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Nordic Financials ASA Interim / Quarterly Report 2023
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Interim / Quarterly Report
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Aega ASA Q3 REPORT 2023
| About Aega 3 | |
|---|---|
| Quarterly report 4 | |
| Highlights of the quarter 4 | |
| Subsequent events 4 | |
| Letter from the CEO 5 | |
| Consolidated statement of comprehensive income 9 | |
| Consolidated balance sheet 10 | |
| Consolidated statement of cash flows 11 | |
| Consolidated statement of changes in equity 12 | |
| Notes 13 |
About Aega
Aega ASA is an energy company listed on Euronext Expand in Oslo. Aega's main focus is on the solar power market. We acquire and operate smaller existing Italian solar power plants. In addition to being an industrial energy producer we also consider investments in the solar and renewable sector.
The company's head offices are in Oslo (NO) and Trento (IT).
Quarterly report
Highlights of the quarter
- Aega had nine operating solar parks during the quarter. Total production in Q3 was 3 440 926 kwh.
- Main focus has been to continue a cost-effective operation of all our assets.
- Secured exclusivity for 1 MW New Build Project in Lazio.
- A reverse share split in Aega ASA, resolved in the ordinary general meeting held on 31 May 2023, was carried through with ex-date 7 July 2023. Three (3) shares with par value NOK 1 gave one (1) share with par value NOK 3. In the same general meeting, it was resolved to reduce the share capital by reducing the par value of each share from NOK 3 to NOK 1. At the balance sheet date of this report the share capital reduction was not yet registered with the Norwegian Register of Business Enterprises.
Subsequent events
• On 25 October 2023 the share capital reduction, resolved in the ordinary general meeting held on 31 May 2023, was carried through and registered with the Norwegian Register of Business Enterprises. The share capital was reduced by reducing par value of each share from NOK 3 per share to NOK 1 per share. The total share capital reduction amount, which will be transferred to other equity, was NOK 47 583 966. New share capital after reduction was NOK 23 791 983.
Figure 1: Power Generation (kWh)
Letter from the CEO
Dear shareholders and stakeholders,
In the third quarter of 2023 Aega delivered revenues of EURt 1,136 (Q3 2022: EURt 755). EBITDA was positive at EURt 771 (Q2 2022: EURt 219).
Record production and revenues
In Q3 we reached a new milestone with the highest quarterly production recorded for Aega. This is of course satisfactory as the team has done a great job keeping all solar parks up and running with minimal downtime, in the most important quarter of the year when it comes to solar irradiation. Because of high production and the fact that the price cap (mentioned in previous reports) was lifted from July 1, our quarterly revenues came in at record levels as well. I am very satisfied to see that our strong focus on operations and cost-control through the somewhat challenging period with price-capping finally pays off.
New insights and new opportunities
During Q3 our additional focus has been to look forward and gain new insights when it comes to the exiting opportunities in our business including building new solar parks. The macro environment in Italy is very strong when it comes to solar (and wind for those interested), because of favorable natural conditions and an energy mix that includes 50 % imported energy. The lack of self-sufficiency means that any new MW installed in Italy merely displace a MW of imported energy. Given the governmental goal of tripling Italian solar production this supports a massive installation of new PV solar capacity. As we are locals on the ground in Italy, we observe this development with our own eyes and have therefore started to look seriously into projects for new builds. In Q3 we secured exclusivity for a new build project in what is probably the busiest region when it comes to solar PV, Montalto di Castro on the coastline north in Lazio. We expect to have this project fully authorized towards the end of Q1 2024 and look forward to keeping you posted on the development.
As many of you are aware the building cost for PV
solar plants have decreased substantially since Aega first started its operation ten years ago. As a rule of thumb, we can say that construction cost is down 80% the last ten years. The implication is that a 1MW park installed 10 years ago had the same cost then as a 5MW park has today. The other important effect of this is that it is now feasible to run an Italian solar PV plant on sustainable business terms without subsidies. Meaning that the "first phase of solar" over the next ten years is coming to an end, and phase two of the much broader installation program has just started. From our perspective this creates opportunities both in the market for new builds, and in addition this creates a new and larger "new secondary market". This new secondary market will develop substantially from 2026 and onwards. We are positioning us for both opportunities.
