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 second half-year 2025, ending 31 December 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 24 February 2026.
Note 2 Transactions and events in 2H 2025
Acquisitions
The Group has acquired the following companies during 2H 2025 classified as asset acquisitions:
| Company | Purchase date | Voting rights/shareholding |
|---|---|---|
| Eikemo Kraftverk AS | 02.07.2025 | 100% |
| Jørnevikelva Kraftverk AS | 31.08.2025 | 100% |
| Sanddal Kraft AS (Nytt Sanddal Kraft AS) | 29.08.2025 | 100% |
| Jokksbäcken Kraft AB | 01.09.2025 | 100% |
| Somrungen Kraftverk AS | 21.10.2025 | 100% |
| Øygardselva Kraft AS | 14.11.2025 | 100% |
Construction activity
Through 2H 2025 Småkraft AS have closed additional two construction projects adding 13 GWh in production capacity. The acquired companies and closed construction contracts represent an increase of 54 GWh in annual production capacity during 2H 2025.
As per 31 December 2025 – there were ongoing construction of 15 power plants by external service providers, which will increase Småkraft group’s annual production capacity by 255 GWh. Completion of these constructions are scheduled up until end of 2027.
Successfully refinanced 15 minor bank loan facilities by a new bank facility of NOK 394 million in December 2025
As a part of simplification of company structure Småkraft AS refinanced 15 minor bank facilities in December 2025. The refinancing was done through a new bank facility with maturity in December 2027.
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 2025 | 2H 2024 | FY 2025 | FY2024 | |
| Price area NO 1 | Norway | 1,970 | 1,285 | 3,434 | 2,962 |
| Price area NO 2 | Norway | 10,396 | 6,796 | 17,211 | 14,651 |
| Price area NO 3 | Norway | 5,678 | 3,812 | 9,495 | 10,641 |
| Price area NO 4 | Norway | 686 | 2,069 | 1,025 | 4,907 |
| Price area NO 5 | Norway | 8,217 | 5,597 | 16,886 | 14,881 |
| Price area SE 2 | Sweden | 296 | (81) | 506 | 770 |
| Price area SE 3 | Sweden | 891 | 764 | 2,482 | 2,829 |
| Other green revenue | 197 | 886 | 1,866 | 2,790 | |
| Power revenues | 28,329 | 21,128 | 52,904 | 54,433 |
| Production volume per price area | |||||
|---|---|---|---|---|---|
| Amounts in MWh | 2H 2025 | 2H 2024 | FY 2025 | FY 2024 | |
| Price area NO 1 | Norway | 37,752 | 44,729 | 65,578 | 86,414 |
| Price area NO 2 | Norway | 168,442 | 164,379 | 294,938 | 327,806 |
| Price area NO 3 | Norway | 212,413 | 295,845 | 514,747 | 522,390 |
| Price area NO 4 | Norway | 51,993 | 187,690 | 116,570 | 321,756 |
| Price area NO 5 | Norway | 203,059 | 234,208 | 425,298 | 463,948 |
| Price area SE 2 | Sweden | 11,585 | 3,811 | 25,240 | 25,554 |
| Price area SE 3 | Sweden | 17,714 | 20,325 | 45,641 | 63,018 |
| Total production | 702,957 | 950,987 | 1,488,013 | 1,810,887 | |
| Achieved prices | |||||
| Amounts in EUR/MWh | 2H 2025 | 2H 2024 | FY 2025 | FY 2024 | |
| Price area NO 1 | Norway | 52.2 | 28.7 | 52.4 | 34.3 |
| Price area NO 2 | Norway | 61.7 | 41.3 | 58.4 | 44.7 |
| Price area NO 3 | Norway | 26.7 | 12.9 | 18.4 | 20.4 |
| Price area NO 4 | Norway | 13.2 | 11.0 | 8.8 | 15.3 |
| Price area NO 5 | Norway | 40.5 | 23.9 | 39.7 | 32.1 |
| Price area SE 2 | Sweden | 25.5 | -21.4 | 20.0 | 30.2 |
| Price area SE 3 | Sweden | 50.3 | 37.6 | 54.4 | 44.9 |
| Total | 40.3 | 22.2 | 35.6 | 30.1 |
Note 4 Financial result
| Financial income | ||||
|---|---|---|---|---|
| Unaudited | Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 2H 2025 | 2H 2024 | FY 2025 | FY 2024 |
| Interest income | 1,613 | 1,350 | 2,166 | 2,016 |
| Other financial income | 34 | 9 | 54 | 30 |
| Total financial income | 1,647 | 1,360 | 2,220 | 2,046 |
| Financial expenses | ||||
| Unaudited | Unaudited | Unaudited | Audited | |
| Amounts in EUR thousand | 2H 2025 | 2H 2024 | FY 2025 | FY 2024 |
| Interest expense | 9,156 | 9,722 | 18,373 | 19,737 |
| Other financial expenses | 637 | 584 | 1,350 | 1,147 |
| Total financial expenses | 9,793 | 10,305 | 19,723 | 20,883 |
Note 5 Financial instruments
| The group holds the following financial instruments: | ||
|---|---|---|
| Unaudited | Audited | |
| Amounts in EUR thousand | 31.12.2025 | 31.12.2024 |
| Financial assets | ||
| Long term receivables | 11,097 | 10,182 |
| Trade receivables | 5,257 | 3,395 |
