Second quarter and half-year 2025

Magnora

Other income totalled NOK 6.7 million in the quarter, down from NOK 58.9 million in Q2 2024.

The current quarter’s income includes contingent consideration from a previously divested project in South Africa, income from structured funding awarded to support targeted development initiatives in emerging markets, and net gain from the divestment of the Group’s 30% interest in Hermana Holding ASA. No additional earn-out income was recognised from other prior divestments during the period.

The current quarter’s income includes contingent consideration from a previously divested project in South Africa, income from structured funding awarded to support targeted 

The Group’s business model focuses on developing and monetising renewable energy 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 for the quarter was NOK 14.5 million, compared to NOK 17.3 million in the same quarter last year.

The decrease primarily reflects elevated costs in the previous year related to the restructuring activities undertaken during first half of 2024 to facilitate the carve-out of Magnora’s legacy licensing business.

Development and M&A costs in Q2 2025 totalled NOK 19.0 million, compared to NOK 13.1 million in the same quarter last year. The increase is attributable to a moderately higher level of activity across the project portfolio.

Net financial items improved to NOK 5.6 million, compared to a net expense of NOK 3.1 million in Q2 2024. The result includes a foreign exchange gain of NOK 5.2 million, reversing prior period losses. Although these items are not tied to operating performance, they contributed positively to the Group’s overall result for the quarter.

The Group recorded a net loss from continued operations of NOK 22.2 million, compared to a net profit of NOK 60.1 million in the same quarter last year. The variance is largely due to the lower level of other income, as the prior year period included significant earnings from project divestments and income from associated companies. The result also reflects increased development spending in support of the Group’s long-term growth ambitions.

As of 30 June 2025, the Group’s cash and cash equivalents amounted to NOK 223.4 million, compared to NOK 229.6 million as of 31 March 2025.

Cash flow from operating activities was a negative NOK 28.2 million, compared to negative NOK 23.2 million in the same quarter of the previous year. The decline reflects increased development spending as the Group continues to build out its project pipeline in both new and existing markets.
Cash flow from investing activities amounted to NOK 35.8 million, up from NOK 27.6 million in Q2 2024. The increase was primarily driven by proceeds of NOK 39.9 million from the divestment of the Group’s 30% interest in Hermana Holding ASA.

Cash flow from financing activities was a negative NOK 13.7 million, compared to a negative NOK 1.1 million in the same period last year. This includes a capital distribution of NOK 11.9 million to shareholders and share repurchases totalling NOK 1.6 million.

Group equity by the end of the quarter was NOK 393.9 million (NOK 402.2 million as of 31 December 2024), representing an equity ratio of 78 percent, up from 70 percent at the end of 2024. The decrease in equity during the quarter is primarily attributable to the distribution of capital to shareholders and share buybacks, partially offset by an increase in share capital resulting following a change in par value.
As of the report date, the Group has undrawn overdraft facilities of NOK 150 million.

The Group is exposed to a range of financial, operational, and strategic risks, which are actively monitored and managed across all levels of the organisation. 
As of the end of the second quarter of 2025, there have been no material changes to the Group’s risk exposure or assessment compared to those outlined in the 2024 Annual Report.

The Group is directly or indirectly exposed to electricity price volatility, inflation, interest rate movements, and currency fluctuations. These factors can influence investment returns and asset valuations. The Group mitigates these risks by continuously monitoring market forecasts and adjusting internal strategies, economic assumptions, and valuation models accordingly.

As the Group increases its investment in capital-intensive projects, it faces heightened liquidity and financing risks. These are managed through proactive financial planning, close collaboration with financing partners, and a phased investment approach aligned with project milestones and divestments. 

Changes in renewable energy policies, tax regimes, or regulatory frameworks may affect project timelines and profitability. The Group actively monitors policy developments and government signals to adapt plans and forecasts accordingly. Risks related to licensing, municipal veto rights, and concession approvals are mitigated through early stakeholder engagement and geographic diversification. 

Ongoing geopolitical tensions, including trade uncertainties and the wars in Ukraine and the Middle East, have increased volatility in several markets. These developments can disrupt supply chains and affect regulatory environments and trade agreements. The Group continuously monitors geopolitical developments and updates its plans and forecasts to mitigate potential impacts.

Risks such as delays in permitting, grid access, or land acquisition remain relevant. Global supply chain constraints, including limited access to key components, may also affect project timelines and costs. The Group addresses these risks through rigorous due diligence, flexible development timelines, and diversification across geographies and technologies. 

Environmental considerations, including biodiversity and habitat protection, can influence permitting and project design. At the same time, climate change and the global energy transition support long-term demand for renewable energy, reinforcing the Group’s strategic direction.


Business conduct, operational and cybersecurity risk: 

The Group is exposed to risks related to fraud, corruption, and cyber threats. These are mitigated through a robust internal control framework, including a code of conduct, anti-corruption policies, IT security protocols, and supplier screening. While exposure to fraud is limited, the Group remains vigilant through training, oversight, and reporting mechanisms.

The Group’s performance depends on a highly specialised team. The loss of key personnel is an ongoing risk, mitigated through succession planning and active recruitment.

