Quarterly Report • May 13, 2022
Quarterly Report
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Financial Report – First Quarter 2022 Oslo, 13. May 2022
Gustave Brun-Lie
CEO
Our third Pilot was finalized in January. Experience accumulated through the 3 pilots have given us valuable and necessary know-how preparing us for the future. Our aim has been through testing, trying and documentation, successes and failures had to be at lowest cost possible. I think we have achieved this goal.
We are now entering the phase of industrial production; where we also are building up our market presence. From September this year and onwards we will have weekly deliveries, throughout the year. This is our answer to the market challenging us to continuous, predictable deliveries year around, not only quantities but also quality wise. We have to deliver top products!
We observe that supplies to our market are diminishing. Variable pricing of food and energy result in unstable market conditions. This is a challenge we will have to cope and live with. We believe that we shall be able to help satisfy the demand from our markets through our predictable production.
Our farming of cod will be in the forefront to cover the increasing demand for some of the most sustainably produced proteins. Farming obtains feed conversion rates nearing 1; a strong advantage for the future, strengthening our product.
The market for cod is, as is well known, substantial. Not only will our product help satisfy the increased demand; in this it will also be able to penetrate markets where the wild cod does not have access.
We have a sustainable product with an unbeatable protein content demanded by the consumer. We need to communicate this to the market. How long this will take is not easy to assess.
An important part of this is the positive attitude of our political authorities who encourages further growth of the seafood industry. Part of this is our new industry of cod farming and the government is responsible for the management of information and data obtained from research. An issue here is restraint in relation to sites for farmed cod; decisions being quite often based on old data and further lack of documentation. Example is the data about escapes, a problem we so far have not seen occur.
We aim to control the full value chain and have come quite far in this respect. Further consolidation of the industry will however be necessary in order to gain improved control of all factors.
With best regards Gustave
Year-round deliveries is most important to build a sustainable market position and to develop the farmed cod category. Statt changed the production cycle from Q1 2022 to be in front and develop the best customer relationships in these first, important years. Building biomass is the solution to achieve the necessary flexibility to establish customer agreements.
At the same time as production plans were changed, a new harvest plan was drawn up to ensure weekly deliveries of fresh, healthy and sustainable farmed cod to European clients on a consistent weekly basis from mid/end of Q3 2022. Start up will be more than a year earlier than originally planned.
Expected harvesting volumes (WFE) are 1500 tons in 2022 and 4,000 in 2023. Our biomass will stay at a high level in the same period and into 2024. This supports our plan to enter new customer agreements in upcoming period.
A total of approx. 1,170,000 fingerlings was put to sea in 2021, at 3 different periods.
Current production will result in 1,500 tons WFE to be harvested in 2H 2022 and 2,500 tons in 2023.
Total biomass in Rekvika per 31.03.22 was 1,512 tons.
@31.03.2022, for all three batches, the growth rate is as expected, and depending on batch, weight of fish is from 1 to 3 kg. Planned weight WFE is 3,3 – 4,0 depending on harvest period.
Consolidated Statement of Comprehensive Income
| (NOK 1.000) | Note | Q1 2022 | Q1 2021 | Y2021 |
|---|---|---|---|---|
| Revenue | 7 900 | 0 | 8 905 | |
| Operating Income | 7 900 | 0 | 8 905 | |
| Cost of goods sold | 7 196 | 170 | 18 187 | |
| Wages | 3 021 | 1 282 | 7 930 | |
| Depreciation | 2,3 | 1 246 | 266 | 2 147 |
| Other operating expenses | 3 436 | 1 270 | 9 516 | |
| Operating profit/loss | -6 999 | -2 988 | -28 875 | |
| Net financial items | -530 | -1 | -29 | |
| Profit/loss before tax | -7 529 | -2 989 | -28 904 | |
| Other comprehensive income | 0 | 0 | 0 | |
| Total comprehensive income | -7 529 | -2 989 | -28 904 |
Consolidated Statement of Financial Position
| (NOK 1.000) | Note | Q1 2022 | Q1 2021 | Y2021 |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Plant and equipment | 2 | 42 268 | 11 489 | 87 881 |
| Right-of-use assets | 3 | 56 980 | 173 | 3 127 |
| Investment in associates | 1 023 | 1 003 | 1 023 | |
| Loan to associates | 935 | 35 | 935 | |
| Other non-current assets | 3 055 | 3 000 | 3055 | |
| Total non-current assets | 104 261 | 15 700 | 96 021 | |
| Current assets | ||||
| Inventories | 4 | 61 205 | 17 259 | 46 514 |
| Receivables | 1 699 | 839 | 9 073 | |
