Pelagia Holding AS – Financial Report Q3 2025

12 Nov 2025 07:00 CET

Revenues for Q3 25 were 3.439 MNOK (Q3 2024: 4.201 MNOK). EBITDA was 278 MNOK in
Q3 25 (Q3 2024: 517 MNOK). Profit before tax was -29 MNOK in Q3 25 (Q3 2025: 327
MNOK). YTD revenues were 9.628 MNOK per Q3 25 (YTD Q3 2024: 10.050 MNOK). EBITDA
was 623 MNOK YTD Q3 25 (YTD Q3 2024: 1.087 MNOK). Profit before tax was -28 MNOK
YTD Q3 25 (YTD Q3 2024: 523 MNOK).

Pelagia changed the accounting principle related to cash flow hedges in Q3 2025,
comparative figures have been changed accordingly for 2024.

As reported also in Q2, earnings are weaker compared to last year due to the
significant drop in fish oil prices reported. This is impacting also salmon oil
prices which have a similar reduction. Fish oil prices have not improved in 2H
so far. To the extent possible, following the drop in both salmon oil and salmon
protein prices the purchase prices for salmon trimmings are renegotiated. This
will improve salmon based margins going forward if market prices stabilise. For
the FOOD division we see that the reduced Mackerel quota this year has increased
the purchase price significantly. This significant increase could be difficult
to pass over to the market and some markets will drop out. Even more challenging
are the advised quotas from ICES for 2026. The advise for the Mackerel quota is
down 70%, the North-Sea Herring quota is down 25% and the Blue Whiting quota
down 41%. The latter mainly impacting the FEED division. The NVG quota advise is
up 33%. In summary, though all quotas are not finally set, this proposed
decrease in raw material will be a serious challenge for the industry. See
further details below.

In Q3 25 Pelagia had a decrease in raw material volume in the FOOD division
compared to Q3 2024. The main explanation for the decrease is the lower quota of
especially Mackerel compared to 2024.The mackerel quota in the North Atlantic
was reduced about 22% from 2024 to 2025 and there is a zero quota for Capelin in
2025. Despite the reduction in quota earnings are improved for FOOD YTD partly
related to the margins from the stock as per YE 2024. The demand seems to be
good for most FOOD products in 2025 even with the strong price increase for
Mackerel this year. The overall reduction in quota will be a challenge for the
FOOD division in 2026.

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 US trade tariffs the effect is still uncertain, but we see that
the tariff of 15% is higher than for UK as an example. That could affect the
exports from Norway. 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%. It has been indicated from the Scottish
Government that this obligation could increase to 70% for 2026. This increases
the competition between the Norwegian bidders for raw material. Pelagia is
present with factories in both markets, so it is probably more challenging for
companies located only in Norway.

The FEED division has an increase in raw material volume in Q3 25 vs Q3 24. This
is explained by an increase in Sprat. YTD the raw material is down. 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 year anchovy fishing seasons in
Peru gave a high production volume. Due to the better production of oil, also
due to higher oil yields, the market price for fish oil has weakened
significantly. This has impacted also the price of salmon oil. In total this has
weakened the earnings of the FEED division in 2025. Of the Peruvian 2025 quota
about 80% was landed so less oil than expected will come to the market in 2H,
but so far this has had little impact on the price level. 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 2025. With the increased catch in Peru we see lower raw material prices
for oil to the Omega-3 market. With the reduction in raw material prices, we
also see some uncertainty about the price level in the Omega-3 market. Margins
are negatively affected for a period as raw materials purchased in the period
with limited supply and high prices are consumed. The situation is expected to
normalise and we expect sound margins for the HEALTH division in 2026.

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 due to fluctuations in
nature. This will be situation in 2026, where quotas will be reduced. The
long-term goal of Pelagia is to favour 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. The effect of the 15% US
trade tariff is yet to be seen.

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 December 2025. The last outstanding part of this loan
was bought back mid-august.

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

In October 2024, 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. A final decision is expected in 1H 2026.

The company has been successful in an older tax case as the Tax Appeals
Committee has awarded the company a deduction for losses on interest receivables
that were capped by the Tax Administration. This concerns a loss deduction from
2016 of 126 MNOK. The related tax on the deduction of approximately 27 MNOK has
already been paid to the company.

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

For further information see attached the Q3 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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659372_Financial Report Pelagia Q3 2025.pdf