Quarterly Report • Nov 15, 2023
Quarterly Report
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INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2023
Arise is a leading independent company that realises new green energy. The company develops, builds and manages renewable electricity production. The company is listed on Nasdaq Stockholm.
Arise is a leading independent company that realises new green energy. The company develops, builds and manages renewable electricity production. The company is listed on Nasdaq Stockholm.
Low spot prices for electricity as a result of a wet summer that culminated in extreme rainfall with the storm Hans. The hydrological balance in the Nordic countries changed at record speed from a previous deficit at the start of July following an extremely dry beginning of the summer to a historically high surplus, forcing spot prices in the Nordic countries to fall. Despite the market situation and relatively low production in relation to budget, our production has recorded historically high third-quarter earnings, primarily thanks to our favourable price hedging.
We are approaching the colder months with well-filled reservoirs in the Nordic countries and high gas stock levels in continental Europe. The market will continue to be highly weather dominated in the short term. I would like to once again point out that the European electricity system remains sensitive to supply shocks, that preconditions can rapidly change with the weather and that we can also confirm that gas prices are demonstrating an upward trend ahead of the winter.
As previously announced, the project Skaftåsen has entered commercial operation. We have now received the final payment, the earnout, which corresponds to the amount announced when the transaction was carried out in December 2019. We are proud and delighted to be able to contribute to realising a project of this magnitude, particularly having established a good example for the future where we see benefits for local businesses, local residents and the municipality. The project left a positive mark during construction and will continue to contribute to the development of the local area under operation.
We arranged a well-attended Capital Markets Day according to plan on 12 September when we introduced our new financial targets that reflect our ambition for profitable growth. The targets are designed to be challenging but realistic. Assuming that we succeed in achieving our growth target to increase our project portfolio and rate of transactions, in other words, to sell more projects each year and increase own production, we will by definition become a larger and more successful company.
The company completed the sale of project Fasikan in mid-October. We are happy to have succeeded in reaching our targets with the transaction despite being faced with market conditions that are at present relatively challenging. In a separate transaction, Arise and SCA have signed a more long-term agreement concerning the development of projects in selected parts of SCA's land. The partnership will create the prerequisites for more attractive projects to be realised that can contribute to meeting increased electricity consumption from industry and tackling climate challenges.
In conclusion, we have completed the first three quarters of an already eventful year. Our expectations for 2023 to be a good year for the company's profitability and growth remain firm. In the long term, our fundamental view of the future remains highly positive, as showcased by our targets. With this in mind, we look forward to the year's final quarter and a healthy conclusion to 2023.
Halmstad, 15 November 2023 Per-Erik Eriksson $F$
"In the long term, our fundamental view of the future remains highly positive, as showcased by our targets."
| MSEK | Q3 2023 | 03 2022 | 9 m 2023 | 9 m 2022 |
|---|---|---|---|---|
| Net sales | 96 | 917 | 313 | 1,058 |
| EBITDA | 59 | 713 | 204 | 799 |
| EBIT | 43 | 697 | 157 | 753 |
| Profit before tax | 35 | 705 | 123 | 736 |
| Profit after tax | 35 | 705 | 123 | 736 |
Income in Development declined during the quarter as a result of the sale of Kölvallen in the corresponding quarter of the preceding year. The final settlement of project Skaftåsen positively impacted income during the quarter. Income from Solutions increased, with a positive earnings contribution. In Production, winds were weaker than normal while market prices were significantly lower than in the year-earlier quarter. However, the company's price hedging led to total income in Production increasing despite this, with average income significantly over the average market price.
Net sales amounted to MSEK 96 (917) with the sale of Kölvallen in 2022 considerably impacting the year-on-year figure. Production generated 60 GWh [52] green electricity while the average realised price increased to SEK 718 per MWh (496), despite lower market prices. Operating expenses amounted to MSEK -40 [-206].
Overall, EBITDA amounted to MSEK 59 [713]. Depreciation amounted to MSEK-16 [-15], resulting in EBIT of MSEK 43 (697). Net financial items amounted to MSEK -8 (7), of which exchange rate differences corresponded to MSEK 6 (17). The company's electricity production assets are valued in EUR and income is received in EUR. The company has therefore chosen to take loans in EUR, creating a natural hedge. Changes to the EUR/SEK exchange rate will continue to affect comparability of net financial items, whereby a strengthening of SEK will improve the net and vice versa. Corresponding reverse value changes in SEK terms for the underlying assets are not recognised.
Profit before and after tax amounted to MSEK 35 (705).
In Development, revenue recognition from the Skaftåsen and Kölvallen projects positively impacted income. Income in Production increased as a result of higher year-on-year realised prices. In total, 201 GWh (213) of green electricity was produced, and the average price for production totalled SEK 874 per MWh (669). In total, net sales amounted to MSEK 313 (1,058). Operating expenses amounted to MSEK -118 [-266].
EBITDA amounted to MSEK 204 [799] and EBIT to MSEK 157 [753]. Net financial items amounted to MSEK-34 [-17], of which exchange rate differences corresponded to MSEK 6 [4]. Profit before and after tax amounted to MSEK 123 (736).
