Year End Report 2024
Orrön Energy reported its Year End 2024 results, highlighting a 5% increase in annual long-term proportionate power generation, adding 50 GWh through acquisitions. The company achieved record quarterly production of 287 GWh in Q4, with total annual generation reaching 907 GWh.
Key financial metrics include proportionate EBITDA of MEUR 7.0, with achieved electricity price of EUR 34 per MWh. The company maintains strong liquidity with MEUR 170 revolving credit facility, while reporting proportionate net debt of MEUR 65.0.
Notable developments include reaching ready-to-permit milestone for a UK project featuring 1.4 GW solar and 500 MW battery capacity, initiating a sales process for potential divestment. Despite challenging market conditions with volatile electricity prices, the company completed value-accretive acquisitions in Sweden and strengthened its balance sheet through the Leikanger hydropower asset sale.
Orrön Energy ha riportato i risultati di fine anno 2024, evidenziando un aumento del 5% nella generazione di energia a lungo termine proporzionata, aggiungendo 50 GWh tramite acquisizioni. L'azienda ha raggiunto una produzione trimestrale record di 287 GWh nel quarto trimestre, con una generazione annuale totale di 907 GWh.
I principali indicatori finanziari includono un EBITDA proporzionato di MEUR 7.0, con un prezzo dell'elettricità realizzato di EUR 34 per MWh. L'azienda mantiene una solida liquidità con una linea di credito revolving di MEUR 170, riportando un debito netto proporzionato di MEUR 65.0.
Tra gli sviluppi significativi, c'è il raggiungimento della fase pronta per il permesso per un progetto nel Regno Unito con capacità solare di 1,4 GW e 500 MW di capacità di batteria, avviando un processo di vendita per una potenziale dismissione. Nonostante le difficili condizioni di mercato con prezzi dell'elettricità volatili, l'azienda ha completato acquisizioni che aumentano il valore in Svezia e ha rafforzato il proprio bilancio attraverso la vendita dell'asset idroelettrico di Leikanger.
Orrön Energy informó sobre sus resultados de fin de año 2024, destacando un aumento del 5% en la generación de energía proporcional a largo plazo, añadiendo 50 GWh a través de adquisiciones. La compañía logró una producción trimestral récord de 287 GWh en el cuarto trimestre, con una generación anual total de 907 GWh.
Los principales indicadores financieros incluyen un EBITDA proporcional de MEUR 7.0, con un precio de electricidad logrado de EUR 34 por MWh. La empresa mantiene una sólida liquidez con una línea de crédito revolving de MEUR 170, mientras informa de una deuda neta proporcional de MEUR 65.0.
Desarrollos notables incluyen alcanzar la fase lista para el permiso para un proyecto en el Reino Unido con capacidad solar de 1,4 GW y 500 MW de capacidad de batería, iniciando un proceso de ventas para una posible desinversión. A pesar de las difíciles condiciones del mercado con precios de electricidad volátiles, la empresa completó adquisiciones que aumentan el valor en Suecia y fortaleció su balance a través de la venta del activo hidroeléctrico de Leikanger.
Orrön Energy는 2024년 연말 실적을 보고하며, 장기 비례 전력 생산이 5% 증가하고 인수를 통해 50 GWh를 추가했다고 강조했습니다. 이 회사는 4분기에 287 GWh의 분기 생산 기록을 달성했으며, 연간 총 생산량은 907 GWh에 달했습니다.
주요 재무 지표로는 MEUR 7.0의 비례 EBITDA와 MWh당 EUR 34의 전기 가격이 포함됩니다. 회사는 MEUR 170의 회전 신용 시설로 강력한 유동성을 유지하며, 비례 순부채는 MEUR 65.0으로 보고하고 있습니다.