| Prepayments | 14 367 | 21 233 | 19 866 | |
| Cash and cash equivalents | 9 852 | 18 866 | 33 601 | |
| Total current assets | 87 123 | 58 197 | 109 054 | |
| Total assets | 191 384 | 73 897 | 205 075 |
Consolidated Statement of Financial Position
| ( NOK 1.000) | Note | Q1 2022 | Q1 2021 | Y2021 |
|---|---|---|---|---|
| Equity and Liabilities | ||||
| Equity | ||||
| Issued capital | 5 | 16 611 | 12 011 | 16 611 |
| Share premium | 5 | 123 707 | 49 051 | 123 707 |
| Retained earnings | -7 529 | -2 989 | 0 | |
| Total equity | 132 789 | 58 073 | 140 318 | |
| Liabilities | ||||
| Non-current liabilites | ||||
| Lease liabilities | 39 021 | 123 | 37 649 | |
| Total other non-current liabilities |
39 021 | 123 | 37 649 | |
| Current liabilites |
||||
| Current lease liabilities | 9 508 | 60 | 8 673 | |
| Accounts payable and other current liabilities | 10 066 | 15 641 | 18 435 | |
| Total current liabilites | 19 574 | 15 701 | 27 108 | |
| Total equity and liabilities | 191 384 | 73 897 | 205 075 |
| (NOK 1.000) | Q1 2022 | Q1 2021 | Y2021 |
|---|---|---|---|
| Cashflow from operating activities |
|||
| Net profit before tax |
-7 529 | -2 989 | -28 904 |
| Depreciation | 1 246 | 266 | 2 147 |
| Change in inventory and biological assets | -14 691 | -9 252 | -38 507 |
| Change in receivables | 12 875 | -8 349 | -15 218 |
| Change in accounts payable | -7 805 | 14 291 | 17 404 |
| Change in other items | -565 | 330 | 729 |
| = Net cashflow from operating activities | -16 469 | -5 703 | -62 349 |
| Cashflow from investing activities | |||
| Purchase of plant and equipment | -9 487 | -4 406 | -83 887 |
| Investments in assosiated companies | 0 | -4 038 | -5 013 |
| = Net cashflow from investing activities | -9 487 | -8 444 | -88 900 |
| Cashflow from financing activities | |||
| New interest-bearing debt/downpayment | 2 207 | -17 | 43 160 |
| Proceeds from issuing of share capital | 0 | 0 | 108 660 |
| = Net cashflow from financing activities | 2 207 | -17 | 151 820 |
| Net change in cash and cash equivalents | -23 749 | -14 164 | 571 |
| Cash and cash equivalents (opening balance) | 33 601 | 33 030 | 33 030 |
| = Cash and cash equivalents (closing balance) | 9 852 | 18 866 | 33 601 |
Note 1 General information and Reporting principles
Statt Torsk ASA is registered and domiciled in Norway, head office in Stad on the west coast of Norway. The statements includes the 100% owned subsidiary Stokkeneset Reiarlag AS.
The 2022 Q1 report is prepared based on IFRS. The financial information is not audited. Accounting principles applied in 2022 are consistent with those used in the Annual Report for 2021 ( IFRS) 2021 Q1 has been adjusted accordingly.
Bought and sold fry and fingerlings in the period are netted in the accounts and does not appear as revenue.
As there are no reliable indication on future sales prices our best estimate for fair value of the fish in sea is currently cost. The marked will be monitored closely, and we will adjust our estimate when predictable price picture for wild farmed cod becomes available.
For complete accounting principles, we refer to the Annual Report for 2021.
| Sites | Vessels and Barges | Machinery and |
Construction | Total 31.03.22 | |
|---|---|---|---|---|---|
| equipment | in progress | ||||
| Note 2 Property, plant and equipment Accumulated cost 1 January 2022 |
20 152 | 4 938 | 6 661 | 60 835 | 92 586 |
| Additions | 3 515 | 417 | 3 932 | ||
| Transferred to leases | -48 863 | -48 863 | |||
| Depreciation Q1 2022 | -449 | -64 | -169 | -682 | |
| Depreciation accumulated January 1 | -4 227 | -362 | -116 | -4 705 | |
| Carrying value 31 March 2022 | 18 991 | 4 512 | 6 793 | 11 972 | 42 268 |
| Economic life | 12,5 years | 20 years | 5 years | ||
| Depreciation method | linear | linear | linear | ||
| Land | Vessels and barges |
Machinery and equipment |
Total 31.03.22 | ||
| Note 3 Leases - Right-of-use assets |
|||||
| Acquisition cost 1 January 2021 | 186 | 0 | 3 208 | 3 394 | |
| Addition of right-of-use assets |
5 555 | 5 555 | |||
| Transfers and reclassifications |
48 863 | 48 863 | |||
| Acquisition cost 31 March 2022 |
186 | 54 418 | 3 208 | 57 812 | |
| Accumulated depreciation and impairment 1 January 2021 | 53 | 0 | 214 | 267 | |
| Depreciation | 13 | 392 | 160 | 565 | |
| Accumulated depreciation and impairment 31 March 2022 | 66 | 392 | 374 | 832 | |
| Carrying amount of right-of-use assets 31 March 2022 | 120 | 54 026 | 2 834 | 56 980 | |
| Lower of remaining lease term or economic life |
2,5 years | 5 years | 4,5 years | ||
| Depreciation method |
Linear | Linear | Linear |
| Note 4 Inventories | 31.03.2022 | 01.01.2022 |
|---|---|---|
| Finished goods: | ||
| Raw material |
||
| Finished goods |
850 | 757 |
| Fish at sea (biological assets) | ||
| Total finished goods | 850 | 757 |
| Fish at sea (Biomass) | 58 742 | 41 644 |
| Raw materials, at cost |
1 613 | 4 113 |
| Finished goods | 850 | 757 |
| Total | 61 205 | 46 514 |
| Biomass | Fish at sea tons | Fair value | NOK | Cost NOK | Fair value adjustment | |||
