Second quarter 2020
17 July 2020
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Agenda
• Highlights and project update
Raymond Carlsen, CEO
• Financial review
Mikkel Tørud, CFO
• Summary and outlook
Raymond Carlsen, CEO
The 54 MW Boguslav solar plant in Ukraine.
- Power production reached 406 GWh, doubling production from same quarter last year
- EBITDA* of NOK 417 million, up from NOK 346 million in previous quarter
- Completed 140 MW in South Africa and Ukraine
- Raised gross NOK 1,968 million in new equity to fund further investments in renewables
- The Board approves dividends of NOK 131 million, equivalent to NOK 0.95 per share
- Limited impact of COVID-19
*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the second quarter report on pages 34-37.
A portfolio of 1.9 GW in operation and under construction
1,505 MW in operation (140 MW completed in Q2):
Second solar hybrid plant for the UN completed
- First combined solar and battery storage plant for IOM*
- Second plant to be completed in third quarter
- Powers the Humanitarian Hub in Malakal, South Sudan
- Reduces diesel consumption by at least 80%
- Significant reductions in CO2 emissions and costs
- First flexible energy supply agreement - leasing of solar hybrid plants
- Working on several similar projects for IOM and other organisations in Africa
Growing power production by 3.7x since 2017
Power production development (GWh, 100% basis)
*2020 estimated production as per short term guidance.
Utilising new technology to reduce costs and improve power plant performance
- Improved workflows through automation of processes
- Actionable analysis sent directly to decision makers
- Examples:
- Using drones to detect module level issues
- Cleaning robots to reduce soiling
- Digital field workers
Operation & Maintenance (O&M) Global control & monitoring centre, Cape Town
- Leveraging economies of scale MW/FTE doubled from 2018
- Real-time data from all plants globally 24/7 remote monitoring and support
- Using state-of-the-art analytics to detect and mitigate underperformance of our PV plants
Improving cost, design and performance for future solar plants
Bi-facial solar panels
- 390 MW Benban project, Egypt - world's largest solar plant using bi-facial panels
- Test- and production data enables design optimisation of new plants
Larger PV modules
- 500Wp+ modules available
- Working with leading vendors to implement the latest technology
- Further reduction of capex and LCOE*
Self-powered trackers
- Incudes wireless communication
- Enables cost reduction and simpler installation and commissioning
Joint initiatives
- Improve operations' efficiency and plant design
- Cooperation with universities and research institutes
- Examples: AI & machine learning, floating solar and bi-facial characteristics
Sustainability Key ambitions 2020:
22 sustainability targets for 2020
Responsible procurement
Engaging key suppliers to capture more of our value chain's total environmental impact
Climate action
Setting and pursuing an emission reduction target for our company
Climate reporting: Strategic priority and key stakeholder focus
Financial review
Mikkel Tørud, CFO
Continued growth in power production – steady operations
Proportionate financials
Second quarter 2020
- Increased Power Production revenues and EBITDA as asset portfolio grows
- Change in segment mix resulting in EBITDA margin of 45% compared to 24% last year
- Unrealised currency loss of NOK 169 million in Q2 after a currency gain of NOK 320 million in Q1
Power Production Power production doubled – plant availability above 99%
• 140 MW in South Africa and Ukraine reached commercial operation in Q2'20
The 258 MW Upington project in South Africa.
Services EBITDA increased with a larger asset portfolio and revenues catch up
• Includes revenues catch up of NOK 14 million
Development & Construction Lower construction activity before starting a new wave of projects
The 47 MW Redsol project in Malaysia.
Ready for further investments – NOK 3.6 billion of available liquidity
- Group free cash of NOK 1,933 million
- Undrawn credit facilities of NOK 1,646 million
- Group* book equity of NOK 7,361 million equity ratio 91%
| NOK million |
Consolidated |
SSO prop.
share |
Group level* |
| Cash |
4,069 |
3,351 |
1,933 |
Interest bearing
liabilities* |
-13,937 |
-9,606 |
-747 |
| Net debt |
-9,868 |
-6,254 |
1,186 |
Consolidated financial position (NOK million)
Q2'20 movement of free cash
In addition: Undrawn credit facilites of NOK 1,646 million
Short term guidance
- D&C value of portfolio under construction: NOK 1.1 billion
- Remaining NOK 45 million value to be recognised
- Lower D&C revenues in second half of 2020
- Power production from plants in operation end of Q2 2020:
| GWh |
Q2'20 |
Q3'20e |
2020e |
| Proportionate |
406 |
420-435 |
1,580-1,630 |
| 100% basis |
738 |
770-800 |
2,900-3,000 |
• Services revenues is expected to reach NOK 240 million in 2020 with an EBITDA margin of around 35%.
The 35 MW Los Prados solar plant in Honduras.
Outlook and summary
Raymond Carlsen, CEO
Growing pipeline with several additional opportunities under development
Key project backlog & pipeline updates
Tunisia – 360 MW
- Three solar projects awarded in international tender, Dec 2019
- Project agreements in process of finalisation with the authorities
- Lenders have been mandated to finance project debt
Industrial partnership projects (1,000 MW in pipeline)
- Several large projects of 500 MW+ developed in Brazil and South Africa
- Partnering with large industrial players for realisation of these projects
- Various renewable energy sources being assessed
Power production doubled – progressing large project opportunities
- COVID-19: Short-term impact on project development
- Pipeline of 5.6 GW several large additional opportunities
- Completing 399 MW in second half of 2020
- Assessing M&A opportunities
- Robust financial position
- available liquidity of NOK 3.6 billion
- Targeting installed capacity* of 4.5 GW by end 2021
The 162 MW Apodi solar plant in Brazil.