Quarterly Report • Apr 25, 2024
Quarterly Report
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Net sales LTM SEK 7,305 million (7,486)
Operating margin LTM 11.2% (14.9)
Return on capital employed (ROCE) LTM 19.2% (35.3)
Comparative figures refer to the same period the previous year
| Q1 | Full year | |||
|---|---|---|---|---|
| 2024 | 2023 | Apr-Mar | 2023 | |
| Net sales, SEK m | 944 | 1,463 | 7,305 | 7,824 |
| Operating income, SEK m | -110 | 102 | 816 | 1,028 |
| Operating income adjusted for project development costs, SEK m | -37 | 176 | 1,172 | 1,385 |
| Operating margin,% | -11.6% | 7.0% | 11.2% | 13.1% |
| Operating margin adjusted for project development costs,% | -3.9% | 12.0% | 16.0% | 17.7% |
| Profit for the period, SEK m | -58 | 89 | 862 | 1,008 |
| Cash flow from operating activites, SEK m | 125 | 878 | -524 | 229 |
| Investments in the project development portfolio, SEK m | -127 | -229 | -922 | -1,025 |
| Earnings per share before dilution, SEK | -0.19 | 0,36* | 3.23 | 3.79 |
| Earnings per share after dilution, SEK | -0.19 | 0,36* | 3.23 | 3.79 |
| Project acquisitions, MW | 50 | 952 | 4,109 | 5,011 |
| Sold projects, MW | 0 | 0 | 4,429 | 4,429 |
| Projects handed over, MW | 0 | 171 | 373 | 544 |
| Total portfolio, MW | 47,223 | 42,755 | 47,223 | 47,460 |
| Project development portfolio, MW | 33,107 | 33,095 | 33,107 | 33,517 |
| Sold MW with potential additional payments | 8,232 | 4,410 | 8,232 | 8,232 |
| Projects under construction, MW | 1,062 | 1,173 | 1,062 | 961 |
| Contracts under management (TCM), MW | 4,823 | 4,077 | 4,823 | 4,750 |
| Number of employees | 497 | 404 | 497 | 496 |
| * Adjusted for result from non-controlling interests |
For definitions of alternative performance measures and key performance indicators, see pages 25 and 31.
OX2 has a three-phase business model for the development and sale of renewable electricity generation capacity: Expand, Develop and Deliver.
We have made good progress in our current sales processes and reiterate our forecast of an increased operating income for 2024. During the quarter, we initiated the process of selling another substantial portfolio of onshore wind power in Finland and after the end of the quarter we signed an agreement to sell our first energy storage project in Sweden.
We report negative operating income for the first quarter, which can be attributed to the lack of finalized project sales during the first months of the year. Our business involves quarterly fluctuations and we fully understand that it is difficult to assess OX2's development based on individual quarters. In order to make a fair assessment it is relevant to look at longer trends.
For the past two years, we have achieved an operating income level of just over SEK 1 billion on an annual basis, despite significant costs related to investments in our organization and project development. We reiterate our forecast of increased operating income in 2024, with the expectation that earnings will largely be driven by the sale of onshore wind projects.
Customer demand continues to be good and we have made good progress in the ongoing sales processes. The valuation of our projects is supported by recent third-party assessments of the long-term electricity price forecasts in several of our key markets moving upwards. This applies not least in Finland, with increases in forecasts of 15-20 percent compared to the previous year.
Over the past year, the majority of our sales have been to industrial buyers. They generally have longer decision-making processes than financial investors, which has meant that it has taken longer to finalize our sales. We have however in the beginning of the year noted a higher level of activity and increased capital inflow among financial investors.
In the beginning of April, we signed an agreement for the sale of our first energy storage project, Bredhälla in southern Sweden, along with a ten-year agreement for technical and commercial management. Bredhälla will provide ancillary services to Svenska Kraftnät, the Swedish authority operating the transmission system, to ensure the stability of the electricity grid
Paul Stormoen, CEO
and provide energy arbitrage. We expect the deal to be finalized in the second quarter 2024.
OX2 has built up a strong development portfolio within energy storage totalling more than 900 MW with projects in Sweden, Finland, Poland, Italy and Australia. Energy storage is a technology that will become an important enabler for the transition to renewable energy.
OX2 has several projects that are approaching sales in the coming months. We have made good progress with the 100 MW solar project Rutki in Poland, which we have now also started construction on. Since a large part of the future electricity production of Rutki is covered by a Contract For Difference (CFD), a government contract that provides a guaranteed minimum income, the construction is carried out at low financial risk while we have good visibility over the expected sales value of the project.
Projects sold, MW
0 Relates to Jan-Mar 2024 Change in total portfolio, MW
-237 Relates to Jan-Mar 2024 Total portfolio, MW
47,223 As of March 31, 2024
During the quarter, another sales process of a substantial portfolio of around 800 MW of onshore wind power in Finland was initiated. The project, which we call Skywalker, consists of a consolidation of six different permitted projects. We are seeing strong demand for larger portfolios and with this project we can reach new customer categories. Our business model provides high flexibility, enabling us to tailor the projects we introduce to the market to maximize returns.
Our total ongoing sales processes for permitted projects amount to nearly 2 GW, providing us with good potential for value creation in the coming year.
OX2 has expanded significantly over an extended period of time. We expense all our development costs, which impacts earnings in the near term, but which will contribute to our future growth and earning capacity. It is thanks to these investments
that we today have a platform that gives us good prospects for profitable growth. Costs related to personnel and project development are expected to remain relatively stable over the coming year, while we focus our investments on markets where we see the greatest potential.
Paul Stormoen
It is OX2's project development portfolio that creates long-term value and makes it possible to drive the transition to renewable energy. The portfolio consists of greenfield projects, as well as acquired wind and solar power projects and energy storage solutions in different stages of development and in different markets. Development and optimization of these projects take a long time and not all projects will be realized. The likelihood of a project being realized increases the further on in the development phase the project is.
At the end of the first quarter, the development portfolio totaled 33.1 GW (33.1), comprising offshore wind power of 13.8 GW (13.9), onshore wind power of 11.6 GW (10.5), solar power of 6.8 GW (4.3) and energy storage of 0.9 GW (0.6).
The project development portfolio decreased by 410 MW during the quarter, mainly attributable to net changes in existing projects of 748 MW. This was offset in part by new greenfield projects of 289 MW and project acquisitions of 50 MW.
The increase of 289 MW in greenfield projects is attributable to new solar energy projects, including 180 MW in Poland and 109 MW in France. The project acquisition in the quarter of 50 MW related to an onshore wind project in Romania.
The reduction in the portfolio of 748 MW was partly attributable to a solar energy project in Spain of 53 MW that was sold back to the developer and to solar energy projects in Estonia and Greece totaling 209 MW that were discontinued due to limited progress in permit processes. The portfolio was also reduced due to updated assumptions in the existing portfolio totaling 387 MW, mainly in onshore wind projects in Finland and Sweden. In addition, OX2's decision to start construction of a Polish solar energy project affected the portfolio by 100 MW.
Overall, the development portfolio made good progress during the quarter, with several projects advancing to mid- and late-stage status. The Aurora offshore project received Natura 2000 permit, and if the government gives the go-ahead, construction could begin as early as 2028 and the park could start supplying electricity before 2030. Located between Gotland and Öland in the Baltic Sea, the Aurora wind farm could generate up to 24 TWh annually if the entire area is approved.
| Onshore | Offshore | ||||
|---|---|---|---|---|---|
| Market (MW) | wind | wind | Solar | Storage | Total |
| Sweden | 3,470 | 5,508 | 1,159 | 40 | 10,177 |
| Finland | 5,346 | 3,060 | 1,015 | 50 | 9,471 |
| Åland | 0 | 5,200 | 25 | 0 | 5,225 |
| Poland | 845 | 0 | 1,714 | 556 | 3,115 |
| Italy | 233 | 0 | 391 | 100 | 724 |
| Australia | 0 | 0 | 1,222 | 180 | 1,402 |
| Romania | 620 | 0 | 0 | 0 | 620 |
| Other markets | 1,105 | 0 | 1,267 | 0 | 2,372 |
| Total: | 11,619 | 13,768 | 6,793 | 926 | 33,107 |
| Sweden | 5,292 | 5,292 |
|---|---|---|
| Finland | 2,940 | 2,940 |
| Total: | 8,232 | 8,232 |
During the first quarter, total external project development costs amounted to SEK -73 million (-74). Development costs in the first quarter are in line with the same quarter last year. Lower investments in the project development portfolio of SEK -127 million (-229) can be attributed to a lower number of acquired MW compared to the same period last year.
