Magnora ASA

Earnings Release • Aug 9, 2022

Magnora ASA: Second quarter 2022

Magnora ASA: Second quarter 2022

9.8.2022 07:00:00 CEST | Magnora ASA | Half yearly financial reports and audit

reports / limited reviews

9 August 2022: Magnora, a Norwegian renewable energy development company,

releases its financial report for the second quarter 2022.

Highlights:

* Soaring electricity prices, both spot and longer term, energy security as

well as reduction of CO2 footprint are all factors driving interest for our

portfolio companies and their projects. We see stronger interest of doing

business with our portfolio companies compared with previous quarters.

* Magnora is pleased to announce its first guidance for its renewable

portfolio. Magnora expects its net share of asset sales in the portfolio

companies to be 150-250 MW for the full year 2022 at very attractive prices.

* Magnora increased its ownership in Evolar AB to 63.5 percent according to

business plan milestones.

* Evolar has reached several key technical milestones and established supply

chain for its sub-contractors. Additional discussions have been initiated

during the quarter with very interesting customers and potential partners.

Evolar will soon disclose its technical progress in several areas.

* Helios closed additional sales of projects during the second quarter and has

closed sales of 370 MW. The company also signed landowner agreements in

Lithuania and Latvia, expanding its operations beyond Sweden. Helios

management continues to deliver ahead of its business plan. Helios decided to

distribute SEK 16 million to its owners in August 2022 in an extraordinary

general meeting based on multiple sales and pre-payments. This is the first

dividend from Helios. The dividend was limited to free equity in the company

at 31.12.2021. Helios will pay out all excess cash to its shareholders going

forward. Based on existing contracts over the last months and customer

acceptance, Helios should be in a position to return hundreds of million SEK

over the next few years to its owners

* Magnora South Africa reached key milestones for several projects and are in

close discussion with the National grid company about grid connection offers

for 650 MW in several projects.

* Magnora Offshore Wind AS (Magnora ASA owns 80 percent) signed Option to Lease

Agreement with the Crown Estate Scotland for the N3 site, securing

exclusivity for project development on the site. The payment is secured by

long-term financing from a leading Norwegian bank. Magnora Offshore Wind

entered into a cooperation agreement with Hiraeth Energy in Wales.

* Kustvind has completed most of the wildlife and marine environmental studies

without red flags.

* Magnora entered the fast-growing UK Solar PV and battery storage market

during the quarter through partnering with an experienced local developer.

The Group now has 60 MW solar PV and 70 MW of battery storage under

development in the UK in three different projects.

* Adjusted EBITDA for second quarter 2022 was negative NOK 1.1 million. EBITDA

was impacted by consolidating Evolar and higher development cost in Magnora

Offshore Wind from the ScotWind project.

* The Group secured NOK 100 million in longer term financing through a top tier

bank. This replaces a facility of NOK 50 million, while the other loan

facility of NOK 50 million is maintained. Total loan facility is now NOK 150

million. As of 30 June 2022, NOK 62.5 million was drawn from the loan

facility, leaving NOK 87.5 million of the total NOK 150 million loan

facility. The Group has NOK 85.4 million in cash and loan facility available

as of 4 August 2022.

* Magnora Offshore Wind signed after the close of the quarter an Investment

Shareholder Agreement (ISA) for the development of floating offshore wind

projects in the Celtic Sea (Wales).

* The Penguins FPSO is, according to Shell's Q2 2022 report expected to leave

the yard and start production in 2022/23. According to media articles,

sail-away is scheduled in the second half of this year which will release the

first of three remaining license payments from Shell. First payment is USD

7.5 million, and subsequent payments are USD 4.3 million at first oil and USD

4.3 million at 4 million barrels of oil offloaded.

* Interest for renewable projects have increased significantly over the last

year and we see that many buyers want to close acquisition processes prior to

the Ready-to-Build phase with substantial pre-payment instalments. In

addition, we notice significant interest for private portfolios at prices

above what we have guided for in the quarter for projects that have not

entered the Ready-To-Build phase yet.

The second 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://streams.eventcdn.net/magnoraasa/2022-q2/

The presentation will be followed by a Q&A session with the management.

Questions may be asked in writing during and after the presentation.

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 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 -

https://kommunikasjon.ntb.no/ir-files/17847805/1644/2216/Download%20announcement

%20as%20PDF.pdf

Magnora ASA Q2 2022 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847805/1644/2214/Magnora%20ASA%20Q2%2020

22%20Report.pdf

Magnora ASA Q2 2022 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847805/1644/2215/Magnora%20ASA%20Q2%2020

22%20Presentation.pdf