Hexicon Interim Report January-March 2023
“The resent period has been characterised by a lot of hard work getting financing in place alongside pushing the project portfolio forward. Our dedication to advancing the global development of commercial floating wind power has entailed significant progress, solidifying our position as a leading player in the sector.”
JANUARY-MARCH
- Net revenue amounted to 1.7 (5.7) MSEK
- Operating profit/loss was -54.5 (-19.4) MSEK
- Profit/loss before tax for the period was -47.4 (-18.4) MSEK
- Earnings per share basic and diluted was -0.13 (-0.05) SEK
- Cash flow from operating activities was -38.6 (-21.8) MSEK
Q1 HIGHLIGHTS
- ITALY: 7,100 MW grid connection option agreement.
- SCOTLAND: Granted Planning Permission in Principle to proceed with onshore infrastructure plans of the 100 MW Pentland Floating Offshore Wind Farm.
- TAIWAN: Hexicon entered a partnership with IX Wind for a ground-breaking 1,300+ MW floating offshore wind project in Taiwan.
HIGHLIGHTS AFTER Q1
- SWEDEN: Application submitted for the 2,500 MW wind farm Mareld.
- TECHNOLOGY: The Swedish Patent and Registration Office (PRV) dismissed a competitor's objection regarding the TwinWind™ design.
- HEXICON: Secured a long-term loan agreement of up to EUR 45 million with Glennmont Partners.
COMMENT FROM MARCUS THOR, CEO:
HARD WORK PAYS OFF
The resent period has been characterised by a lot of hard work getting financing in place alongside pushing the project portfolio forward. Our dedication to advancing the global development of commercial floating wind power has entailed significant progress, solidifying our position as a leading player in the sector.
Securing financial flexibility
Following the period, Hexicon successfully entered into a long-term loan agreement with Glennmont Partners of up to EUR 45 million. This agreement offers us the financial flexibility needed to effectively develop our project pipeline and optimise the divestment of selected projects at the best possible time and terms. Through this agreement we are well positioned to accelerate the development of multiple projects. Furthermore, the funding will not only facilitate the realisation of our ambitious project goals but also enable early repayment of existing convertible loans. I am thrilled to have entered into such an agreement with a well-renowned strategic party like Glennmont Partners which serves as a testament to the confidence it has in our vision and capabilities and serves as evidence of the value attributed to our project portfolio. Ultimately, it provides real interesting opportunities for the long-haul without diluting shareholders. Furthermore, we have initiated a strategic review and engaged ABG Sundal Collier as financial advisor to optimise shareholder value, both in the long and short term.
Rapid progress in the Mediterranean
One of our most significant accomplishments during the period was the approval of six out of seven floating wind sites for connection to Italy's national grid, with a staggering combined capacity of 7,100 MW. Notable is that grid capacity is a typical constraint in most markets. Together with our Italian partner Avapa Energy we have created a leading position in one of the hottest floating wind markets, demonstrating the true core of our capabilities which lies in the origination and early-stage development of projects.
Power generation beyond the horizon
Another key milestone achieved after the period was in our home market of Sweden. Our partnership with Mainstream Renewable Power, Freja Offshore, has led to the application for the Mareld Floating Wind Farm, boasting a total capacity of 2,500 MW. This ground-breaking project, located on the West Coast of Sweden, has the potential to generate 9-12 TWh of electricity annually, significantly impacting the region's energy landscape. As the application details, by using floating technology, one can locate the turbines further offshore and avoid the turbines being visible from the coast. The visual impact is a typical concern for the local community and in fact usually the main reason for objections.
Unwavering dedication and exciting opportunities ahead
The past period has been an intense one to say the least. In parallel to getting the Glennmont Partners facility in place, we are actively engaging with potential investors for selected project shares, a process that is progressing well.
Additional efforts have been placed towards streamlining the organisation recently, achieving a reduced monthly cost base whilst keeping up current growth plans. Such effects will be seen as of next report. We are in process to appoint additional project staff in the near term as new investors farm in to selected projects.
In summary, the accomplishments in the recent period have been both inspiring and transformative. The challenges we face are significant, but our unwavering dedication, innovative technology, and strategic partnerships have positioned Hexicon at the forefront of the floating wind power sector. We are confident that our business model and technical expertise will continue to play a crucial role in driving commercial progress whilst shaping a sustainable future for generations to come.
Marcus Thor
CEO
PRESENTATION
Wednesday May 31, at 13:00 CET, the company’s CEO Marcus Thor will provide an update of the operations in a webcast.
Link to the webcast: https://ir.financialhearings.com/hexicon-q1-2023
LINK TO THE REPORT
The report will be available for download at: https://www.hexicon.dev8.qte.nu/hexicon_interimreportq12023/
For more information, please contact:
Jonna Holmgren, Head of Communication
+46 708 88 05 02
jonna.holmgren@hexicon.dev8.qte.nu