Norcod (NCOD) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue was 118 MNOK, down 5% year-over-year, with a 48 MNOK operating loss, a 46% improvement from Q1 2023.

• Harvested 2,765 tons WFE, a 17% decrease from Q1 2023, with 91% of volume rated superior quality.

• Entered the Chinese market with new contracts at favorable prices, aiming to strengthen position in 2024.

• Raised 174 MNOK in gross proceeds from private placement and subsequent offering to improve financial robustness.

• Increased financial and operational headroom post-Q1 via additional credit and revised covenants.

Financial highlights

• Operating revenue: 118 MNOK in Q1 2024 vs. 125 MNOK in Q1 2023.

• Operating loss: 48 MNOK, improved from 88 MNOK in Q1 2023; net loss: 55 MNOK, up from 43 MNOK.

• Production cost per kg WFE decreased to 39.75 NOK from 42.42 NOK year-over-year.

• Total assets increased to 783 MNOK from 528 MNOK year-over-year; equity rose to 334 MNOK from 134 MNOK.

• Available funds (credit + cash) at 143 MNOK, up from 6 MNOK in Q1 2023.

Outlook and guidance

• Focus on stable, year-round high-quality cod deliveries and sustainable growth.

• Targeting profitability at current production levels, with stepwise volume increases aligned to market demand.

• Plans to streamline operations and improve financial performance in 2024.

• Ambition to expand in premium market segments and increase production efficiently.