Norcod — Legal Proceedings Report 2023

Feb 13, 2023

NORCOD – Financial consequence of process with The Norwegian Directorate of Fisheries

NORCOD – Financial consequence of process with The Norwegian Directorate of Fisheries

Norcod is in the process of cooperating with the Norwegian Directorate of Fisheries (Fdir) (cases number 23/1402 and 23/1094 – both publicly available) , which has resulted in a change in the harvesting and production plan for the 2021 generation of fish currently at sea. This fish is healthy and was planned to be harvested within the next 6 months.

However, the accelerated rate of harvesting, provisionally agreed with Fdir, will result in:

• Lower volume production than expected.

• Smaller size fish than expected.

• Short delivery on long-term sales contracts with clients.

• Lower sales prices due to increased sales on the spot market

The overall consequence is a significant drop in earnings and simultaneous increase in expensed costs/kg.

The effect on cashflow is limited to reduced sales income, somewhat offset by lower production costs in the next 6 months.

Despite the operational and financial change to our 2021 generation, our growth plan and overall 2025 target is still on track and unchanged which means we will put four new batches into the sea phase during 2023.

More details regarding the effect will be published in the Q4 report on February 22nd.