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Magnora ASA Q4 2020 Report.pdf
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Magnora ASA: Q4 2020 financial results
16 February 2021: MAGNORA ASA, a leading Norwegian renewable energy development company releases its fourth quarter 2020 results.

Highlights from the quarter:

• Solid financial performance in the fourth quarter driven mainly by gains from investments, delivering a
profit before tax of NOK 9.2 million* (down from NOK 9.4 million in Q3 2020), and an ending cash balance of NOK 44.8 million

• The Company participated in a share issue in November 2020 resulting in 28.44 percent ownership of Evolar AB. Evolar completed the acquisition of additional research equipment and facility leases needed during fourth quarter. Evolar’s business plan is being implemented according to plan

• Vindr (Magnora owns 25%) continued to secure property rights in the fourth quarter for wind projects in industrial and cultivated land areas. Vindr is also considering growth opportunities outside its existing markets

• The Company has increased its ownership in Kustvind AB according to the milestone and payment plan. The licensing process including impact assessment for the wind project in Sweden is progressing as planned, with the Energy yield report completed, the park layout adjusted accordingly, and cooperation started with E.ON regarding the onshore grid connection concession process

• The Company continues to generate high deal-flow, and has several evaluation processes and discussions with potential partners, which could add a considerable amount of additional renewable power to our portfolio

*The Company has a deferred tax asset of over NOK 3.5 billion which offsets the taxes on operating profit instead of making ordinary income tax payments.

Subsequent to the quarter:

• Peter Nygren has been appointed Executive Vice President Operations and part of the Magnora Management Team. Mr. Nygren was previously CEO and co-founder of Arise and has more than two decades of experience from global renewable energy markets in SCA and other industrial companies.

• The Company has participated in a share issue acquiring 25% of Helios Nordic Energy AB (Helios), a greenfield developer of large scale PV projects in the Nordics. The company has developed a project portfolio by signing options for land leases in well suited locations in southern Sweden, and has land lease agreements for 11 projects with a total of approximately 300 MW potential installed capacity. Magnora has an option of acquiring an additional 15% of Helios by mid-September 2021.

• Magnora has signed an agreement with an undisclosed global offshore energy technology and service company to establish a joint floating wind company called Magnora Floating Wind. Magnora Floating Wind is being established but has already commenced its operations and started work on the application for the ScotWind round in Scotland, UK. In addition, the company will participate in the first offshore wind application round in Norway, which will open in 2021. Magnora Floating Wind will also consider entering other markets.

• Magnora has signed an option agreement with RWE with the intention of investing in Odderheia and Bjelkeberg wind farm in Birkenes municipality in Agder county. The project will have an installed capacity of approx 98 MW when completed, of which Magnora will own a 34 percent share. The project owner has applied to the Ministry of Petroleum and Energy for postponed completion of the project until 31 December 2022. A decision on the matter is expected during 2021. Realising the project will mean local value creation in order to increase tax revenues and local synergies- such as employment. Magnora's share in the project will be approximately 33 MW, and the project is expected to be in the ready-to-build stage during 2021.

• On 3 February 2021, Magnora closed an equity private placement of 4,485,981 new shares with a subscription price per share of NOK 26.75 and a total offer size of NOK 120 million. The private placement was conducted through an accelerated book-building process, and was over-subscribed multiple times. The additional funding was pursued as part of the Company’s strategy to capitalise on additional investment opportunities. Following issue of the new shares, the registered share capital of the Company will be NOK 27,965,613, divided into 57,072,679 shares.

“We continue to experience a high volume of deal flow, and the investment in Helios represents an important part of Magnora’s development into the solar energy space. Helios has already assembled a team that is delivering on its strategy, and we expect to have several collaboration projects between the companies in the coming years,” says Erik Sneve, CEO of Magnora ASA.

The fourth quarter 2020 report is enclosed to this announcement.