Norcod (NCOD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached 69 MNOK, a 229% increase year-over-year, driven by higher harvest volumes and strong market conditions.

• Operating loss widened to 73 MNOK from 40 MNOK in Q3-23, impacted by extraordinary mortality due to a marine heat wave, quantified as a 23 MNOK non-recurring item.

• Harvested 1,348 tonnes WFE, up from 146 tonnes in Q3-23, with improved biological results at new sites.

• Expanded DNB credit facility by 75 MNOK to enhance operational flexibility.

Financial highlights

• Operating revenue for Q3-24 was 68.9 MNOK, up from 21.4 MNOK in Q3-23; YTD revenue at 273.5 MNOK, up 47% year-over-year.

• Production cost per kg decreased to 56.0 NOK from 79.3 NOK in Q3-23.

• Net loss for Q3-24 was 82 MNOK, compared to 41 MNOK in Q3-23.

• Total assets at quarter-end were 624 MNOK, down from 707 MNOK in Q3-23; equity at 197 MNOK, down from 335 MNOK.

• Available funds (credit and cash) increased to 92 MNOK from 44 MNOK in Q3-23.

Outlook and guidance

• Expects significant top-line improvements and normalized production costs in upcoming quarters due to positive sales price trends and strong market conditions.

• Anticipates significantly improved financial results in Q4-24 and positive cash flow from operations in Q1-25 and throughout 2025.

• Plans to revise growth strategy in Q4-24 to align with favorable market demand.