"During the second quarter we have continued to build value in our project portfolio, while reaching milestones within our technology development. There has been several distinctive, important events after the period. The one that undoubtedly stands out is winning the UK’s first ever CfD auction for floating offshore wind, securing a 15-year revenue support from the UK Government for our steppingstone project TwinHub. This was an incredibly important milestone for us and provides evidence of our capability as a project developer, as well as of the competitiveness of our technology."
- Net revenue amounted to 2.8 (1.0) MSEK
- Operating profit/loss was -44.0 (-22.1) MSEK
- Profit/loss before tax for the period was -44.5 (-22.2) MSEK
- Earnings per share basic and diluted was -0.12 (-0.08) SEK
- Cash flow from operating activities was -27.5 (15.5) MSEK
- At the end of the period the cash at hand amounted to 203.5 (374.2) MSEK
- GREECE: Created a JV, Hexicon Power SA, in Greece with the local company EAMAA, to develop floating wind projects off the Greek coast.
- GENERAL: Welcomed the new board members Hans von Uthmann and Lars Martinsson. Hans von Uthmann was elected as new Chairman.
- GENERAL: Hexicon and Elia Grid International (EGI) joined forces to connect the Floating Offshore Windfarms (FOW) to the onshore grid on a global scale.
- NORTH AMERICA: Recruited top executives to strengthen Hexicon’s position in North America, following the country's increased offshore wind ambitions.
- IRELAND Fishing industry and Hexicon unveiled historic collaboration which sees local fishermen engaged in and influencing the development process from the onset.
HIGHLIGHTS AFTER Q2
- SOUTH KOREA: Hexicon Korea sold its 40% stake in 1,200 MW Yeonggwang project.
- UK: Won UK’s first ever Contract for Difference (CfD) auction for floating offshore wind, securing 15-year revenue support from UK Government for the major stepping-stone project TwinHub.
- TECHNOLOGY ROADMAP: The win in the UK triggered a strategic and collective review of the two projects TwinHub and TwinWay to ensure best technology verification.
- ITALY: AvenHexicon applied for several new water areas in the seas off the coast of Sardinia, Sicily, and Puglia in Italy, entailing the property right to develop offshore wind farms within the area.
- SOUTH KOREA: Increased ownership in the MunmuBaram project, from 10% indirect ownership to 20% direct ownership. The remaining 80% is owned by Shell Overseas Investments B.V.
COMMENT FROM MARCUS THOR, CEO: ALL EYES ON HEXICON AFTER UK AUCTION WIN
As Hexicon’s early-mover position strengthens and the market accelerates, the opportunity is now to build value for the long haul.
We are in the era of renewable energy. The transition to fossil-free energy sources has gone from being motivated by climate change only, to lately also being motivated by national energy and security politics. These additional arguments entail a greater acceptance for, and interest in, new and innovative sustainable technologies that can be deployed fast and at scale. This plays directly in favor of our business model. With a virtually unlimited potential, floating offshore wind is expected to double annually over the next 20 years, and is going to play a key role in the transition to fossil-free energy systems.
During the second quarter we have continued to build value in our project portfolio, while reaching milestones within our technology development. There has been several distinctive, important events after the period. The one that undoubtedly stands out is winning the UK’s first ever CfD auction for floating offshore wind, securing a 15-year revenue support from the UK Government for our steppingstone project TwinHub. This was an incredibly important milestone for us and provides evidence of our capability as a project developer, as well as of the competitiveness of our technology. This project will serve as the key steppingstone for our technology and follow-on projects, as it is in an expansive region within the most mature offshore wind market in the world, and, contains multiple foundations hosting large-scale wind turbines.
South Korea continues to be of strategic importance. After the period, our joint venture company, Hexicon Korea, successfully sold its 40% stake in the 1,200 MW Yeonggwang project, a project originated by ourselves. This is a clear example of what our business model looks like in practice – to initiate projects, raise the value through rights and licenses, and sell at a premium with both short- and long-term earnouts. On the other side of the country, the MunmuBaram project is set to be one of the biggest floating wind farms in the world. The project stands out in our portfolio with its size and maturity, and that is why we decided to increase our ownership buying 20% of theproject from Hexicon Korea, going from a 10% indirect ownership to a 20% direct ownership. With several milestones ahead this puts us in a strategically advantageous position for future returns.
Collaboration and coexistence continue to be at the heart of how we go about things at Hexicon. It is essential that we base our projects on constructive dialogue with key stakeholders and regional organizations. We are very proud of our ‘new approach’ in Ireland with The Killybegs Fishermen’s Organisation, the first time traditionally opposing sectors come together for a common objective from the onset. I am convinced that this partnership with local fishermen will serve the project well, but also hope it can serve as a role model for the entire industry going forward.
We have a window of opportunity to capitalize on our early-mover position within floating wind, an industry that is spreading across the globe. Since our IPO in June last year, the number of countries who have adopted legislation and targets for floating wind has steadily grown. We are now deliberately taking on a higher burn rate to be able to secure new projects, whilst managing a steadily growing portfolio. The increase in expenditure goes directly toward project developments and expansion, which can be monetized at higher valuations as we mature the projects and achieve significant milestones. As a trailblazer and pioneer, we are building value for the long haul, and it is with great confidence and determination that we continue our journey
Today, at 11:00 CET, the company’s CEO Marcus Thor will provide an update of the operations in a webcast. Link to the webcast: https://tv.streamfabriken.com/hexicon-q2-2022.
LINK TO THE REPORT
The report will be available for download at: https://www.hexicongroup.com/reports-presentations/.