Cash flow from operating activities before changes in working capital was MSEK 56 [833]. Changes in working capital were MSEK-104 [-41] and were negatively impacted by an advance payment of approximately MSEK 140 related to project Fasikan, which the company received payment for after the end of the period. This will therefore have a positive impact on cash flow in the fourth quarter in a corresponding amount. Total operating cash flow therefore amounted to MSEK -47 [792]. Net cash flow from investing activities was MSEK -183 [-134], driven primarily by investments in the Lebo project. Cash flow after investments therefore amounted to MSEK -231 (659). There were no amortisations during the quarter. New loans for the Lebo project were raised totalling MSEK 149 (0). Interest and financing costs of MSEK -13 (-7) were paid. Payments to blocked accounts amounted to MSEK 0 [-9], after which cash flow, adjusted for lease effects, amounted to MSEK -96 (642) for the quarter.
Cash flow from operating activities before changes in working capital was MSEK 199 [914]. Changes in working capital were MSEK-157 [13] and the total operating cash flow was thus MSEK 43 (926). Net cash flow from investing activities was MSEK -482 (-233), driven primarily by investments in the Lebo project and the acquisition of 51% of Pohjan Voima in the second quarter. Cash flow after investments therefore amounted to MSEK -439 (694). Amortisations totalling MSEK -40 [-11] were paid. New loans were raised totalling MSEK 149 [523] and interest and financing costs of MSEK-43 [-21] were paid. A dividend payment of MSEK-44 [0] was paid and payments to blocked accounts amounted to MSEK 0 [-9], after which cash flow, adjusted for lease effects, amounted to MSEK -425 (1,172).
At the end of the period, the company had a net debt of MSEK 270 compared with net cash of MSEK 374 at the end of the year-earlier quarter. Cash and cash equivalents at the end of the period totalled MSEK 830 (1,287). At the end of the period, the equity/assets ratio was 58% (45).
| MSEK | 03 2023 | 03 2022 | 9 m 2023 | 9 m 2022 |
|---|---|---|---|---|
| Income | 42 | 884 | 109 | 898 |
| Cost of sold projects | 0 | $-136$ | 0 | $-136$ |
| Other operating expenses and capitalised work |
$-15$ | -43 | $-29$ | $-52$ |
| Operating profit before depreciation | ||||
| (EBITDA) | 27 | 704 | 80 | 710 |
| Operating profit (EBIT) | 27 | 704 | 80 | 710 |
| Profit before tax | 23 | 712 | 55 | 712 |
Income for Development declined as the year-earlier quarter was impacted by the sale of Kölvallen. The earnout for Skaftåsen was determined at MEUR 6.4 and was settled during the quarter, leading to additional revenue recognition of approximately MEUR 2.5, corresponding to about MSEK 29.
The construction of the Lebo project continued during the quarter and is progressing without any material deviations. The project is still expected to be in operation during the fourth quarter of 2023, with commercial take-over in the first quarter of 2024.
Development activities continued during the quarter for the HT Skogar portfolio as well as intensified work with development on Persson Invest's land. In the UK, work continued to develop the major solar project while activities to secure new project rights continued and has started to yield results. For the Tormsdale project in Scotland, the permit application is in process and the grid connection is secured. Development activities related to the solar projects and battery projects in Sweden continued during the quarter. In Finland, development activities are proceeding according to plan. One project received a negative decision from the Finnish Defence Forces and was removed as a an early-stage project while several additional projects are being evaluated. In total, the company has a project portfolio of approximately 6,800 MW including projects related to the partnership with SCA.
Income amounted to MSEK 42 (884). The cost of sold projects amounted to MSEK 0 (-136). Other operating expenses and capitalised work totalled MSEK-15 [-43], and depreciation and amortisation amounted to MSEK 0 (0). EBITDA therefore amounted to MSEK 27 (704) and EBIT to MSEK 27 [704]. Net financial items amounted to MSEK -5 (8), of which exchange rate differences corresponded to MSEK 8 (17). Profit before tax thus amounted to MSEK 23 (712).
Income amounted to MSEK 109 (898). The cost of sold projects amounted to MSEK 0 (-136). Other operating expenses and capitalised work declined to MSEK-29 (-52), and depreciation and amortisation amounted to MSEK 0 (0). EBITDA amounted to MSEK 80 (710) and EBIT to MSEK 80 (710). Net financial items amounted to MSEK-25 (2), of which exchange rate differences corresponded to MSEK 11 (16). Profit before tax thus declined to MSEK 55 (712).
Arise's development portfolio on the reporting date is presented below, amounting to approximately 6,800 MW. Fully developed, the portfolio would equate to an investment level of about SEK 80-90 billion.
The portfolio is divided into projects in later developmental phases, which amount to a total of approximately 900 MW, and projects in early developmental phases, which amount to a total of approximately 5,900 MW. The company is working actively to expand the project portfolio particularly concerning wind and solar power in the Nordic countries and in the UK. Efforts to expand the project portfolio include greenfield projects and acquisitions of projects at varying stages. The company is also developing a number of projects in battery storage.
In working to increase its project portfolio, Arise evaluates a number of different conceivable projects. The vast majority of the projects being evaluated do not qualify for further development as they are not deemed realisable given their production conditions (wind and solar conditions), permit risks, grid capacity and economic potential. These primary factors were determined to be promising for the projects below. While individual projects may not always be realised, the overall project portfolio represents high potential value for the company, with relatively little capital tied-up and low risk.
| Projects - late developmental phases | МW | |
|---|---|---|
| Finnåberget, SE 2 | 200 | |
| Tormsdale, Scotland | 70 | |
| Finland* | ~600 | |
| Total | ~900 | |
| Projects - early developmental phases | MW | |
| Sweden** | $-3350$ | |
| Sweden | ≞ | ~1.360 |
| Norway | ~260 | |
| UK | ~120 | |
| UK | ~650 | |
| Finland* | $-1150$ | |
| Total | ~5 900 |
*) Represents Pohjan Voima's project portfolio. Arise's ownership in Pohjan Voima amounts to about 51%.
