Notes
Note 1 Basis of preparations
The Småkraft Group comprises of Småkraft AS and the consolidated subsidiaries (Småkraft Group or the Group). Småkraft’s head office is located in Bergen, with local offices in Harstad, Stjørdal, Dale in Sunnfjord, Førde, Hamar and Sandnes in Norway and Gävle in Sweden. The Group employs 33 people. Småkraft is a supplier of renewable energy based on small scale hydro power plants situated in Norway and Sweden.
The interim financial statements for the first half-year 2025, ending 30 June 2025, were prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements need to be read together with the annual financial statements with notes for 2024 prepared in accordance with IFRS. If not stated here the accounting principles in this interim report follows the accounting principles described in the notes to the annual financial statements 2024.
These condensed consolidated interim financial statements will be subject to a limited review.
The Board of Directors and the CEO authorised these interim IFRS financial statements for issue on 25 August 2025.
Note 2 Transactions and events in 1H 2025
Acquisitions
The Group has acquired the following companies during 1H 2025 classified as asset acquisitions:
Construction activity
Through 1H 2025 Småkraft AS have closed four construction projects adding 41 GWh in production capacity.
As per 30 June 2025 – there were ongoing construction of 18 power plants by external service providers, which will increase Småkraft group’s annual production capacity by 258 GWh. Completion of these constructions are scheduled up until end of 2026.
Note 3 Power revenues and other income
Sale of electric energy
The revenues originate from the generation of hydropower.
Other green revenues
Guarantees of Origin and EL certificate schemes are market-based support schemes. In this system, producers of renewable electricity receive one certificate per MWh of electricity they produce for a period of up to 15 years.
| Disaggregation of revenues by Price area | ||||
|---|---|---|---|---|
| Unaudited | Unaudited | Audited | ||
| Amounts in EUR thousand | 1H 2025 | 1H 2024 | FY 2024 | |
| Price area NO 1 | Norway | 1,464 | 1,677 | 2,962 |
| Price area NO 2 | Norway | 6,815 | 7,855 | 14,651 |
| Price area NO 3 | Norway | 3,817 | 6,829 | 10,641 |
| Price area NO 4 | Norway | 339 | 2,838 | 4,907 |
| Price area NO 5 | Norway | 8,669 | 9,284 | 14,881 |
| Price area SE 2 | Sweden | 210 | 852 | 770 |
| Price area SE 3 | Sweden | 1,591 | 2,065 | 2,829 |
| Other green revenue | 1,669 | 1,904 | 2,790 | |
| Power revenues | 24,575 | 33,305 | 54,433 |
| Production volume per price area | ||||
|---|---|---|---|---|
| Amounts in MWh | 1H 2025 | 1H 2024 | FY 2024 | |
| Price area NO 1 | Norway | 27,826 | 41,685 | 86,414 |
| Price area NO 2 | Norway | 123,739 | 163,427 | 327,806 |
| Price area NO 3 | Norway | 302,334 | 226,545 | 522,390 |
| Price area NO 4 | Norway | 64,577 | 134,066 | 321,756 |
| Price area NO 5 | Norway | 224,996 | 229,740 | 463,948 |
| Price area SE 2 | Sweden | 13,977 | 21,744 | 25,554 |
| Price area SE 3 | Sweden | 27,606 | 42,693 | 63,018 |
| Total production | 785,056 | 859,900 | 1,810,887 | |
| Achieved prices | ||||
| Amounts in EUR/MWh | 1H 2025 | 1H 2024 | FY 2024 | |
| Price area NO 1 | Norway | 52.6 | 40.2 | 34.3 |
| Price area NO 2 | Norway | 55.1 | 48.1 | 44.7 |
| Price area NO 3 | Norway | 12.6 | 30.1 | 20.4 |
| Price area NO 4 | Norway | 5.3 | 21.2 | 15.3 |
| Price area NO 5 | Norway | 38.5 | 40.4 | 32.1 |
| Price area SE 2 | Sweden | 15.1 | 39.2 | 30.2 |
| Price area SE 3 | Sweden | 57.6 | 48.4 | 44.9 |
| Total | 31.3 | 38.7 | 30.1 |
Småkraft stopped close to all production in NO4 in May and June as a consequence of low and partly negative prices. Production in NO4 in same periods in 2024 were 116 GWh. Adding back decided non-production on top of 1H 2025 actual production, would lead to an increase in total production of 3% rather than the reported 9% decrease during 1H 2025.
