Revised target
The expansion of Swedish wind power has generally slowed down, mainly due to low electricity and certificate prices. This applies also to Arise. Our previously communicated target – to build a further 650 MW of onshore wind power capacity by the end of 2017 – has therefore been revised as follows:
The company’s general goal is to give its shareholders a good return in the form of dividends and capital growth through efficient funding, management, operation and project development in the area of renewable energy.
Our strategy for creating shareholder value is, in the short term, to focus on cash flows rather than growth in our own production capacity, this includes the sale of a small portion of our existing operational assets. By using released capital primarily to reduce the company’s net debt and interest expense, the company’s financial position and cash flows will strengthen. Further, our intention is to create additional revenue within the area of project development by selling projects ready for construction to investors, including construction and asset management.
We remain convinced that owning wind power assets is a prudent and profitable strategy, and our ambition is therefore to increase our own production capacity over the longer term. We do so by investing in new, wholly owned and co-owned projects where Arise will deliver efficient construction and asset management. Our intention is to fund the continued long-term expansion from the company’s own cash flows.
We believe a combination of revenues from project development and management as well as from the sale of generated electricity is an effective means of creating shareholder value and strong cash flows, in the short term as well as longer-term.
More information and today’s capital markets presentation is available on our website, www.arise.se.
Halmstad 9 October, 2014
ARISE AB (publ)
For further information, please contact
Peter Nygren, CEO Arise AB, +46 706 300 680
The information contained herein constitutes information which Arise AB is legally required to publish under the Swedish Securities Market Act (2007:528) and/or the Swedish Financial Instruments Trading Act (1991:980). The information was released for publication at 08.00 a.m. on 9 October 2014.
About Arise
Arise is one of Sweden's leading onshore wind power companies. The company´s business concept is to develop, build and manage wind farms for its own and investors´ account with the aim of selling electricity produced by onshore wind turbines. Arise is listed on NASDAQ OMX Stockholm.
Arise AB (publ), P.O. Box 808, SE-301 18 Halmstad, Sweden, telephone +46 (0)35 20 20 900, corporate id .no. 556274-6726
E-mail info@arise.se, www.arise.se