Improved capacities
Our "new-build project" has given us improved capacities to offer services that cover in-depth competence for all stages of the life cycle of a solar power producer. We have recently expanded our know-how to development and construction of new plants, while acquisition, ongoing operations, maintenance, and management support is at our core competence both historically and today. We have increased our pipeline of smaller (below 10MW) power plants for greener and more sustainable electricity production in Italy, and have increased our footprint, experience, ambitions, and reputation in Italy. Aega is therefore well positioned to run early phase projects up to achieving "ready to build" status, we are capable of building and delivering new operational parks while we keep and expand our historic advantage when it comes to acquiring and operating existing assets.
At the same time the entire team work continuously to develop a sound, mutual, and longterm partnership with landowners, local
communities and all our business partners to offer professional management of resources.
We are now at a point where further growth will fuel economies of scale to the fullest and in line with our principles the Aega platform is constructed to safeguard the environment, people, and our business terms.
Best regards, Nils Petter Skaset CEO
Operational development
Aega had nine operating solar parks during the quarter, total production in Q3 was 3 440 926 kwh.
The level of production is in line with expected season variations and solar park business cases at the time of acquisition.
Financial development
Total revenues in Q3 2023 was EURt 1 136 (Q3 2022: EURt 755), while EBITDA for the period ended at EURt 771 (Q3 2022: EURt 219).
Aega's investment in Norsk Solar is booked at market value at the end of the quarter. Fluctuation in share price is reflected in Net Finance.
Risks and uncertainties
No significant change has occurred in risk exposures or risks and uncertainties as described in the third quarter report, compared with those described in the annual report.
Forward-looking statement
This report contains statements regarding the future in connection with the company's growth initiatives, profit figures, outlook, strategies and objectives. In particular, the section "Outlook" contains forward-looking statements regarding the company's expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual results and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors related to the company's activities as described in the above section "Risks and Uncertainties".
Outlook
The company is currently pursuing several investment opportunities in the Italian solar market. Aega has the team and infrastructure on the ground in Italy to find and operate a solar portfolio of up to approximately 30MWp with today's infrastructure. Aega remains optimistic with regard to its deal flow.
Condensed financial statements
Aega ASA Q3 report 2023 8
Consolidated statement of comprehensive income
| Q3-2023 | Q3-2022 | YTD-2023 | YTD-2022 | FY 2022 | ||
|---|---|---|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) |
| Feed-In Tariff revenue | 776 340 | 684 827 | 1 995 698 | 1 685 029 | 2 143 942 | |
| Sales of electricity | 359 310 | 70 489 | 780 924 | 393 356 | 496 213 | |
| Revenues | 1 135 650 | 755 316 | 2 776 622 | 2 078 385 | 2 640 155 | |
| Cost of operations | -110 850 | -164 681 | -498 934 | -430 403 | -609 642 | |
| Personnel expenses | -93 698 | -124 639 | -325 004 | -351 895 | -497 045 | |
| Other operating expenses | -160 539 | -246 729 | -436 467 | -628 286 | -589 892 | |
| EBITDA | 770 562 | 219 266 | 1 516 216 | 667 801 | 943 577 | |
| Depreciation and amortization | -433 310 | -351 609 | -1 306 930 | -973 865 | -1 399 719 | |
| Operating profit | 337 252 | -132 343 | 209 286 | -306 064 | -456 142 | |
| Net finance | -269 827 | 48 056 | -1 280 055 | -1 524 143 | -1 455 930 | |
| Profit before income tax | 67 424 | -84 287 | -1 070 769 | -1 830 208 | -1 912 071 | |
| Income tax | -44 722 | -6 600 | -121 278 | -102 517 | -62 866 | |
| Profit for the period | 22 703 | -90 887 | -1 192 047 | -1 932 725 | -1 974 937 | |
| Other comprehensive income | ||||||
| Items that may be reclassified to P&L | ||||||
