Magnora (MGN) Q3 2024 earnings summary

Executive summary

• Achieved NOK 330 million upfront for 40% share in Helios, representing a 16x return on invested capital, with future earn-outs expected over five years; some sources report total proceeds up to NOK 868 million.

• Paid NOK 4.187 per share in dividends in August, surpassing NOK 1 billion in capital returned since 2018; resumed share buyback program and distributed 398,042 treasury shares.

• Entered greenfield markets in Germany and Italy, hiring experienced local management.

• South Africa portfolio grew to 4.3 GW, with over 600 MW sold in the past 15 months and 800 MW added.

• Demerged legacy FPSO business into Hermana Holding ASA, distributing 70% of shares to shareholders and retaining 30%.

Financial highlights

• Q3 EBITDA reached NOK 232.6 million, up from NOK 30.8 million in Q2, driven by Helios and South African SPV sales.

• Operating profit was NOK 227.2 million; net profit from continued operations was NOK 235.4 million.

• Cash and cash equivalents at quarter-end were NOK 334.9 million, with close to NOK 500 million available including credit facilities.

• Net cash from investment activities was NOK 333.3 million; cash flow from operating activities was negative NOK 26 million.

• Dividend and share buybacks led to NOK 283.4 million net cash outflow from financing activities.

Outlook and guidance

• Updated guidance to a total portfolio of 12.5 GW, including solar projects, and projected sales of 600-725 MW in 2025.

• Anticipates higher prices for solar and battery projects in the future spot market.

• Multiple milestone and earnout payments expected from previous and future sales across several countries.

• Focus on organic growth, cash flow, and capital returns through dividends and buybacks.