First quarter 2025

The quarter in brief

High growth and preparations for sales across all markets during 2025

Highlights

Continued high growth for Magnora, seeing the project portfolio grow by 19% from 6.3 GW to 7.5 GW during the quarter, and by 66% since Q1 2024. The project portfolio is on track to reach our guiding of 10 GW by the end of 2025, enabling us to have a good and diversified portfolio to develop and sell from towards the 2030s.
Record level of projects ready for marketing and sale. Commercial discussions with customers and potential partners in all of Magnora’s regions and technologies (solar PV, battery storage, onshore and offshore wind). This corresponds to the global renewable-energy market growing by a record of 15.1% in 2024 and the continued improvement of public and regulatory support for renewables.
Magnora’s subsidiary in Germany, established last year, is picking up pace. The team has identified more than 50 projects (in total over 5,000 MW) with high grid potential. A strong demand for BESS (Battery Energy Storage Systems) offers partnering opportunities at early stages.
In Italy, Magnora has partnered with a local co-developer and secured 250 MW of mid-stage BESS projects positioned for MACSE (Meccanismo di Approvvigionamento di Capacità di Stoccaggio Elettrico) auctions (capacity contracts with 15-year fixed revenues) coming up in 2025, 2026 and 2027. The first auction round is forecasted to start in September. Magnora Italy is expanding the local team, portfolio and partnerships.
Magnora South Africa’s project portfolio grew by roughly 1 GW and surpassed 5 GW. This includes 0.5 GW of new onshore wind (67% growth during the quarter). Based on high market interest, Magnora is running a structured process for the sale of an approx. 500 MW fully permitted hybrid project (50/50 wind and solar, possibly also battery storage). Onshore wind is in high demand due to an attractive production profile compared to solar PV and BESS (typically pays 3-4x times more than solar and BESS).
Magnora Offshore Wind is reviewing details in the grid agreement for our project, and grid connection is expected – as before – late 2030. Also, the company submitted onshore and offshore scoping reports to the local authorities and Marine Directorate Scotland, being a key milestone towards environmental consent. As of Q1 2025, there are no environmental red flags.
For Magnora’s solar PV and BESS projects in the UK, grid-agreement dialogues have advanced. Magnora expects to go to market with 140 MW solar PV and BESS projects in the near term, contingent on grid access.
Hafslund Magnora Sol AS submitted five new pre-application notifications totaling approximately 220 MW to The Norwegian Water Resources and Energy Directorate (NVE). The company continues to expand the landbank, carefully considering local community concerns and environmental factors, and now holds a project portfolio of approximately 2,000 MW (800 MW net to Magnora).

Key financial figures

Net cash from operating activities was a negative NOK 15.4 million, an increase of NOK 7.2 million compared to Q1 2024, mainly due to lower operating and development spending and higher interest from operating cash balances.
Net cash from investing activities was a positive NOK 6.5 million, an increase of NOK 11.9 million from Q1 2024, mainly due to proceeds from project sales in South Africa.
As of end Q1 2025, Magnora’s cash and cash equivalents balance was NOK 229.6 million. This was NOK 24.5 million lower than year-end, largely attributed to development expenses, buyback of own shares, and cash returned to shareholders.
During the quarter, NOK 12.0 million of paid in capital was returned to shareholders and share buybacks was NOK 3.2 million.