Project development portfolio, GW
External project development costs for offshore wind power during the quarter totaled SEK -10 million (-25) due to the sale of shares in two additional offshore wind farms in the preceding year. External project development costs from these projects are now recognized in part as results from joint ventures. Other external costs and personnel costs for offshore wind power totaled SEK -21 million (-14). In addition, the Group's share of costs for offshore wind in joint ventures amounted to SEK -34 million (-15) for the quarter.
There were no new sales in the first quarter. OX2 has sales processes underway in both wind and solar power on a number of geographical markets and demand remains strong.
OX2 has projects with permits in several countries, and ongoing sales processes amount to almost 2 GW. The process of selling a large onshore wind portfolio in Finland of approximately 800 MW was initiated during the quarter. Other current sales processes include onshore wind power of approximately 350 MW in Finland and approximately 200 MW in Romania, as well as solar power projects of approximately 270 MW in Australia and 100 MW in Poland. After the end of the quarter, and agreement was signed for the sale of a 43 MW energy storage project in Sweden.
In connection with the IPO in 2021, OX2 announced that the average sales price for onshore wind projects over the past two years had been around EUR 1.3 million per MW. Price levels have risen since then and have averaged about EUR 1.8 million in Sweden and Finland and EUR 2.8 million in Poland during the period 2022-2023. Since the IPO, the probability that onshore wind and solar project reaches sales is estimated to have been around 50 percent for projects in the early stage, around 75 percent in the middle stage and around 90 percent in the late stage.
In addition to developing wind and solar farms and energy storage solutions, OX2 is responsible for construction of the projects and delivers long-term technical and commercial management.
At the end of the quarter, OX2 had 10 projects under construction totaling 1,062 MW (1,343). OX2 has started construction of the 100 MW Rutki solar project in Poland, which is expected to be sold in 2024. A large part of Rutki's future electricity production is covered by a Contract For Difference (CFD), a government contract that provides a guaranteed minimum revenue, which means that construction is carried out at low financial risk.
In 2023, turbine supplier Siemens Gamesa (wholly owned by Siemens Energy) announced expected delays in future deliveries. OX2 has three projects under construction totaling 670 MW that use Siemens Gamesa turbines (Niinimäki, Riberget and Lestijärvi) where handover to the customer may be delayed, as reflected in the table below. OX2's construction contracts are based on fixed prices and delivery dates, which means that delays caused by the turbine suppliers generally have no financial impact on OX2.
Projects sold, MW
| Constr. | Operat. | ||||
|---|---|---|---|---|---|
| Projects | Country | Technology | start | start | MW |
| Projects to be completed in 2024 | 156 | ||||
| Krasnik | Poland | Onshore wind | 2021 | 2024 | 24 |
| Wysoka | Poland | Onshore wind | 2021 | 2024 | 63 |
| Bredhälla | Sweden | Energy storage | 2022 | 2024 | 43 |
| Eolia | Italy | Onshore wind | 2023 | 2024 | 27 |
| Projects to be completed in 2025 | 790 | ||||
| Riberget | Sweden | Onshore wind | 2022 | 2025 | 70 |
| Niinimäki | Finland | Onshore wind | 2022 | 2025 | 145 |
| Lestijärvi | Finland | Onshore wind | 2021 | 2025 | 455 |
| Bejsce | Poland | Onshore wind | 2023 | 2025 | 20 |
| Rutki | Poland | Solar PV | 2024 | 2025 | 100 |
| Projects to be completed in 2026 | 115 | ||||
| Ånglarna | Sweden | Onshore wind | 2023 | 2026 | 115 |
| Total MW under construction at period end | 1,062 |
At the end of the quarter, OX2's technical and commercial management activities totaled 4,823 MW (4 077), spread across five European markets and Australia. During the quarter, management was initiated for several wind farms that were delivered to customers at the end of 2023. In addition, the focus remained on integrating the Australian operations and strengthening the customer offering in solar energy and energy storage.
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Net sales | 944 | 1,463 | 7,305 | 7,824 |
| Cost of goods sold* | -684 | -1,073 | -4,956 | -5,345 |
| Gross profit* | 260 | 390 | 2,349 | 2,479 |
| Project development costs* | -73 | -74 | -356 | -357 |
| Other external costs | -70 | -52 | -285 | -267 |
| Personnel costs | -186 | -140 | -724 | -678 |
| Result from joint venture | -34 | -15 | -150 | -115 |
| Depreciation and amortization of tangible and intangible | ||||
| assets | -7 | -6 | -34 | -34 |
| Operating income* | -110 | 102 | 816 | 1,028 |
| Operating income adjusted for project development | ||||
| costs* | -37 | 176 | 1,172 | 1,385 |
| Gross margin, %* | 27.6% | 26.7% | 32.2% | 31.7% |
| Operating margin, %* | -11.6% | 7.0% | 11.2% | 13.1% |
| Operating margin adjusted for project development | ||||
| costs, %* | -3.9% | 12.0% | 16.0% | 17.7% |
*For definitions of alternative performance measures, see page 25.
Technical and commercial management contracts, MW
4,823 (4,077)
Net sales during the first quarter totalled SEK 944 million (1,463).
Net sales for the quarter were lower than the same period last year due to lower revenue from the construction portfolio. Operations in Sweden contributed 9 percent (34) of revenue, Poland 14 percent (25), Finland 68 percent (41) and Spain 8 percent (0), where the latter was attributable to the resale of projects to the developer.
No project handovers were finalized in the first quarter of 2024. In the same period last year, three projects were handed over to customers. No new sales were finalized during the quarter, which was also the case in the corresponding quarter last year.
During the first quarter, cost of goods sold totalled SEK -684 million (-1,073). Cost of goods sold as a percentage of revenue is affected by the product mix in the period. Gross margin for the quarter increased to 27.6 percent (26.7) compared with the same period last year. The gross margin is positively affected by renegotiation of contingent consideration in a previously divested project (SEK 49 million) and by positive currency effects in construction projects, which are expected to be offset by negative effects in the coming quarters. The group's net flows in foreign currency are hedged. A currency effect arises in the accounts, which affects the gross margin, when inflows and outflows do not occur in the same period. The positive currency effect amounted to around 100 MSEK.
Project development costs amounted to SEK -73 million (-74) during the first quarter. Development costs in the first quarter are hence on par with the same quarter last year, although as a share of net sales they increased to 7.7 percent, compared with 5.1 percent for the corresponding period last year. In addition to project development costs, income from interest in joint ventures amounted to SEK -34 million (-15) for the quarter. The result is attributable to OX2's share of development costs mainly for offshore wind power in the companies that were partially divested to Ingka Investments in 2022 and 2023.
Other costs in the quarter totalled SEK -70 million (-52). The increase is related to the operations in Australia and higher costs for consultants and IT investments.
Personnel costs in the first quarter amounted to SEK -186 million (-140), an increase of 33 percent compared with the same period the previous year. The change can be attributed to an increase in the workforce (93 employees) compared with the same period the previous year, which follows the planned expansion that has taken place. Personnel expenses for staff located outside Sweden have also increased in Swedish currency due to the weakening of the SEK compared with the corresponding quarter last year.
Revenue LTM, SEK m
Operating income for the first quarter of 2024 amounted to SEK -110 million (102). The earnings trend for individual quarters is mainly affected by new sales of wind and solar power projects, and the rate at which projects under construction are completed and delivered to customers. The operating margin amounted to -11.6 percent (7). The lower margin in the quarter is mainly attributable to increased other costs and personnel costs related to the larger organization, as well as increased costs from holdings in joint ventures.