|---|---|---|---|---|---|---|---|---|
| 31.03.2022 | 01.01.2022 | 31.03.2022 | 01.01.2022 | 31.03.2022 | 01.01.2022 | 31.03.2022 | 01.01.2022 | |
| 1 512 | 1 051 | 58 742 | 41 644 | 58 742 | 41 644 | 0 | 0 |
| 31.03.2022 | 01.01.2022 | |
|---|---|---|
| Ordinary shares, nominal amount NOK | 0,10 | 0,10 |
| Total number of shares | 166 112 707 | 166 112 707 |
| Changes to share capital and premium | No. of | shares | Share | capital | Premium | |
|---|---|---|---|---|---|---|
| Ordinary shares | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Issued and fully paid 1 January | 166 112 707 | 98 797 149 | 16 611 | 9 880 | 123 707 | 11 179 |
| Issued new share capital | 0 | 67 315 558 | 6 732 | 0 | 148 768 | |
| Retianed earnings | -28 904 | |||||
| Other/Transaction cost | -7 336 | |||||
| 31 March 2022 |
166 112 707 | 166 112 707 | 16 611 | 16 611 | 123 707 | 123 707 |
Marianne Kveldstad (sign) Board member
Øyvind Schanke (sign) Board member
Nicolas Brun-Lie (sign) Chairman
| Shareholder | Holding | % of total |
|---|---|---|
| Orinoco AS | 37 400 000 | 22,51 % |
| T.D. Veen AS | 16 525 000 | 9,95 % |
| Medvode AS | 15 180 000 | 9,14 % |
| Techbridge AS | 14 600 000 | 8,79 % |
| Borgund Brygge AS | 10 089 735 | 6,07 % |
| DnB NOR Bbank ASA meglerkonto innland | 8 135 862 | 4,90 % |
| Bjug A. Borgund AS | 6 050 000 | 3,64 % |
| Bypass Consulting AS | 4 646 750 | 2,80 % |
| Alden AS | 4 000 000 | 2,41 % |
| Tigerstaden Marine AS | 3 000 000 | 1,81 % |
| Brekke Holding AS | 2 870 000 | 1,73 % |
| Frode Borgund | 2 528 748 | 1,52 % |
| Secom AS | 2 500 000 | 1,51 % |
| Ervik Havfiske AS | 2 320 000 | 1,40 % |
| Lindvard Invest AS | 2 308 002 | 1,39 % |
| Nersnæs AS | 2 100 571 | 1,26 % |
| Mami Holding AS | 1 820 000 | 1,10 % |
| Fjellseter Utvikling AS | 1 560 000 | 0,94 % |
| Nordnet Livsforsikring AS | 1 312 949 | 0,79 % |
| Møsbu AS | 1 003 000 | 0,60 % |
| Total number owned by top 20 | 139 950 617 | 84,25 % |
| Total number of shares | 166 112 707 | 100,00 % |
(General): By reading this presentation dated 13 May 2022 (the "Presentation"), or attending a meeting or an oral presentation held in relation thereto, you (the "Recipient") hereby acknowledge, agree and accept that you have read, and agree to be bound by the term, conditions and limitations set out in this disclaimer. This Presentation has been produced by Statt Torsk ASA (the "Company") solely for the purpose of presenting the Company's financial results for Q1 2022 to the market and the investors. The financial results are based on IFRS and do not meet the requirements for a full quarterly report under IFRS and the results have not been audited. The Presentation does not constitute or form part of, and should not be construed as, an offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the Presentation nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.
(No representation or warranty / disclaimer of liability): To the best knowledge of the Company, the information contained in this Presentation is in all material respects in accordance with the facts as of the date hereof and contains no material omissions likely to affect its import. Please note that none of the Company or its affiliates, directors, officers, employees, advisors or representatives of any of the aforementioned (collectively the "Representatives") make any representation or warranty (express or implied) whatsoever as to the accuracy, completeness or sufficiency of any information contained herein, and nothing contained in this Presentation (including, but not limited to, projections, estimates, targets and opinions) is or can be relied upon as a promise or representation by the Company or any of the Representatives.
(Forward-looking statements / information from third parties): This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements in this Presentation are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its needs, changes in the political, social and regulatory framework in which the Company operates or in economic or trends or conditions. None of the Company or the Representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments, and the Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. Investments in the Company's shares involves inherent risk and prospective investors risk to lose all or parts of their investment. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information inaccurate or misleading.
(No updates): This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Company with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).
(No investment advice): The contents of this Presentation shall not be construed as technical, financial, legal, business, investment, tax or other professional advice. The Recipient should consult its own professional advisers for any such matter. By reading, attending or receiving this Presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.
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