Norwegian aquaculture venture in strong position after its first full year of
operations and gearing up for its first sales of farmed cod this summer.

Highlights from the fourth quarter of 2020 include exceptional biological
performance of the fish, getting a second production cycle underway with the
transfer of a new batch of fry to growth facilities, equipment and feeding
barges ordered in support of ongoing production, and management changes that put
the company on the road to achieving new milestones.

Operating costs under budget
"We are in a very good position to continue our planned growth according to
plan," said CEO Christian Riber. "Plus, we succeeded in keeping operating costs
under budget by NOK 12m for the entire year. Our team have done a fantastic
job."
Norcod has come a long way since start-up only 18 months ago. "We have worked
incredibly hard during the establishment phase, applying for licences, securing
sea sites and creating an entire value chain for farmed cod from broodstock to
market-ready product," says Riber.

Sales income from Q3
He emphasizes that the company has not yet generated any profits because its
first production cycle is still underway. The production cycle lasts around 18
months. "Obviously we haven't made any money yet because we don't yet have a
finished product to sell. Sales income from our first production cycle will
start when we start harvesting in Q3 this year, and from our second production
cycle in 2022. But we are well on the way."
Close monitoring of fish performance is core to Norcod's daily operations, with
technicians making frequent inspections of individual fish in order to map
production trends. Calm behaviour and well-distributed biomass in the sea pens
indicate good animal welfare, with high feed efficiency and low mortality.
"Exceptional biological performance lowers both risk and costs," says Riber.

Quality biomass
Norcod has access to sixth-generation cod fry that are bred for optimal health
and yield. "For that we have to thank our joint-venture partner, Havlandet
Norcod AS," says Riber. "Our latest batch of fry was successfully transferred to
growth facilities in the fourth quarter and they will begin the sea phase in
June."
Norcod opted only to buy new modern equipment from the outset, which has helped
to keep operating costs down. "Our use of in-house expertise related to
technical site work also reduced our need to purchase external services," says
Riber.

Sustainability focus
The company took delivery of a new hybrid-electric feed barge at the end of
December for its Jamnungen site. It has a further two on order, as well as
catamaran service vessel also
equipped with batteries. "Reducing fuel consumption and emissions is a key part
of our efforts to ensure sustainable production," says Riber. "We are
implementing
waterborne feeding technology on the last two barges which will further reduce
energy consumption. Our electrified service vessel will also cut noise during
daily operations which is good not only for the fish but also our employees and
the surrounding environment."

Listing swells coffers
Financing activities during 2020 provided Norcod with both new equity and loans.
Net cash flow from financing activities was NOK 420m in 2020 versus NOK 43m in
2019. The company had cash and cash equivalents of NOK 199m at the end of 2020
as against NOK 8m at the same time the previous year. Investment and financing
activities generated positive cash flow of NOK 420.5m, up from NOK 378.9m in
2019. This was due to the company's listing on the Oslo Stock Exchange's
Euronext Growth in October.

High demand
Norcod garnered very positive feedback from samples sent to the US and various
countries in Europe from its first trial harvest in December. "We will conduct
another and final out-take of cod in the second quarter of this year to further
promote our product before our first harvest begins in the summer. We aim to
produce 6,000 metric tons of fresh farmed cod in this first cycle, and a harvest
volume of 10,000 metric tons in 2022," says Riber. He adds that market demand is
high, with some samples fetching a strong NOK 65 per kilo and an average of NOK
56 per kilo.
Norcod is following the Norwegian authorities' guidelines regarding Covid-19,
and adapting to the situation as necessary. "We are taking care to avoid any
operational disruption and are in close dialogue with suppliers to keep upcoming
equipment deliveries of equipment on track. Fortunately, we have not experienced
any direct adverse consequences due to good planning," says Riber.

Bright outlook
"Right now, we are exactly where we want to be and following our carefully laid
plan. Our ambition is to provide healthy protein through responsible farming of
cod on an industrial scale, with sales contracts for year-round supply. We have
a watertight business model, customers are eagerly awaiting our product and we
look forward to becoming profitable when sales begin," Riber says.
He took over as CEO from Hilde Storhaug during the fourth quarter. Storhaug
continues as CSO in charge of Norcod's sustainability activities. Aquaculture
industry luminary Marit Solberg accepted the invitation to become Chair of the
Board. "We have a great product, massive combined industry expertise and the
backing of seasoned industry investors. 2021 should be a great year," Riber
concludes.

About Norcod 
Norcod AS' core business is commercial sea farming of cod but through ownership
and partnerships is involved in the entire value chain. Norcod's fish farms are
located in Mid-Norway with ideal cold-water habitat 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 the Oslo
Stock Exchange's Euronext Growth.




For more information contact:

Christian Riber
CEO, Norcod
+47 905 37 990
cr@norcod.no

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© Oslo Bors ASA, source Oslo Stock Exchange