Market observations

Global renewable power capacity increased by 585 GW in 2024, a record of 15.1% annual growth, up from 14.3% growth in 2023. The increase marks a consistent trend of renewables breaking their own expansion records each year.
We see an improving sentiment across Europe based on supportive regulations. More projects get firm grid access dates, the supply chain is developing, there are more power purchasing agreements (PPAs), contracts for difference (CfDs) reduce risk, ”tolling“ agreements become more common, and governments increase spending.
High priority of energy security stimulates government support for locally produced renewable energy in Europe. In March 2025, the German government committed EUR 100 billion to its energy and climate fund (“KTF“). Italy is starting its auctions for battery capacity contracts later this year. GB Energy (state-owned energy and infrastructure company) in the UK has started operating this year.
Pre-marketing in Q1 2025, revealed strong demand for BESS in Germany. The combination of “dunkelflaute” (periods of little wind and no sunshine), increased share of renewable energy and falling battery prices is driving the demand for BESS.
Offshore wind in the UK has strong public and regulatory support. The government is backing the supply chain and works to attract investors. The state-owned GB Energy already has a GBP 8.5 billion guarantee. A potential shift in US policies has resulted in less pressure on the global supply chain for renewable-energy infrastructure.
In South Africa, the overall portfolio continues to draw market attention. This may be reinforced by the expected substantial EU investments in the country’s energy transition announced in March 2025. Also, the newly established Department of Electricity and Energy (DEE) has announced new ambitious priorities, involving the procurement of 20 GW of renewables capacity and the addition of 5,000 km of new powerlines.
Corporate PPAs soared last year by 14% according to energy intelligence company Pexapark in Europe. Our view is that the uptick in corporate PPAs will trigger more renewable projects towards financial close.

Subsequent events

On 4 February 2025, Shell UK Ltd. announced the restart of production at the Penguins field in the UK North Sea, utilising Magnora’s legacy FPSO design. This triggered a payment of USD 4.3 million (NOK 48.4 million) to Magnora. The amount was received on 14 April 2025 and used to settle a liability of the same value owed to Hermana as part of the demerger payable (2024 IPO).
In April, Magnora Germany secured exclusive rights to develop a 150 MW BESS project on industrial, municipality-owned land in Germany. Being close to a substation singled out for near-future upgrades, the site has high potential for grid connection in the short to-mid-term.
On 24 April 2025, the Board decided on a quarterly dividend of NOK 0.187 per share, in the form of return of paid-in capital to shareholders. Further, the share buyback programme launched on 5 September 2024 was prolonged until the Annual General Meeting (AGM) to be held on 29 April 2025.
In the notice to the AGM 2025, the Board has proposed that the AGM approve an authorisation for the Board to perform share buybacks up to 10% of the share capital, as well as an authorisation to approve cash return of capital to the shareholders.

Outlook

Magnora continues to build a growing landbank with projects to sell every year towards the end of this decade and more to come. We consider that all our regions and technologies have sales potential in 2025.
Magnora is in several farm-down and sales discussions while at the same time continuing to explore opportunities in new markets. We anticipate the sale or farm-down of 600-725 MW of projects in 2025 across multiple countries and technologies (wind, solar and battery).
We experience strong interest to partner and co-invest in Germany, Italy and South Africa and there is also commercial interest for the whole platform. We consider that some of these discussions will advance during the next months.
We see more interest in early-phase projects as opposed to fully permitted projects in 2025 compared with 2024, a shift favouring Magnora’s development portfolio.
Magnora also has maturing project portfolios in our other markets, e.g. South Africa and the UK. A series of projects across most geographies are in a position to be fully permitted with firm grid connection dates in 2025.
Renewables developers are increasingly partnering with industrial consumers of power to combine production and offtake. Data centres are a case in point where bilateral arrangements and power purchase agreements provide alternatives to a congested grid. Data centres and artificial intelligence are, independently of this, drivers of increased demand for green electricity in Europe. Some of our projects may fit to be part of or a hybrid data centre and renewable-power project.
In Germany, we are satisfied with the timing of Magnora’s entry last year and expect to supply projects that match well with the demand. Few projects have been available in the market in recent years, and the combination of falling capex, accelerated public infrastructure investments, and supply instabilities serve to fuel the market.
Our South African business also expects other sales opportunities to materialise during the year. We also expect more earn-out payments to accrue during the spring and summer as a number of projects sold in 2023 and 2024 are approaching potential milestones or awards.
Onwards, the Board will consider more active buyback of shares, especially in periods where the share is perceived as favourably priced relative to fundamentals. Contingent on AGM authorisation, there is a potential for prioritising buybacks in a range of up to NOK 100 million during the next four quarters, depending on the market.
Earnouts, revenue sharing and milestone payments from divested companies and projects are also expected to provide Magnora with substantial income in the upcoming years towards 2029.