Note 4 Financial result
| Financial income | |||
|---|---|---|---|
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 1H 2025 | 1H 2024 | FY 2024 |
| Interest income | 552 | 665 | 2,016 |
| Other financial income | 21 | 21 | 30 |
| Total | 573 | 686 | 2,046 |
| Financial expenses | |||
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 1H 2025 | 1H 2024 | FY 2024 |
| Interest expense | 9,217 | 10,015 | 19,737 |
| Other financial expenses | 713 | 563 | 1,147 |
| Total | 9,930 | 10,578 | 20,883 |
Note 5 Financial instruments
| The group holds the following financial instruments: | |||
|---|---|---|---|
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 30.06.2025 | 30.06.2024 | 31.12.2024 |
| Financial assets | |||
| Long term receivables | 10,620 | 10,624 | 10,182 |
| Trade receivables | 2,648 | 4,571 | 3,395 |
| Other receivables | 7,560 | 6,917 | 10,767 |
| Derivatives (long-term) | 1,753 | 3,892 | 3,309 |
| Derivatives (short-term) | 847 | 1,493 | 1,367 |
| Cash and cash equivalents | 23,979 | 39,566 | 28,310 |
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 30.06.2025 | 30.06.2024 | 31.12.2024 |
| Financial liabilities | |||
| Convertible debt | 19,693 | - | - |
| Debt to financial institutions | 231,549 | 239,509 | 224,369 |
| Bond debt | 124,500 | 100,000 | 124,500 |
| USPP bond debt | 120,000 | 120,000 | 120,000 |
| Other non-current liabilities | 197 | 369 | 276 |
| Trade and other payables* | 9,345 | 12,851 | 12,097 |
| Derivatives (long-term) | 11 | 2,639 | 30 |
| Derivatives (short-term) | 6,005 | 10,188 | 6,126 |
| *excluding non-financial liabilities | |||
| Trade receivables | |||
|---|---|---|---|
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 30.06.2025 | 30.06.2024 | 31.12.2024 |
| Trade receivables, invoiced | 106 | 63 | 821 |
| Earned revenue, not invoiced | 2,541 | 4,508 | 2,574 |
| Sum | 2,648 | 4,571 | 3,395 |
| Borrowings | |||
|---|---|---|---|
| Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 30.06.2025 | 30.06.2024 | 31.12.2024 |
| Ingoing balance | 468,869 | 440,824 | 440,824 |
| Repayments/downpayments | -2,931 | -14,618 | -36,391 |
| New debt | 4,809 | 28,006 | 61,273 |
| Debt from purchased subsidiaries | 2,522 | 2,723 | 4,051 |
| Shareholder loan draw down | 19,524 | - | - |
| Net capitalized transactions costs related to borrowings | -173 | - | -661 |
| Capitalised loan expenses/ fees/ commissions | 446 | -847 | 827 |
| Capitalized construction loan interest | 483 | 250 | 1,402 |
| Currency exchange rate changes | -110 | -514 | -2,456 |
| Outgoing balance | 493,439 | 455,824 | 468,869 |
| Lenders | ||||
|---|---|---|---|---|
| Unaudited | Unaudited | Audited | ||
| Amounts in EUR thousand | Currency | 30.06.2025 | 30.06.2024 | 31.12.2024 |
| Banks | NOK | 58,041 | 61,264 | 51,073 |
| Banks | EUR | 173,508 | 178,245 | 175,876 |
| Convertible debt from owners | EUR | 19,693 | - | - |
| Bond debt2 | EUR | 50,000 | 50,000 | 50,000 |
| Bond debt3 | EUR | 74,500 | 50,000 | 74,500 |
| USPP 1 bond | EUR | 80,000 | 80,000 | 80,000 |
| USPP 2 bond | EUR | 40,000 | 40,000 | 40,000 |
| Other debt | NOK | 20 | 20 | 20 |
| Capitalised loan expenses/ fees/ commissions | NOK | -2,322 | -3,705 | -2,599 |
| Total | 493,439 | 455,824 | 468,869 | |
| Total long term debt | 410,463 | 446,013 | 454,812 | |
| Total short term debt | 82,977 | 9,811 | 14,057 |
| Maturity profile for financial liabilities | ||||||
|---|---|---|---|---|---|---|