Results from financial items was SEK 34 million (6) for the first quarter. The positive contribution to profit from financial items in the quarter was attributable in part to positive currency effects related to the revaluation of the company's cash and cash equivalents denominated in other currencies, and in part to interest income. OX2's currency exposure in construction projects is primarily denominated in EUR and the company uses currency derivatives to hedge these flows. The positive earnings effect related to taxes was SEK 18 million in the quarter and the effective tax rate was 23.8 percent (- 18.4) due to a non-taxable reduction of the contingent consideration of a previously divested project, partly offset by losses from joint ventures. The tax rate was mainly affected by non-taxable gains from the sale of projects. Net income for the period was SEK -58 million (89).
Earnings per share before and after dilution totalled SEK -0.19 (0.36*) for the quarter.
OX2 applies hedge accounting and changes in fair value relating to currency derivatives are recognized in equity.
Operating income LTM, SEK m
Current assets amounted to SEK 7,558 million (7,478) at the end of the period, an increase of SEK 80 million compared with the end of December 2023.
The book value of the project development portfolio decreased to SEK 2,381 million (2,383), mainly due to construction start of one project and the resale of a Spanish project. Work in progress of SEK 841 million (469) is mainly linked to the construction of projects in our own book in Italy, Sweden and Poland. Accounts receivables totalled SEK 294 million (514). Other receivables, which largely consist of expenses incurred by OX2 on behalf of customers, totalled SEK 272 million (185). Prepaid expenses and accrued income amounted to SEK 706 million (1,008). Prepaid expenses and accrued income consisted mainly of items related to construction. Cash and cash equivalents amounted to SEK 3,015 million (2,876).
Total current liabilities amounted to SEK 3,174 million (3,098), an increase of SEK 76 million over the previous year.
Advance payments from customers amounted to SEK 1,931 million (1,885), an increase of SEK 47 million during the year. Of the advance payments 91 percent are related to projects under construction in the Finnish market, followed by 5 percent for Polish projects and 4 percent for Swedish projects. Accounts payable totalled SEK 147 million (215), mainly attributable to invoices from the construction business, which vary between periods. Other liabilities amounted to SEK 52 million (327) and current interest-bearing liabilities to SEK 53 million (54). The decrease in other liabilities is attributable to a reduction and settlement of a contingent consideration on projects. Tax liabilities amounted to SEK 24 million (75). Accrued expenses and deferred income amounted to SEK 968 million (542). Accrued expenses consisted mainly of accrued construction and project costs.
Cash flow from operating activities before changes in working capital amounted to SEK -64 million (101) for the quarter. Cash flow from changes in working capital totalled SEK 252 million (1,107) in the quarter. Changes in working capital have a large impact on cash flow in individual quarters. Cash flow in the quarter was positively affected by changes in working capital related to a decrease in both accounts receivables and other receivables, as well as a slight increase in current liabilities. Investments in the project development portfolio totalled SEK -127 million (-229) for the quarter. Cash flow from operating activities amounted to SEK 125 million (878) for the quarter.
Cash flow from investing activities amounted to SEK -42 million (-21) for the quarter, mainly attributable to contributions to joint venture companies. Cash flow from financing activities during the quarter amounted to SEK -7 million (20), which is attributable to amortization of leases. The total cash flow for the first quarter of 2024 amounted to SEK 75 million (877).
Investments in the project development portfolio LTM, SEK m
The employees of the parent company (OX2 AB) work with project development, financing, project sales and project implementation. Group management and group-wide functions are also based within the parent company. Total revenue for the quarter amounted to SEK 57 million (88). Revenue in the parent company consists of sales of wind and solar farms, development services and internal invoicing of service and management fees. Income from the sale of wind and solar farms varies between quarters and is also affected by the transaction structure of the projects sold.
Costs of goods and project development amounted to SEK -139 million (-91) for the quarter. Personnel costs for the quarter amounted to SEK -51 million (-47). The increase for the quarter was due to the expansion of the business.
Personnel costs for the quarter amounted to SEK -104 million (-101). The increased costs were mainly attributable to an increase in the number of employees compared with the same quarter the previous year and are in line with planned expansion. However, costs were also affected by the weakening of the SEK against the EUR during the year.
Operating income for the quarter amounted to SEK -238 million (-152). The lower operating profit for the year is mainly due to higher other costs and personnel costs. Earnings after financial items amounted to SEK -255 million (-141) during the quarter. Net income for the period was SEK -204 million (-112).
Current assets totalled SEK 3,047 million (4,500) at the end of the quarter compared with the end of the previous year. The change was due to a decrease in cash as there was a reallocation of cash within the Group during the quarter.
The parent company's equity amounted to SEK 2,811 million (3,012) as of March 31, 2024.
Operating income
• Compound annual growth rate (CAGR) for operating income of more than 25 percent during the period 2023-2027
1,500 MW sold per year on average during the period 2023–24
2,000 MW sold per year from 2025
• Operating margin >10 percent
• Return on capital employed > 25 percent
OX2's sustainability strategy is based on four strategic focus areas: basis for good governance, contribution to climate and nature, sustainable leadership and local commitment. Together, these focus areas will help us achieve our long-term sustainability goals and accelerate the transition to renewable energy in a sustainable way. Each focus area addresses key issues on which we continuously communicate and report. OX2's long-term sustainability goals aim to increase renewable energy production and reduce emissions in line with the 1.5 degree target, be a leader in health and safety, and create nature-positive wind and solar farms.
OX2 is committed to increasing transparency in the field of sustainability and, starting in the first quarter of 2024 sustainability is reported on a quarterly basis. The reporting covers projects that have been commissioned. No projects were commissioned during the first quarter, for which reason the outcome for one of the sustainability issues is not reported.
OX2's taxonomy-eligible activities include projects developed and built by OX2. In cases where OX2 sells project rights, these are deemed to not be covered by the taxonomy regulation. Net sales that is not aligned with the EU taxonomy comes from projects developed before 2023.
There is a high level of awareness of work environment issues at OX2's construction sites and safety is top priority. It is therefore gratifying to see that the Lost Time Injury Frequency Rate (LTIFR) for accidents resulting in sick leave, has decreased compared to the previous year.
SMHI (the Swedish Meteorological and Hydrological Institute) has been awarded a research grant from the Swedish Environmental Protection Agency and the Swedish Agency for Marine and Water Management to investigate, in collaboration with OX2 and others, whether artificial oxygenation can help restore parts of the Baltic Sea that are currently anoxic. The project is in line with OX2's biodiversity strategy.
During the first quarter, OX2 announced that the company is one of eight Swedish companies that will report nature-related risks in accordance with the new Taskforce on Nature-related Financial Disclosure (TNFD) framework.
OX2 AB (publ) is listed on Nasdaq Stockholm's main list under the ticker symbol OX2. The total number of shares is 272,517,586. The last price per share paid on March 31 was SEK 49.40. The three largest shareholders at the end of the quarter were Peas Industries AB at 45.6 percent, Pictet Asset Management 4.0 percent and SEB Fonder 3.8 percent.
As of March 31, 2024, the company had 497 employees (404), 41 percent (41) of whom were women. The number of employees has increased by 23 percent compared with the previous year. During the quarter, the number of employees increased by 1 person.
| Total number of employees | 2024/03/31 | 2023/03/31 |
|---|---|---|
| Sweden | 225 | 204 |
| Finland | 98 | 81 |
| Poland | 55 | 44 |
| Italy | 19 | 20 |
| Australia | 30 | - |
| Romania | 13 | 5 |
| Other markets | 57 | 50 |
| Total OX2 Group | 497 | 404 |
At the end of March 2024, 41 (41) percent were women and 59 (59) men.
The renewable energy industry is dependent on the general global economic and political situation. Access to capital and investment appetite may affect the company's ability to sell projects. The climate and environmental targets adopted by the EU and individual countries in which OX2 operates also affect prospects for the wind and solar power market and OX2's growth potential.
