(Trondheim, June 6, 2024)

Norcod has today published its financial report for the first quarter of 2024. Financial and operational highlights are summarized below:

•	118 MNOK in revenues, down 5% from 125 MNOK in Q1-23
•	48 MNOK in operating loss, 46% improvement from 88 MNOK in Q1-23
•	Production cost NOK 39,75 per kg WFE
•	2 765 tons WFE harvested, down 17% from 3 362 tons WFE in Q1-23
•	Accumulated BFCR 0.97 and EFCR 1.08 on harvested biomass
•	China entry – attractive market opportunities lying ahead 
•	Executed measures to improve financial robustness and enable further growth – 174 MNOK in gross proceeds from private placement and subsequent offering

During the quarter, Norcod has harvested cod from the sites Jamnungen (Frøya Municipality) and Forså (Ibestad Municipality). The cod has been harvested at Norcod’s harvesting facility Kråkøy Slakteri. Accumulated biological feed conversion ratio in the harvested biomass is 0.97. Accumulated economic feed conversion ratio in the harvested biomass is 1.08. 91% of the harvested volume holds superior quality. 

At the end of the quarter, Norcod’s biomass at sea totaled 6 599 tons. Net growth during the quarter is 1 586 tonnes, amid heavy investments in biomass and a satisfactory feed conversion rate and stable and predictable mortality. 

According to officially reported statistics, Norcod’s share of total export volume of harvested cod during the quarter was 65%, and at the end of the quarter, Norcod holds 50% of the total biomass volume. Norcod’s main market during 2023 has been Central and Western Europe. During the quarter, Norcod has been granted a new contract with a Chinese customer at favorable market prices, and Norcod has an ambition to strengthen its market position in the Chinese market during 2024.

Outlook:

The company’s key tasks going forward are two-fold: Firstly, a continued vigilant focus on cod biology and fine tuning of the feeding regime, the production processes, and the utilization of production capacity. Secondly, stepping up efforts to develop the market and positioning our product in a premium niche category, with corresponding sales prices and contracts.  

Continued focus in these two areas will enable us to deliver on our number one priority of achieving profitability at current production levels. Beyond this goal, we will take a step-by-step approach to building up volume in line with market demand at favorable sales prices.
  
In order to align operational processes with the company’s revised growth strategy, Norcod will during 2024 initiate measures to focus resources in key areas and improve the company's financial performance. The company’s ambition is to streamline operations and develop a more efficient and commercially oriented business. 
For other details and comments, see the financial report for Q1-24. The report is attached in PDF and is available on https://norcod.no/. 

For further information, please contact: 

Christian Riber, Chief Executive Officer, phone: +47 905 37 990 E-mail: [email protected] 

Arne Kristian Hoset, Chief Financial Officer, phone: +47 988 10 282 E-mail: [email protected] 

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.