| Other receivables | 3,095 | 11,589 |
| Derivative financial instruments | ||
| Derivatives (long-term) | 888 | 3,309 |
| Derivatives (short-term) | 1,946 | 1,367 |
| Cash and cash equivalents | 33,397 | 28,310 |
| Unaudited | Audited | |
| Amounts in EUR thousand | 31.12.2025 | 31.12.2024 |
| Financial liabilities | ||
| Debt to financial institutions | 243,600 | 224,349 |
| Bond debt | 124,500 | 124,500 |
| USPP bond debt | 120,000 | 120,000 |
| Other non-current liabilities | 133 | 276 |
| Trade and other financial payables | 16,874 | 12,097 |
| Derivative financial instruments | ||
| Derivatives (long-term) | 0 | 30 |
| Derivatives (short-term) | 2,708 | 6,126 |
| Trade receivables | ||
|---|---|---|
| Unaudited | Audited | |
| Amounts in EUR thousand | 31.12.2025 | 31.12.2024 |
| Trade receivables, invoiced | 804 | 821 |
| Earned revenue, not invoiced | 4,453 | 2,574 |
| Sum | 5,257 | 3,395 |
| Borrowings | ||
| Unaudited | Audited | |
| Amounts in EUR thousand | 31.12.2025 | 31.12.2024 |
| Ingoing balance | 468,869 | 440,824 |
| Repayments/downpayments | -5,914 | -36,391 |
| New debt | 14,963 | 61,273 |
| Debt from purchased subsidiaries | 8,887 | 4,051 |
| Net capitalized transactions costs related to borrowings | -280 | -661 |
| Capitalised loan expenses/ fees/ commissions | 886 | 827 |
| Capitalized contruction loan interest | 1,149 | 1,402 |
| Currency exchange rate changes | -442 | -2,456 |
| Outgoing balance | 488,119 | 468,869 |
Lenders
| Borrowings | |||
|---|---|---|---|
| Lenders | Unaudited | Audited | |
| Amounts in EUR thousand | Currency | 31.12.2025 | 31.12.2024 |
| Banks | NOK | 74,450 | 51,073 |
| Banks | EUR | 171,139 | 175,876 |
| Bond debt | EUR | 124,500 | 124,500 |
| USPP bond | EUR | 120,000 | 120,000 |
| Other debt | NOK | 20 | 20 |
| Capitalised loan expenses/ fees/ commissions | NOK | -1,989 | -2,599 |
| Total | 488,119 | 468,869 | |
| Total long term debt | 413,407 | 454,812 | |
| Total short term debt | 74,713 | 14,057 |
Maturity profile borrowings
| Amounts in EUR thousand | Carrying amount as of 31.12.2025 | 1 year | 2 year | 3 year | 4 year | >5 years |
|---|---|---|---|---|---|---|
| Total | 488,119 | 93,877 | 215,395 | 94,248 | 5,518 | 131,031 |
| 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 |
All the derivatives are valued at fair value at level 2 in accordance with IFRS hierarchy:
Derivatives
| 31.12.2025 | ||||
|---|---|---|---|---|
| Amounts in EUR thousand | Energy derivatives | Interest rate swaps | Currency derivatives | Total |
| Opening balance (net) 31.12.2024 | 1,038 | 1,116 | -3,635 | -1,480 |
| Additions/sale | 0 | 0 | 0 | 0 |
| Fair value changes | -7,134 | -482 | 948 | -6,668 |
| Cash settlement | 8,285 | 0 | 0 | 8,285 |
| Currency translation differences | -16 | 1 | 5 | -11 |
| Sum | 2,173 | 634 | -2,682 | 126 |
| Gross | ||||
| Non-current asset | 284 | 577 | 26 | 888 |
| Current Asset | 1,889 | 57 | 0 | 1,946 |
| Total asset | 2,173 | 634 | 26 | 2,834 |
| Non-current liabilities | 0 | 0 | 0 | 0 |
| Current liabilities | 0 | 0 | 2,708 | 2,708 |
| Total liability | 0 | 0 | 2,708 | 2,708 |
| 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 |
Note 6 Intangible assets and property, plant and equipment
| Amounts in EUR thousand | Property, plant and equipment | Intangible assets | Total |
|---|---|---|---|
| Carrying Amount 01.01.2024 | 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 |
| Additions | 36,837 | 2,478 | 39,316 |
| Acquisition of subsidiaries | 19,190 | 23,475 | 42,666 |
| Depreciations and amortization | -16,797 | -4,096 | -20,894 |
| Impairment change | 97 | -1,202 | -1,106 |
| Currency translation differences | -2,655 | -1,122 | -3,777 |
| Carrying Amount as of 31.12.2025 | 589,025 | 242,421 | 831,446 |
Contractual obligations
As of 31 December 2025, signed share purchase and new-build contracts have remaining commitments of EUR 78 million, of which EUR 69 million falls due within the next 12 months.
The shareholders of Småkraft AS have committed to contribute further EUR 41 million in equity related to these obligations prior to closing and delivery of the respective construction projects. The remaining financing requirement is is secured through undrawn construction loan facilities, external debt facilities, and cashflow from resource rent taxation.