**) Including assessed total potential of about 1,000 MW from the partnership with SCA. Arise's future ownership in these projects amounts to 49%.
| MSEK | Q3 2023 | 03 2022 | 9 m 2023 | 9 m 2022 |
|---|---|---|---|---|
| Income | 43 | 26 | 177 | 143 |
| Operating expenses | $-12$ | -14 | $-38$ | $-33$ |
| Operating profit before depreciation (EBITDA) |
31 | 12 | 139 | 111 |
| Operating profit (EBIT) | 17 | -2 | 94 | 66 |
| Profit before tax | 18 | -12 | 73 | 39 |
Winds were weaker than normal during the period and production at the company's wind farms amounted to 60 GWh (52). At the same time, the average income for electricity incl. certificates and quarantees of origin increased to SEK 718 per MWh (496). The company's price hedging was a strong contributing factor to increased average income, which was considerably higher than the average market price during the period.
Income amounted to MSEK 43 (26), an increase attributable to higher production and average income compared with the year-earlier period. The specific operating expense declined compared with the year-earlier period to SEK-201 per MWh (-262).
EBITDA increased to MSEK 31 (12). Depreciation amounted to MSEK-15 (-15) and EBIT thus increased to MSEK 17 [-2].
Net financial items amounted to MSEK 1 [-10], of which exchange rate differences corresponded to MSEK 5 [-7]. Profit/loss before tax thus increased to MSEK 18 [-12].
In accordance with IFRS, the production assets are not recognized at market value, but the company tests for impairment annually. In the most recent impairment test, the value in use of the production assets exceeded the carrying amount by about MEUR 601).
1] Based on a discount rate of 8.2%, the company's forecasts and energy price forecasts prepared by external experts. A change in the discount rate of +/- one percentage point would affect the value by approximately MEUR 10.
| Hedged electricity prices |
04 2023 | 2024 |
|---|---|---|
| MWh, SE 4 | 30.900 | 92.200 |
| EUR per MWh, SE4 | 119 | 105 |
Production at the company's wind farms declined to 201 GWh (213) due to weaker winds during the first half of the year than in the year-earlier period. At the same time, the average income for electricity including certificates and guarantees of origin amounted to SEK 874 per MWh (669). The average income was higher than the market price for the period as a result of the positive impact of price hedging.
Income amounted to MSEK 177 (143). The specific operating expense amounted to SEK-192 per MWh [-153] and EBITDA increased to MSEK 139 [111]. Depreciation amounted to MSEK -45 [-44], after which EBIT increased to MSEK 94 (66). Net financial items amounted to MSEK-21 (-28), of which exchange rate differences corresponded to MSEK -9 [-21]. Profit before tax thus increased to MSEK 73 (39).
| MSEK | 03 2023 | 03 2022 | 9 m 2023 | 9 m 2022 |
|---|---|---|---|---|
| Income | 11 | 10 | 31 | 23 |
| Operating expenses | -8 | -8 | $-28$ | $-25$ |
| Operating profit before depreciation (EBITDA) |
3 | 2 | 3 | -2 |
| Operating profit (EBIT) | 3 | 2 | 3 | -2 |
| Profit before tax | 3 | っ | 3 | -2 |
In Solutions, the takeover of Skaftåsen meant the conclusion of the construction management agreement and the commencement of the asset management agreement for the operational wind farm. Income increased to MSEK 11 (10). Operating expenses amounted to MSEK -8 (-8) and EBITDA thus amounted to MSEK 3 (2). Depreciation and financial items were MSEK 0 (0) and EBIT and profit before tax thus increased to MSEK 3 (2).
Income increased to MSEK 31 (23), primarily driven by the construction management agreement for Kölvallen that came into force in July 2022. Operating expenses amounted to MSEK-28 [-25], whereby EBITDA increased to MSEK 3 [-2]. Depreciation and financial items were MSEK 0 [0] and EBIT and profit/loss before tax thus amounted to MSEK 3 [-2].
At the Capital Markets Day in September 2023, Arise presented new financial targets with a focus on profitable growth. Also in September, the earnout payment of MEUR 6.4 was settled for project Skaftåsen, and was received in the same month.
No significant transactions with related parties took place during the period.
The Group's contingent liabilities are related to quarantees and counter indemnities that are issued to support the Group's obligations connected to solar and wind power projects. These are described in more detail on page 89 under Note 21 in the 2022 Annual Report.
The wind farm project Fasikan was divested in October 2023 to SCA. The total purchase price amounted to MSEK 125, which also includes a variable portion that is dependent on how construction of the project progresses in relation to budget.
Arise entered into a partnership agreement with SCA in October 2023. Arise and SCA will cooperate in the development of wind power in six identified land areas. The estimated potential amounts to approximately 1,000 MW and the projects will be included in Arise's project portfolio as early-stage projects. Arise will have a 49% ownership in the projects once they reach readyto-build status.
Given the sale of Fasikan and the partnership agreement with SCA, the project portfolio amounts thereafter to approximately 6,800 MW.
Arise announced in November 2023 that the Board of Directors has decided to utilise the authorisation granted by the Annual General Meeting in May 2023 to repurchase the company's own shares up to a maximum amount of MSEK 100 until the date of the Annual General Meeting 2024.
