Småkraft grows 18% while exhibiting solid cashflow and adj. EBITDA

09 Dec 2022 09:57 CET

The Småkraft Group continues its growth trajectory by adding 298 GWh capacity in
2022, leading to a production capacity of 1995 GWh year-to-date. The 18% growth
stems from construction projects becoming operational, acquisitions and the
overhaul of existing plants to increase production. Fueled by this growth and
high electricity prices in some of the areas where Småkraft’s powerplants are
located, the firm retains strong cashflows and a cash EBITDA of 398 mNOK until
end of October for the year (compared to 147 mNOK for the same period in 2021).

Elevated electricity prices in the Nordics, generally improve Småkraft’s
financial position. In a higher-than-average price environment hedging
contracts, however, reduce Småkraft’s operating results as today's spot prices
are higher than hedged or pre-agreed prices. Småkraft has hedged less than 25%
of its production capacity and does not apply hedge accounting for these
de-risking hedges. Thus, potential future losses on Småkrafts hedges are booked
in the Financial Statements in line with mark- to- market- mechanisms, when
future electricity prices increase, although the hedges are not yet realised.
The unhedged part of Småkraft’s production capacity is not recognised in the
Financial Statements. Due to the exceptional high and volatile electricity
prices and the asymmetry in the accounting standards, the unrealised hedge
effect in the Financial Statements is significant. As a consequence, this might
reduce the book equity ratio further towards year end 2022, depending on future
power price developments.

Good liquidity reserves and capacity growth combined with a solid balance sheet
and good cash flows, Småkrafts financial position is strong. We refer to the
enclosed company presentation for further details.



*Please see Småkrafts Financial Statements for detailed explanations of its
APMs.




Contact: Erik Røysem Sterud, Chief Financial Officer, +47 911 63907

Bergen, December 9th 2022




About Småkraft AS:

• Småkraft is currently the largest small-scale power plant operator in Europe,
operating over 200 power plants in Norway and Sweden.
• Småkraft collaborates with over 800 landowners to develop and run its hydro
power plants.
• Småkraft produces close to 2TWh of renewable energy each year, enough to cover
the annual electricity consumption of more than 100.000 households.
• Småkraft has 31 employees at offices in Bergen, Sandnes, Lillestrøm, Harstad,
Flatanger, Verdal, Oslo and Uppsala (Sweden).

More information:
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577791_221209 Småkraft - Bond Investor Update 9.12.2022.pdf