주목할 만한 발전 사항으로는 1.4 GW의 태양광 및 500 MW의 배터리 용량을 갖춘 영국 프로젝트의 허가 준비 완료 이정표 도달이 있으며, 잠재적 매각을 위한 판매 프로세스가 시작되었습니다. 변동성이 큰 전기 가격으로 어려운 시장 상황에도 불구하고, 이 회사는 스웨덴에서 가치 상승을 가져오는 인수를 완료하고 Leikanger 수력 자산 판매를 통해 재무 구조를 강화했습니다.
Orrön Energy a publié ses résultats de fin d'année 2024, soulignant une augmentation de 5 % de la production d'énergie proportionnelle à long terme, ajoutant 50 GWh grâce à des acquisitions. La société a atteint une production trimestrielle record de 287 GWh au quatrième trimestre, avec une production annuelle totale de 907 GWh.
Les principaux indicateurs financiers incluent un EBITDA proportionnel de MEUR 7,0, avec un prix de l'électricité réalisé de 34 EUR par MWh. L'entreprise maintient une liquidité solide avec une facilité de crédit revolving de 170 MEUR, tout en rapportant une dette nette proportionnelle de 65,0 MEUR.
Parmi les développements notables, on trouve l'atteinte du jalon prêt à être autorisé pour un projet au Royaume-Uni comprenant 1,4 GW de capacité solaire et 500 MW de capacité de batterie, initiant un processus de vente pour une éventuelle cession. Malgré des conditions de marché difficiles avec des prix de l'électricité volatils, la société a réalisé des acquisitions créatrices de valeur en Suède et a renforcé son bilan grâce à la vente de l'actif hydroélectrique de Leikanger.
Orrön Energy berichtete über seine Ergebnisse zum Jahresende 2024 und hob einen Anstieg der jährlichen langfristigen proportionalen Stromerzeugung um 5% hervor, wobei 50 GWh durch Akquisitionen hinzugefügt wurden. Das Unternehmen erzielte eine rekordverdächtige Quartalsproduktion von 287 GWh im 4. Quartal, mit einer jährlichen Gesamtproduktion von 907 GWh.
Wichtige Finanzkennzahlen umfassen ein proportionales EBITDA von MEUR 7,0, mit einem erzielten Strompreis von EUR 34 pro MWh. Das Unternehmen verfügt über eine starke Liquidität mit einer revolvierenden Kreditlinie von MEUR 170 und meldet eine proportionale Nettoverschuldung von MEUR 65,0.
Bemerkenswerte Entwicklungen umfassen das Erreichen des genehmigungsfähigen Meilensteins für ein UK-Projekt mit 1,4 GW Solar- und 500 MW Batteriekapazität und den Beginn eines Verkaufsprozesses für eine potenzielle Veräußering. Trotz herausfordernder Marktbedingungen mit volatilen Strompreisen hat das Unternehmen wertsteigernde Akquisitionen in Schweden abgeschlossen und seine Bilanz durch den Verkauf des Wasserkraftwerks Leikanger gestärkt.
- Record quarterly power generation of 287 GWh in Q4 2024
- Added 50 GWh of annual power generation through acquisitions
- Achieved ready-to-permit status for 1.4 GW solar and 500 MW battery project in UK
- Strong liquidity position with MEUR 170 revolving credit facility
- Operating loss (EBIT) of MEUR -17.5 for 2024
- Negative cash flows from operating activities at MEUR -6.3
- Lower-than-average wind speeds impacting power generation
- Decreased electricity prices affecting financial results
Highlights
- The Company added a total of 50 GWh of annual long-term proportionate power generation through acquisitions in 2024, reflecting a five percent increase in long-term power generation, of which 20 GWh was added in the fourth quarter.
- Power generation amounted to 907 GWh for the year, in line with the updated outlook, and power generation of 287 GWh during the fourth quarter marks the Company’s highest ever quarterly production.
- Reached the ready-to-permit milestone for the Company’s first large-scale project in the UK, a 1.4 GW solar and 500 MW battery project, and initiated a sales process to assess divestment options.
- Achieved carbon neutrality for Scope 1 and 2 carbon emissions.