There continues to be high uncertainty and global risks concerning security politics and energy supply, which makes the ongoing energy transition increasingly obvious in society. Despite a weaker economy and market situation, demand for renewable energy production remains very strong. The company is well positioned with production of renewable electricity and a strong project portfolio. Accordingly, we see very good opportunities for continued growth and continued value creation. Our strong financial situation means that we have increased opportunities to maximise value creation in the business and also optimise our long-term income from both production and the project portfolio.
Risks and uncertainties affecting the Group are described on pages 49-50 of the 2022 Annual Report, and financial risk management is presented on pages 77-83. No significant changes have taken place that affect the reported risks.
A presentation of the company's ownership structure is available on the website (www.arise.se)
The Parent Company's operations comprise project development (identifying suitable solar and wind power locations, signing land lease agreements, producing impact assessments, preparing detailed development plans and permits), divesting projects, contracts and project management of new projects, managing internal and external projects (technically and financially) and managing the Group's electricity trading activities and guarantees of origin.
The Parent Company manages the Group's production plans and electricity hedges in accordance with the adopted financial policy.
During the first nine months of the year, the Parent Company's total income amounted to MSEK 34 [29], and purchases of electricity and certificates, personnel and other external expenses, capitalised work on own account and depreciation of non-current assets totalled MSEK-67 [-60], resulting in EBIT of MSEK -33 [-31]. Net financial items of MSEK 10 [-10] and Group contributions of MSEK 0 (67) led to net profit/loss after tax of MSEK -22 (26). The Parent Company's net investments amounted to MSEK -278 [-298].
Arise applies the International Financial Reporting Standards (IFRS), as adopted by the EU, and the interpretations of these (IFRIC). This interim report has been prepared in accordance with IAS 34 "Interim Financial Reporting". The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 of the Swedish Financial Reporting Board. With the exception of what is outlined below, the accounting policies are consistent with those applied in the 2022 Annual Report.
Corporate acquisitions, the primary purpose of which is to acquire the company's project portfolio and rights and where the company's management organisation and administration are of secondary importance to the acquisition, are classed as asset acquisitions. Arise has therefore assessed that the acquisition of Pohjan Voima comprises an asset acquisition.
| • Fourth quarter (1 October-31 December) | 15 February 2024 | |
|---|---|---|
| • First quarter [1 January-31 March] | 7 May 2024 | |
| $\mathbf{H}^{\text{max}}$ | Second quarter (1 April-30 June) | 17 July 2024 |
| $\blacksquare$ | Third quarter (1 July-30 September) | 14 November 2024 |
Halmstad, 15 November 2023
Arise AB (publ)
Per-Erik Eriksson CEO
Per-Erik Eriksson, CEO Tel. +46 [0] 702 409 902
Markus Larsson, CFO Tel. +46 [0] 735 321 776
We have performed a review of the interim condensed financial information (interim report) of Arise AB (publ) at 30 September 2023, and the nine-month period ending on that date. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review.
We have conducted our review in accordance with the International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with the ISA, and with generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the opinion expressed on the basis of a review does not provide the same level of assurance as an opinion expressed on the basis of an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report has not, in all material aspects, been compiled for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act.
Gothenburg, 15 November 2023
Öhrlings PricewaterhouseCoopers AB
Ulrika Ramsvik
Authorised
| 2023 | 2022 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| [Amounts rounded to the nearest MSEK] | Q 3 | Q 3 | 9 mon | 9 mon | FY |
| Note 1 Net sales |
96 | 917 | 313 | 1,058 | 1,164 |
| Other operating income | $\Omega$ | 2 | 2 | 4 | 5 |
