Year-end report, 2016 Rabbalshede Kraft AB (publ)

2017-02-23

Significant events during the fourth quarter, October 1, 2016 – December 31, 2016 · Production for the fourth quarter totaled 183,422 MWh (169,975 MWh) · Net sales were KSEK 90,819 (78,811) · EBITDA amounted to KSEK 77,698 (50,443) · EBIT was KSEK 45,870 (loss: 153,711) · Average income for wind power production was SEK 495/MWh (464), of which electricity accounted for SEK 329/MWh (286) and electricity certificates and guarantees of origin for SEK 167/MWh (178)

2016 fiscal year

· Production from the Group’s wind farms in January-December totaled 500,247 (576,412) MWh.
· Net sales amounted to KSEK 235,628 (264,204). 
· EBITDA amounted to KSEK 143,299 (169,655).
· EBIT was KSEK 44,263 (loss: 110,669). 
· Average income for wind power production was SEK 471/MWh (458), of which electricity accounted for SEK 309/MWh (288) and electricity certificates and guarantees of origin for SEK 162/MWh (170).  
· Depreciation/impairment losses amounted to KSEK 99,036 (280,324). The difference from the previous year is mainly due to an impairment loss of wind farms and projects about MSEK 183 the previous year.
· The result after tax was a loss of KSEK 96,823 (loss: 171,647). 

Significant events

In late 2015, a new share issue was conducted whereby the company raised SEK 312 M which was used to reduce the Company’s loans. The share issue was registered in January 2016 

In April 2016, an agreement was reached concerning the sale of a wind turbine (2 MW) in Hällevadsholm to Mölndal Energi. Rabbalshede Kraft had been responsible for procurement and construction, and also signed a two-year operational agreement. The wind turbine was commissioned during the fourth quarter of 2016. 

The AGM for the 2015 fiscal year was held on April 1, 2016, in Gothenburg, Sweden. 

Construction of Lyrestad wind farm, comprising 22 wind turbines (76 MW) in the municipalities of Mariestad and Töreboda, commenced in June 2016. The wind farm corresponds to an investment of just over SEK 1 billion and is operated by a company owned jointly by Rabbalshede Kraft and Ardian Infrastruktur, with Rabbalshede Kraft holding 25 percent of the shares. Rabbalshede Kraft’s majority shareholder, Manor Group, assisted in the project by providing financing and a parent company guarantee. The civil-engineering contract, involving roadworks and foundations, is proceeding as planned and the wind farm is scheduled to be commissioned in stages in autumn 2017. The wind farm’s annual production of 234 GWh will be purchased by Google under a long-term electricity trading agreement.  

In August 2016, Rabbalshede Kraft concluded a management agreement with Gnosjö Energi. The agreement pertains to a four-year management assignment involving operational management and monitoring of the Kulltorp wind farm in Gnosjö municipality as of January 2017. The wind farm comprises four turbines (10 MW).  During the fourth quarter the Company signed operational agreement with the Municipality of Dorotea and Kvarkenvinden concerning two turbines (4 MW) in the Bleikevare wind farm. Håkan Frick was employed as acting CEO as of August 1, 2016.
CEO Thomas Linnard is on sick leave.  

During the year, Rabbalshede Kraft and its subsidiaries reduced their bank liabilities for the Group’s wind farms by some 40 percent. This was made possible by a shareholder loan from Manor Group, the company’s majority shareholder. 

In October 2016, an environmental permit was received for the Sköllunga wind farm. The wind farm comprises up to three 180-meter-high wind turbines (9 MW).
 

Significant events after the end of the period

An extraordinary general meeting was held on January 31, 2017. At the meeting, resolutions were passed to reduce the share capital by SEK 126,843,931 for transfer to unrestricted shareholders’ equity. The meeting also resolved on a private placement to Greystone Sweden Venture AB (“Greystone”). The private placement amounted to 285M SEK and was implemented on February 1, 2017. Following the investment, Greystone is the company’s second largest shareholder, with Manor Group remaining the company’s largest shareholder. 

The meeting resolved that the Board of Directors is to comprise six elected members. Re-election of Karin Kronstam, Jean Baptiste Oldenhove and Matthieu Baumgartner and new election of Bertil Villard, Annika Ahl Åkesson and Jeff Mouland. Bertil Villard was elected Chairman of the Board.

For further information, please contact

Britta Ersman,  IR and Financial Manager
Tel. +46 (0) 702-79 79 43
E-mail; britta.ersman@rabbalshedekraft.se

Fredrik Samuelsson,  Finance Manager 
Tel. +46 (0) 525-197 13, +46 (0) 703 01 20 49 
E-mail; fredrik.samuelsson@rabbalshedekraft.se 

Year end report 2016