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 32 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 second half-year 2024, ending 31 December 2024, 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 2023 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 2023.
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 28 February 2025.
Note 2 Transactions and events in 2H 2024
Acquisitions
The Group has acquired the following companies during 2H 2024 classified as asset acquisitions:
| Company | Purchase date | Voting rights/shareholding |
|---|---|---|
| Glutra Kraft AS | 31.10.2024 | 100% |
| Teitafossen Kraft AS | 31.10.2024 | 100% |
Construction activity
Through 2H24 Småkraft AS have closed two construction projects adding 27 GWh in production capacity.
As per 31 December 2024 – there were ongoing construction of 21 power plants by external service providers, which will increase Småkraft group’s annual production capacity by 289 GWh. Completion of these constructions are scheduled up until end of 2026.
Successfully refinanced 12 minor bank loan facilities by tap bond issue of EUR 24.5 million in November 2024
As a part of simplification of company structure Småkraft AS refinanced 12 minor bank facilities in November. The refinancing was done through a tap issue related to Green Bond 3 with maturity in October 2028. The tap issue is obtained with a margin of 157 bps.
Note 3 Power revenues and other income
Sale of electric energy
The revenues originate from the generation of hydropower.
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 | Unaudited | Audited | ||
| Amounts in EUR thousand | 2H 2024 | 2H 2023 | FY 2024 | FY2023 | |
| Price area NO 1 | Norway | 1,285 | 996 | 2,962 | 3,074 |
| Price area NO 2 | Norway | 6,796 | 7,693 | 14,651 | 21,284 |
| Price area NO 3 | Norway | 3,812 | 3,371 | 10,641 | 10,072 |
| Price area NO 4 | Norway | 2,069 | 1,131 | 4,907 | 3,711 |
| Price area NO 5 | Norway | 5,597 | 4,232 | 14,881 | 18,724 |
| Price area SE 2 | Sweden | (81) | 708 | 770 | 1,407 |
| Price area SE 3 | Sweden | 764 | 665 | 2,829 | 4,223 |
| Other green revenue | 886 | 2,353 | 2,790 | 5,262 | |
| Power revenues | 21,128 | 21,150 | 54,433 | 67,758 | |
| Other operating income | |||||
| Unaudited | Unaudited | Unaudited | Audited | ||
| Amounts in EUR thousand | 2H 2024 | 2H 2023 | FY 2024 | FY2023 | |
| Guarantees of origin – change in inventory | -8 | 1,237 | -599 | 1,265 | |
| Other operating income | 185 | 138 | 858 | 217 | |
| Other operating income | 176 | 1,375 | 259 | 1,481 |
Note 4 Financial result
| Financial income | ||||
|---|---|---|---|---|
| Unaudited | Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 2H 2024 | 2H 2023 | FY 2024 | FY 2023 |
| Interest income | 1,350 | 1,185 | 2,016 | 1,958 |
| Other financial income | 9 | 9 | 30 | 24 |
| Total financial income | 1,360 | 1,195 | 2,046 | 1,982 |
| Financial expenses | ||||
| Unaudited | Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 2H 2024 | 2H 2023 | FY 2024 | FY 2023 |
| Interest expense | 9,722 | 4,016 | 19,737 | 12,111 |
| Other financial expenses | 584 | 2,840 | 1,147 | 1,214 |
| Total financial expenses | 10,305 | 6,857 | 20,883 | 13,325 |
Note 5 Financial instruments
| The group holds the following financial instruments: | ||
|---|---|---|
| Amounts in EUR thousand | 31.12.2024 | 31.12.2023 |
| Financial assets | ||
| Long term receivables | 10,182 | 7,691 |
| Trade receivables | 3,395 | 4,276 |
| Other receivables | 11,589 | 12,285 |
| Derivative financial instruments | ||
| Derivatives (long-term) | 3,309 | 714 |
| Derivatives (short-term) | 1,367 | 4,140 |
| Cash and cash equivalents | 28,310 | 40,120 |
| Amounts in EUR thousand | 31.12.2024 | 31.12.2023 |
| Financial liabilities | ||
| Convertible debt | - | 3,659 |
| Debt to financial institutions | 224,349 | 220,044 |
| Bond debt | 124,500 | 100,000 |
| USPP bond debt | 120,000 | 120,000 |
| Other non-current liabilities | 276 | 467 |
| Trade and other payables* | 12,097 | 17,621 |
| Derivative financial instruments | ||
| Derivatives (long-term) | 30 | 8,524 |
| Derivatives (short-term) | 6,126 | 19,944 |
*excluding non-financial liabilities
| Trade receivables | ||
|---|---|---|
| Amounts in EUR thousand | 31.12.2024 | 31.12.2023 |
| Trade receivables, invoiced | 821 | 3,180 |
| Earned revenue, not invoiced | 2,574 | 1,096 |
| Sum | 3,395 | 4,276 |
| Borrowings | ||
| Amounts in EUR thousand | 31.12.2024 | 31.12.2023 |