| Total income | 96 | 919 | 315 | 1,061 | 1,169 |
| Capitalised work on own account | 3 | 0 | 8 | 4 | 4 |
| Personnel costs | $-17$ | $-11$ | $-50$ | $-32$ | $-63$ |
| Cost of sold projects | $-136$ | $-136$ | $-136$ | ||
| Other external expenses | $-23$ | -60 | $-68$ | -98 | $-124$ |
| Operating profit/loss before depreciation (EBITDA) | 59 | 713 | 204 | 799 | 851 |
| Depreciation and imp. of non-current assets Note 2,3 | $-16$ | $-15$ | $-47$ | $-46$ | $-61$ |
| Operating profit/loss (EBIT) | 43 | 697 | 157 | 753 | 790 |
| Profit/loss from financial items Note 4 |
-8 | 7 | $-34$ | $-17$ | $-17$ |
| Profit/loss before tax | 35 | 705 | 123 | 736 | 772 |
| Tax on profit/loss for the period | 0 | 0 | $\mathbf 0$ | 0 | 0 |
| Net profit/loss for the period | 35 | 705 | 123 | 736 | 772 |
| Net profit/loss for the period attributable to: | |||||
| Parent company shareholders | 37 | 705 | 127 | 736 | 772 |
| Non-controlling interests | $-2$ | $-4$ | |||
| Earnings per share regarding profit/loss | |||||
| attributable to parent company shareholders: | |||||
| Earnings per share before dilution, SEK | 0.84 | 15.86 | 2.86 | 17.74 | 18.60 |
| Earnings per share after dilution, SEK | 0.84 | 15.86 | 2.86 | 17.74 | 18.60 |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| (Amounts rounded to the nearest MSEK) | Q 3 | Q 3 | 9 mon | 9 mon | FY |
| Net profit/loss for the period | 35 | 705 | 123 | 736 | 772 |
| Other comprehensive income | |||||
| Items that may be reclassified to the income statement |
|||||
| Translation differences for period | 15 | $\Omega$ | 14 | $\Omega$ | $\Omega$ |
| Cash flow hedges | 27 | $-181$ | 205 | $-291$ | 45 |
| Income tax attributable to components of other comprehensive income |
-6 | 37 | -42 | 60 | $-9$ |
| Other comprehensive income for the period, net after tax |
36 | $-144$ | 177 | $-231$ | 36 |
| Total comprehensive income for the period | 71 | 561 | 299 | 505 | 807 |
| Total comprehensive income for the period attributable to: |
|||||
| Parent company shareholders | 74 | 561 | 297 | 505 | 807 |
| Non-controlling interests | $-2$ | 3 |
| (Condensed, amounts rounded to the nearest MSEK) | 2023 30 Sep |
2022 30 Sep |
2022 31 Dec |
|---|---|---|---|
| Intangible assets | 30 | 25 | 25 |
| Property, plant and equipment 1) | 2,199 | 1,166 | 1,218 |
| Non-current financial assets | 248 | 248 | 190 |
| Total non-current assets | 2,477 | 1,439 | 1,432 |
| Inventories | $\Omega$ | $\Omega$ | |
| Other current assets | 494 | 166 | 263 |
| Cash and cash equivalents | 830 | 1,287 | 1,220 |
| Total current assets | 1,324 | 1,454 | 1,483 |
| TOTAL ASSETS | 3,801 | 2,893 | 2,916 |
| Equity attributed to parent company shareholders | 1,868 | 1,310 | 1,616 |
| Equity attributed to non-controlling interests | 333 | ||
| Total equity | 2,201 | 1,310 | 1,616 |
| Non-current interest-bearing liabilities 2) | 1,161 | 981 | 980 |
| Other non-current liabilities | 207 | ||
| Provisions | 68 | 58 | 62 |
| Total non-current liabilities | 1,436 | 1,039 | 1,042 |
| Current interest-bearing liabilities 2) | 32 | 18 | 29 |
| Other current liabilities | 131 | 526 | 228 |
| Total current liabilities | 164 | 544 | 258 |
| TOTAL EQUITY AND LIABILITIES | 3,801 | 2,893 | 2,916 |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| (Condensed, amounts rounded to the nearest MSEK) | Q 3 | Q 3 | 9 mon | 9 mon | FУ |
| Cash flow from operating activities before | |||||
| changes in working capital | 56 | 833 | 199 | 914 | 967 |
| Cash flow from changes in working capital | $-104$ | $-41$ | $-157$ | 13 | -41 |
| Cash flow from operating activities | -47 | 792 | 43 | 926 | 926 |
| Investments in non-current assets | $-183$ | $-10$ | $-298$ | $-109$ | $-176$ |
| Investments in non-current financial assets | $\overline{\phantom{a}}$ | $-124$ | $-47$ | $-124$ | $-130$ |
| Acquisition of subsidiary | $\overline{\phantom{a}}$ | -136 | |||
| Cash flow from investing activities | $-183$ | $-134$ | -482 | $-233$ | -305 |
| Loan repayments | $\overline{a}$ | $\overline{a}$ | -40 | $-11$ | $-18$ |
| Loan raised | 149 | $\overline{a}$ | 149 | 523 | 523 |
| Amortization of lease liabilities | $-1$ | 0 | $-7$ | -5 | -6 |
| Interest and other financing costs | $-13$ | -7 | $-43$ | $-21$ | $-33$ |
| Net payment to blocked accounts | ÷, | -9 | $\overline{a}$ | -9 | -9 |
| Dividend to the parent company shareholders | $-44$ | ||||
| New share issue / warrants | 3 | ||||
| Cash flow from financing activities | 135 | -16 | 14 | 478 | 461 |
