Year End Report 2023
Highlights
- Completion and
handover of the Karskruv wind farm ahead of schedule at the end of
November 2023, which is producing in line with expectations, adding
290 GWh of estimated annual power generation in the SE4 price
region.
- Highest
quarterly power generation for the Company at 226 GWh in the fourth
quarter and 765 GWh for the full year 2023, which included power
generation from the early startup of Karskruv, which was offset by
unfavourable weather conditions.
-
Continued to mature the 40 GW onshore UK, German and French project
pipeline, originating further project leads, progressing land
agreements and initiating pre-permitting work for multiple
projects.
-
Acquired a greenfield portfolio in January 2024 of up to 180 MW of
wind energy projects in Finland, with land secured for all wind
turbine locations and first permitting process expected to be
initiated in 2024.
-
Completion of the acquisition announced during the third quarter,
comprising of ownership in six wind farms in Sweden, adding around
10 GWh of estimated annual power generation in the SE4 price
region.
-
Increased the revolving credit facility from MEUR 150 to MEUR 190
in January 2024, adding further capacity to fund growth.
Consolidated financials – 12
months
- Cash
flows from operating activities amounted to MEUR 13.1.
Proportionate financials – 12
months
-
Achieved electricity price amounted to EUR 47 per MWh, resulting in
proportionate EBITDA of MEUR 5.3.
-
Proportionate net debt of MEUR 92.4, with significant liquidity
headroom available through the revolving credit facility.
Financial Summary
Orrön Energy owns renewables assets directly and
through joint ventures and associated companies and is presenting
proportionate financials to show the net ownership and related
results of these assets. The purpose of the proportionate reporting
is to give an enhanced insight into the Company’s operational and
financial results.
Expressed in MEUR |
1 Jan 2023-31 dec 202312
months |
1 Oct 2023-31 Dec 20233
months |
1 Jan 2022-31 Dec 202212
months |
1 Oct 2022-31 Dec 20223
months |
Consolidated financials |
|
|
|
|
Revenue |
28.0 |
8.4 |
13.8 |
11.3 |
EBITDA |
-5.1 |
-0.9 |
4.5 |
6.4 |
Operating profit
(EBIT) |
-17.0 |
-4.4 |
1.0 |
3.5 |
Net result |
-7.6 |
8.0 |
27.4 |
0.9 |
Earnings per
share – EUR |
-0.03 |
0.03 |
0.10 |
0.00 |
Earnings per share diluted – EUR |
-0.03 |
0.03 |
0.10 |
0.00 |
Proportionate financials1 |
|
|
|
|
Power
generation (GWh) |
765 |
226 |
335 |
168 |
Average price
achieved per MWh – EUR |
47 |
43 |
120 |
88 |
Revenue |
36.2 |
9.6 |
40.0 |
14.5 |
EBITDA |
5.3 |
1.3 |
20.7 |
9.2 |
Operating profit (EBIT) |
-11.0 |
-3.2 |
14.7 |
6.2 |
1 Proportionate financials represent Orrön
Energy’s proportionate ownership (net) of assets and related
financial results, including joint ventures. For more details see
section Key Financial Data in the Q4 Report 2023.
Comment from Daniel Fitzgerald, CEO of
Orrön Energy AB“The fourth quarter marks an important step
in Orrön Energy’s growth with the successful completion and
handover of our Karskruv wind farm, adding around 290 GWh of annual
power generation in the SE4 price region. This increases our annual
power generation to 1,100 GWh and adds significant cash flow to our
business. In early 2024, we acquired four greenfield wind projects
in Finland with a total capacity of up to 180 MW, where land has
already been secured, and coupled with the progress on our own
projects, this adds to an already substantial development portfolio
across wind, solar and battery projects spread across five
countries in Europe.
We delivered the Company’s highest quarterly
power generation in the fourth quarter of 2023, including one month
of contribution from Karskruv. Wind speeds continued to be
unseasonably low in the fourth quarter, meaning our production was
slightly lower than expected, however, I am pleased to see that
trend improving already in January 2024 with production above our
forecast for the month. Electricity prices remained volatile during
the fourth quarter, with the early part of the quarter affected by
high hydrological balances in Sweden as a result of storm Hans, and
the remainder of the quarter impacted by unseasonably low and
variable wind speeds. January has shown a much improved picture,
where we see a combination of higher winds and colder weather
leading to a strong start for the Company in 2024.
