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Nordic Financials ASA Interim / Quarterly Report 2023
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Interim / Quarterly Report
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Aega ASA Q4 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 Q4 was 1 744 168 kwh.
- Main focus has been to continue a cost-effective operation of all our assets.
- • 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.
Subsequent events
Early January 2024 Aega the 1MW New Build Project in Lazio achieved ready to build status and entered into a 120 days appeal period ending on 27 April 2024. In this period only minor changes could be imposed, if any.
Figure 1: Power Generation (kWh)
Letter from the CEO
Dear shareholders and stakeholders,
In the fourth quarter of 2023 Aega delivered revenues of EURt 607 (Q4 2022: EURt 561). EBITDA was positive at EURt 200 (Q4 2022: EURt 244).
Production and revenues
Q4 production was in line with expectations for the quarter.
As Q4 is the period with the lowest solar irradiation it is a time of the year well fitted for maintenance when needed. During the quarter we did a partial revamping on our solar park Rio Verde (on Sardinia) and exchanged approximately 140 low performing panels. The result is immediate higher production and less operational issues. In addition, the payback time for this specific investment is short (18-24 months).
Revenues for the quarter is a result of production, revenues from feed in tariff and sale of electricity. Compared to same period last year we achieved higher prices for the electricity sold to the market, and this is the main reason for higher revenues compared to last year.
In Q4 we locked in around 60 % of our 2024 production at fixed PPA's (power purchase agreements). This gives us predictable revenues for this part of our portfolio, and we are comfortable with the total exposure towards a spot-market that we still believe to be volatile going forward.
The market volatility is obviously much lower than through 2022, but we still see fluctuations that are quite large. Market prices have through the winter been trending somewhat down, much due to a mild winter in Italy and southern parts of Europe. Having said that market prices and price expectations are considerable higher than the historical average seen before the energy situation tightened in 2021/2022. With this backdrop we are quite comfortable with hedging out some of the market risk for 2024.
Opportunities and pipeline
During Q4 our continued efforts have been put into cultivating operational partnerships and building both our development and secondary pipeline. In addition to our already quite large pipeline of secondhand parks we have used considerable effort to broaden our competence and understanding of the market for development projects in Italy. The outcome of these efforts is that our team have built a development pipeline of 3- 400MW, with at least 200MW in advanced phase. Further to this, our team now have both capabilities and opportunities that could be both profitable and ready to execute under the right circumstances.
Aega is well positioned to run development 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.
When it comes to our new build project in Lazio mentioned in the last report, there are no specific news as we are awaiting the appeal period that ends end of April, before we move forward to next phase.
Funding
As the growth opportunities mentioned in the last paragraph reaches a stage where they could be executed, we would still need adequate funding to do so. The situation in the capital markets and hence the access to funding, has been unfavorable the last 18-24 months. So far, our board of directors have not judged the timing appropriate to raise further growth capital given the existing capital market conditions.
Concluding remarks
Through the last quarter we have continued to develop our core strategy and have been able to grow our potential and opportunities beyond this. In the Aega spirit, this is done without adding further cost.
Our view on the (Italian) solar energy market is
unchanged and positive. The industry is growing and will continue to do so for the foreseeable future.
We believe in great opportunities along the entire solar value chain in Italy. A key point for us is that we observe that investments in new capacity (more installed solar power) in the Italian market is profitable without subsidies. For the renewable energy sector in general this is a point that cannot be stressed enough because it is an example of how a technology and business matures, gets professionalized and grows.
Aega as an energy producer with options to dig into development projects and expand our operations in general will continue our journey in this marked.
Best regards, Nils Petter Skaset CEO
Operational development
Aega had nine operating solar parks during the quarter, total production in Q4 was 1 744 168 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 Q4 2023 was EURt 607 (Q4 2022: EURt 562), while EBITDA for the period ended at EURt 201 (Q4 2022: EURt 244).