The renewable-energy sector is becoming increasingly competitive. The Group manages this risk through disciplined project selection and execution, cost control, and strong market orientation

Cash flows from subsidiaries and associated companies depend on operational execution and the achievement of project milestones, which introduces timing and counterparty risk. These are mitigated through contractual protections, active board participation, and diversified revenue streams.


The Group maintains a robust risk management framework and continues to focus on the most material uncertainties that could affect financial and operational performance. Risk exposures are reviewed regularly, and no new significant risks have been identified in the second quarter of 2025.

Strong portfolio growth and sales momentum:

 Magnora’s portfolio expanded 7% this quarter to 8.0 GW, up 65% since Q2 2024, keeping us on track for the 10 GW target by end of 2025. A record number of projects are now sales-ready, with active commercial discussions across all regions and technologies.


 We have identified some 70 potential projects with good grid potential, and Magnora’s portfolio grew to 150 MW. We experience very high interest in BESS projects in Germany.

 Magnora is advancing 450 MW of early- and mid-stage BESS projects towards the auctions in 2026 and 2027, as well as the merchant and capacity markets. 

South Africa – growing steadily and exceeded 5 GW:

 The project portfolio is now above 5 GW across solar PV, onshore wind, and BESS. A sales process is underway for a fully permitted co-located 250 MW wind and 250 MW solar project, with optional BESS. Also, several other projects are approaching a sales process. 

It’s a pleasure to share Magnora’s recent results and our outlook on the market. 

 Magnora Offshore Wind has received an updated grid connection agreement confirming connection to the Western Isles, scheduled for December 2030. The project remains on track for a Final Investment Decision in 2028.

UK solar PV and BESS – preparing for sales processes:

 Grid agreement negotiations are advancing for several projects. We expect to bring 140 MW to market in second half of 2025.

 The project portfolio of Hafslund Magnora Sol passed 2,000 MW (over 800 MW net to Magnora). The company continues to grow its landbank with careful attention to community and environmental considerations.

 On 29 April, Magnora launched a new share buyback programme, allowing for repurchase of up to 10% of the company’s total shares.

 On 16 June, Magnora sold its remaining shares in Hermana Holding ASA for approximately NOK 40 million with a net gain of NOK 8.7 million. With that, Magnora’s transition into a pure renewable-energy company was completed not only operationally, but also financially.

A high priority has been to strengthen our capabilities and offerings within industry-scale battery energy storage systems (BESS). This has been met with strong interest from both customers and partners, exemplified by our recent signing of a Letter of Intent with a leading European infrastructure company 

 totalled NOK 223.4 million as of 30 June 2025 (Q1: NOK 229.6 million), reflecting development spending, share buybacks, and shareholder returns, partly offset by proceeds from the Hermana Holding ASA divestment.

 from continued operations was a net loss of NOK 22.4 million, compared to a net profit of NOK 60.1 million in the same quarter last year. The difference is largely due to the prior year period including significant earnings from project divestments and income from associated companies.

 was NOK 11.9 million of cash, and the Group performed share buybacks totalling NOK 1.6 million.

In South Africa, the 153 MW / 612 MWh Red Sands BESS project reached financial close in July, which will trigger a final milestone payment to Magnora when all conditions in the Share Purchase Agreement (SPA) have been met. Developed by Magnora and sold to Globeleq in 2023, the project is now ready for construction. Red Sands is the largest standalone BESS project in Africa to reach financial close to date.

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 of NOK 0.187 per share, to be distributed as a return of paid-in capital to shareholders, was approved by the Board on 17 July 2025.

 A number of projects across most of our geographies are on track to achieve full permitting and secure firm grid connection dates during 2025-2028.

Magnora’s customers are benefiting from a sustained fall in the prices of solar panels and batteries, and also for wind turbines driven by new entrants easing supply chain. BESS is a case in point, with prices expected to continue halving approximately every second year. Meanwhile, delays in the rollout of competing floating offshore wind projects enables our Scotwind project to engage with top suppliers on favourable terms. 

 We are experiencing significant interest in co-investment and partnership opportunities.

 Magnora continues to build a strong and balanced landbank, which increased 65% the last twelve months, positioning the company to deliver project sales annually through the end of this decade and beyond. All regions and technologies are expected to contribute to sales in 2025 or early 2026.

We are currently engaged in multiple project sales and farm-down discussions and continue to explore opportunities in new markets. We anticipate the sale or farm-down of 600–725 MW of projects in 2025, potentially spanning offshore and onshore wind, solar, and BESS across several countries.

Germany and Italy – quality-driven BESS growth:

 In both countries, we are steadily building a high-quality BESS portfolio while maintaining active dialogues with potential partners and buyers. The market is gaining momentum, driven by falling costs, increased public infrastructure investment, and power-price volatility. In Germany we plan for efforts and results based on the recently signed Letter of Intent with a leading European infrastructure company. The local teams are expected to be further expanded in the coming months.

 Our South African business expects additional sales opportunities to materialise this year. We are currently in a sales process for a fully permitted 2x250 MW co-located wind and solar project, with optional BESS

Active discussions with potential buyers for other assets may also lead to sales this year.

