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Nordic Financials ASA Interim / Quarterly Report 2024
3521_rns_2024-08-30_9720f151-eee4-4a90-9684-a25e5bb8936a.pdf
Interim / Quarterly Report
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Aega ASA Q2 REPORT 2024
| About Aega 3 | |
|---|---|
| Quarterly report 4 | |
| Highlights of the quarter 4 | |
| Subsequent events 4 | |
| Letter from the CEO 5 | |
| Consolidated statement of comprehensive income 8 | |
| Consolidated balance sheet 9 | |
| Consolidated statement of cash flows 10 | |
| Consolidated statement of changes in equity 11 | |
| Notes 12 |
About Aega
Aega ASA is an energy company listed on Euronext Expand - Oslo Stock Exchange. Aega's main focus is investments within the solar power market. We source, develop, 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).
Aega ASA Q2 report 2024 3
Quarterly report
Highlights of the quarter
- Aega had nine operating solar parks during the quarter. Total production in Q2 was 3 364 481 kwh.
- Main focus has been to continue a cost-effective operation of all our assets.
- • Slightly higher solar irradiation in Q2 2024 than last year
Subsequent events
- On the ordinary general meeting held on 31 May 2024 it was decided to reduce the share capital by reducing the par value of each share from NOK 1 to NOK 0,5. The share capital reduction amount shall be transferred to other equity. The share capital reduction was registered with the Norwegian Register of Business Enterprises on 15 August 2024.
- The company is currently in a process that will affect its current business. This process might result in change of focus. For further information we refer to separate communication and/or the CEO letter.
Figure 1: Power Generation (kWh)
Letter from the CEO
Dear shareholders and stakeholders,
In the second quarter of 2024 Aega delivered revenues of EURt 991 (Q2 2023: EURt 919). EBITDA was positive at EURt 616(Q2 2023: EURt 443).
Production and revenues
Q2 production was in line with expectations for the quarter, however slightly higher than the previous year well in line with normal fluctuations and weather conditions.
Market prices continue to trend downwards in April and reached a bottom end of that month. In May and June prices have increased somewhat, and this is a trend we expect to continue into Q3 and possibly the fall and winter 2024/2025. After the very constrained energy situation in 2021/22, the prices in our region have stabilized at a considerable higher level than the decade ending in 2020. If, or for how long this situation will prevail is a prediction influenced by many factors.
Nevertheless, we believe that given the current Italian energy mix prices may fluctuate more, especially as wind power increases its delivery to the grid, through the year. While we expect yearly averages to stay at levels not very far from what we saw in Q2 2024.
Opportunities and pipeline
The Italian parliament are still debating how to treat new solar projects, especially on arable land, and this debate have become more intense as the first suggested legislations have been opposed quite loudly.
Another interesting observation is the political discussion in Italy of a possible introduction of a new wave of incentives for PV solar power producers. How, or if, this will become a reality is something we monitor closely. If introduced, it is likely that it will be a limited incentive when it comes to Euro/Mw produced, while on the margin it could release untapped potential.
Strategic move – reorganization of the group
Aega ASA is today, through its wholly owned subsidiary Aega AS, the owner of 9 producing solar parks as well as one solar park under development.
The board of the company has on 29 August chosen to use the authorization given from the general meeting (31 May this year) and will pay out shares in Aega AS in dividends to the shareholders. The debt in Aega ASA, has in consultation with the lenders, been moved to Aega AS. Aega ASA will therefore be debt-free after the dividend payment.
As consequence Aega ASA will not own any solar parks after the dividend payment but will continue to have operational responsibility and management agreements with the same parks. In addition, Aega ASA will continue to hold an ownership position in Norsk Renewables AS.
Concluding remarks
The underlying solar PV business is good and developing in line with expectations. However, the potential for growth through acquisitions or construction of new solar parks have been challenging as the access to further equity funding at acceptable prices have been very challenging.
Considering the complexity and cost of running a listed portfolio of solar parks, the conclusion is that it is in the best interest of the shareholders to pay out the producing assets as dividends and for Aega to continue as operator of these assets.
Best regards, Nils Petter Skaset CEO
Operational development
Aega had nine operating solar parks during the quarter, total production in Q2 was 3 364 481 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 Q2 2024 was EURt 991 (Q2 2023: EURt 919), while EBITDA for the period ended at EURt 616(Q2 2023: EURt 443).
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 second 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 in a process that will affect its current business. This process might result in change of focus from owning, to operating solar parks on the behalf of other owners.