For a detailed description of the risks, please refer to the directors' report in the company's 2023 Annual Report.
The transition to a renewable energy supply is a long-term and important goal for our society. Despite the uncertainty related to the war in Ukraine and rising interest rates, OX2 performed well over the past year, with an expanded project development portfolio, geographical expansion and good progress in projects under construction. Creation of renewable energy supply has strong political support as it creates growth in the economy and we consider it to be the most effective way of reducing global CO2 emissions. OX2 is optimistic about the future and is experiencing good demand for ownership of renewable power generation among its customers.
Although higher interest rates have had an impact on the financing market, demand for renewable energy production continues to be strong. OX2 has a large number of permitted projects on several markets which gives confidence for the coming year.
OX2 has made substantial investments in both the organization and project development in recent years, setting the stage for the company to reach its targets of at least a 25 percent Compound Annual Growth Rate (CAGR) in operating profit from 2023 to 2027. As a result of the completed investments in the organization and the project development portfolio, the need for increased costs for personnel and project development is decreasing. In 2024, the increase in personnel and project development costs is expected to be below 5 percent for the full year compared to 2023. The outcome will depend on the growth and progress of the project portfolio.
OX2 anticipates higher operating income for full-year 2024. OX2 has ongoing sales processes in several countries in onshore wind power, solar power and energy storage, totalling around around 2 GW. Timing of new project sales is expected to continue to cause fluctuations in quarterly results potentially being negative in a quarter if no new project sales are completed.
Investments in project acquisitions are expected to total approximately SEK 1,000 million per year. Depending on the timing of the completion of acquisitions, this may vary between individual calendar years.
Preparation of financial statements in accordance with IFRS requires the Board of Directors and management to make accounting estimates and judgements and to make assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, revenues and expenses. The actual outcome may differ from these estimates and judgements.
• On April 3, OX2 announced that an agreement had been signed for the sale of the Bredhälla energy storage facility in Sweden. The deal is expected to be finalised in the second quarter of 2024.
• In April, the Gotland County Administrative Board granted a Natura 2000 licence for OX2 and Ingka Investments' Aurora offshore wind farm.
The company sees good opportunities to reinvest cash flow from operations in value-creating growth.
The Board of Directors proposes that no dividend be paid.
This report has not been reviewed by the company's auditor.
OX2's 2023 annual and sustainability report is available on the OX2 website, ox2.com. OX2 AB's Annual General Meeting will be held on May 14 at 10:00 a.m. at Brygghuset, Nortullsgatan 12N, in Stockholm.
Stockholm, April 24, 2024
OX2 AB (publ)
Paul Stormoen
CEO
| Q1 | Full year | |||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Net sales | 944 | 1,463 | 7,824 | |
| Total revenue | 944 | 1,463 | 7,824 | |
| Cost for goods and project development | -757 | -1,146 | -5,702 | |
| Other external costs | -70 | -52 | -267 | |
| Personnel costs | -186 | -140 | -678 | |
| Result from joint venture | -34 | -15 | -115 | |
| Depreciation and amortization of tangible and intangible assets | -7 | -6 | -34 | |
| Total operating expenses | -1,054 | -1,361 | -6,796 | |
| Operating income | -110 | 102 | 1,028 | |
| Financial income | 69 | 50 | 387 | |
| Financial costs | -35 | -44 | -289 | |
| Profit after financial items | -76 | 108 | 1,126 | |
| Income tax | 18 | -20 | -118 | |
| PROFIT FOR THE PERIOD | -58 | 89 | 1,008 | |
| Profit for the period attributable to: | ||||
| Owners of the parent company | -53 | 99 | 1,033 | |
| Non-controlling interests | -5 | -10 | -25 | |
| Average number of share before dilution | 272,517,586 | 272,517,586 | 272,517,586 | |
| Average number of share after dilution | 272,626,162 | 272,690,576 | 272,640,065 | |
| Earnings per share before dilution, SEK | -0.19 | 0,36* | 3.79 | |
| Earnings per share after dilution, SEK | -0.19 | 0,36* | 3.79 | |
| * Adjusted for result from non-controlling interests | ||||
| Consolidated statement of comprehensive income | ||||
| Q1 | Full year |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Profit for the period | -58 | 89 | 1,008 | |
| Other comprehensive income: | ||||
| Items that may reclassified subsequently to profit or loss | ||||
| Foreign exchange differences on translation of foreign subsidiaries | 66 | 16 | -20 | |
| Cash flow hedges | ||||
| Changes in fair value | 25 | 35 | 78 | |
| Income tax attributable to cash flow hedges | -5 | -7 | -16 | |
| Total other comprehensive income after tax | 28 | 132 | 1,050 | |
| Total comprehensive income for the period attributable to: | ||||
| Owners of the parent company | 33 | 142 | 1,075 | |
| Non-controlling interests | -5 | -10 | -25 |
| SEK m | 2024/03/31 | 2023/12/31 | 2023/03/31 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 137 | 135 | - |
| Other intangible assets | 7 | 7 | 3 |
| Fixtures, tools and installations | 4 | 4 | 3 |
| Right-of-use assets | 49 | 45 | 53 |
| Shares in joint ventures | 130 | 118 | 22 |
| Other financial assets | 2 | 2 | 2 |
| Total Non-current assets | 329 | 312 | 83 |
| Current assets | |||
| Project development portfolio | 2,381 | 2,383 | 1,646 |
| Construction in progress | 841 | 469 | 5 |
| Accounts receivable | 294 | 514 | 158 |
| Tax receivables | - | - | - |
| Other receivables | 272 | 185 | 162 |
| Prepaid expenses and accrued income | 706 | 1,008 | 461 |
| Derivative financial instruments | 48 | 43 | 20 |
| Cash and cash equivalents | 3,015 | 2,876 | 4,468 |
| Total Current assets | 7,558 | 7,478 | 6,919 |
| TOTAL ASSETS | 7,887 | 7,790 | 7,003 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 1 | 1 | 1 |
| Retained earnings including profit for the period | 4,578 | 4,548 | 3,572 |
| Equity attributable to the shareholders of the parent company | 4,579 | 4,545 | 3,568 |
| Equity attributable to non-controlling interests | -0 | 4 | 5 |
| Total equity | 4,578 | 4,549 | 3,572 |
| Non-current liabilities | |||
| Long-term interest-bearing liabilities | 24 | 22 | 32 |
| Derivative financial instruments | 61 | 72 | 96 |
| Deferred tax liabilities | 50 | 49 | 49 |
| Total Long-term liabilities | 135 | 143 | 177 |
| Current liabilities | |||
| Advance payments from customers | 1,931 | 1,885 | 1,547 |
| Accounts payable | 147 | 215 | 77 |
| Tax liabilities | 24 | 75 | 19 |
| Other Current liabilities | 52 | 327 | 451 |
| Current interest-bearing liabilities | 53 | 54 | 239 |
| Accrued expenses and deferred income | 968 | 542 | 920 |
| Total Current liabilities | 3,174 | 3,098 | 3,253 |
| TOTAL EQUITY AND LIABILITIES | 7,887 | 7,790 | 7,003 |
| SEK m | 2024/03/31 | 2023/12/31 | 2023/03/31 |
|---|---|---|---|
| Opening balance | 4,549 | 3,414 | 3,414 |
| Total comprehensive income for the period | 28 | 1,050 | 132 |
| Change in minority interest | 0 | 36 | 22 |
| Share-based payments | 1 | 4 | 1 |
| Other contribution | - | 28 | 4 |
| Shareholder contribution | - | 17 | - |
| Closing balance | 4,578 | 4,549 | 3,572 |