| Cash flow for the period | -96 | 642 | $-425$ | 1.172 | 1.082 |
| Cash and cash equivalents at the beginning of the period |
946 | 611 | 1,220 | 70 | 70 |
| Exchange-rate difference in cash and cash equivalents |
$-20$ | 34 | 34 | 45 | 68 |
| Cash and cash equivalents at the end of the period | 830 | 1,287 | 830 | 1,287 | 1,220 |
| Interest-bearing liabilities at the end of the period (excl. lease liabilities) |
1,127 | 940 | 1,127 | 940 | 952 |
| Blocked cash at the end of the period | $-28$ | -27 | $-28$ | -27 | -27 |
| 270 | $-374$ | 270 | $-374$ | $-296$ | |
| Note 6 Net debt |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| (Condensed, amounts rounded to the nearest MSEK) | 30 Sep | 30 Sep | 31 Dec |
| Opening balance | 1,616 | 676 | 676 |
| Profit for the period | 123 | 736 | 772 |
| Other comprehensive income for the period | 177 | $-231$ | 36 |
| Dividend to the parent company shareholders | -44 | ||
| Non-controlling interests from acquisition of subsidiary | 330 | ||
| New issue of shares/conversion of convertibles | 129 | 132 | |
| Closing balance | 2,201 | 1,310 | 1,616 |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| Q 3 | Q 3 | 9 mon | 9 mon | FY | |
| Operational key performance indica- | |||||
| tors | |||||
| Installed capacity at the end of the pe- riod, MW |
139.2 | 139.2 | 139.2 | 139.2 | 139.2 |
| Own electricity production during the period, GWh |
59.8 | 52.1 | 200.7 | 213.2 | 292.2 |
| Number of employees at the end of the period |
57 | 36 | 57 | 36 | 41 |
| Financial key performance indica- tors |
|||||
| Earnings per share before dilution, SEK 1 |
0.84 | 15.86 | 2.86 | 17.74 | 18.60 |
| Earnings per share after dilution, SEK 1) | 0.84 | 15.86 | 2.86 | 17.74 | 18.60 |
| EBITDA margin, % | 61.5% | 77.6% | 64.9% | 75.3% | 72.8% |
| Operating margin, % | 45.0% | 75.9% | 49.9% | 70.9% | 67.6% |
| Return on capital employed (EBIT), % | 6.9% | 43.8% | 6.9% | 43.8% | 42.0% |
| Return on equity, % | 9.0% | 72.9% | 9.0% | 72.9% | 67.4% |
| Equity, MSEK | 2,201 | 1,310 | 2,201 | 1,310 | 1,616 |
| Average equity, MSEK | 1,755 | 1,027 | 1,755 | 1,027 | 1,146 |
| Net debt, MSEK | 270 | $-374$ | 270 | $-374$ | $-296$ |
| Equity/assets ratio, % | 57.9% | 45.3% | 57.9% | 45.3% | 55.4% |
| Debt/equity ratio, times | 0.1 | neq | 0.1 | neq | neq |
| Equity per share, SEK | 42 | 29 | 42 | 32 | 39 |
| Equity per share after dilution, SEK | 42 | 29 | 42 | 32 | 39 |
| No. of shares at the end of the period, excl. treasury shares |
44,440,041 | 44,440,041 | 44,440,041 | 44,440,041 | 44,440,041 |
| Average number of shares | 44,440,041 | 44,440,041 | 44,440,041 | 41,503,644 | 41,503,644 |
| Average number of shares after dilution | 44,440,041 | 44,440,041 | 44,440,041 | 41,503,644 | 41,503,644 |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| (Amounts rounded to the nearest MSEK) | Q 3 | Q 3 | 9 mon | 9 mon | FY |
| Electricity | 43 | 26 | 175 | 141 | 208 |
| Certificates and guarantees of origin | 0 | 0 | 2 | ||
| Development | 42 | 882 | 109 | 894 | 924 |
| Services | 11 | 9 | 28 | 21 | 30 |
| Total | 96 | 917 | 313 | 1,058 | 1.164 |
| Develop- | Unallocated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter 3 | ment | Production | Solutions | rev./exp. | Eliminations | Group | ||||||
| (Amounts rounded to the nearest MSEK) |
Q 3 2023 |
03 2022 |
Q 3 2023 |
Q 3 2022 |
Q 3 2023 |
Q3 2022 |
Q 3 2023 |
Q 3 2022 |
Q 3 2023 |
Q 3 2022 |
Q 3 2023 |
Q3 2022 |
| Net sales, external | 42 | 882 | 43 | 26 | 11 | 9 | ÷, | 96 | 917 | |||
| Net sales, internal | $\overline{\phantom{a}}$ | ۰ | ٠ | 1 | $\mathbf{1}$ | ٠ | $\overline{\phantom{a}}$ | $-1$ | $-1$ | |||
| Other operating income | 0 | 1 | $\mathbf{1}$ | 0 | 0 | $\Omega$ | $\mathbf 0$ | 0 | Ξ. | ÷, | $\Omega$ | 2 |
| Total income | 42 | 884 | 43 | 26 | 11 | 10 | $\bf{0}$ | 0 | $-1$ | $-1$ | 96 | 919 |
| Capitalised work on own account |
3 | $\boldsymbol{0}$ | 3 | 0 | ||||||||
| Operating expenses | $-17$ | $-180$ | $-12$ | $-14$ | -8 | -8 | $-3$ | -6 | $\mathbf{1}$ | $\mathbf{1}$ | $-40$ | $-206$ |
| EBIT before depr./imp. (EBITDA) |
27 | 704 | 31 | 12 | 3 | 2 | $-3$ | -6 | $\blacksquare$ | 59 | 713 | |
| Depreciation/impair. Note 2 | 0 | $\Omega$ | $-15$ | $-15$ | 0 | $-1$ | $\Omega$ | ÷, | $-16$ | $-15$ | ||
| Operating profit/loss (EBIT) | 27 | 704 | 17 | $-2$ | 3 | 2 | $-4$ | -6 | $\blacksquare$ | 43 | 697 | |
| Net financial items | $-5$ | 8 | $\mathbf{1}$ | $-10$ | 0 | $\Omega$ | $-5$ | 9 | ÷, | -8 | 7 | |
