BAKKAFROST: Update on the continued effects from previously disclosed biological challenges

 

With reference to the announcement made 9 November (NewsWeb
(oslobors.no) (https://newsweb.oslobors.no/message/546255)) regarding the
quarterly results for Q3 2021, an update is given on the previously disclosed
biological challenges and the effects on Bakkafrost's expected results in Q4
2021.

As disclosed in the presentation of the quarterly results for Q3 2021,
Bakkafrost incurred severe biological issues in its farming operation in
Scotland in Q3 2021. The biological issues increased in late September and
continued into Q4 2021. Consequently, Bakkafrost has accounted for exceptional
mortality of 174.6 mDKK in total in October and November 2021, mainly caused by
the biological issues in Scotland. After write-down of the exceptional
mortality, preliminary numbers indicate an operational EBIT for the Bakkafrost
Group in October and November 2021 combined of around 52 mDKK.

The main root-cause for the mortality in Scotland is compromised gill health in
combination with secondary complications, such as blooms of micro
-jellyfish/hydrozoans and fish handling during necessary treatments. The overall
biological situation improved during November and stabilised further in
December.

As part of the 5-year investment programme, announced on the Capital Markets Day
in September 2021, Bakkafrost will more than tripple the freshwater treatment
capacity in 2022 with two new wellboats with large freshwater treatment
capability. These vessels are expected to be in operation in Q2 and Q3 2022
respectively and will play an important role in mitigating compromised gill
health, hence improving overall fish health and significantly reducing risk of
mortality caused by secondary complications.

The Group's guidance on harvest volume for 2021 of 96,000 tonnes head on gutted
weight is maintained and Bakkafrost expects to release the trading update for Q4
and full year 2021 around 4 January 2022.

Contacts:

  · Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)
  · Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

 This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.