| Attributable to: | |||
| Owners of the parent company | 4,579 | 4,545 | 3,568 |
| Non-controlling interest | 0 | 4 | 5 |
| Total equity | 4,578 | 4,549 | 3,572 |
| Q1 | Full year | ||
|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 |
| Profit after financial items | -76 | 108 | 1,126 |
| Adjustments for items not included in cash flow, etc. | 49 | 23 | 209 |
| Income taxes paid | -37 | -30 | -93 |
| Cash flow from operating activities before changes in working capital | -64 | 101 | 1,242 |
| Cash flow from changes in working capital | |||
| Decrease(+)/increase(–) in work in progress | -252 | -33 | 66 |
| Decrease(+)/increase(–) in accounts receivable | 219 | 497 | 143 |
| Decrease(+)/increase(–) in current receivables | 155 | 65 | -531 |
| Decrease(+)/increase(–) in accounts payables | -68 | -83 | 55 |
| Decrease(–)/increase(+) in current liabilities | 261 | 560 | 279 |
| Cash flow from operating activities before investment in project development | |||
| portfolio | 252 | 1,107 | 1,253 |
| Investments in project development portfolio | -127 | -229 | -1,025 |
| Cash flow from operating activities | 125 | 878 | 229 |
| Acquisition/sale of fixed assets | -1 | -0 | -2 |
| Acquisition of shares in other companies | -42 | -20 | -104 |
| Acquisiton of subsidiary | 0 | - | -829 |
| Cash flow from investment activities | -42 | -21 | -935 |
| Shareholder contribution | - | 26 | 53 |
| Repayments of lease liabilities | -7 | -5 | -24 |
| Cash flow from financing activities | -7 | 20 | 29 |
| Cash flow for the period | 75 | 877 | -677 |
| Translation difference in cash and cash equivalents | 63 | 16 | -22 |
| Cash and cash equivalents at beginning of the period | 2,876 | 3,575 | 3,575 |
| Cash and cash equivalents at period end | 3,015 | 4,468 | 2,876 |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Net sales | 54 | 88 | 878 | |
| Other operating revenue | 3 | 0 | 13 | |
| Total revenue | 57 | 88 | 891 | |
| Cost of goods and project development | -139 | -91 | -586 | |
| Other external costs | -51 | -47 | -187 | |
| Personnel costs | -104 | -101 | -444 | |
| Depreciation and amortization of tangible and intangible assets | -0 | -0 | -2 | |
| Total operating expenses | -295 | -239 | -1,219 | |
| Operating income | -238 | -152 | -328 | |
| Financial income | 20 | 25 | 819 | |
| Financial costs | -38 | -15 | -175 | |
| Profit after financial items | -255 | -141 | 315 | |
| Year-end appropriations | - | - | 434 | |
| Tax | 52 | 29 | -28 | |
| Profit for the period | -204 | -112 | 722 |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Profit for the period | -204 | -112 | 722 | |
| Total other comprehensive income after tax | -204 | -112 | 722 |
| SEK m | 2024/03/31 | 2023/12/31 | 2023/03/31 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Other intangible assets | 2 | 2 | 3 |
| Fixtures, tools and installations | 2 | 2 | 3 |
| Participations in Group companies | 2,902 | 2,899 | 947 |
| Other non-current assets | 3 | 3 | 1 |
| Total Non-current assets | 2,909 | 2,906 | 954 |
| Current assets | |||
| Project development portfolio and construction in progress | 499 | 455 | 324 |
| Accounts receivable | 37 | 32 | 8 |
| Tax receivable | 76 | 5 | 32 |
| Other receivables | 94 | 83 | 62 |
| Receivables from group companies | 1,389 | 1,179 | 701 |
| Prepaid expenses and accrued income | 69 | 69 | 17 |
| Cash and cash equivalents | 883 | 2,677 | 4,091 |
| Total Current assets | 3,047 | 4,500 | 5,235 |
| TOTAL ASSETS | 5,956 | 7,405 | 6,189 |
| EQUITY AND LIABILITIES | |||
| Equity | 2,811 | 3,012 | 2,159 |
| Untaxed reserves | 185 | 185 | 152 |
| Current liabilities | |||
| Accounts payable | 32 | 92 | 17 |
| Current tax liabilities | - | - | - |
| Other Current liabilities | 28 | 10 | 24 |
| Liabilities to group companies | 2,803 | 3,956 | 3,709 |
| Accrued expenses and deferred income | 98 | 150 | 129 |
| Total Current liabilities | 2,961 | 4,208 | 3,879 |
| TOTAL EQUITY AND LIABILITIES | 5,956 | 7,405 | 6,189 |
| Q1 | LTM | Full year | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Apr-Mar | 2023 | |||
| Profitability | ||||||
| Net sales, SEK m | 944 | 1,463 | 7,305 | 7,824 | ||
| Net sales growth, % | -35.5% | -9.7% | -2.4% | 2.4% | ||
| Operating income, SEK m | -110 | 102 | 816 | 1,028 | ||
| Operating income adjusted for development costs, SEK m | -37 | 176 | 1,172 | 1,385 | ||
| Operating margin, % | -11.6% | 7.0% | 11.2% | 13.1% | ||
| Operating margin adjusted for development costs, % | -3.9% | 12.0% | 16.0% | 17.7% | ||
| Profit for the period, SEK m | -58 | 89 | 862 | 1,008 | ||
| Earnings per share before dilution, SEK | -0.19 | 0,36* | 3.23 | 3.79 | ||
| Earnings per share after dilution, SEK | -0.19 | 0,36* | 3.23 | 3.79 | ||
| Financial position | ||||||
| Net debt or (-) net cash, SEK m | -2,938 | -4,196 | -2,938 | -2,800 | ||
| Equity ratio, % | 58.0% | 51.0% | 58.0% | 58.4% | ||
| Effective tax rate, % | 23.8% | 18.4% | 8.5% | 10.5% | ||
| Operating cash flow, SEK m | 44 | 865 | -1,707 | -886 | ||
| Cash conversion, % | -43% | 797% | -200.8% | -83.5% | ||
| Construction related working capital, SEK m | -983 | -2,209 | -983 | -793 | ||
| Net working capital, SEK m | 1,398 | -563 | 1,398 | 1,590 | ||
| Equity per share, SEK | 17 | 13 | 17 | 17 | ||
| Return on equity, % | -1.3% | 2.5% | 21.1% | 25.3% | ||
| Return on capital employed, % | -2.4% | 2.7% | 19.2% | 24.8% | ||
| Investments in the project development portfolio, SEK m | -127 | -229 | -922 | -1,025 | ||
| Operational key figures | ||||||
| Project acquisitions, MW | 50 | 952 | 4,109 | 5,011 | ||
| Sold projects, MW | 0 | 0 | 4,429 | 4,429 | ||
| Projects handed over, MW | 0 | 171 | 373 | 544 | ||
| Total portfolio, MW | 47,223 | 42,755 | 47,223 | 47,460 | ||
| Project development portfolio, MW | 33,107 | 33,095 | 33,107 | 33,517 | ||
| Sold MW with potential additional payments | 8,232 | 4,410 | 8,232 | 8,232 | ||
| Projects under construction, MW | 1,062 | 1,173 | 1,062 | 961 | ||
| Contracts under management, MW | 4,823 | 4,077 | 4,823 | 4,750 | ||
| Number of employees | 497 | 404 | 497 | 496 | ||
| * Adjusted for result from non-controlling interests |
For definitions of alternative performance measures and key performance indicators, see pages 25 and 31.
The consolidated accounts for OX2 have been prepared in accordance with the International Financial Reporting standards (IFRS) adopted by the EU. The same accounting policies have been applied for the current year as for the comparative year. No new or amended standards have had a material impact on the financial statements. The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In addition to the financial statements and related notes, further disclosures in accordance with IAS 34 can be found in other parts of the interim report.
The parent company OX2 AB applies the Annual Accounts Act and RFR 2 Accounting for Legal Entities.
Items have been measured in the consolidated financial statements at cost, except in the case of certain financial instruments that are measured at fair value and at amortized cost. There have been no changes in accounting policies since the latest annual report.
Project assets are normally sold through the sale of shares in project companies. Revenue will be recognized on condition that OX2 no longer controls the subsidiary. There is no remeasurement of the remaining shares given that the assets were classified as current assets before the sale. Earnings from interests in Joint Ventures have been deemed to be part of operations and are therefore reported as an item within operating income.
The Group has one segment.
