Financial review
(Numbers are unaudited)
Magnora and its subsidiaries (“the Group”) recognise their share of financial results from portfolio companies in accordance with IFRS, based on the Group’s ownership stake.
Portfolio companies are classified as associates when the Group holds between 20% and 50% ownership and/or does not exercise control over the entity. For these companies, the Group recognises its proportional share of net profit or loss. Further details are provided in Note 6: Investment in Associates.
Companies are classified as subsidiaries when the Group holds more than 50% ownership and/or exercises control as the majority shareholder. These entities are fully consolidated into the Group’s financial statements, and their entire net profit or loss is recognised. Development costs in these subsidiaries are expensed rather than capitalised, as the projects are in early-stage development.
Revenues and other income
Operating revenue for the quarter amounted to NOK 2.2 million, compared to NOK 49.7 million in the same quarter last year. The decrease is mainly due to a non-recurring milestone payment of USD 4.3 million (NOK 48.4 million) from Shell UK Ltd. related to Magnora’s legacy design royalties.
Total other income was NOK 0 million for the quarter, down from NOK 12.8 million in the first quarter of 2025. The decrease primarily reflects lack of project divestments in the current quarter, while the income from Q1 2025 relates to project divestments in South Africa. No additional earn-out income was recognised from other prior divestments during the period.
The Group’s business model focuses on developing and monetising renewable energy and data center projects, with income primarily generated through project divestments. As such, a significant portion of the Group’s earnings is recognised under other income, rather than through conventional operating revenue streams.
Operating expenses
Operating expenses for the quarter amounted to NOK 12.8 million, compared to NOK 9.9 million in the same quarter last year. The increase primarily reflects the growth of the data center project portfolio.
Development and M&A expenses
Development and M&A costs for the quarter totalled NOK 27.0 million, compared to NOK 11.5 million in the same quarter last year. The increase primarily reflects the growth of the data center project portfolio.
Net financial items
Net financial items were a negative NOK 5.6 million, compared to a net income of NOK 1.7 million in the same quarter last year. This reflects movement in currency. While not attributable to underlying operational performance, exchange rates had a negative impact on the Group’s overall quarterly result.
Net profit/loss
The Group reported a net loss of NOK 44.7 million, compared with a net profit of NOK 38.6 million in the same quarter last year. The decline is mainly attributable to reduced other income, as the prior-year period benefited from significant gains related to the milestone payment from Shell UK Ltd. The result for the quarter also reflects higher development investments aligned with the Group’s growth in data center project development.
Cash flow
As of 31 March 2026, the Group’s cash and cash equivalents were NOK 128.4 million, compared to NOK 229.6 million as of 31 March 2025. Cash flow from operating activities was negative NOK 37.5 million, compared to negative NOK 15.4 million in the first quarter last year, mainly due to development costs.
Investing activities were NOK 0 million, down from NOK 6.5 million in the prior year, reflecting last year’s divestment proceeds from the South African SPV investments.
Financing activities resulted in an outflow of NOK 0.4 million, versus NOK 15.5 million in the same quarter last year, mainly due to the prior period’s NOK 12.0 million capital repayment and no capital distribution to shareholders this quarter.
Financial position
Group equity by the end of the quarter was NOK 316.4 million (NOK 369.4 million as of 31 December 2025), representing an equity ratio of 80 percent, down from 83 percent at the end of 2025. The reduction in equity during the quarter mainly reflects losses incurred in the period. As of the report date, the Group has undrawn overdraft facilities of NOK 150 million.