| The table shows undiscounted cash flows for each interval and shows both payments of principal and interests. | ||||||
| Amounts in EUR thousand | Carrying amount as of 30.06.2025 | 1 year | 2 years | 3 years | 4 years | >5 years |
| Total | 493,439 | 81,510 | 201,550 | 20,255 | 93,471 | 135,738 |
| Amounts in EUR thousand | Carrying amount as of 31.12.2024 | 1 year | 2 years | 3 years | 4 years | >5 years |
| Total | 468,869 | 40,765 | 102,580 | 169,412 | 88,189 | 133,490 |
| Amounts in EUR thousand | Carrying amount as of 30.06.2024 | 1 year | 2 years | 3 years | 4 years | >5 years |
| Total | 455,824 | 31,329 | 83,348 | 218,314 | 10,285 | 213,477 |
| Derivatives | ||||
|---|---|---|---|---|
| 30.06.2025 | ||||
| Amounts in EUR thousand | Energy derivatives | Interest rate swaps | Currency derivatives | Total |
| Opening balance (net) | 1,038 | 1,116 | -3,635 | -1,480 |
| Additions/sale | - | - | - | - |
| Fair value changes | -4,003 | -583 | -91 | -4,677 |
| Cash settlement | 2,708 | - | - | 2,708 |
| Currency translation differences | 15 | 5 | 13 | 34 |
| Sum | -241 | 537 | -3,712 | -3,416 |
| Gross | ||||
| Non-current asset | 1,234 | 519 | - | 1,753 |
| Current Asset | 829 | 18 | - | 847 |
| Total asset | 2,063 | 537 | - | 2,600 |
| Non-current liabilities | - | - | 11 | 11 |
| Current liabilities | 2,304 | - | 3,701 | 6,005 |
| Total liability | 2,304 | - | 3,712 | 6,016 |
| Sum | -241 | 537 | -3,712 | -3,416 |
| 31.12.2024 | ||||
| Amounts in EUR thousand | Energy derivatives | Interest rate swaps | Currency derivatives | Total |
| Opening balance (net) | -24,869 | 3,825 | -2,570 | -23,614 |
| Additions/sale | -343 | - | - | -343 |
| Fair value changes | 18,185 | -2,554 | -1,203 | 14,428 |
| Cash settlement | 7,252 | - | - | 7,252 |
| Currency translation differences | 813 | -155 | 138 | 796 |
| Sum | 1,038 | 1,116 | -3,635 | -1,480 |
| Gross | ||||
| Non-current asset | 2,214 | 1,095 | - | 3,309 |
| Current Asset | 1,346 | 20 | - | 1,367 |
| Total asset | 3,560 | 1,116 | - | 4,676 |
| Non-current liabilities | - | - | 30 | 30 |
| Current liabilities | 2,522 | - | 3,604 | 6,126 |
| Total liability | 2,522 | - | 3,635 | 6,156 |
| Sum | 1,038 | 1,116 | -3,635 | -1,480 |
Note 6 Intangible assets and property, plant and equipment
| Amounts in EUR thousand | Intangible assets | Property, plant and equipment | Total |
|---|---|---|---|
| Carrying Amount 01.01.2024 | 231,574 | 552,395 | 783,969 |
| Additions | 904 | 38,701 | 39,605 |
| Acquisition of subsidiaries | 6,678 | 4,449 | 11,127 |
| Depreciations and amortization | -3,927 | -16,354 | -20,281 |
| Impairment change | -1,422 | -495 | -1,917 |
| Currency translation differences | -10,918 | -26,342 | -37,260 |
| Carrying Amount as of 31.12.2024 | 222,887 | 552,353 | 775,241 |
| Additions | 1,492 | 18,446 | 19,938 |
| Acquisition of subsidiaries | 15,075 | 3,557 | 18,632 |
| Depreciations and amortization | -1,948 | -8,089 | -10,037 |
| Impairment change | -1,058 | 318 | -740 |
| Currency translation differences | -942 | -2,051 | -2,993 |
| Carrying Amount as of 30.06.2025 | 235,507 | 564,534 | 800,041 |
Contractual obligations
Signed share purchase and new-build contracts as per 30 June 2025 have remaining obligations of EUR 83 million, whereof EUR 52 million is due within 12 months.
The owners of Småkraft AS have committed to contribute further EUR 48 million in equity related to these contracts prior to closing and delivery of the relevant construction projects. The remaining funding requirement is within secured external financing.