand for fish meal is high and stocks are limited.

The market demand for the HEALTH division products has remained sound also
during 2024. With the increased catch and improved oil yields in Peru this last
season we see lower raw material prices for oil to the Omega-3 market. With the
reduction in prices, we also see some uncertainty about the price level in the
Omega-3 market. With the 2021/2022 upgrade of the factory in Ålesund the
HEALTH-division should be well prepared for the competition in the Omega-3
market. Further, the factory is also being prepared to produce oil products
based on North-Atlantic raw material which will broaden the market for the
facility. With more raw material being available from Peru the stock value has
increased significantly vs last year. A reduction is expected gradually until Q3
when new oil will be available from Peru. Margins are negatively affected for a
period as raw materials purchased in the period with limited supply and high
prices are consumed. Margins should improve from Q2 2025.

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 long-term. Still, short-term there can be
variations in quotas and the available raw material. The long-term goal of
Pelagia is to favor the sustainable management of the main fish stocks. At the
moment Pelagia does 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 impacted by climate changes.

In common with many other companies, Pelagia can also be impacted by changes in
trade tariffs and other trading obstacles following the more uncertain economic
and geopolitical environment developing into 2025.

In January 2025 Pelagia issued a new unsecured 5,5-year 1000 MNOK bond. The bond
had a coupon of 3m NIBOR + 2.75% p.a. The main objective was to refinance the
900 MNOK bond loan due in Dec 2025. Pelagia has bought back bonds with a value
of about 721,6 MNOK and the remaining bonds held by investors have a value of
about 179 MNOK.

Pelagia has approved a dividend of 200 MNOK in May 2025 to the shareholders.

In October, the group lost a court case in the District Court related to the
delivery of wastes and by-products from production in the HEALTH division. Due
to the development of the product portfolio, a smaller volume has been sold
under contract to the buyer of by-products. Due to the reduction in the
delivered volume under the contract, the company has been sentenced to pay the
customer compensation of NOK 53 million including costs and interest. Pelagia
strongly disagrees with the verdict, which will be appealed.
Pelagia will normally take full provisions for potential losses, but due to, in
our opinion, several fact-based errors in this verdict, our provisions do not
cover the cost of the temporary verdict.

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

For further information see attached the Q1 2025 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

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646407_Financial Report Pelagia Q1 2025.pdf