Consolidated financials – 12 months
- Cash flows from investing activities amounted to MEUR 32.6 and was positively impacted by the sale of the Leikanger hydropower plant in the second quarter.
- Cash flows from operating activities amounted to MEUR -6.3.
Proportionate financials – 12 months
- Achieved electricity price amounted to EUR 34 per MWh, which resulted in a proportionate EBITDA of MEUR 7.0.
- Proportionate net debt of MEUR 65.0, with significant liquidity headroom available through the MEUR 170 revolving credit facility.
Financial Summary
Orrön Energy owns renewables assets directly and through joint ventures and associated companies and is presenting proportionate financials to show the net ownership and related results of these assets. The purpose of the proportionate reporting is to give an enhanced insight into the Company’s operational and financial results.
Expressed in MEUR | 1 Jan 2024- 31 Dec 2024 12 months | 1 Oct 2024- 31 Dec 2024 3 months | 1 Jan 2023- 31 Dec 2023 12 months | 1 Oct 2023- 31 Dec 2023 3 months |
| Consolidated financials | ||||
| Revenue | 25.7 | 7.1 | 28.0 | 8.4 |
| EBITDA | -1.6 | -2.5 | -5.1 | -0.9 |
| Operating profit (EBIT) | -17.5 | -6.3 | -17.0 | -4.4 |
| Net result | -13.3 | -6.6 | -7.6 | 8.0 |
| Earnings per share – EUR | -0.05 | -0.02 | -0.03 | 0.03 |
| Earnings per share diluted – EUR | -0.05 | -0.02 | -0.03 | 0.03 |
| Proportionate financials1 | ||||
| Power generation (GWh) | 907 | 287 | 765 | 226 |
| Average price achieved per MWh – EUR | 34 | 30 | 47 | 43 |
| Operating expenses per MWh – EUR | 17 | 14 | 18 | 16 |
| Revenue | 30.7 | 8.7 | 36.2 | 9.6 |
| EBITDA | 7.0 | 0.1 | 5.3 | 1.3 |
| Operating profit (EBIT) | -12.9 | -4.8 | -11.0 | -3.2 |
1 Proportionate financials represent Orrön Energy’s proportionate ownership (net) of assets and related financial results, including joint ventures. For more details see section Key Financial Data in the Year End Report 2024.
Comment from Daniel Fitzgerald, CEO of Orrön Energy AB
“2024 marks another year of good progress despite challenging market conditions. We added around 50 GWh of long-term annual power generation through value-accretive acquisitions in Sweden, strengthened our balance sheet with the sale of the Leikanger hydropower asset, and launched our first sales process in the UK having reached the ready-to-permit stage on a project with 1.4 GW solar generation capacity and a 500 MW battery. In response to the volatile market conditions experienced in 2024, we initiated voluntary production curtailments across a portion of our portfolio, and started providing ancillary services to the market via some of our windfarms. These initiatives have helped us to reduce the impact of negatively priced hours and take advantage of alternative revenue streams. We remain focused on delivering profitable growth and are consistently looking for ways to improve performance during challenging market environments.
Proportionate power generation amounted to 907 GWh for the year, which was in line with our updated outlook. We delivered a record quarterly power generation of 287 GWh in the fourth quarter, despite the impact of voluntary production curtailments during periods of low electricity prices. While the overall power generation in 2024 was impacted by lower-than-average wind speeds, we hope to see more normalised weather conditions in 2025, following four consecutive years of wind speeds below the historical long-term average. Taking into account this variability, the acquisitions made in 2024, and the potential for future curtailment, we expect our power generation in 2025 to be between 900 and 1,050 GWh, which gives some margin both for weather and market conditions.
