OSLO, Norway, April 27, 2022 /PRNewswire/ -- Aker Offshore
Wind today published results for the first quarter of 2022, which
saw the offshore wind developer reach several key milestones for
its portfolio and for the company.
"We have continued to develop our portfolio, obtaining two
crucial Electric Business Licenses (EBL) for KF Wind in
South Korea whilst progressing our
projects in other markets, with a noteworthy entry into
Japan," said Philippe Kavafyan, Chief Executive Officer of
Aker Offshore Wind.
"With the proposed merger with Aker Horizons and the announced
intention to combine with Mainstream Renewable Power, we will
become a stronger offshore wind developer, both from a financial
and operational perspective, and will play a leading role in
accelerating the deployment of floating wind at scale," he
added.
Operational Highlights
Aker Offshore Wind is currently engaged in prospects and
projects in South Korea,
Norway, the US, the UK,
Sweden, and Japan. The company saw positive advancements
across its portfolio in the quarter.
In January, Korea Floating Wind (KF Wind), the joint venture
between Ocean Winds and Aker Offshore Wind, obtained its first EBL
from the Ministry of Trade, Industry and Energy of the Republic of
Korea for a capacity of 870 MW. In March, a second EBL was obtained
for 450 MW, where local company Kumyang Co is a partner. KF Wind
now holds a total EBL capacity of 1.32 GW, covering the 1.2 GW net
capacity target (based on grid limits), representing a key step
towards realizing one of the world's first large scale commercial
floating wind farms.
KF Wind has already commenced most of the field studies and is
continuing its engagement with key local users of the ocean as
required to secure the remaining permits. The permits are expected
to be approved during 2023, with the objective of reaching
financial close in 2024.
Also in January, the ScotWind leasing round was announced
without Aker Offshore Wind securing any project licenses. Aker
Offshore Wind remains committed to developing offshore floating
wind in the UK, where future opportunities include plans in the
Celtic Sea and progressing the Northern Horizons Integrated Energy
Project.
In March, Aker Offshore Wind and Mainstream Renewable Power
("Mainstream") closed the transaction which will see them take an
initial 50 percent ownership stake in Progression Energy's 800 MW
floating offshore wind project in Japan. The project is a well-formed
early-stage development opportunity, and the site has been
identified as ideal for floating wind. Japan aims to expand offshore wind energy
capacity to 10 GW by 2030 and 30-45 GW by 2040, according to the
Ministry of Economy, Trade and Industry.
Industry incentives and regulatory frameworks supporting the
industrialization of floating wind continued to develop favorably
in many markets, notably in the UK, the US and across Europe. In Norway, the government announced at the end of
March that the upcoming licensing round for floating offshore wind
at Utsira Nord will be based on qualitative criteria, an
encouraging step which the industry has been calling for. In the
US, further developments were made to support industrialization in
California with the California
Energy Commission approving a USD 10.5
million grant to help develop the Port of Humboldt into a floating offshore wind hub.
Aker Offshore Wind plans to participate in the California auction in the autumn of 2022,
where 4.6 GW in total will be put to auction.
Merger plans
On 30 March, Aker Offshore Wind and Aker Horizons announced a
merger plan to create a financially and industrially stronger
offshore wind developer. The proposed merger will enable a
subsequent combination of Aker Offshore Wind and Mainstream,
subject to customary conditions, including agreement with
Mainstream's minority shareholders.
Financial Highlights
Revenue for the period was NOK 9
million and earnings before interest, tax, depreciation and
amortization (EBITDA) was negative NOK 87
million. The cash balance at the end of the quarter was
NOK 67 million.
Aker Offshore Wind has agreed to sell part of its share in
Principle Power, Inc. to EDP Renovaveis, S.A. and EDP Ventures SGPS
(jointly "EDP") based on a pre-existing option which EDP have
chosen to exercise. The transaction is intended to rebalance the
ownership structure and give Aker Offshore Wind and EDP equal
equity stakes in Principle Power. The transaction is expected to be
concluded in Q2 2022 and will result in a positive cash impact to
Aker Offshore Wind of approximately NOK 100
million. Aker Offshore Wind remains a long-term and
significant shareholder in Principle Power, Inc.
This information is considered to be inside information pursuant
to the EU Market Abuse Regulation and is subject to the disclosure
requirements pursuant to Section 5-12 the Norwegian Securities
Trading Act.
This stock exchange announcement was published by Maria Lanza Knudsen, Communications Manager,
Aker Offshore Wind, on 27 April 2022
at CET 07:00.
For further information, please contact:
Maria Lanza Knudsen, media
contact, +47 48 44 24 26,
maria.knudsen@akeroffshorewind.com
Christian Yggeseth, investor contact, +47 915 10 000,
christian.yggeseth@akerhorizons.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/aker-offshore-wind-as/r/aker-offshore-wind--first-quarter-results-2022,c3553826
The following files are available for download:
https://mb.cision.com/Main/20224/3553826/1569552.pdf
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AOW - Q1 2022
Consolidated financial statement
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