Orrön Energy, an independent, publicly listed pure play renewables company, with high quality and low-cost renewables assets in the Nordics, previously known as Lundin Energy, has announced a report for the six-month period ended 30 June 2022.
- USD 12.9 billion gain recorded to income statement resulting from the lex asea distribution related to the Aker BP transaction
- Orrön Energy transformed into a pure play renewables company following completion of the combination of the legacy E&P business with Aker BP on 30 June 2022, and changed ticker at Nasdaq Stockholm to 'ORRON' in July
- Net power generation amounted to 83 GWh for the reporting period, at an achieved average power price of EUR 127 per MWh
- The Company had a strong cash position and robust balance sheet at the end of the reporting period with no debt, MUSD 124(1) cash (net of working capital) and two cash generating renewables assets
- The Metsälamminkangas wind farm was commercially handed over to the Company on 31 March 2022 and is now fully operational with estimated net annual power generation of 200 GWh
- The Leikanger hydropower plant delivered above expectations with net power generation of 53 GWh for the reporting period
- Development of the Karskruv wind farm is on track and is expected to deliver additional net annual power generation of 290 GWh by the end 2023
(1) Reduced from previous guidance of MUSD 130 due to the retention of an office building in connection with the Transaction.
1 This table refers to continuing operations. The financial and operational performance of the discontinued operations can be found in the section Discontinued Operations and in notes 5 to 12 of the consolidated financial statements.
2 Includes the Company’s net interest in joint ventures.
Comment from Daniel Fitzgerald, CEO of Orrön Energy AB:
'The second quarter of 2022 was an historical quarter for Lundin Energy, culminating in the closing of the combination of our E&P business with Aker BP, and creating a company with low costs, low carbon emissions and the scale required to be successful through the energy transition. We recognise a gain resulting from the transaction of nearly USD 13 billion in Q2 which is a further testimony to the significant value creation delivered to our shareholders over the last two decades.
'The creation of Orrön Energy marks the start of a new era as we transform into a pure play renewables company. I believe we are in a truly unique position to create value through the energy transition with our high-quality assets, strong balance sheet and supported by an experienced Board and management team with the backing of the Lundin family. We have cash reserves of MUSD 124 and significant debt capacity for further growth and acquisitions, where we are already actively screening a number of opportunities.
'The demand for renewable energy in Europe has accelerated further due to the ongoing energy crisis, making our core business more relevant than ever. We intend to continue investing in renewable energy generation, initially in the Nordics with a potential expansion across Europe, while focussing on emerging technologies as markets and regions evolve through the energy transition.
'Our operational assets are performing well, with power generation commencing at MLK at the start of the second quarter and excellent power generation performance from Leikanger. The development of the Karskruv wind farm in southern Sweden is progressing on schedule and is on track for completion at the end of 2023. Karskruv is a key asset in our renewables portfolio that will add approximately 290 GWh to the Company’s annual power generation once fully operational.
'Financially we are in a robust position with low operating costs, a strong balance sheet with no debt and cash of MUSD 124 at the end of the reporting period (net of working capital).
'Our heritage from Lundin Energy is marked by a history of value creation and I am confident that with the team, resources and entrepreneurial spirit at Orrön Energy, we will continue to create value for our shareholders. I would like to thank all shareholders for your loyal support over the years with Lundin Energy and for joining us in this new and exciting business as we look to grow Orrön Energy as the new renewables vehicle within the Lundin Group of Companies.'
Source: Orrön Energy