March 4, 2013

In the fourth quarter of 2012, Codfarmers ASA has reported revenues of NOK39.6 million (US$6.89 million) against NOK21.3 million (US$3.70 million) in fourth quarter 2011, with a total harvest of 1,223 tonnes own production and 65 tonnes of external fish sold.

The company's EBIT was NOK-72.0 million (US$-12.52 million) versus NOK-19.3 million (US$3.36 million) the year before. Of the fish sold, 86% of the volume produced was sold as whole fish and the remainder was sold as fillets, all with an average sales price of NOK24.3 (US$4.23) per kilogramme.

Before the report was released, the company said that it expected its fourth quarter earnings to be cut by NOK48 million (US$8.35 million) due to depreciations in fixed assets, goodwill and biomass in the Group, and it was anticipated that the loss for that period would be NOK79 million (US$13.74 million).

Since fourth quarter, Codfarmers has been focusing on slashing costs and downscaling the business. Further, Codfarmers ASA said it has entered into a letter of intent with a "financially strong industrial player" to sell its Atlantic Cod Farms AS (ACF) and its subsidiaries (ACF), other than Festøy Eiendom AS. The parties have agreed on a value of NOK40 million (US$7 million), and the debt in ACF shall be subtracted when determining the price for the shares in ACF.

Completion of the transaction is subject to the buyer's due diligence review of ACF, the parties agreeing on a final share purchase deal and that the transaction be approved by the parties' Boards of Directors and by relevant authorities. When the transaction will be completed remains unknown at this point in time, the company clarified. Moreover, Atlantic Cod Juveniles AS, a subsidiary of Codfarmers, has sold its cod juvenile production facility for NOK5 million (US$870,000).

In December 2012, Codfarmers ASA and its subsidiaries proposed voluntary debt re-arrangements to its creditors with unsecured claims, consisting of a 50% debt reduction and a deferred payment schedule set to April 15, 2013. Implementation of the debt re-arrangement proposal is subject to support from the creditors, most of which have so far approved it.