The Group's revenue mainly comprises sales of wind and solar projects and commissioned wind farms. The Group normally recognizes revenue over time and, in certain cases, at a specific time.
For a description of segment reporting, see the 2023 Annual Report, Note 2, "Accounting policies".
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Net sales per category | ||||
| Sales of wind and solar projects, wind farms and technical and commercial management |
944 | 1,463 | 7,824 | |
| Total | 944 | 1,463 | 7,824 | |
| Net sales divided by country* | ||||
| Sweden | 89 | 504 | 3,098 | |
| Finland | 638 | 595 | 2,300 | |
| Poland | 133 | 364 | 2,102 | |
| Australia | 4 | - | 23 | |
| Spain | 80 | - | 218 | |
| France | 0 | - | 85 | |
| Total | 944 | 1,463 | 7,824 | |
| *The net sales divided by country is based on where projects are localised | ||||
| Q1 | Full year | |||
| SEK m | 2024 | 2023 | 2023 | |
| Time of revenue recognition | ||||
| At a certain time | 107 | 7 | 946 | |
| Over time | 837 | 1,455 | 6,878 | |
| Total | 944 | 1,463 | 7,824 |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | 2023 | |
| Contract assets | ||||
| Ongoing work in progress on behalf of others | 0 | 5 | 0 | |
| Accrued income | 0 | 34 | 505 | |
| Total | 0 | 38 | 505 | |
| Of which Long-term assets | - | - | - | |
| Of which Current assets | 0 | 38 | 505 | |
| Total | 0 | 38 | 505 | |
| Q1 | Full year | |||
| SEK m | 2024 | 2023 | 2023 | |
| Contract liabilities | ||||
| Advance payments from customers | 1,931 | 1,547 | 1,885 | |
| Prepaid income | 13 | 40 | 13 | |
| Total | 1,944 | 1,587 | 1,898 | |
| Of which Long-term liabilities | - | - | - | |
| Of which Current liabilities | 1,944 | 1,587 | 1,898 | |
| Total | 1,944 | 1,587 | 1,898 |
The carrying amount of financial assets and financial liabilities, allocated by valuation category, is shown in the table below. Fair value is determined on the basis of three levels:
1) Observable (unadjusted) quoted prices in an active market
2) Valuation models based on observable data other than quoted prices
3) Valuation models in which the input data is based on non-observable data.
For a description of how fair values have been calculated, see the Annual Report 2023, note 2 "Accounting policies" and note 4. For items measured at amortized cost, this is deemed to be consistent with fair value.
| SEK m | 2024/03/31 | 2023/12/31 | 2023/03/31 |
|---|---|---|---|
| Financial assets at fair value | |||
| Derivative instruments | 48 | 43 | 20 |
| Financial assets measured at amortized cost | |||
| Accounts receivables | 294 | 514 | 158 |
| Other current receivables | 272 | 185 | 162 |
| Cash and cash equivalents | 3,015 | 2,876 | 4,468 |
| Total financial assets | 3,629 | 3,618 | 4,808 |
| Financial liabilities at fair value | |||
| Derivative instruments | 61 | 72 | 96 |
| Current interest-bearing liabilities | 26 | 29 | 217 |
| Financial liabilities measured at amortized cost | |||
| Other Long-term liabilities | 24 | 22 | 32 |
| Accounts payable | 147 | 215 | 77 |
| Other Current liabilities | 52 | 327 | 451 |
| Current interest-bearing liabilities | 26 | 25 | 22 |
| Total financial liabilities | 337 | 691 | 895 |
On May 8, 2023, OX2 acquired 100 percent of the ESCO Pacific group in Australia, a leading developer of renewable energy, for SEK 863 million. The acquisition price includes a contingent consideration of SEK 26 million, which is expected to be paid on 1 July 2024. The purchase price has been fully settled in cash. The agreement includes contingent considerations of SEK 117 million that are not included in the acquisition analysis, since they are based on performance criteria considered not likely to be satisfied. None of the contingent considerations are linked to continued employment of key personnel. If ESCO Pacific had been part of the OX2 Group from January 1, earnings for 2023 would have been negatively affected by SEK 11 million. The preliminary acquisition analysis for ESCO Pacific is presented below. Goodwill from the acquisition is deemed to be attributable to ESCO Pacific's future ability to develop new projects that were not part of the project portfolio at the time of acquisition.
ESCO Pacific is a leading and profitable developer of renewable solar and energy storage projects in Australia, with an experienced team of 21 people. The project development portfolio consists of a total of 1,420 MW, including 1,220 MW in solar power and 200 MW in energy storage. The split between early/mid/late phase in the portfolio is 317 MW / 395 MW / 708 MW. The company also has several ongoing projects that are expected to be included in the project development portfolio moving forward.
ESCO Pacific has had a strong track record with rapid growth and has developed and brought more than 800 MW to construction since its inception in 2015.
The Australian renewable energy market has significant growth potential. In 2022, total electricity production amounted to 265 TWh, of which the share of fossil energy sources was around 70 percent. The Australian government has decided that the net zero target will be achieved by 2050 and is planning significant infrastructure investments to enable the build-up of renewable capacity.
OX2 has identified great potential for value creation in ESCO Pacific by expanding the product range from the sale of project rights to the sale of turnkey projects at the start of construction. OX2 plans to scale up the business through project acquisitions in solar and energy storage and aims to expand the business to onshore wind power, while also evaluating offshore wind power and hydrogen projects. The acquisition is expected to make a positive contribution to OX2's earnings from 2024. ESCO Pacific was previously owned by Shell (49 percent), founder Steve Rademaker and private investors. Under the agreement with OX2, Steve Rademaker will stay with the company for two years, first as CEO and then as an advisor to management. OX2 and Shell will maintain a dialogue on future cooperation, including power purchase agreements (PPAs).
| SEK m | |
|---|---|
| Purchase price allocation ESCO Pasitic | |
| Customer agreeements | 12 |
| Deferred Tax Asset | 8 |
| Other financial assets | 80 |
| Inventories | 633 |
| Other current assets | 10 |
| Cash and Cash Equivalents | 7 |
| Non-current liabilities | -1 |
| Other non-current liabilities | -7 |
| Deferred Tax Liability | -13 |
| Net assets | 730 |
| Goodwill | 133 |
| Purchase price | 863 |
| Paid at acquisition date | 837 |
| Additional purchase price | 26 |
| Q1 | Full year | ||
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Project development cost | -73 | -74 | -357 |
| Of which are cost for off-shore wind | -10 | -25 | -108 |
| Other external and personnel cost | -256 | -193 | -945 |
| Of which are cost for off-shore wind | -21 | -14 | -66 |
On 28 October 2016, 28 December 2016 and 15 December 2017, Peas Industries AB entered into three contracts under which Peas undertakes to provide accounting services to certain investors in four of the company's former projects. The services under the contracts are provided by the company, which in turn invoices Peas for the services provided. Unless terminated prematurely, in accordance with certain specific conditions, the contracts are valid for seven years from the date of handover of the projects. The contracts are therefore expected to expire on December 27, 2025 and April 27, 2027. In 2022, two members of the Board of Directors joined an option plan issued by Peas Industries AB. The plan runs for three years and is designed so that the investment has been made at market value and the plan does not result in any expense under IFRS 2.
The Annual General Meeting in May 2022 resolved to implement a long-term incentive plan designed as a share savings plan for certain current and future key individuals in the group who do not participate in the company's current shareholder plan (which was implemented before the company was listed on Nasdaq First North Premier Growth Market). The Share Savings Plan requires participants to acquire shares in the company using their own funds on the marketplace where the company's shares are listed. The investment in shares that can be acquired in this manner as "savings shares" is limited to a minimum of SEK 20,000 and with a maximum investment that depends on the category to which the participant belongs. Each savings share entitles the participant to obtain 0.5 shares and an additional 1–3 shares free of charge (up to 6 for any future key individual) at the end of a three-year vesting period, depending on the category of which the participant is a member, as well as on certain other restrictions and possible conversions in accordance with the full conditions of the warrants. A total of 27 people are participating in the plan as at March 31, 2024. The right to receive Matching Shares and Performance Shares is conditional upon the participant retaining the Savings Shares throughout the vesting period and the participant's employment not having been terminated at the end of the vesting period. The right to receive performance shares is conditional on the fulfilment of the defined performance conditions related to the share price performance during the vesting period.
