Skandia Greenpower: Results for the fourth quarter and full-year 2022

27 Apr 2023 08:00 CEST

Significant impairments and new strategic direction

Kristiansand 27th April 2023; Skandia Greenpower has released the annual report
for 2022 and reports a net loss of NOK -127,7 million for the full year. The
loss is mainly driven by significant impairments of the digital platform as well
as impairment of customer acquisition cost (CAC). Total impairments of 59,5
million. The new Board of Directors have executed a cost-saving programme that
aim to reduce the operating cost by 62 million.

Key events in 2022:

Elkompis successfully launched in third quarter

New CEO appointed 1st July 2022

Skandia Energi: hold-strategy continued amids market turbulence

Company in a distressed situation and search for funding initiated

Significant impairments of Elkompis and customer acquisition cost (CAC)

Subsequent events 2023:

CEO resigned in January 2023

Private placement concluded in February 2023

New BoD and new CEO in February and April, respectively

Cost-saving programme executed, leading to significant downscaling of the
organisation



Full year 2022:

Skandia Greenpower (‘The Group’) are reporting a operating result (EBIT) of NOK
-112,8 million for 2022 (NOK -24,0 million in 2021). The result were mainly
driven by significant impairments of as well as higher operating cost.

Although higher power prices increased the Gross revenues to a record-high NOK
551,5 million in 2022 (NOK 335,6 million in 2021), Net revenues decreased to NOK
31,1 million (NOK 36,5 million) following a decrease in the customer base and
reduced contribution margin per customer.

At year-end, the Group has 19.400 customers in the Skandia Energi portfolio and
4.300 in the Elkompis portfolio. The corresponding figures as of year-end 2021
were 31.000 and 0.

The Groups operating cost rose to NOK 143,3 million in 2022 (NOK 60,5 million)
on the back of impairments of NOK 59,5 million as well as a significant increase
in other operating cost due to higher salary cost, higher losses from accounts
receivable and substantially increased marketing and operating cost related to
the Elkompis platform.

The Group has impaired the Elkompis platform by NOK 49,5 million, leading to a
residual book value of NOK 6,0 million. Revised investment analysis show that
the expected future revenue from the platform is significantly lower than
previously expected, leading to an impairment of 87 % of the invested amount.
Further, the book value of CAC has been impaired by NOK 10,0 million as expected
future contribution margin from customers is substantially lower than previously
expected.

Following income taxes of NOK -16,2 million (NOK 5,1 million), the net result
for 2022 ended at NOK -127,7 million – NOK 109,6 million lower than in 2021.

«The execution of the companys cost-saving programme is on track. New commercial
strategies for the digital platform, and a significant potential for increased
market interest, represents an upside for the platform.
In addition, we see that the the end-user market is evolving. A more agile and
dynamic organisation will be able to adapt quickly and seize opportunities in
the future. I believe it is realistic to achieve positive results in 2024
» says CEO Tommie Rudi



Fourth quarter 2022

The Group reports a operating result (EBIT) of NOK -81,8 million for the fourth
quarter 2022 (NOK -9,1 million). The key drivers for the result were mainly the
same as for the full year:

Net revenue of NOK 5,5 million (10,6 million)

Down due to less customers and lower contribution margin per customer

Operating cost of NOK 87,2 million (19,7 million)

Increase mainly due to impairments recognised as well as increased marketing
cost and losses on accounts receivables

Subsequent events 2023:

Following a turbulent period, the company concluded a private placement in
February 2023 and a new Board of Directors were elected. Subsequently, a
cost-saving programme were initiated. The aim of the programme is to ensure cash
positive operations in the second half of 2023 in order to secure the Groups
going concern.



«The substantial impairments made in 2022 reflects that the previous strategy
has led to significant losses for the shareholders of Skandia Greenpower. The
new Board of Directors, elected in February 2023, has set out a strategic change
for the company and are taking measures that will facilitate for future
profitability.» says Odd Henning Dypvik, Chair of the Board.




For further information, please contact:

Odd Henning Dypvik
Chair of the Board
e-mail: odd.dypvik@gmail.com
Phone: +47 901 24 231

More information:
Access the news on Oslo Bors NewsWeb site

588732_Årsrapport 2022 Skandia Greenpower AS.pdf
588732_SGP - Full year 2022 and Q4 presentation.pdf