14.2.2023 07:00:01 CET | Magnora ASA | Additional regulated information required to be disclosed under the laws of a member state
14 February 2023: Magnora, a Norwegian renewable energy development company, releases its financial report for the fourth quarter 2022.
Highlights:
Return on our projects increased markedly in Q4 2022, both from legacy business and the renewable business.
In 2023 we expect to continue the process of harvesting with recurring revenues and gains from our portfolio companies in the shape of dividend, sale of shares and/or farm-downs/farm-outs and service revenues.
Average sales prices for our projects were slightly below the mid-point of our previous guiding of 500.000 NOK to 1.500.000 NOK/MW* in 2022. Our sales typically require delivery of project management, procurement management (CMA) as well as technical management (TCMA) for our projects when in operations. CMA and TCMA revenues are excluded in the numbers above.
Magnora expects to sell projects in the range of 200-325 MW for a price above 500.000 NOK/MW in 2023 excluding CMA and TCMA contracts.
The Shell Penguins unit was delivered in early December 2022. This milestone triggered payments of approximately NOK 77 million due in part to a favourable hedging with USD. Two more milestones totalling USD 8.5 million is expected short to midterm. The Shell contract is part of our legacy royalty business.
Adjusted EBITDA* for fourth quarter 2022 was NOK 72.6 million.
As of 31 December 2022, cash and cash equivalents amounted to NOK 171.9 million, not including the payment from Shell which was received in 2023.
Evolar continues to reach its targets related to cell efficiency, durability and productivity and the growing interest from external financial and industrial partners has allowed Evolar to consider various financial alternatives with a focus both on return for Magnora’s shareholders and continued industrial progress.
Our portfolio companies divested combined projects totalling slightly below 600 MW during 2022.
Our portfolio companies continue to grow its portfolio to close to 100 projects and 3.6 GW at the end of 2022. Sales and farm-down negotiations are on-going and potential new sales can be expected in the near term.
Hafslund Magnora Sol AS has, subsequent to the quarter, entered into multiple option agreements with landowners to develop solar PV parks in Norway.
Magnora Offshore Wind is proceeding according to plans with the 495 MW “Talisk” (ScotWind) project. The Scottish Office of Gas and Electricity Market has published a proposal for a power link to be ready by 2030, which would greatly benefit Talisk.
Magnora South Africa continued development of its wind and solar PV projects. In parallel, the local development team has grown to 8 full-time employees and discussions with local strategic partners are on-going.
Magnora has added a 80MW/160MWh battery energy storage (BESS) project to its portfolio of solar and BESS projects in the UK during the fourth quarter. The partnership continues to search for new opportunities with some ready for sale in 2023.
Neptun Tromsø AS has initiated the application process and signed LOIs with Posten Bring (national postal company) and other potential customers for the green ammonia from the planned facility.
Magnora is considering various new growth opportunities in a market that will continue to expand for several decades with numerous opportunities for our highly competent team to initiate green energy initiatives.
*Revenue recognition of sales happens typically when all permits are in place and grid connection is available. We typically receive a substantial upfront payment (pre-payment) at sales date.
The fourth quarter report and presentation are attached to this announcement.
The report can also be found on: https://magnoraasa.com/investors
The company will host a webcast presentation at 10:00 CET this morning, which can be accessed with the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20230213_4/
Please contact Magnora CEO for a one-to-one meeting if you have questions.
Disclosure regulation
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Contacts
Erik Sneve, CEO, email: es at magnoraasa.com
Torstein Sanness, Executive chairman, email: sanness at sf-nett.no
About Magnora ASA
Magnora ASA (OSE: MGN) has a legacy royalty business that is re-invested in renewable energy development projects and companies. Magnora’s portfolio of renewable companies consists of Evolar AB, Helios Nordic Energy AB, Kustvind AB, Magnora Offshore Wind AS, Magnora Solar PV UK, Hafslund Magnora Sol AS, Magnora South Africa, and AGV. The company is listed on the main list on Oslo Stock Exchange under the ticker MGN.
Attachments
Download announcement as PDF.pdf
Magnora ASA Q4 2022 Report.pdf
Magnora ASA Q4 and FY 2022 Presentation.pdf