In total, a maximum of 61,216 matching shares and 414,741 performance shares may be allocated to participants in the share savings plan.
The Annual General Meeting in May 2023 resolved to introduce a long-term incentive plan designed as a share savings plan for certain current and future key individuals with the same conditions as the 2022 plan. As at March 31, 2024, 34 people are participating in the plan.
In total, a maximum of 73,743 matching shares and 442,467 performance shares may be allocated to participants in the share savings plan.
The total dilutive effect denominated in SEK is 0.0001 as of March 31.
The Group has pledged assets of SEK 61 million (61). Contingent liabilities amounted to SEK 7.0 billion (6.9) at March 31, 2024 compared with the beginning of the year. Changes in contingent liabilities are related to guarantees that are issued regularly to support the Group's obligations.
The parent company has a related party relationship with its Group companies. As at March 31, 2024, the parent company's contingent liabilities amounted to SEK 6.9 billion (6,9) and pledged assets were SEK 61 million (61) compared with the end of the previous year.
Alternative performance measures refer to financial measures of historical or future earnings performance, financial position, financial result or cash flows that are not defined or specified in the applicable rules for financial reporting (for OX2's consolidated accounts this is IFRS).
In the financial statements issued by OX2, alternative performance measures are specified that supplement the measures defined or specified in the applicable financial reporting rules such as income, profit or loss or earnings per share.
Alternative performance measures are published as they complement, in context, the measures defined in IFRS. The basis for the alternative performance measures provided is that they are used by management to assess financial performance and are therefore considered to provide valuable information for analysts and other stakeholders.
Pages 25–31 show the definition and reconciliation of significant alternative performance measures with the most directly reconcilable item, subtotal or total stated in the financial statements for the corresponding period.
| Return on equity, % | Net profit/loss in relation to average shareholders' equity. |
|---|---|
| Return on capital employed, % | Operating income/loss in relation to average capital employed. |
| Gross profit | Net sales for the period less cost of goods sold and transaction costs related to the sale of projects. |
| Gross margin, % | Gross profit as a percentage of net sales. |
| Construction-related working capital | Current assets reduced by the project development portfolio, derivative financial instruments and cash and cash equivalents reduced by current liabilities adjusted for receivables and liabilities against Group companies and tax liability adjusted for interest-bearing current liabilities. |
| Equity per share | Shareholders' equity divided by the average number of shares. |
| Cash conversion, % | Operating cash flow as a percentage of the Company's EBITDA for the period. |
| Cost of goods sold | Total cost of goods sold and transaction costs related to the sale of projects. |
| Net sales growth, % | Change in net sales compared with the same period previous year. |
| Net working capital | Current assets reduced by derivative financial instruments and cash and cash equivalents reduced by non-interest-bearing current liabilities adjusted for receivables and liabilities against group companies and tax liability. |
| Net debt or (-) net cash | Interest-bearing non-current and current liabilities less cash and cash equivalents, current investments and interest-bearing current and non-current receivables. |
| Operating cash flow | EBITDA reduced by changes in net working capital minus investments in project development portfolio as well as cash flows from investment activities. |
| Project development costs | External development expenses related to refinement of the project development portfolio, and expenses occurred in connection with investments in the project development portfolio. |
| EBITDA | Operating income before depreciation and impairment of tangible and intangible assets. |
| Operating margin, % | Operating income as a percentage of net sales. |
| Operating margin adjusted for development costs, % |
Operating income before project development costs as a percentage of net sales. |
| Operating profit adjusted for development costs |
Operating income excluding project development costs. |
| Equity ratio, % | Shareholders' equity divided by total assets. |
| Capital employed | The total of equity and interest-bearing liabilities. Average capital employed is calculated as the average of the values of the opening and closing balances for each measurement period. |
| LTM | Refers to sales, profitability, or other earnings as an annual result up to the year-end date. |
| Confirmed incidents of corruption GHG intensity |
Either the company's general counsel or an authority determines whether an offence is deemed to have been proven to have occurred. It does not have to be proven in court. Carbon footprint generated by the project divided by the estimated electricity production during the lifetime of the project. The climate footprint of wind and solar power includes GHG emission reductions and carbon sequestration due to land use (scope 3 categories 1 and 11). Note that the metric Includes forward-looking statements in relation to anticipated electricity generation and project lifetime. |
|---|---|
| GHG emissions from business travel | Greenhouse gas emissions resulting from company business travel by air, rail, car hire, ferries, private cars and taxis (scope 3 category 6). Note that travel by cars in the company's fleet (scope 1) is not included. |
| Measures according to the mitigation hierarchy for biodiversity |
Activities planned by OX2 to reduce negative impacts on nature and promote biodiversity (avoid, reduce, restore, compensate and promote). Note that activities under the mitigation hierarchy for biodiversity reflect OX2's initiatives and are in addition to actions covered by environmental permits, land agreements and legislation. |
| eNPS | Employee net promoter score, measured twice a year, Q2 and Q4. eNPS shows the percentage of employees who would recommend the company as an employer to a friend or acquaintance. A classification system developed by the EU that identifies which economic activities can be |
| Taxonomy Regulation | considered sustainable (taxonomy-eligible) and which requirements must be met in order to claim that the economic activities are sustainable (taxonomy-aligned). |
| Taxonomy-eligible revenue | Revenue from economic activities covered by the Taxonomy Regulation (taxonomy-eligible) for OX2 refer to the sale of projects where the commitment to the customer is to deliver a built project. When only project rights are sold, the economic activities are not covered by the Taxonomy Regulation. |
| Taxonomy-aligned revenue | Taxonomy-eligible revenue that fulfil the requirements of the Taxonomy Regulation (significant contribution, criteria of not causing significant harm and minimum safeguards). |
Reconciliation of return on equity
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Shareholders' equity, beginning of period | 4,549 | 3,414 | 3,572 | 3,414 |
| Shareholders' equity, end of period | 4,578 | 3,572 | 4,578 | 4,549 |
| Average equity | 4,564 | 3,493 | 4,075 | 3,981 |
| Profit for the period | -58 | 89 | 862 | 1,008 |
| Average equity | 4,564 | 3,493 | 4,075 | 3,981 |
| Return on equity | -1.3% | 2.5% | 21.1% | 25.3% |
| Q1 | LTM | |||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Equity | 4,578 | 3,572 | 4,578 | 4,549 |
| Interest-bearing liabilities (long-term and short-term) | 76 | 272 | 76 | 76 |
| Capital employed | 4,655 | 3,844 | 4,655 | 4,625 |
| Average capital employed | ||||
| Capital employed, beginning of period | 4,625 | 3,671 | 3,844 | 3,671 |
| Capital employed, end of period | 4,655 | 3,844 | 4,655 | 4,625 |
| Average capital employed | 4,640 | 3,757 | 4,250 | 4,148 |
| Operating income | -110 | 102 | 816 | 1,028 |
| Average capital employed | 4,640 | 3,757 | 4,250 | 4,148 |
| Return on capital employed | -2.4% | 2.7% | 19.2% | 24.8% |
| Q1 | Full year | ||||
|---|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 | |