Condensed financial statements
Aega ASA Q2 report 2024 7
Consolidated statement of comprehensive income
| Q2 2024 | Q2 2023 | H1-2024 | H1-2023 | 2023 | ||
|---|---|---|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) |
| Feed-In Tariff revenue | 797 871 | 689 283 | 1 265 110 | 1 219 358 | 2 416 439 | |
| Sales of electricity | 193 262 | 229 593 | 419 060 | 421 614 | 967 505 | |
| Revenues | 991 133 | 918 876 | 1 684 170 | 1 640 972 | 3 383 944 | |
| Cost of operations | -121 592 | -219 228 | -255 834 | -388 083 | -651 585 | |
| Personnel expenses | -105 010 | -113 655 | -225 895 | -231 306 | -458 332 | |
| Other operating expenses | -148 165 | -143 473 | -273 514 | -275 928 | -557 052 | |
| EBITDA | 616 365 | 442 521 | 928 926 | 745 654 | 1 716 975 | |
| Depreciation and amortization | -382 742 | -433 310 | -816 052 | -873 620 | -1 740 238 | |
| Operating profit | 233 623 | 9 210 | 112 874 | -127 966 | -23 264 | |
| Net finance | -234 038 | -657 735 | -774 187 | -1 010 228 | -1 625 036 | |
| Profit before income tax | -415 | -648 524 | -661 313 | -1 138 194 | -1 648 300 | |
| Income tax | -61 120 | -49 607 | -79 675 | -76 566 | -215 841 | |
| Profit for the period | -61 535 | -698 131 | -740 988 | -1 214 760 | -1 864 142 | |
| Other comprehensive income | ||||||
| Items that may be reclassified to profit and loss | ||||||
| Translation differences | -171 787 | 26 414 | -169 003 | 192 072 | -75 943 | |
| Total comprehensive income | -233 322 | -671 717 | -909 991 | -1 022 688 | -1 940 085 | |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the parent company | -233 322 | -671 717 | -909 991 | -1 022 688 | -1 940 085 |
Consolidated balance sheet
| TOTAL EQUITY AND LIABILITIES | 19 068 446 | 20 618 177 | |
|---|---|---|---|
| Total liabilities | 13 256 554 | 13 896 293 | |
| Total current liabilities | 2 179 155 | 2 255 788 | |
| Current tax | 93 390 | 64 866 | |
| Short term financing | 769 260 | 800 169 | |
| Trade payables and other payables | 811 271 | 906 663 | |
| Leasing | 505 234 | 484 089 | |
| Total non-current liabilities | 11 077 399 | 11 640 506 | |
| Leasing | 4 334 140 | 4 571 698 | |
| Convertible loans | 2 621 858 | 2 658 245 | |
| Long term loans | 4 121 401 | 4 410 563 | |
| Total equity | 5 811 892 | 6 721 884 | |
| Other equity | -4 341 205 | -3 431 213 | |
| Foreign Currency translation reserve | -175 865 | -6 862 | |
| Other equity | -4 165 340 | -3 424 351 | |
| Paid in capital | 10 153 097 | 10 153 097 | |
| Share premium | 7 665 664 | 7 665 664 | |
| Share capital | 2 487 433 | 2 487 433 | |
| EQUITY AND LIABILITIES | |||
| TOTAL ASSETS | 19 068 446 | 20 618 177 | |
| Current assets | 4 379 305 | 4 687 756 | |
| Cash and short term deposits | 1 437 118 | 1 986 126 | |
| Other current assets | 1 249 671 | 1 110 628 | |
| Receivables | 1 692 516 | 1 591 002 | |
| Non-current assets | 14 689 141 | 15 930 421 | |
| Financial investments | 98 010 | 532 339 | |
| Right-to-use assets | 4 466 635 | 4 762 897 | |
| Property, plant and equipment | 10 124 496 | 10 635 185 | |
| ASSETS | |||
| (EUR) | Note | (unaudited) | (audited) |
| 30.06.2024 | 31.12.2023 |
Consolidated statement of cash flows
| H1-2024 | H1-2023 | FY 2023 | ||
|---|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) | (audited) |
| Profit before tax | -661 313 | -1 138 194 | -1 648 300 | |
| Paid income taxes | 0 | 0 | -112 980 | |
| Depreciation | 816 052 | 873 620 | 1 740 238 | |
| Changes in trade receivables and trade payables | -318 119 | -125 822 | 113 505 | |
| Changes in other accruals | -119 580 | -239 791 | 129 564 | |