Capitalising on market opportunities
The renewable energy industry continued to face headwinds in 2024, as elevated interest rates, inflation, and periods of low electricity prices led to downward pressures on valuations and stock prices across the sector. Uncertainty in the US and political shifts across Europe further impacted investor confidence regarding the pace and support for the energy transition. However, the long-term fundamentals for renewable energy remain strong, where onshore wind and solar continue to have the lowest breakeven cost by a significant margin compared to other sources. Despite political or economic headwinds, these investments are poised to stand the test of time. We maintained our strategic focus, adding over 50 GWh of long-term proportionate power generation in 2024 at a cost of less than 0.5 MEUR per MW. We have now replaced 50 percent of the production sold of the Leikanger asset, at a significantly lower unit cost, demonstrating a highly accretive and efficient recycling of capital.
In the Nordics, electricity prices remained highly volatile, which impacted our financial results. This was largely driven by periods of oversupply due to lower seasonal demand, high hydrological balances, elevated gas storage and surplus electricity from interconnected European markets. Looking ahead, energy demand is forecast to grow, fuelled by GDP growth, continued electrification and increased power needs for data centres and artificial intelligence.
First UK project reached ready-to-permit stage, sales process commenced
We continued advancing our project development platform in the fourth quarter, and I am excited to announce that we achieved a significant milestone by having our first large-scale project in the UK reach the ready-to-permit stage. The project is a 1.4 GW solar and 500 MW co-located battery development, and we have initiated a sales process to evaluate divestment options. This is the first project from our pipeline to reach this milestone, and we expect to have a number of follow-on projects reaching the same stage in 2025 both in the UK and Germany. In the UK, two key regulatory reforms are currently ongoing; the Clean Power 2030 Action Plan and the grid connections reform. Both aim to simplify and enhance the ability for renewable energy projects to obtain a grid connection more efficiently based on zonal capacity expectations. These reforms have had an impact on our prioritisation of projects and created some uncertainty for investors in the UK, and we will continue to monitor developments aiming to ensure our projects remain well-positioned in this evolving regulatory landscape.
Financially resilient
We remain in a financially robust position, with liquidity headroom exceeding MEUR 100. Proportionate revenues and other income amounted to MEUR 8.9 for the fourth quarter and MEUR 42.1 for the year, which was impacted by low electricity prices, resulting in a proportionate EBITDA of MEUR 0.1 for the fourth quarter and MEUR 7.0 for the year. Our full-year expenditure guidance for 2025 remains largely in line with 2024 and the business strategy remains unchanged as we enter the new year.
Entering the next chapter of growth
Looking ahead to 2025 and beyond, I believe this will be a transformational period for Orrön Energy on many fronts. The Nordic business continues its organic growth with a good pipeline of projects, 1,000 GWh of long-term proportionate power generation and plenty of acquisition opportunities. The UK and German teams are rapidly reaching key milestones and we expect to see results from our project sales throughout 2025, with a material pipeline of opportunities to follow. We have now passed the halfway point of the Sudan legal case, and expect the District Court trial to finish during the second quarter of 2026, which will significantly reduce our future legal costs and positively impact our financial results thereafter. With the end of the Sudan trial in sight and our two organic growth platforms running, we can now start shaping the next strategic growth chapter for our business, and over the next year we will explore new opportunities to expand our portfolio and unlock additional value for our shareholders. I would like to thank our shareholders for their continued support and look forward to sharing updates on the exciting growth opportunities that lie ahead of us.”
Webcast
Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and presenting the latest developments in Orrön Energy and its future growth strategy together with members of Orrön Energy’s management team at a webcast during the Company’s Capital Markets Day today at 14.00 CET. The presentation will be followed by a question-and-answer session.
Follow the presentation live on the below webcast link:
https://orron-energy.events.inderes.com/cmd-2025
For further information, please contact:
Robert Eriksson
Corporate Affairs and Investor Relations
Tel: +46 701 11 26 15
robert.eriksson@orron.com
Jenny Sandström
Communications Lead
Tel: +41 79 431 63 68
jenny.sandstrom@orron.com
Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: “ORRON”) renewable energy company within the Lundin Group of Companies. Orrön Energy’s core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany and France. With financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.
This information is information that Orrön Energy AB is required to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on 12 February 2025.
Forward-looking statements
Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company’s control. Any forward-looking statements in this press release speak only as of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.
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