Interim Report 2019
Rabbalshede Kraft AB (publ) Interim Report January to September 2019
Press releases and financial reports can be subscribed to and downloaded on Rabbalshede Kraft’s website www.rabbalshedekraft.se. RABBALSHEDE KRAFT INTERIM REPORT JULY-SEPTEMBER 2019
The major trend in the coming years, globally and in Sweden, is that solar and wind power will be expanded at such a rate that it will dominate the build-out and define the entire electricity generation during the coming decades. This CEO’S results in increased demands from and for consumers, electricity networks, producers and developers. Technology development is moving fast, as higher, larger and more efficient STATEMENT wind turbines make it possible to establish wind farms with profitability at ever lower electricity prices. Solar cells are becoming cheaper, more efficient and more flexible. By using the latest technology and thinking in an innovative and sustainable way, Rabbalshede Kraft ensures the work of securing long-term growth, in an otherwise politically windy position and an electricity market with TECHNOLOGY DEVELOPMENT falling electricity certificate prices. IS MOVING FAST, AS HIGHER, The wind resource during the first three quarters of the year remained at a normal level as a whole, however we have seen a greater variation of individual LARGER AND MORE EFFICIENT months relative to average winds compared to recent years. Production has been 2.6% above the expected level during the period and we have continued to WIND TURBINES MAKE IT maintain a very high efficiency in the parks, with an energy-based availability of POSSIBLE TO ESTABLISH WIND over 98.3%. FARMS WITH PROFITABILITY AT EVENTS DURING THE THIRD QUARTER EVER LOWER ELECTRICITY PRICES. At an Extraordinary General Meeting on August 20, the Company resolved to issue new shares and the issuance was directed to all current shareholders. The signing period has ended and the new shares were oversubscribed, thus Rabbalshede Kraft will be allocated SEK 197.7 million. The proceeds will be used to finance the expansion of ongoing wind power projects. The technical and financial management business area continues to focus on increased sales of management services. New contracts have been signed and we note that our opportunities for cooperation in this area are constantly increasing. Renegotiation of the service contract for the Dingle-Skogen (32 MW) wind park was signed in October. During the period, the development department continued to develop our project portfolio, which today contains projects totalling an installed capacity of some 250 MW of projects in various phases near final consent. In line with the company’s business strategy, there has been continued focus on ongoing projects to allow investment decisions to mature at a steady pace during the coming years. The Final Investment Decision for Sköllunga/Högen in Stenungsund municipality and Lilla Edet municipality, in Västra Götaland County, comprising 6 turbines totaling 21 MW was taken in August. We also started construction work for the projects at Sköllunga/Högen during the quarter and the work is planned to be completed by March 2021. Construction work on project Gärdshyttan has been Peter Wesslau, CEO completed and the installation of turbines will begin in October/November. Work has begun on evaluating different solar panel systems. Solar panels have great development potential and by innovatively using existing infrastructure, we see great opportunities for Rabbalshede Kraft to expand within solar energy. The first solar cells were ordered in October. Through a sponsorship with Lysekil Women’s Match, Rabbalshede Kraft has taken a step towards greater brand recognition. The marketing activity on site in Lysekil in August during the Women’s Match Championship created a good foundation for social media and a local brand awareness in the region. EVENTS AFTER THE THIRD QUARTER • We welcome Anders Olsson as CFO at the end of October. • The share issue is completed and registered with the Swedish Companies Registration Office. • Rabbalshede Kraft has signed a Letter of Intent for ten modular wooden towers from Modvion for an upcoming wind farm in Fägremo, Töreboda municipality.
Peter Wesslau CEO
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QUARTER 3, 2019
Production during Q3 just above budget. The average wind for the period was 5.9 m/s, PRODUCTION DURING which is close to normal wind. Availability 98.3%. THE PERIOD
Service agreements for Vindpark Dingleskogen have been negotiated and a new service SERVICE OPERATIONS supplier will take over during November.
The Gärdshyttan wind farm project (5 Turbines) in total 20 MW is under construction and BUSINESS DEVELOPMENT roads and surfaces have been completed. Towers and turbines will begin to be erected during Q4 2019. Investment decisions have been made for the Sköllunga and Högen Wind power Projects (3 +3 turbines) in total 21 MW. Roads and production sites are starting to take shape.
There is continued focus and work on ongoing projects to make investment decisions aligned with the Company’s strategy. We are also continuously working to find good opportunities ot be able to acquire existing turbines to increase the number of turbines under our own control.
During the spring, the Company entered into a collaboration with Modvion in a Development Project in which Rabbalshede Kraft will contribute with experience of construction and logistics issues during turbine erection. Modvion is a Swedish Engineering and Industrial Design company developing modular towers made of laminated wood. The work will be started as soon as a decision has been made by the energy authority.
PRODUCTION JANUARY-SEPTEMBER 2019 (GWH)
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