| Profit/loss before tax (EBT) | 23 | 712 | 18 | -12 | 3 | 2 | -9 | 3 | L. | $\frac{1}{2}$ | 35 | 705 |
| Intangible and tangible fixed assets (incl.leasing) |
1,204 | 117 | 1,016 | 1.073 | 0 | 9 | 1 | $\overline{a}$ | 2,229 | 1.191 |
| Depreciation/amortisation | $\Omega$ | $-15$ | $-15$ | $\mathbf{r}$ | $-1$ | $\Omega$ | ÷. | $\sim$ | -16 | $-15$ | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Impairment and reversal of impairment |
$\overline{\phantom{0}}$ | $\sim$ | ÷. | $\overline{\phantom{0}}$ | $\sim$ | $\ddot{\phantom{0}}$ | |||||
| Depreciation and impair- ment |
0 | $-15$ | $-15$ | Ξ. | $-1$ | 0 | - | $\overline{\phantom{a}}$ | -16 | -15 |
| Unallocated Develop- |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9 months | ment | Production | Solutions | rev./exp. | Eliminations | Group | ||||||
| (Amounts rounded to the nearest MSEK) |
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Net sales, external | 109 | 895 | 175 | 143 | 28 | 20 | 313 | 1,058 | ||||
| Net sales, internal | ÷. | ÷. | 3 | 2 | $\overline{a}$ | $\overline{\phantom{a}}$ | $-3$ | $-2$ | ||||
| Other operating income | 0 | 3 | 2 | 0 | $\mathbf 0$ | $\Omega$ | $\Omega$ | $\Omega$ | $\blacksquare$ | $\overline{a}$ | $\overline{c}$ | 4 |
| Total income | 109 | 898 | 177 | 143 | 31 | 23 | $\bf{0}$ | 0 | $-3$ | $-2$ | 315 | 1,061 |
| Capitalised work on own account |
8 | 4 | 8 | 4 | ||||||||
| Operating expenses | $-37$ | $-191$ | $-38$ | $-33$ | $-28$ | $-25$ | $-17$ | $-20$ | 3 | 2 | $-118$ | $-266$ |
| EBIT before depr./imp. (EBITDA) |
80 | 710 | 139 | 111 | 3 | $-2$ | $-17$ | $-20$ | 204 | 799 | ||
| Depreciation/impair. Note 3 | $\Omega$ | $\Omega$ | $-45$ | $-44$ | $\Omega$ | $\Omega$ | $-2$ | $-1$ | $\overline{a}$ | $-47$ | -46 | |
| Operating profit/loss (EBIT) | 80 | 710 | 94 | 66 | 3 | $-2$ | $-20$ | $-21$ | $\sim$ | 157 | 753 | |
| Net financial items | $-25$ | 2 | $-21$ | $-28$ | $\mathbf 0$ | $\Omega$ | 12 | 9 | ÷. | $\tilde{\phantom{a}}$ | $-34$ | $-17$ |
| Profit/loss before tax (EBT) | 55 | 712 | 73 | 39 | 3 | $-2$ | -8 | $-12$ | 123 | 736 | ||
| Intangible and tangible fixed assets (incl.leasing) |
1,204 | 117 | 1.016 | 1.073 | $\bf{0}$ | 9 | $\mathbf{1}$ | 2,229 | 1.191 |
| Depreciation/amortisation | 0 | 0 | -45 | -44 | 0 | -2 | -1 | $\sim$ | $\sim$ | -47 | -46 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Impairment and reversal of impairment |
$\sim$ | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\sim$ | $\overline{a}$ | |||||
| Depreciation and impair- ment |
$\Omega$ | $-45$ | -44 | $\mathbf{0}$ | $-2$ | $-1$ | $\sim$ | $\overline{\phantom{0}}$ | $-47$ | -46 |
| (Amounts rounded to the nearest MSEK) | 2023 Q 3 |
2022 Q 3 |
2023 9 mon |
2022 9 mon |
2022 FY |
|---|---|---|---|---|---|
| Interest income | |||||
| Other interest income | 5 | $\mathbf{1}$ | 12 | $\mathbf{1}$ | 6 |
| Interest expense | |||||
| Other interest expenses | -5 | $-1$ | $-11$ | -4 | -5. |
| Bond loan and convertibles | $-12$ | -8 | -34 | $-12$ | -21 |
| Other financial items | |||||
| Lease liabilities | $-1$ | $-1$ | $-2$ | $-2$ | $-3$ |
| Exchange rate difference loan/bond loan | 28 | $-21$ | $-29$ | -49 | $-67$ |
| Other financial expenses | $-2$ | $-1$ | -5 | $-4$ | $-5$ |
| Other exchange rate differences | $-22$ | 38 | 35 | 52 | 78 |
| Total | -8 | 7 | -34 | $-17$ | $-17$ |
| (Amounts rounded to the nearest MSEK) | 2023 30 Sep |
2022 30 Sep |
2022 31 Dec |
|---|---|---|---|
| Assets | |||
| Derivatives held for hedging purposes | |||
| - Derivative assets | 99 | 21 | 26 |
| Liabilities | |||
| Derivatives held for hedging purposes | |||
| - Derivative liabilities | -1 | -464 | $-133$ |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| (Amounts rounded to the nearest MSEK) | 30 Sep | 30 Sep | 31 Dec |
| Non-current liabilities | 1,436 | 1.039 | 1,042 |
| - of which interest-bearing non-current liabilities (excl. lease liabilities) | 1.100 | 926 | 925 |
| Current liabilities | 164 | 544 | 258 |
| - of which interest-bearing current liabilities (excl. lease liabilities) | 28 | 14 | 27 |
| Long and short term interest bearing debt liabilities (excl. lease liabilities) | 1.127 | 940 | 952 |
| Cash and cash equivalents at the end of the period | $-830$ | $-1.287$ | $-1.220$ |
| Blocked cash at the end of the period | $-28$ | -27 | -27 |
| Net debt | 270 | -374 | -296 |
Lease liabilities amounted to MSEK 66 (58) on September 30, 2023.
