YEAR-END REPORT 2022
STRONG PROGESS IN ITALY
“During the second half of 2022 we have invested heavily into our project portfolio and have now transitioned over to the second stage of our business plan. This stage includes partial divestments of selected projects and recycling capital. We secured a convertible loan of 82.5 MSEK in November to support our transition into this next phase. Significant milestones have been achieved in our project portfolio, paving the way for successful sales of the more mature assets and positioning us for further growth.”
OCTOBER – DECEMBER
· Net revenue amounted to 1.8 (6.1) MSEK
· Operating profit/loss was -41.5 (-15.0) MSEK
· Profit/loss before tax for the period was -46.6 (-17.4) MSEK
· Earnings per share basic and diluted was -0.13 (-0.05) SEK
· Cash flow from operating activities was -17.2 (-11.5) MSEK
· At the end of the period the cash at hand amounted to 86.6 (289.6) MSEK
Q4 HIGHLIGHTS
· ITALY: AvenHexicon obtained priority rights over two water areas, totaling 2,550 MW, in Italy to develop floating wind farms. The two offshore areas are now prioritised for development. AvenHexicon now has one of the biggest floating wind pipelines in the country.
· HEXICON: Secured bridge financing to enter the next phase – carried out directed issues of convertibles totaling SEK 82.5 million.
· SOUTH KOREA: Vestas was selected as preferred supplier for the 1,300 MW MunmuBaram project. It is the most mature large-scale project within Hexicon’s portfolio, with the potential to become one of the largest floating wind farms in the world.
· TECHNOLOGY ROADMAP: The European Patent Office (EPO) announced its intention to grant Hexicon’s patent application for its unique mooring system using "Tension Leg Platform" technology for the TwinWind™.
HIGHLIGHTS AFTER Q4
· ITALY: Italian TSO, Terna SpA, has granted six of AvenHexicon’s seven wind power sites connection to the national grid. The six sites encompass a total combined capacity of 7,100 MW.
· TAIWAN: Partnership secured with IX Wind to provide services for the development and construction of a 1,300+ MW floating offshore wind project in Taiwan.
COMMENT FROM MARCUS THOR, CEO: HEXICON ADVANCES WITH CONFIDENCE AS COMMERCIALISATION OF FLOATING WIND DRAWS NEAR
Floating wind is gaining momentum globally, with large scale deployment taking place in various countries and regions. A rapid expansion is foreseen to 2030 and beyond and I am confident that Hexicon is well positioned for success. The scalability of floating offshore wind as a renewable energy source continues to be a key factor, and this quarter contained progress of floating wind policies. Of note, the United States conducted its first deep-water auction in California, and Portugal recently opened multiple deep-water areas along its coastline, eyeing 10 GW by 2030.
The path to growth. During the second half of 2022 we have invested heavily into our project portfolio and have now transitioned over to the second stage of our business plan. This stage includes partial divestments of selected projects and recycling capital. We secured a convertible loan of 82.5 MSEK in November to support our transition into this next phase. Significant milestones have been achieved in our project portfolio, paving the way for successful sales of the more mature assets and positioning us for further growth.
Tripled capacity in the Italian portfolio. Europe is expected to have the largest installation of floating wind by 2030. Our operations in Italy have progressed at a rapid pace, with AvenHexicon obtaining priority rights for two large water areas totalling 2,550 MW and securing grid connections for 7,100 MW. This of course strengthens our position in the rapidly expanding European market.
South Korea is taking the lead in Asia. One of the key projects we have invested heavily in is the MunmuBaram project in South Korea. During the period, the project entered into a preferred turbine supplier agreement with Vestas, which includes the supply and installation of 84 units of the V236-15.0 MW turbine. This state-of-the-art machine from Vestas holds 115-meter blades and a swept rotor area equivalent to 6 soccer fields and represents the first-ever large scale floating offshore wind project for Vestas.
The Advancement of the Technology Roadmap. The TwinWind™ technology represents a game changer in the field of wind energy, as it allows for two turbines to be installed on a single foundation. This innovative approach offers cost savings and reduces the impact on the environment and surrounding activities. To date, the development of TwinWind™ has progressed through numerical analyses and physical testing using down-scaled models. The final step in this verification process, the full-scale installation offshore, will be achieved through the TwinHub project in England, which currently is being pushed forward towards final investment decision (FID) end of 2023. In addition to the TwinHub project, we are committed to strengthening our IP portfolio. We recently reached a major milestone when the European Patent Office (EPO) announced its intention to grant our patent application for a unique mooring system that combines a tension leg platform type mooring system with our floating foundation. This mooring solution is particularly well-suited for areas with sensitive seabed where the footprint needs to be kept to a minimum.
I am excited to have progressed to the next stage of Hexicon’s journey, which involves selectively divesting some of our projects. I am confident that this will support our growth and shorten the lead-time to profitability. We remain committed to investing in our projects, technology, and personnel to ensure our continued success.
Marcus Thor
CEO
PRESENTATION
Wednesday, 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-q4-2022.
LINK TO THE REPORT
The report will be available for download at: https://www.hexicon.dev8.qte.nu/app/uploads/2023/02/Hexicon-Year-end-report-Q4-2022-1.pdf.