Norcod closed its Q4 of 2022 with net revenue of NOK 51.4 million for the quarter. Moving forward step by step, understanding that it takes time to build a new industry on an industrial scale, but remains confident and focused on positive results and upcoming expectations.
Norcod reported negative cash flow for the fourth quarter of 2022, with cash and cash equivalents of NOK 3.4 million at year-end. This slower-than-expected harvest has contributed less revenue than expected and cash flow has been carefully managed ahead of higher revenues in 2023.
As it is recorded in the past five years, they have been engaged in R&D work and gained invaluable experience. They study the issues occurred to improve in the sector while celebrating their achievements; especially for the increasing prices of fuel and power as one of the challenges of the industry in general.
The Whole Fish Equivalent (WFE) is a standard weight denomination after gutting in aquaculture. During this fourth quarter, a volume of 847 tons of WFE harvested which contrary to appearances, is positive. This quantity is a reduction from the expected 1.600 tons WFE was due to an intentional delay in harvesting by Norcod, in order to achieve a higher average weight of fish and therefore a better price.
Moreover, the weakening NOK/EUR exchange rate has been in favor of Norcod for sales income during the quart. Also, this situation will probably continue through the half of 2023.
There are more highlights. Not only the goal of transporting the new batch of fry from the tank juvenile facility to the onshore grow-out facility has been successfully achieved, but also the 26% increase in biomass at sea over the previous year. These are only a few of them.
In fact, all these positive factors stand out especially with the customer. There is always good feedback on product quality and good traction with existing clients.
As Norcod states in its fourth quarter report, "the conditions are in place for it to become a sustainable and successful industry. We have recently delivered the first batch of fingerlings from our hatchery." Best practices are shaping up, and the industry as a whole has come incredibly far.
Norcod is a leading producer of sea-farmed cod based in Trondheim, Norway. Norcod's goal is to raise top-quality Atlantic cod sustainably and commercially. The key to their ambitious goal is using sustainable farming methods in the Norwegian fjords. Established in 2018, the cod aquaculture company is on the Oslo Stock Exchange's Euronext Growth Market.
