Norcod (NCOD) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 61.5% YoY to NOK 83.2m as harvest volume increased 90% to 1,611 tons WFE; operating loss excluding one-time items was NOK 47m.

• FY 2023 revenue increased 58% to NOK 269.4m, while harvest volume grew 60% to 6,155 tons WFE; operating loss excluding one-time items was NOK 233m.

• Year-end biomass reached 7,817 tons; a new China contract announced in Q1 2024 and planned share placement of NOK 100–150m underpin growth and working capital plans.

Financial highlights

• Q4 operating revenue was NOK 83.2m vs NOK 51.5m YoY; reported operating loss was NOK 105.1m, including a NOK 37.0m negative biomass fair-value adjustment.

• Q4 net loss was NOK 113.3m vs NOK 197.0m YoY; adjusted for one-time items, operating loss was NOK 47m and net loss NOK 86m.

• FY operating revenue was NOK 269.4m vs NOK 170.5m; reported operating loss was NOK 217.2m and net loss NOK 249.2m.

• FY net loss improved from NOK 297.2m in 2022; adjusted for one-time items, operating loss was NOK 235m and net loss NOK 228m.

• Q4 operating expenses excluding one-time items were NOK 130m vs NOK 84m; FY expenses excluding one-time items were NOK 503m vs NOK 294m.

Outlook and guidance

• Year-round supply differentiates farmed cod from seasonal wild catch; lower cod quotas and tighter supply support expectations for stronger long-term pricing.

• Production and market plans call for further biomass build and higher harvest volumes, paced to benefit the environment, customers and shareholders.

• A contemplated NOK 100–150m private placement was expected in Q1 2024 to strengthen working capital; main shareholders intended to participate.