| Ingoing balance | 440,824 | 434,067 |
| Repayments/downpayments | -36,391 | -120,504 |
| New debt | 61,273 | 123,474 |
| Debt from purchased subsidiaries | 4,051 | 6,185 |
| Net capitalized transactions costs related to borrowings | -661 | 0 |
| Capitalised loan expenses/ fees/ commissions | 827 | 0 |
| Capitalized contruction loan interest | 1,402 | 0 |
| Currency exchange rate changes | -2,456 | -2,398 |
| Outgoing balance | 468,869 | 440,824 |
Lenders
| Borrowings | |||
|---|---|---|---|
| Lenders | |||
| Amounts in EUR thousand | Currency | 31.12.2024 | 31.12.2023 |
| Banks | NOK | 51,073 | 51,431 |
| Banks | EUR | 175,876 | 168,613 |
| Convertible debt from owners | EUR | - | 3,659 |
| Bond debt1 | EUR | - | - |
| Bond debt2 | EUR | 74,500 | 50,000 |
| Bond debt3 | EUR | 50,000 | 50,000 |
| USPP 1 bond | EUR | 80,000 | 80,000 |
| USPP 2 bond | EUR | 40,000 | 40,000 |
| Other debt | NOK | 20 | 21 |
| All kind of loans | - | - | |
| Capitalised loan expenses/ fees/ commissions | NOK | -2,599 | -2,900 |
| Total | 468,869 | 440,824 | |
| Total long term debt | 454,812 | 276,512 | |
| Total short term debt | 14,057 | 164,312 | |
Maturity profile borrowings
| Amounts in EUR thousand | Carrying amount as of 31.12.2024 | 1 year | 2 year | 3 year | 4 year | >5 years |
|---|---|---|---|---|---|---|
| Total | 468,869 | 40,765 | 102,580 | 169,412 | 88,189 | 133,490 |
| Amounts in EUR thousand | Carrying amount as of 31.12.2023 | 1 year | 2 year | 3 year | 4 year | >5 years |
| Total | 440,824 | 177,565 | 16,554 | 95,315 | 10,418 | 215,515 |
All the derivatives are valued at fair value at level 2 in accordance with IFRS hierarchy:
Derivatives
| 31.12.2024 | ||||
|---|---|---|---|---|
| Amounts in EUR thousand | Energy derivatives | Interest rate swaps | Currency derivatives | Total |
| Opening balance (net) 31.12.2023 | -24,869 | 3,825 | -2,570 | -23,614 |
| Additions/sale | -343 | 0 | 0 | -343 |
| Fair value changes | 18,185 | -2,554 | -1,203 | 14,428 |
| Cash settlement | 7,252 | 0 | 0 | 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 | 0 | 3,309 |
| Current Asset | 1,346 | 20 | 0 | 1,367 |
| Total asset | 3,560 | 1,116 | 0 | 4,676 |
| Non-current liabilities | 0 | 0 | 30 | 30 |
| Current liabilities | 2,522 | 0 | 3,604 | 6,126 |
| Total liability | 2,522 | 0 | 3,635 | 6,156 |
| 31.12.2023 | ||||
|---|---|---|---|---|
| Amounts in EUR thousand | Energy derivatives | Interest rate swaps | Currency derivatives | Total |
| Opening balance (net) 31.12.2022 | -104,447 | 9,249 | -1,115 | -96,314 |
| Additions/sale | -1,452 | 0 | 0 | -1,452 |
| Fair value changes | 55,857 | -4,762 | -1,503 | 49,592 |
| Cash settlement | 17,277 | 0 | 0 | 17,277 |
| Currency translation differences | 7,897 | -662 | 48 | 7,283 |
| Sum | -24,869 | 3,825 | -2,570 | -23,614 |
| Gross | ||||
| Non-current asset | 0 | 714 | 0 | 714 |
| Current Asset | 1,029 | 3,111 | 0 | 4,140 |
| Total asset | 1,029 | 3,825 | 0 | 4,854 |
| Non-current liabilities | 8,241 | 0 | 283 | 8,524 |
| Current liabilities | 17,657 | 0 | 2,287 | 19,944 |
| Total liability | 25,898 | 0 | 2,570 | 28,468 |
Note 6 Intangible assets and property, plant and equipment
| Amounts in EUR thousand | Property, plant and equipment | Intangible assets | Total |
|---|---|---|---|
| Carrying Amount 01.01.2023 | 545,888 | 216,263 | 762,151 |
| Additions | 29,109 | 6,008 | 35,117 |
| Acquisition of subsidiaries | 26,479 | 28,383 | 54,862 |
| Depreciations and amortization | -14,449 | -3,603 | -18,052 |
| Impairment change | - | -1,958 | -1,958 |
| Currency translation differences | -34,633 | -13,520 | -48,152 |
| Carrying Amount as of 31.12.2023 | 552,395 | 231,574 | 783,969 |
| Additions | 38,701 | 904 | 39,605 |
| Acquisition of subsidiaries | 4,449 | 6,678 | 11,127 |
| Depreciations and amortization | -16,354 | -3,927 | -20,281 |
| Impairment change | -495 | -1,422 | -1,917 |
| Currency translation differences | -26,342 | -10,918 | -37,260 |
| Carrying Amount as of 31.12.2024 | 552,353 | 222,887 | 775,241 |
Contractual obligations
Signed share purchase and new-build contracts as per 31.12.2024 have remaining obligations of EUR 116 million, whereof EUR 69 million is due within 12 months.
The owners of Småkraft AS have committed to contribute further EUR 63 million in equity related to these contracts prior to closing and delivery of the relevant construction projects. The rest of the financing demand will be sought solved by new external debt.