Statt Torsk ASA

Earnings Release • Aug 14, 2023

Statt Torsk

Financial Report Q2 2023

7. August 2023 Strategic review

. On August 7th, 2023, the Statt Torsk ASA Board of Directors made an announcement regarding their decision to do a comprehensive strategic review. The purpose of this review is to identify avenues through which the company can enhance shareholder value and secure necessary financing. To guide this process, the Board has engaged the expertise of Pareto Securities and Sparebank1 Markets as financial advisors.

In collaboration with these financial advisors, Statt Torsk ASA will explore a diverse array of strategic alternatives. These alternatives encompass various possibilities such as financing arrangements, structural adjustments, business development prospects, and potential combinations thereof. Additionally, the company will also consider options for short-term working capital financing.

The Board holds a positive outlook on the future of cod farming within the Norwegian aquaculture industry. To translate this vision into reality, Statt Torsk ASA is actively seeking an industrial partner. The objective is to forge a partnership that will play a pivotal role in realizing the potential of cod farming. Throughout this endeavor, the Board remains steadfast in its commitment to safeguarding and enhancing shareholders' value, both in the immediate and long-term perspectives.

Anticipating a timely resolution, the Board aims to conclude this strategic review process by the culmination of August.

Q2 2023 Main events & Operational update

Sales

Revenues Q2 NOK 42,2 million/ 1H NOK 78,8 million, selling a total of 1,129 tons in Q2 / 2,134 tons 1H. (WFE).

Harvest

Harvested volume in Q2 1,257 tons / 1H 2,342 tons. (WFE).

Salesprice per kg

Q2, NOK 37,4 / 1H 2023 NOK 36,9. (WFE)

Rekvika - production completed

Rekvika production cycle ended - a total 2,920 tons WFE. In Q2 the production was 280 tons WFE less than expected, economic consequence in Q2 was a loss of NOK 7,5 million.

Stokkeneset - increased mortality

During June and July, Stokkeneset experienced a temporary increase in mortality. Cause is still not verified. Economic loss in Q2 was NOK 2,5 million and July NOK 2 million.

This do not have any affect on agreements entered for sales.

Sites in production

As per 30.06.2023 Stokkeneset is in active production, approx. 660,000 fish in sea. Biomass is approx. 1.400 tons.

Harvest 2023

Harvest plan in 2H 2023 is approx. 700 tons / 2023 a total of approx.3,000 tons. (WFE)

Sales 2H 2023

Sales in 2H 2023 are expected to be approx. 700 tons WFE. Approx. 75% of expected production is on contracts.

Consolidated Statement of Comprehensive Income

(NOK 1.000)	Note	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Revenue		42 169	681	78 814	8 580
Other income		0	0	0	0
Operating Income		42 169	681	78 814	8 580
Cost of goods sold		81 186	905	129 415	8 101
Wages		2 004	1 772	4 189	4 792
Depreciation	2,3	1 456	1 853	2 355	3 099
Other operating expenses		3 741	3 838	4 478	7 275
Operating profit/loss before fair value
adjustment		-46 218	-7 687	-61 623	-14 687
Fair Value adjustment	4	28 135	0	41 180	0
Operating profit/loss		-18 083	-7 687	-20 443	-14 687
Net financial items		-1 432	-381	-2 836	-911
Profit/loss before tax		-19 515	-8 068	-23 279	-15 598
Other comprehensive income		0	0	0	0
Total comprehensive income		-19 515	-8 068	-23 279	-15 598

Consolidated Statement of Financial Position

(NOK 1.000)	Note	Q2 2023	Q2 2022	Y2022
Assets
Non-current assets
Plant and equipment	2	45 530	50 569	66 267
Right-of-use assets	3	60 279	62 227	62 213
Investment in associates		0	35	0
Loan to associates		0	900	0
Other non-current assets		7 970	4078	4 253
Total non-current assets		113 779	117 809	132 733
Current assets
Inventories	4	78 158	82 583	90 728
Receivables		25 945	9 083	11 659
Prepayments		2 323	0	13 116
Cash and cash equivalents		1 264	35 315	1 197
Total current assets		107 690	126 981	116 700
Total assets		221 469	244 790	249 433

Consolidated Statement of Financial Position

( NOK 1.000)	Note	Q2 2023	Q2 2022	Y2022
Equity and Liabilities
Equity
Issued capital	5	21 217	18 676	21 029
Share premium	5	93 640	145 570	114 220
Total equity		114 857	164 246	135 249
Liabilities
Non-current liabilites
Lease liabilities		30 210	42 413	40 242
Total other non-current liabilities		30 210	42 413	40 242
Current liabilites
Bank overdraft		32 559	0	30 155
Current lease liabilities		13 484	10 650	9 187
Accounts payable and other current liabilities		30 359	27 481	34 600
Total current liabilites		76 402	38 131	73 942
Total equity and liabilities		221 469	244 790	249 433

