Report for the six months ended 30 June 2023 - Seite 2

Comment from Daniel Fitzgerald, CEO of Orrön Energy AB
“Our business has continued to deliver during the second quarter, and we remain firmly on track to meet our guidance and production estimates for the year. Project delivery has been outstanding on our Karskruv wind farm, which is set for handover in the fourth quarter of 2023. Installation of all turbines has been completed and commissioning is ongoing, ahead of the original schedule. We saw a strong appetite for the refinancing of our bridge facility and entered into a MEUR 150 flexible revolving credit facility on attractive terms in early July, meaning that we remain fully financed to deliver on our growth ambitions. During the spring and early summer, we experienced lower than average windspeeds, which combined with continued weakening of electricity prices led to a negative net result for the second quarter. Our view on long term electricity prices remains unchanged and we expect increased revenues from the SE4 price area in Sweden once Karskruv is online later in 2023, adding around 40 percent to our total power generation. We continue to see accretive deals in the market and have secured two acquisitions during the second quarter, bringing the total to five transactions since the start of 2023, and our strategy to grow through acquisition remains unchanged. Our business is in great shape; we have a strong balance sheet, ample liquidity headroom and a growth portfolio that will deliver value for many years to come.

Expanding project pipeline
Since the beginning of the year, the Company has focused on building a pipeline of new projects, allowing us to increase scale and initiate early-stage projects. I am pleased to see that our project portfolio has continued to grow during the quarter. In the Nordics, we have submitted permit applications for our first two co-located projects and are progressing well on the remainder of the portfolio, where we expect to submit further applications through the course of 2023 and beyond. We have also secured rights to greenfield projects, which we expect to mature towards the permitting or ready-to-build stage, where we will have an opportunity to invest ourselves, or farm down depending on market conditions at the time. Across our European platform, we have added new projects and secured further grid connections in the UK, with work progressing to secure land positions in both the UK and Germany. Although we are still in the early stages of this business, I am convinced that there is significant opportunity to create value as we continue to mature these projects.