 Earnouts, revenue-sharing arrangements, and milestone payments from previously sold projects and companies are expected to provide Magnora with substantial income in the years up to 2029.

 Magnora is assessing opportunities in the data centre space, leveraging our expertise in project development, power markets, grid access, and market integration. Quite some time has been invested the last nine months, including discussions with potential partners. Some of our projects may be suitable for co-location of data centres and renewable-energy generation.

As of 30 June 2025, Magnora’s share price was NOK 24.35, corresponding to a market capitalisation of NOK 1.6 billion. During the quarter, the Group repurchased its own shares under authorisations granted by the Annual General Meetings in 2024 and 2025. At quarter-end, the Group held 1,915,030 treasury shares. The Board of Directors will evaluate the cancellation of these shares in alignment with the Group’s capital allocation strategy and intends to propose cancellation at a future date. The Board continues to identify several attractive organic growth opportunities in the short to medium term, consistent with the Group’s long-term growth strategy.

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As of July 2025, energy prices across Europe continue to fluctuate significantly as the grid balances supply and demand. The growing share of wind and solar in the energy mix is a key driver of this volatility. In Germany, for instance, hours of negative power prices annually were around 100 in 2022 and 500 in 2024, and some analysts project 700-1,200 such hours annually over the next five years. Such volatility fuels a large and growing market for BESS. The batteries charge in periods of the day prices are low and discharge when prices are high, and they also provide ancillary services to grid operators.


Magnora originates BESS projects based on criteria such as a high share of intermittent electricity, supportive policy frameworks, manageable development costs, strong trading potential, and where possible co-location with solar PV or wind assets. Disciplined project development remains essential to produce high-quality projects that are sold and go into the construction phase. An example of a recent project milestone is the financial close of the Red Sands BESS project in South Africa. Magnora developed the project until its acquisition by Globeleq in 2023. It is the largest standalone BESS project in Africa to reach financial close to date.

Over the past years, Magnora has successfully and profitably transitioned into the green energy sector, expanding its portfolio across multiple countries, platforms, and technologies—supported by strong organic cash flow.


In parallel, Magnora remains fully committed to developing our solar PV, onshore wind, and offshore wind projects.
During the quarter, we continued to invest in our projects in primarily Germany (BESS), Italy (BESS), Scotland (offshore wind), and South Africa (onshore wind, solar PV, BESS). Magnora’s total project portfolio, on an ownership basis, now stands at 8.0 GW, up 65% last twelve months. We are on track to reach our 10 GW target by the end of 2025 and continue to expect the sale or farm-down of 600–725 MW of projects this year. In addition, Magnora is exploring data centres as a potential new business area, based on existing capabilities, project portfolio and partner network.


Net profit for the first half of 2025 was NOK 16.4 million. Our quarterly financials are largely influenced by the timing of project sales, which fluctuate depending on project maturity and market conditions. Nonetheless, our core value creation is continuously driven by the steady development of a large and growing portfolio toward ready-to-build status.


While global sustainability efforts have recently been overshadowed by geopolitical developments, our commitment to accelerating the energy transition remains unwavering. Expanding renewable energy and storage capacity is a powerful response to both the climate crisis and the need for secure, affordable energy.


Magnora’s contribution to the energy transition creates value for stakeholders, the planet, and the company. We aim to continue delivering successful projects, consistent growth, and strong returns. Our portfolio includes sales-ready projects in all our markets and is balanced and adapted to local demand and market cycles. Based on our portfolio, team, and ongoing dialogue with customers and partners, I am confident that Magnora is well positioned for continued success.


Thank you for your interest in this report. Please do not hesitate to reach out to me or my colleagues with any questions, ideas, or feedback.

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In our ongoing business development efforts, we have identified the accelerating demand for data centres across our core markets as a compelling strategic opportunity for Magnora. For instance, in the Nordic region, data centre power demand is expected to grow from 11 TWh today to 62 TWh by 2050. The growth of data centres is however constrained by a limited supply of suitable sites—particularly those with robust grid connectivity, creating a favourable entry point for players with the right capabilities.

Over the past months, Magnora has invested time and resources into analysing the data centre landscape to understand the operational, regulatory, and commercial requirements for success. This work has confirmed a strong strategic fit between the sector’s needs and Magnora’s core competencies, including grid connection expertise, site identification, permitting processes, sustainability integration, power market insight, and project execution.

Magnora is well positioned to take a more active role in this space. Our capabilities match well with the key bottlenecks faced by data centre developers, particularly in reducing time-to-market and securing grid-ready sites. Furthermore, the data centre segment complements our existing portfolio by balancing electricity production with consumption, thereby reducing exposure to power price volatility. We also see potential for co-location with solar PV and wind assets, enhancing project synergies and long-term value creation.

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.

Operating revenue for the quarter amounted to NOK 2.3 million, compared to NOK 2.8 million in the same quarter last year. The decrease reflects a slightly lower level of activities under management service agreements with affiliated companies.

Second quarter and half-year 2025

Letter from the CEO