Consolidated Statement of Cashflow

(NOK 1.000)	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Cashflow from operating activities
Net profit before tax	-19 515	-8 068	-23 279	-15 597
Fair value adj. biomass	-28 135	0	-41 180	0
Depreciation	1 456	1 853	2 355	3 099
Change in inventory and biological assets	42 767	-21 378	56 066	-36 069
Change in receivables	707	6 982	-3 465	19 857
Change in accounts payable	-14 168	13 527	-5 539	5 722
Change in other items	2 251	-94	825	-659
= Net cashflow from operating activities	-14 637	-7 178	-14 217	-23 647
Cashflow from investing activities
Purchase of plant and equipment	0	-15 398	-383	-24 885
Sale of equipment	18 743	0	18 743	0
Investments in assosiated companies	0	0	-3 717	0
= Net cashflow from investing activities	18 743	-15 398	14 643	-24 885
Cashflow from financing activities
New interest-bearing debt/downpayment
Proceeds from issuing of share capital	-2 856	8 514	-5 735	10 721
= Net cashflow from financing activities	0	39 525	2 972	39 525
	-2 856	48 039	-2 763	50 246
Net change in cash and cash equivalents	1 250	25 463	-2 337	1 714
Cash and cash equivalents (opening balance)	-32 545	9 852	-28 958	33 601
= Cash and cash equivalents (closing balance)	-31 295	35 315	-31 295	35 315

Q2 2023 Statt Torsk Group Notes

Note 1 General information and Reporting principles

Reporting entity

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 subsidiaries Stokkeneset Reiarlag AS and Statt Sjømat AS.

Reporting principles

The 2023 Q2 report is prepared according to IFRS. The financial information is not audited. Accounting principles applied in 2023 are consistent with those used in the Annual Report for 2022 (IFRS). 2023 Q2 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 2022.

Note 2 Property, plant and equipment	Sites	Vessels and barges	Machinery and equipment	Construction in progress	Total 30.06.23
Accumulated cost 1 January 2023	43 375	4 938	8 101	18 743	75 157
Additions	121		262	-18 743	-18 360
Transferred to leases					0
Depreciation YTD 2023	-1 711	-126	-540	0	-2 377
Depreciation accumulated January 1	-7 256	-616	-1 018	0	-8 890
Carrying value 30 June 2023	34 529	4 196	6 805	0	45 530
Economic life	12,5 years	20 years	5 years
Depreciation method	linear	linear	linear

		Vessels and	Machinery and
Note 3 Leases - Right-of-use assets	Land	barges	equipment	Total 30.06.23
Acquisition cost 1 January 2023	186	60 453	5 033	65 672
Addition of right-of-use assets				0
Transfers and reclassifications				0
Aquisition cost 30. June 2023	186	60 453	5 033	65 672
Accumulated depreciation and impairment 1. January 2023	106	2 345	1 008	3 459
Depreciation YTD 2023	30	1 466	438	1 934
Accumulated depreciation and impairment 30. June 2023	136	3 811	1 446	5 393
Carrying amount of right-of-use assets 30. June 2023	50	56 642	3 587	60 279
Lower remaining lease term or economic life	1,5 years	4 years	3-5 years
Depreciation method	Linear	Linear	Linear

Note 4 Inventories	30.06.2023 31.03.2023
Finished goods:
Raw material
Finished goods	9 563	2 585
Fish at sea (biological assets)
Total finished goods	9 563	2 585
Fish at sea (Biomass)	65 918	85 741
Raw materials, at cost	2 677	3 796
Finished goods	9 563	2 585
Total	78 158	92 122

Biomass 2023
			Fish at sea tons		Fair value NOK		Cost NOK			Fair value adjustment
30.6.	31.3.	1.1.	30.6.	31.3.	1.1.	30.6.	31.3.	1.1.	30.6.	31.3.	1.1.
1 405	2 626	2 823	65 918	85 741	83 957	76 200	124 158	135 419	-10 282	-38 417	-76 834

Note 5 Share capital, shareholder information and dividend

	30.06.2023	31.03.2023
Ordinary shares, nominal amount NOK	0,10	0,10
Total number of shares	212 169 105	212 169 105

Share capital			Premium
2023	2022	2023	2022	2023	2022
					170 591
1 876 507	44 179 891	188	4 418	3 002	76 883
				-23 279	-130 341
				-303	-2 913
212 169 105	210 292 598	21 217	21 029	93 640	114 220
	210 292 598	No. of shares 166 112 707	21 029	16 611	114 220

Statt Torsk ASA Board

Marianne Kveldstad (sign) Board member

Arne Karlsen (sign) Board member

Øyvind Schanke (sign)

Board member

Synnøve Åhjem (sign) Board member

Nicolas Brun-Lie (sign) Chairman

Statt Torsk ASA Top 20 Shareholders per 11.08.2023

Shareholder	Holding	% of total
Orinoco AS	50 556 559	23,83 %
T.D. Veen AS	24 789 250	11,68 %
Medvode AS	16 268 235	7,67 %
Techbridge AS	14 600 000	6,88 %
Borgund Brygge AS	10 139 735	4,78 %
Lindvard Invest AS	6 660 046	3,14 %
Bjug A. Borgund AS	6 325 000	2,98 %
DnB Bank ASA meglerkonto	6 223 756	2,93 %
GH Holding AS	5 514 705	2,60 %
Bypass Consulting AS	5 241 144	2,47 %
Brekke Holding AS	3 370 000	1,59 %
Secom AS	3 000 000	1,41 %
Frode Borgund	2 705 981	1,28 %
Tigerstaden Marine AS	2 500 000	1,18 %
Alden AS	2 448 672	1,15 %
Chinedu Kevin Oramah	2 400 667	1,13 %
Klo Holding AS	2 352 941	1,11 %
Mami Holding AS	2 170 000	1,02 %
Nersnæs AS	2 120 324	1,00 %
State Street Bank and Trust Comp	1 860 294	0,88 %
Total number owned by top 20	171 247 309	80,71 %
Total number of shares	212 169 105	100,00 %

Disclaimer and important information

(General): By reading this presentation dated 14. of August 2023 (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 Q2 2023 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 may contain 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 beconstrued 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.