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 Q4 report 2023 8
Consolidated statement of comprehensive income
| Q4-2023 | Q4-2022 | YTD-2023 | YTD-2022 | ||
|---|---|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) | (unaudited) | (audited) |
| Feed-In Tariff revenue | 420 740 | 458 913 | 2 416 439 | 2 143 942 | |
| Sales of electricity | 186 582 | 102 857 | 967 505 | 496 213 | |
| Revenues | 607 322 | 561 771 | 3 383 944 | 2 640 155 | |
| Cost of operations | -152 651 | -211 239 | -651 585 | -609 642 | |
| Personnel expenses | -133 327 | -145 150 | -458 332 | -497 045 | |
| Other operating expenses | -120 585 | 38 395 | -557 052 | -589 892 | |
| EBITDA | 200 758 | 243 777 | 1 716 975 | 943 577 | |
| Depreciation and amortization | -433 308 | -446 476 | -1 740 238 | -1 399 719 | |
| Operating profit | -232 550 | -202 699 | -23 264 | -456 142 | |
| Net finance | -171 282 | -280 831 | -1 451 337 | -1 455 930 | |
| Profit before income tax | -403 832 | -483 530 | -1 474 601 | -1 912 071 | |
| Income tax | -94 563 | -10 349 | -215 841 | -62 866 | |
| Profit for the period | -498 395 | -493 880 | -1 690 442 | -1 974 937 | |
| Other comprehensive income | |||||
| Items that may be reclassified to P&L | |||||
| Translation differences and other elements | -278 693 | 460 454 | -73 159 | -32 658 | |
| Total comprehensive income | -777 088 | -33 425 | -1 763 601 | -2 007 595 | |
| Profit for the period attributable to: | |||||
| Equity holders of the parent company | -777 088 | -33 425 | -1 763 601 | -2 007 595 |
Consolidated balance sheet
| 31.12.2023 | 31.12.2022 | ||
|---|---|---|---|
| (EUR) | Note | (unaudited) | (audited) |
| ASSETS | |||
| Property, plant and equipment | 10 635 185 | 11 721 516 | |
| Right-to-use assets | 4 762 897 | 5 355 419 | |
| Financial investments | 532 339 | 1 501 612 | |
| Non-current assets | 15 930 421 | 18 578 547 | |
| Receivables | 1 591 002 | 1 858 711 | |
| Other current assets | 1 141 753 | 1 240 192 | |
| Cash and short-term deposits | 1 986 126 | 2 534 385 | |
| Current assets | 4 718 881 | 5 633 288 | |
| TOTAL ASSETS | 20 649 301 | 24 211 835 | |
| EQUITY AND LIABILITIES Paid in capital |
2 | 10 153 097 | 15 165 602 |
| Other equity | -3 254 731 | -6 572 715 | |
| Total equity | 6 898 366 | 8 661 968 | |
| Long term loans | 4 410 563 | 5 241 641 | |
| Convertible loans | 2 658 245 | 2 841 979 | |
| Leasing | 4 571 698 | 5 055 788 | |
| Total non-current liabilities | 11 640 506 | 13 139 408 | |
| Short term leasing | 484 089 | 467 351 | |
| Trade payables and other payables | 761 305 | 1 060 868 | |
| Short term financing | 800 169 | 769 260 | |
| Current tax | 64 866 | 112 980 | |
| Total current liabilities | 2 110 429 | 2 410 459 | |
| Total liabilities | 13 750 935 | 15 549 867 | |
| TOTAL EQUITY AND LIABILITIES | 20 649 301 | 24 211 835 |
Consolidated statement of cash flows
| YTD-2023 | YTD-2022 | ||
|---|---|---|---|
| (EUR) | Note | (unaudited) | (unaudited) |
| Profit before tax | -1 474 601 | -1 912 071 | |
| Depreciation | 1 740 238 | 1 399 719 | |
| Changes in NWC items | 18 472 | -798 115 | |
| Fair value adjustment financial assets | 726 536 | 1 448 561 | |
| Other items without cash effect | -229 998 | - | |
| Cash flow from operations | 780 647 | 138 094 | |
| Acquisition net of cash acquired | - | -3 826 327 | |
| Additions property, plant and equipment | -61 385 | - | |
| Cash flow from investments | -61 385 | -3 826 327 | |
| Proceeds from issue of shares | - | 405 569 | |
| Convertible loan issue | - | 2 823 183 | |
| Lease payments | -467 351 | -555 683 | |
| Repayment of loans | -800 169 | -750 802 | |
| Cash flow from financing | -1 267 520 | 1 922 267 | |
| Cash at beginning of period | 2 534 385 | 4 300 351 | |
| Net change in cash and cash equivalents | -548 258 | -1 765 966 | |
| Cash at end of period | 1 986 126 | 2 534 385 |
Consolidated statement of changes in equity
| Share premium | Currency translation |
||||
|---|---|---|---|---|---|
| (EUR) | Share capital | fund | Other equity | 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 | - | - | -1 690 442 | - | -1 690 442 |
| Other comprehensive income | - | - | - | -73 159 | -73 159 |
| Share capital reduction | -5 012 505 | - | 5 012 505 | - | - |
| Equity 31.12.2023 | 2 487 433 | 7 665 664 | 3 250 653 | -4 078 | 6 898 366 |
| (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
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.
As of 31 December 2023, 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.
Largest 20 shareholders as of 31 December 2023
| Shareholders | Share | Percentage |
|---|---|---|
| MAMALAO AS | 1 695 548 | 7,13 % |
| ASBJØRN JOHN BUANES | 917 712 | 3,86 % |
| ERIK WAHLSTRØM | 772 419 | 3,25 % |
| 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 | 386 494 | 1,62 % |
| NORDNET LIVSFORSIKRING AS | 347 060 | 1,46 % |
| 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 % |
| ENERGY INVESTORS AS | 236 764 | 1,00 % |
| RUDNOR INVEST AS | 233 484 | 0,98 % |
| VESOLDO AS | 230 294 | 0,97 % |
| JAN STEINAR NEREM | 210 690 | 0,89 % |
| Total 20 largest shareholders | 9 222 733 | 38,76 % |
| 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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