| Cost for goods and project development | -757 | -1,146 | -5,312 | -5,702 | |
| Of which cost of goods sold | -684 | -1,073 | -4,956 | -5,345 | |
| Of which project development costs | -73 | -74 | -356 | -357 | |
| Reconciliation of gross profit and gross margin | |||||
| Q1 | LTM | Full year |
| Q1 | |||||
|---|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 | |
| Net sales | 944 | 1,463 | 7,305 | 7,824 | |
| Cost of goods sold | -684 | -1,073 | -4,956 | -5,345 | |
| Gross profit | 260 | 390 | 2,349 | 2,479 | |
| Gross margin, % | 27.6% | 26.7% | 32.2% | 31.7% |
Reconciliation of operating income, operating income adjusted for project development costs and margins for all of the above
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Net sales | 944 | 1,463 | 7,305 | 7,824 |
| Operating income | -110 | 102 | 816 | 1,028 |
| Operating margin, % | -11.6% | 7.0% | 11.2% | 13.1% |
| Depreciation and amortization of tangible and intangible assets | 7 | 6 | 34 | 34 |
| EBITDA | -103 | 109 | 850 | 1,062 |
| Operating income | -110 | 102 | 816 | 1,028 |
| Project development costs | 73 | 74 | 356 | 357 |
| Operating income adjusted for development costs | -37 | 176 | 1,172 | 1,385 |
| Operating margin adjusted for development costs, % | -3.9% | 12.0% | 16.0% | 17.7% |
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Equity | 4,578 | 3,572 | 4,578 | 4,549 |
| Average number of shares before dilution | 272,517,586 | 272,517,586 | 272,517,586 | 272,517,586 |
| Average number of shares after dilution | 272,626,162 | 272,690,576 | 272,671,069 | 272,640,065 |
| Equity before dilution (SEK) | 17 | 13 | 17 | 17 |
| Reconciliation of net sales growth | LTM | Full year |
| Q1 | |||||
|---|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 | |
| Net sales for the previous period | 1,463 | 1,621 | 7,486 | 7,644 | |
| Net sales for the current period | 944 | 1,463 | 7,305 | 7,824 | |
| Net sales growth, % | -35.5% | -9.7% | -2.4% | 2.4% | |
| Reconciliation of net debt or (-) net cash | |||||
| Q1 | LTM | Full year |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Interest-bearing liabilities (long-term and short-term) | 76 | 272 | 76 | 76 |
| Interest-bearing receivables (long-term and short-term) | - | - | - | - |
| Cash and cash equivalents | -3,015 | -4,468 | -3,015 | -2,876 |
| Net debt or (-) net cash | -2,938 | -4,196 | -2,938 | -2,800 |
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Equity | 4,578 | 3,572 | 4,578 | 4,549 |
| Balance sheet total | 7,887 | 7,003 | 7,887 | 7,790 |
| Equity ratio % | 58.0% | 51.0% | 58.0% | 58.4% |
| Reconciliation of effective tax rate, % | LTM | Full year |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Income tax | 18 | -20 | -80 | -118 |
| Profit after financial items | -76 | 108 | 942 | 1,126 |
| Effective tax rate, % | 23.8% | 18.4% | 8.5% | 10.5% |
| Reconciliation of cash conversion, % | ||||
| Q1 | LTM | Full year |
| Q1 | ||||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| EBITDA | -103 | 109 | 850 | 1,062 |
| Changes in net working capital | 316 | 1,006 | -678 | 12 |
| Investments in project development portfolio | -127 | -229 | -922 | -1,025 |
| Cash flow from investment activities | -42 | -21 | -957 | -935 |
| Operating cash flow | 44 | 865 | -1,707 | -886 |
| Cash conversion, % | -42.7% | 796.5% | -200.8% | -83.5% |
Reconciliation of construction-related working capital and net working capital
| Q1 | LTM | Full year | ||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | Apr-Mar | 2023 |
| Construction in progress | 841 | 5 | 841 | 469 |
| Accounts receivable | 294 | 158 | 294 | 514 |
| Other receivables | 272 | 162 | 272 | 185 |
| Prepaid expenses and accrued income | 706 | 461 | 706 | 1,008 |
| Construction working capital assets | 2,115 | 785 | 2,115 | 2,176 |
| Advance payments from customers | -1,931 | -1,547 | -1,931 | -1,885 |
| Accounts payable | -147 | -77 | -147 | -215 |
| Other Current liabilities | -52 | -451 | -52 | -327 |
| Accrued expenses and deferred income | -968 | -920 | -968 | -542 |
| Construction working capital liabilities | -3,098 | -2,994 | -3,098 | -2,969 |
| Construction working capital | -983 | -2,209 | -983 | -793 |
| Project development portfolio | 2,381 | 1,646 | 2,381 | 2,383 |
| Net working capital | 1,398 | -563 | 1,398 | 1,590 |
| As % of LTM net sales | ||||
| LTM net sales | 7,305 | 7,486 | 7,305 | 7,824 |
| Construction related working capital assets | 28.9% | 10.5% | 28.9% | 27.8% |
| Construction related working capital liabilities | -42.4% | -40.0% | -42.4% | -37.9% |
| Construction related working capital | -13.5% | -29.5% | -13.5% | -10.1% |
| Net working capital % | 19.1% | -7.5% | 19.1% | 20.3% |
| Q1 | Full year | Target | ||
|---|---|---|---|---|
| 2024 | 2023 | 2023 | 2024 | |
| Confirmed corruption incidents (number) | 0 | 0 | 0 | 0 |
| Alignment of eligible revenue in accordance with the EU Taxonomy⁶ (%) | 90% | 0% | 14% | 85% |
| GHG intensity of commissioned projects¹̛² (gCO2e/kWh) | - | 8 | 10 | <10 |
| GHG emissions from business travel per total number of employees³ (kgCO2e/employee) |
231 | 287* | 1 560 | - |
| Commissioned projects applying the mitigation hierarchy for biodiversity⁴ (%) | - | 67% | 78% | >40 |
| eNPS⁵ (number) | - | - | 48/39 | >50 |
| Lost Time Injury Frequency Rate LTIFR (Per mill hours (12 months rolling)) | 2 | 5 | 3 | <3 |
| Gender diversity (% females) | 41% | 41% | 41% | >40 |
| Commissioned projects with local community initiatives (%) | - | 100 | 100 | 100 |
| 1. Encompasses GHG footprint from electricity generating projects including reduced carbon sequestration due to land use (scope 3 category 1 and 11) 2. Includes forward-looking statements in the form of anticipated electricity generation and life span of project |
||||
| 3. Includes business travel (Scope 3 category 6) excludes travel by company cars (Scope 1). Target to |
be set when data coverage and quality improves. 4. Measures in accordance with the mitigation hierarchy are beyond permits, land agreements and
national legislation
*During 2023, travel data was not collected quarterly, which means that travel data from 2023 is estimated based on full-year, with the exception of the conference in Q3. Data coverage and quality improved during the year, which means that outcomes should be compared with caution.
| Number of employees | The number of employees in the Group at the year-end date. | |
|---|---|---|
| Balance sheet total | Total assets. | |
| Total portfolio, MW | OX2's projects under development, projects under construction, sold projects with additional purchase prices and technical and commercial management contracts. |
|
| Management contracts, MW | Technical and commercial management contracts. | |
| Investment in project development portfolio |
Payment for acquired project rights and additional project-related investments. | |
| Project acquisitions, MW | Acquired rights to renewable energy projects. | |
| Project development portfolio, MW | OX2's projects under development. | |
| Projects under construction, MW | Projects under construction. | |
| Projects handed over to customers, MW |
Completed projects handed over to the customer. | |
| Earnings per share | Profit divided by the average number of shares. | |
| Projects sold, MW | Projects sold. | |
| Development phase | OX2 divides its project development portfolio into three phases based on how far a project has come in the development process. Projects that have been postponed or where no active development work is in progress are not included in the OX2 project development portfolio. The time required for project development and realisation depends on several factors such as technology and geography. |
|
| Early | Projects with expected realisation within 3–7 years | |
| Medium | Projects with expected realisation within 2–5 years |
Late Projects with expected realisation within < 3 years
| Annual General Meeting 2024: | 14 May 2024 |
|---|---|
| Interim Report April–June 2024: | 25 July 2024 |
| Interim Report July–September 2024: | 23 October 2024 |
Paul Stormoen, CEO E-mail: [email protected]
Johan Rydmark, CFO E-mail: [email protected]
Henrik Vikström, IR E-mail: [email protected]
Interim Report January–March 2024 Lilla Nygatan 1 Box 2299 SE-10317 Stockholm Sweden
32 Tel. +46 8 559 310 00 [email protected] www.ox2.com Corporate identity no.556675-7497
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