HEXICON OCTOBER-DECEMBER 2023 INTERIM REPORT

OCTOBER – DECEMBER 2023 

  • Net revenue: SEK 0.7 (1.8) million 
  • Operating profit/loss: SEK -32.4 (-41.5) million 
  • Profit/loss before tax for the period: SEK -41.4 (-46.7) million 
  • Earnings per share basic and diluted: SEK -0.11 (-0.13) 
  • Cash flow from operating activities: SEK -54.7 (-17.2) million 

JANUARY – DECEMBER 2023 

  • Net revenue: SEK 5.7 (11.6) million 
  • Operating profit/loss: SEK -180.3 (-161.1) million 
  • Profit/loss before tax for the period: SEK -187.9 (-170.8) million 
  • Earnings per share basic and diluted: SEK -0.51 (-0.46) 
  • Cash flow from operating activities: SEK -158.9 (-95.1) million 

 
HIGHLIGHTS 
 

  • Continued development of key projects for long-term value growth 
  • Permit application submitted for Dyning, a Swedish 2,500 MW project 
  • Intensified dialogues on project portfolio divestments 

 
CEO COMMENTS  
 
A STRONG ENDING TO 2023 – READY AND FIT FOR 2024 
 
As we now put 2023 behind us, I summarise it as a year with temporary challenges for an industry that for a long period has developed in a positive direction. For Hexicon the past year and the last quarter have meant a time to mature our projects and nurture our assets to create good conditions for long-term value growth in our diversified portfolio. 
 
Focus on adding value to our projects 
When I reflect on the past year, I feel proud of the great commitment that our employees have shown and what we have achieved together. During the fourth quarter, we continued to take steps to increase maturity and expand our global project portfolio, including adding key personnel across our business. For example, our JV in Sweden, Freja Offshore, reached an important milestone during the quarter with the submission of the permit application for the Dyning wind farm. This was the third permit application that Freja Offshore made to the Swedish Ministry of Climate and Enterprise in 2023. After the quarter, the Swedish government has given the concerned counties, for Dyning and Cirrus, the task of reviewing the conditions for the offshore wind farms – a progress that we of course welcome. 
We have also continued to develop and refine our TwinWindTM technology, which we plan to test in connection with the development of the TwinHub project in England. Here we have deepened the collaboration with our selected WTG supplier, which we see as a central part of the technology development, as well as continuing our work with evaluating partners for the manufacturing of our floaters. 
 
Industry initiatives give tailwind 
Despite a challenging year for the industry, we have, in the last quarter, seen new major industry initiatives that will give a tailwind to the offshore wind business. For example, the UN climate conference (COP28) in Dubai, held in December, resulted in long-term commitments to renewable energy. But another initiative that may provide an even larger push to the industry is the European Commission's launch of the European Wind Action Plan. The plan includes measures to tackle the industry's challenges, as well as initiatives to speed up permitting processes and to improve renewable energy legislation – both crucial for reaching the 2030 climate goals. In addition, the initiative opens EU funding through the Innovation Fund and the European Investment Bank, easing the burden of securing investment for offshore wind projects. Lastly, it is also worth mentioning the UK government's announcement of a major policy shift by increasing the CfD (Contract for Difference) administrative price for auction round 6. A shift that will attract more players to participate in this year's auction. As many countries see the auction model in Great Britain, as a role model, the increased CfD price is a welcome element in the industry's work to improve profitability in the development of offshore wind. 
 
Now we look ahead! 
I believe that 2024 will be an exciting year – with consolidations in the market and many new projects all over the world. I am proud that Hexicon managed to get through this challenging year for the industry. I believe that Hexicon is now well equipped for 2024 with one of the largest and most diversified project portfolios in floating wind – standing ready to capitalise on new market conditions. 
 
Marcus Thor 
CEO 
 
 
Invitation to webcast 
Today at 10:00 CET, the company’s CEO Marcus Thor will provide an update on the operations in a webcast in English. Link to the webcast: https://ir.financialhearings.com/hexicon-q4-report-2023