| Fair value adjustment financial assets | 420 876 | 627 274 | 726 536 | |
| Net interest | 232 461 | 382 954 | 829 858 | |
| Other non-cash items | -36 387 | 226 789 | -493 737 | |
| Cash flow from operations | 333 991 | 606 830 | 1 284 684 | |
| Acquisition net of cash acquired | 0 | 0 | 0 | |
| Financial investments | 0 | 0 | 0 | |
| Additions property, plant and equipment | -9 102 | -20 022 | -61 385 | |
| Cash flow from investments | -9 102 | -20 022 | -61 385 | |
| Proceeds from issue of shares | 0 | 0 | 0 | |
| Convertible loan issue | 0 | 0 | 0 | |
| Interest payment | -210 262 | -78 193 | -391 768 | |
| Repayment of lease liabilities | -343 566 | -343 566 | -467 351 | |
| Repayment of loans | -320 070 | -459 464 | -912 438 | |
| Cash flow from financing | -873 899 | -881 223 | -1 771 557 | |
| Cash at beginning of period | 1 986 127 | 2 534 385 | 2 534 385 | |
| Net change in cash and cash equivalents | -549 010 | -294 415 | -548 258 | |
| Cash at end of period | 1 437 117 | 2 239 970 | 1 986 127 |
Consolidated statement of changes in equity
| Share capital | Share premium | Other equity | Currency translation reserve |
Total equity | |
|---|---|---|---|---|---|
| (EUR) | |||||
| Equity 31.12.23 | 2 487 433 | 7 665 664 | -3 424 352 | -6 862 | 6 721 884 |
| Net result | - - |
740 988 - |
- | 740 988 - |
|
| OCI | - - |
- | 169 003 - |
169 003 - |
|
| Capital reduction | - - |
- | - | - | |
| Equity 30.06.24 | 2 487 433 | 7 665 664 | -4 165 340 | -175 865 | 5 811 893 |
| Share capital | Share premium fund |
Other equity | Currency translation reserve |
Total equity | |
|---|---|---|---|---|---|
| (EUR) | |||||
| Equity 31.12.22 | 7 499 938 | 7 665 664 | -6 572 715 | 69 081 | 8 661 968 |
| Net result | - | - | 1 864 142 - |
- | 1 864 142 - |
| OCI | - | - | - | 75 943 - - |
75 943 |
| Capital reduction | 5 012 505 - |
- | 5 012 505 | - | - |
| Equity 31.12.23 | 2 487 433 | 7 665 664 | -3 424 352 | -6 862 | 6 721 884 |
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 IFRS® Accounting 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 June 2024, Aega ASA had a share capital of NOK 23 791 983 comprising 23 791 983 shares with a par value of NOK 1. 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 shares and share capital
On the ordinary general meeting held on 31 May 2024 it was decided to reduce the share capital by reducing the par value of each share from NOK 1 to NOK 0,5. The share capital reduction amount shall be transferred to other equity. The share capital reduction was registered with the Norwegian Register of Business Enterprises on 15 August 2024.
Largest 20 shareholders as of 30 June 2024
| Shareholders | Share | Percentage |
|---|---|---|
| MAMALAO AS | 1 195 548 | 5,03 % |
| RYBO NOR AS | 1 078 092 | 4,53 % |
| ASBJØRN JOHN BUANES | 917 712 | 3,86 % |
| ERIK WAHLSTRØM | 760 085 | 3,19 % |
| MORO AS | 540 926 | 2,27 % |
| THORVALD MORRIS HARALDSEN | 484 034 | 2,03 % |
| NORDNET BANK AB | 442 369 | 1,86 % |
| SOHAIL SARWAR MIRZA | 413 685 | 1,74 % |
| FIN SERCK-HANSSEN | 403 749 | 1,70 % |
| JAN P HARTO AS | 403 522 | 1,70 % |
| MORTEN AKSDAL | 340 170 | 1,43 % |
| NORDNET LIVSFORSIKRING AS | 328 608 | 1,38 % |
| 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 % |
| HODNEKVAM ODDMUND | 247 500 | 1,04 % |
| BJØRN ERIK TVETER | 236 350 | 0,99 % |
| RUDNOR INVEST AS | 233 484 | 0,98 % |
| Total 20 largest shareholders | 9 394 094 | 39,48 % |
| 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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