Power generation and financial
performanceWe achieved proportionate power generation of
765 GWh for the year, and 226 GWh during the fourth quarter,
marking the highest quarterly power generation for the Company. The
full year power generation was slightly lower than expected due to
lower than average wind speeds across the Nordics during a majority
of the year. We delivered in line with or ahead of our expenditure
guidance for the year, achieving an electricity price of EUR 47 per
MWh, proportionate revenues of MEUR 36.2, proportionate EBITDA of
MEUR 5.3 and ended the year with a proportionate net debt position
of MEUR 92.4. Looking ahead into 2024, we increase our estimated
annual power generation by around 40 percent to 1,100 GWh, while at
the same time decrease our unit operating cost by 20 percent to EUR
15 per MWh, adding significant cash flow to the business. Our CAPEX
programme for 2024 is also significantly reduced to MEUR 14, which
can be fully funded out of cash generation at electricity prices of
EUR 50 per MWh, which is in line with our achieved price in 2023.
In the beginning of 2024, we increased our revolving credit
facility from MEUR 150 to MEUR 190, adding more financial firepower
that allows us to take advantage of favourable market conditions as
they arise.
Growing our Development
PortfolioDuring the fourth quarter, we continued to grow
our pipeline of onshore wind, solar and battery storage projects.
Our large-scale greenfield projects in the UK and Germany continue
to mature as per plan, where we have progressed further exclusivity
agreements for land and commenced important pre-permitting and grid
related work. This large-scale portfolio is a key part of the
growth story for Orrön Energy and with scarcity and significant
valuations for large-scale derisked projects, I am sure that this
will have a material impact for the Company as we monetise these
assets.
Our portfolio in the Nordics also continued to
grow during the period, where we now have a secured pipeline of
almost 500 MW of solar, wind and battery projects. Our battery
portfolio is quickly maturing towards investment decisions and at
year-end we had submitted building permits for almost 40 MW of
battery projects in Sweden, of which 20 MW have already been
approved by local authorities, and our first 1 MW project has
commenced construction.
In January 2024, we acquired around 180 MW of
ready to permit wind assets across four sites in Finland, where we
retain the option to build out the projects ourselves, or to sell
down should market conditions remain favourable. With land secured
for all wind turbine locations, we intend to start the first
permitting process during 2024, aiming to reach ready-to-build in
2027. As with all of our projects, the timing and size of the final
projects depends on successful derisking as they mature towards key
milestones.
Laying the foundation for future
growthLooking back at 2023, I am proud of the achievements
that we have made and the foundation that we have established in
such a short period of time since the initial inception of the
Company. Our acquisitions in 2022 and 2023 are now fully integrated
into our business and through expanding the capability and
competence of our teams over the last 12 months, we are now
generating growth opportunities organically, which will form the
basis for value creation over the long term. Looking further into
2024, our operational portfolio and cash generation is much
stronger with Karskruv online, our development teams have an
exciting activity plan for the year and with increased financial
firepower and market conditions improving, there are more
opportunities for value accretive acquisitions.
I want to thank all of our shareholders for your
support during 2023, and I look forward to reporting on another
exciting year for the Company in 2024.”
WebcastListen to Daniel
Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and
presenting the latest developments in Orrön Energy and its future
growth strategy together with members of Orrön Energy’s management
team at the Company’s Capital Markets Day on 14 February 2024 at
14.00 CET. The Capital Markets Day will be streamed online, and the
presentation will be followed by a question-and-answer session.
Registration for the webcast presentation is
available on the website and the below
link:https://ir.financialhearings.com/orron-energy-cmd-2024/register
For further information, please contact:
Robert ErikssonDirector Corporate Affairs and
Investor RelationsTel: +46 701 11 26
15robert.eriksson@orron.com
Jenny Sandström Communications LeadTel: +41 79
431 63 68jenny.sandstrom@orron.com
This information is information that Orrön
Energy AB is required to make public pursuant to the Securities
Markets Act. The information was submitted for publication, through
the contact persons set out above, at 07.30 CET on 14 February
2024.
Orrön Energy is an independent, publicly listed
(Nasdaq Stockholm: “ORRON”) renewable energy company within the
Lundin Group of Companies. Orrön Energy’s core portfolio consists
of high quality, cash flow generating assets in the Nordics,
coupled with greenfield growth opportunities in the Nordics and
Europe. With significant financial capacity to fund further growth
and acquisitions, and backed by a major shareholder, management and
Board with a proven track record of investing into, leading and
growing highly successful businesses, Orrön Energy is in a unique
position to create shareholder value through the energy
transition.
Forward-looking statements
Statements in this press release relating to any future status or
circumstances, including statements regarding future performance,
growth and other trend projections, are forward-looking statements.
These statements may generally, but not always, be identified by
the use of words such as “anticipate”, “believe”, “expect”,
“intend”, “plan”, “seek”, “will”, “would” or similar expressions.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that could occur in the future. There can be no
assurance that actual results will not differ materially from those
expressed or implied by these forward-looking statements due to
several factors, many of which are outside the company’s control.
Any forward-looking statements in this press release speak only
as of the date on which the statements are made and the
company has no obligation (and undertakes no obligation)
to update or revise any of them, whether as a result of new
information, future events or otherwise.
- Orrön Energy - Year end report 2023 - 14022024en
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