| Translation differences and other elements | 13 462 | -120 822 | 205 534 | -175 722 | -32 658 | |
| Total comprehensive income | 36 165 | -211 709 | -986 513 | -2 108 446 | -2 007 595 | |
| Profit for the period attributable to: | ||||||
| Equity holders of the parent company | 36 165 | -211 709 | -986 513 | -2 108 446 | -2 007 595 |
Consolidated balance sheet
| 30.09.2023 | 31.12.2022 | ||
|---|---|---|---|
| (EUR) | Note | (unaudited) | (audited) |
| ASSETS | |||
| Property, plant and equipment | 10 907 785 | 11 721 516 | |
| Right-to-use assets | 4 911 026 | 5 355 419 | |
| Financial investments | 563 627 | 1 501 612 | |
| Non-current assets | 16 382 439 | 18 578 547 | |
| Receivables | 1 935 547 | 1 858 711 | |
| Other current assets | 1 240 942 | 1 240 192 | |
| Cash and short-term deposits | 2 254 896 | 2 534 385 | |
| Current assets | 5 431 385 | 5 633 288 | |
| TOTAL ASSETS | 21 813 824 | 24 211 835 | |
| EQUITY AND LIABILITIES Paid in capital |
2 | 10 190 735 | 15 165 602 |
| Other equity | -2 515 280 | -6 572 715 | |
| Total equity | 7 675 455 | 8 661 968 | |
| Long term loans | 4 704 166 | 5 241 641 | |
| Convertible loans | 2 655 174 | 2 841 979 | |
| Leasing | 4 773 417 | 5 055 788 | |
| Total non-current liabilities | 12 132 757 | 13 139 408 | |
| Short term leasing | 477 830 | 467 351 | |
| Trade payables and other payables | 692 122 | 1 060 868 | |
| Short term financing | 746 706 | 769 260 | |
| Current tax | 88 955 | 112 980 | |
| Total current liabilities | 2 005 612 | 2 410 459 | |
| Total liabilities | 14 138 369 | 15 549 867 | |
| TOTAL EQUITY AND LIABILITIES | 21 813 824 | 24 211 835 |
Consolidated statement of cash flows
| YTD-2023 | YTD-2022 | FY 2022 | ||
|---|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) | (audited) |
| Profit before tax | -1 070 769 | -1 830 208 | -1 912 071 | |
| Depreciation | 1 306 930 | 973 865 | 1 399 719 | |
| Changes in NWC items | -470 357 | 293 351 | -798 115 | |
| Fair value adjustment financial assets | 625 722 | 1 255 349 | 1 448 561 | |
| Other items without cash effect | 416 846 | - | - | |
| Cash flow from operations | 808 371 | 692 357 | 138 094 | |
| Acquisition net of cash acquired | - | -3 776 327 | -3 826 327 | |
| Additions property, plant and equipment | -48 807 | - | - | |
| Cash flow from investments | -48 807 | -3 776 327 | -3 826 327 | |
| Proceeds from issue of shares | - | 499 665 | 405 569 | |
| Convertible loan issue | - | 2 823 183 | 2 823 183 | |
| Lease payments | -479 024 | -359 934 | -555 683 | |
| Repayment of loans | -560 030 | -450 124 | -750 802 | |
| Cash flow from financing | -1 039 054 | 2 512 790 | 1 922 267 | |
| Cash at beginning of period | 2 534 385 | 4 300 351 | 4 300 351 | |
| Net change in cash and cash equivalents | -279 489 | -571 180 | -1 765 966 | |
| Cash at end of period | 2 254 896 | 3 729 171 | 2 534 385 |
Consolidated statement of changes in equity
| (EUR) | Share capital |
Not registered capital reduction |
Share premium fund |
Other equity |
Currency translation reserve |
Total equity |
|---|---|---|---|---|---|---|
| Equity 31.12.2022 | 7 499 938 | - | 7 665 664 | -6 572 715 | 69 081 | 8 661 968 |
| Profit (loss) after tax | - | - | - | -1 192 047 | - | -1 192 047 |
| Other comprehensive income | - | - | - | - | 205 534 | 205 534 |
| Share capital reduction | - | -4 974 867 | - | 4 974 867 | - | - |
| Equity 30.09.2023 | 7 499 938 | -4 974 867 | 7 665 664 | -2 789 895 | 274 615 | 7 675 455 |
| (EUR) | Share capital |
Share premium fund |
Other equity |
Currency translation reserve |
Total equity |
|---|---|---|---|---|---|
| Equity 31.12.2021 | 6 996 859 | 7 763 174 | -4 597 778 | 101 739 | 10 263 994 |
| Profit (loss) after tax | - | - | -1 974 937 | - | -1 974 937 |
| Other comprehensive income | - | - | - | -32 658 | -32 658 |
| Share issue | 503 079 | -97 510 | - | - | 405 569 |
| Equity 31.12.2022 | 7 499 938 | 7 665 664 | -6 572 715 | 69 081 | 8 661 968 |
Notes
Note 1: General information and summary of significant accounting policies
General information
Aega ASA is a public limited company, incorporated and domiciled in Norway. The registered office of Aega ASA is Thunes Vei 2, NO-0274 Oslo, Norway. The parent company was listed on Euronext Expand in 2011.
