Norcod plans to undertake a private placement of at least NOK 150 million during the first quarter of 2025.
Norcod AS
Norwegian cod farming company Norcod AS has published its fourth-quarter 2024 financial results, revealing substantial revenue growth and a narrowed operating loss, alongside plans for a major capital raise to support the company's continued expansion.
Norcod reports it made an operational loss of NOK 35 million (approx. EUR 3m / USD 3.3m) in Q4 2024, down 66% from NOK 104 million (EUR 10.5m / USD 11.7m) in Q4 2023. Meanwhile, its revenues increased by 47% to reach NOK 124 million, with harvest volumes more than doubling to 2,390 tonnes, compared with 1,080 tonnes in the same quarter last year.
The cod farming company attributes its improved financial performance to “favourable market conditions and strong sales price trends.” Improved operational efficiency and higher output at Norcod’s sites, such as an expanded maximum allowable biomass (MAB) at its Jamnungen location and five new pens stocked at Bjørnvika (Nesna), have further propelled growth, the company said.
"By maintaining a sharp focus on cod biology, optimizing the feeding regime, refining production processes, maximizing production capacity and capitalizing on scale-up effects, Norcod has developed a revised and profitable growth strategy that aligns with the current favourable market dynamics," Norcod stated in a stock exchange announcement reporting its Q4 2024 results.
Key to this growth strategy, the company indicated, is a planned fundraise of approximately NOK 300 million (EUR 25.5m / USD 28.2m), through a mix of debt and equity.
The company said it is intends to achieve half of this figure through a private placement of at least NOK 150 million, with the aim of increasing its production capacity of up to 25,000 tonnes WFE per year. Several of Norcod’s largest shareholders have already pledged support for the minimum amount, the company confirmed, with DNB Markets serving as financial advisor.
The planned private placement is due to take place during the first quarter of 2025, the company said. DNB Bank has also committed up to a further NOK 150 million in debt financing for Norcod, dependent on the successful completion of the private placement.
