Hexicon (HEXI) Q2 2024 earnings summary

Executive summary

• Over 15 years of experience in floating offshore wind, with a diversified global project portfolio, strong partnerships, and patented dual-turbine/TwinWind technology.

• Focused on Q2 activities and updates, highlighting market signals of recovery after weak prior years due to inflation, interest rates, and supply chain issues.

• Notable policy support and regulatory progress in the UK, Italy, and South Korea, with increased budgets and clearer auction frameworks supporting the project pipeline.

• Completed operational takeover of MunmuBaram in South Korea and is working on a new ownership structure.

• SEK 75 million revolving credit facility extended to year-end, with ongoing evaluation of further financing and divestment options.

Market and industry conditions

• Offshore wind market remains weak but shows early signs of recovery, driven by new government initiatives and policy changes in key markets.

• Macroeconomic factors continue to impact the sector, but long-term forecasts for floating offshore wind remain robust, with a global forecast of 8.5 GW by 2030.

• Global floating offshore wind market gaining momentum, with supportive policy changes in key regions.

• Market transactions trending toward milestone-based payments and smaller upfronts, affecting divestment strategy.

Segment performance

• 12 active projects and 6 prospects across multiple countries, totaling 23.4 GW gross and 12.9 GW net portfolio.

• Key projects include MunmuBaram (South Korea), TwinHub (UK), and Mareld (Sweden), with formal operational takeover of MunmuBaram completed.

• No project divestments occurred in H1 2024; revenue mainly from consulting services.

• Reduced development pace in MunmuBaram and TwinHub projects contributed to lower costs.