Magnora ASA

Earnings Release • Feb 29, 2024

Magnora ASA reports net profit of NOK 178.9 million in 2023 (up from NOK 3.9 million) and launches new guiding and outlook for 2024

Magnora ASA reports net profit of NOK 178.9 million in 2023 (up from NOK 3.9 million) and launches new guiding and outlook for 2024

29.2.2024 07:00:00 CET | Magnora ASA | Annual financial and audit reports

On 29 February, Magnora published its annual report for 2023. The company also

published sales guiding of 500-625MW for 2024 (up from 200-325 MW in 2023) and

raised its portfolio guiding for the second time in 9 months, now indicating an

11 GW landbank in 2025.

Magnora's board emphasized how the company's 2023 results would shape the

outlook for 2024.

* Strong results and strong cashflow from old and new business allow Magnora to

split the legacy business from the renewable business and streamline the

businesses.

* More of Magnora's portfolio companies are shifting from origination to sales,

or from sales to delivery. Milestone payments are expected from multiple

sources, alongside dividends and share buyback with more sales being

recognized as revenues.

* Organic growth looks set to continue across geographies and products, while

farm-downs, and alliances remain a very real prospect in 2024 (cf. our stock

exchange notice of August 2023, "Evaluation of Corporate Structure").

* Net cash generated from disposals and other investment activities was NOK

304.9 million (negative NOK 125.3 million in 2022).

* Net cash at year end: NOK 347.6 million

* Sold 420MW (net to Magnora), beating our 200-325MW guiding in 2023

* Grew the portfolio (land bank) to 7.7 GW by the end of 2023

* Net profit was NOK 178.9 million (versus NOK 3.9 million in 2022). The

increase was mainly driven by the disposal of Evolar and two SPVs in South

Africa, coupled with positive results from associated companies in the Group.

Below are the highlights for the year:

* On 12 May 2023, Magnora sold all its holdings in Evolar to First Solar, Inc.

for approximately USD 29 million (NOK 314 million) and additional milestone

payments of up to USD 24 million (NOK 256 million with 10.65 USD/NOK rate).

* On 21 June 2023, the annual general meeting of Helios approved SEK 60 million

(NOK 59.9 million) in dividends to the shareholders. Magnora holds 40 percent

of the shares in Helios and received approximately NOK 24 million.

* On 12 July 2023, Magnora sold its first project in South Africa to Globeleq,

one of the leading IPPs in Africa owned by Norfund and British International

Investment. The agreement provided for an upfront payment and additional

payments subject to the project reaching certain commercial and technical

milestones. The project is a 153 MW battery storage project with the

potential to add solar PV to make it a hybrid project.

* On 26 July 2023, Helios divested seven projects with combined capacity of 252

MW to Hafslund. This transaction is Helios's seventh and largest in terms of

size and value to date, and the price per MW for the projects sold is in the

high end of Magnora's price guiding. Hafslund is a leading European utility

producing 21 TWh annually. Hafslund is also an owner in Magnora ASA.

* Magnora continued buying back its own shares and held 1,070,854 treasury

shares at the balance sheet date. The maximum consideration set for shares

acquired under the buyback program is NOK 45 per share and NOK 50 million in

aggregate.

* On 23 August and 2 November, Magnora made a capital distribution of NOK

0.187 per share. Technically, Magnora repays paid-in capital in excess of the

share's par value, which can offer a tax advantage for some shareholders in

certain jurisdictions.

* On 28 August, Magnora issued a press release regarding evaluation of

corporate structure and the hiring of Pareto Securities to assist in the

process of enhancing shareholder value. The restructuring process has

progressed and is expected to be implemented during the first half of 2024.

* On 20 October, Magnora sold its second project in South Africa to Globeleq.

The project is a solar PV project in an area with several potential

industrial customers that have expressed an interest in private power

purchase agreements (PPAs). The project was on 4 December expanded from 90 to

125 MW, releasing additional payment to Magnora.

* On 31 October, Magnora sold all its shares in the Neptun Tromsø project to a

project partner. The agreement provided for a cash payment, yielding a profit

on invested capital for Magnora.

* On 16 November, Magnora reached an agreement with NEO Energy and Dana

Petroleum for redeployment of the Western Isles FPSO to the Greater Buchan

Area ("GBA") where start-up is expected in 2026.

Please find attached the Annual Report 2023 for Magnora ASA.

The report is also available at www.magnoraasa.com - https://www.magnoraasa.com.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Erik Sneve, CEO, email: es at magnoraasa.com

* Torstein Sanness, Executive chairman, email: sanness at sf-nett.no

ABOUT MAGNORA ASA

Magnora ASA (OSE: MGN) has a legacy royalty business that is re-invested in

renewable energy development projects and companies. Magnora's portfolio of

renewable companies consists of Evolar AB, Helios Nordic Energy AB, Kustvind AB,

Magnora Offshore Wind AS, Magnora Solar PV UK, Hafslund Magnora Sol AS, Magnora

South Africa, and AGV. The company is listed on the main list on Oslo Stock

Exchange under the ticker MGN.

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847805/2941/4136/Download%20announcement

%20as%20PDF.pdf

Magnoraasa_2023_12_31_en.zip -

https://kommunikasjon.ntb.no/ir-files/17847805/2941/4133/Magnoraasa_2023_12_31_e

n.zip

Magnora ASA 2023 Annual Report_en.pdf -

https://kommunikasjon.ntb.no/ir-files/17847805/2941/4134/Magnora%20ASA%202023%20

Annual%20Report_en.pdf