| (Amounts rounded to the nearest MSEK) |
2023 Q 3 |
2022 Q 3 |
2023 9 mon |
2022 9 mon |
2022 FY |
|---|---|---|---|---|---|
| Sales of electricity and electricity cer- tificates |
$\Omega$ | $\Omega$ | $\mathbf{1}$ | 1 | |
| Development and services | 13 | 10 | 33 | 25 | 35 |
| Other operating income | $\Omega$ | $\overline{c}$ | $\mathbf 0$ | 3 | 4 |
| Total income | 12 | 12 | 34 | 29 | 40 |
| Capitalised work on own account | $\mathbf{1}$ | $\boldsymbol{0}$ | 2 | $\mathbf{1}$ | $\mathbf{1}$ |
| Purchases of electricity and electricity certificates |
$\mathbf 0$ | $\boldsymbol{0}$ | $\mathbf 0$ | $-1$ | $-1$ |
| Cost of sold projects and asset manage- ment |
$-2$ | $-2$ | -6 | -8 | -9 |
| Personnel costs | $-12$ | -9 | $-39$ | $-29$ | $-55$ |
| Other external expenses | $-7$ | -6 | $-24$ | $-24$ | $-31$ |
| Operating profit/loss before deprecia- tion (EBITDA) |
-8 | -6 | $-32$ | $-31$ | $-54$ |
| Depreciation and imp. of non-current assets |
$\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ |
| Operating profit/loss (EBIT) | -8 | $-6$ | $-33$ | $-31$ | $-55$ |
| Profit/loss from financial items Note 1 | 25 | -8 | 10 | $-10$ | $-22$ |
| Profit/loss after financial items | 16 | $-14$ | $-22$ | $-41$ | -76 |
| Group contribution | $\overline{\phantom{a}}$ | 67 | 113 | ||
| Profit/loss before tax | 16 | $-14$ | $-22$ | 26 | 37 |
| Tax on profit/loss for the period | ä, | $\Omega$ | 0 | ||
| Net profit/loss for the period | 16 | $-14$ | $-22$ | 26 | 36 |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| (Condensed, amounts rounded to the nearest MSEK) | 30 Sep | 30 Sep | 31 Dec |
| Intangible assets | 30 | 25 | 25 |
| Property, plant and equipment | 52 | 42 | 45 |
| Non-current financial assets | 1,503 | 1,003 | 1,013 |
| Total non-current assets | 1,585 | 1,069 | 1,083 |
| Other current assets Cash and cash equivalents |
194 247 |
75 280 |
49 293 |
| Total current assets | 441 | 355 | 342 |
| TOTAL ASSETS | 2,026 | 1,424 | 1,424 |
| Restricted equity | 4 | 4 | 4 |
| Non-restricted equity | 697 | 750 | 764 |
| Total equity | 701 | 754 | 768 |
| Non-current interest-bearing liabilities | 568 | 538 | 548 |
| Other non-current liabilities | 207 | $\overline{a}$ | |
| Total non-current liabilities | 776 | 538 | 548 |
| Other current liabilities | 549 | 133 | 108 |
| Total current liabilities | 549 | 133 | 108 |
| TOTAL EQUITY AND LIABILITIES | 2,026 | 1,424 | 1,424 |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| (Condensed, amounts rounded to the nearest MSEK) | 30 Sep | 30 Sep | 31 Dec |
| Opening balance | 768 | 599 | 599 |
| Profit/loss for the period | $-22$ | 26 | 36 |
| Dividend to the parent company shareholders | -44 | ||
| New issue of shares/conversion of convertibles | 129 | 132 | |
| Closing balance | 701 | 754 | 768 |
| (Amounts rounded to the nearest MSEK) | 2023 Q 3 |
2022 Q 3 |
2023 9 mon |
2022 9 mon |
2022 FY |
|---|---|---|---|---|---|
| Interest income | |||||
| Intra-Group interest income | 2 | $\Omega$ | 3 | $\Omega$ | 0 |
| Other interest income | 4 | $\mathbf{1}$ | 10 ° | 1 | 3 |
| Interest expense | |||||
| Intra-Group interest expenses | $-3$ | $-1$ | $-7$ | $-2$ | $-3$ |
| Bond loan and convertibles | $-12$ | -8 | -34 | $-12$ | -21 |
| Other financial items | |||||
| Realized profit on sale of subsidiaries | 29 | $\Omega$ | 54 | 1 | 2 |
| Exchange rate difference bond loan | 15 | $-12$ | $-18$ | $-23$ | $-33$ |
| Other financial income and expenses | $-1$ | $-1$ | $-2$ | $-1$ | $-2$ |
| Other exchange rate differences | $-9$ | 11 | 5 | 25 | 32 |
| Total | 25 | -8 | 10 | $-10$ | -22 |
EBITDA as a percentage of total income.
EBIT as a percentage of total income.
Rolling 12-month EBIT as a percentage to average capital employed.
Rolling 12-month net profit as a percentage to average equity.
Equity attributable to the parent company shareholders divided by the average number of shares.
Equity attributable to the parent company shareholders adjusted for conversion of convertibles divided by the average number of shares after dilution.
Financial income less financial expenses.
Rolling 12-month average equity.
Cash flow from operating activities after changes in working capital.
Interest-bearing liabilities, excl. lease liabilities, less cash and blocked cash and cash equivalents.
Net debt as a percentage of equity.
Operating expenses for electricity production divided by electricity production during the period.
Equity as a percentage of total assets.
Equity plus interest-bearing debt.
Share of profit after tax attributable to the parent company shareholders in relation to the average number of outstanding shares.
In its reporting. Arise applies key ratios based on the company's accounting. The reason that these key ratios are applied in the reporting is that Arise believes that it makes it easier for external stakeholders to analyse the company's performance.
Figures in this interim report have been rounded while calculations have been made without rounding. Hence, it can appear like certain tables and figures do not add up correctly.
Arise AB, Box 808, SE-301 18 Halmstad
Telephone +46 (0)10-450 71 00 | www.arise.se
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