Basis for preparing the interim financial statements
The condensed interim consolidated financial statements have been prepared in accordance with International Financing Reporting Standards (IFRS) as adopted by the European Union and interpretations issued by the International Accounting Standards Board (IASB) that are relevant to the Group. The condensed interim consolidated financial statements are unaudited.
The group's presentation currency is the euro (EUR) and the parent company's functional currency is the Norwegian krone (NOK). Balance sheet items in group companies with a functional currency other than the EUR are converted to EUR by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period. The interim financial report has been prepared on the assumption that the company is a going concern.
See the annual report for a full overview of the accounting principles applied by the group.
Key risk factors
No significant change has occurred in risk exposures or risks and uncertainties, compared with those described in the annual report.
Note 2: Shares and shareholder information
General
As of 30 September 2023, Aega ASA had a share capital of NOK 71 375 949 comprising 23 791 983 shares with a par value of NOK 3. Aega ASA has only one share class. All shares have equal voting rights and rights to dividends from the Company. All shares are fully paid.
Subsequent events related to share capital
On 25 October 2023 the share capital reduction, resolved in the ordinary general meeting held on 31 May 2023, was carried through and registered with the Norwegian Register of Business Enterprises. The share capital was reduced by reducing par value of each share from NOK 3 per share to NOK 1 per share. The total share capital reduction amount, which will be transferred to other equity, was NOK 47 583 966. New share capital after reduction was NOK 23 791 983.
Largest 20 shareholders as of 30 September 2023
| Shareholders | Share | Percentage |
|---|---|---|
| MAMALAO AS | 1 695 548 | 7,13 % |
| ASBJØRN JOHN BUANES | 917 712 | 3,86 % |
| ERIK WAHLSTRØM | 787 519 | 3,31 % |
| RYBO NOR AS | 578 092 | 2,43 % |
| MORO AS | 540 926 | 2,27 % |
| THORVALD MORRIS HARALDSEN | 484 034 | 2,03 % |
| SOHAIL SARWAR MIRZA | 413 685 | 1,74 % |
| FIN SERCK-HANSSEN | 403 749 | 1,70 % |
| JAN P HARTO AS | 403 522 | 1,70 % |
| NORDNET BANK AB | 388 586 | 1,63 % |
| NORDNET LIVSFORSIKRING AS | 381 423 | 1,60 % |
| BREZZA AS | 294 265 | 1,24 % |
| KÅRE REIDAR JOHANSEN | 281 574 | 1,18 % |
| OLAV VESAAS | 278 714 | 1,17 % |
| RACCOLTA AS | 262 467 | 1,10 % |
| ROALD ARNOLD NYGÅRD | 251 240 | 1,06 % |
| VESOLDO AS | 230 294 | 0,97 % |
| JAN STEINAR NEREM | 210 690 | 0,89 % |
| BJØRN ERIK TVETER | 203 350 | 0,85 % |
| C - BY - C AS | 197 736 | 0,83 % |
| Total 20 largest shareholders | 9 205 126 | 38,69 % |
| Aega ASA outstanding shares | 23 791 983 | 100,00 % |
Aega ASA
Aega ASA Q
Thunes vei 2 0274 Oslo, Norway E-mail: [email protected]
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