Q3 2024 Magnora ASA Earnings Call Transcript
Key Points
- Magnora ASA (FRA:4SM) achieved a 16x return on its investment in Helios, receiving NOK330 million upfront.
- The company delivered a dividend of NOK4.187 per share and has returned over NOK1 billion in capital since 2018.
- Magnora ASA has expanded its portfolio to 4.3 gigawatts, including sold projects, with significant growth in South Africa and Hafslund Magnora Sol.
- The company maintains a strong cash position with NOK335 million in cash and cash equivalents and zero debt.
- Magnora ASA has entered new markets in Germany and Italy, hiring experienced local management to drive growth.
- Cash flow from operating activities was negative NOK26 million in Q3.
- The company faces challenges in securing grid connections, which can take years in many markets.
- Magnora ASA's financial activities resulted in a negative cash flow of NOK283 million due to dividend payouts and share repurchases.
- The solar market's rapid growth presents challenges in maintaining competitive pricing and market share.
- The company is exposed to risks associated with distressed developers in Europe, which could impact future opportunities.
Welcome to another great quarter, Q3 2024, in Magnora. I'm Erik Sneve, the company's CEO. We had another great quarter. It's all about dividends, growth and diversification. We received NOK330 million upfront for our 40% share in Helios in July after closing the transaction. That was 16x the invested capital of NOK20 million prior to revenue sharing earn-out for the unsold land bank with future payouts from Helios' deliveries over the next five years.
On August 16, we delivered NOK4.187 in dividend. And we've passed NOK1 billion in capital return since the new management took helm in 2018. On September 5, we resumed our share buyback program of NOK50 million. On September 11, we announced greenfield entries into Germany and Italy and hiring of local and experience management.
Our portfolio in South Africa add another 800 megawatts and reached a portfolio of 4.3 gigawatts, including sold projects. We also have seen nice growth in Hafslund Magnora Sol. Magnora Offshore Wind started real-time collection of data on weather and waves on the
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