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Interim report, January-March 2016 Rabbalshede Kraft AB (publ)

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Production for the first quarter totaled 124,386 MWh (174,693) · Net sales totaled KSEK 54,802 (80,151) · EBITDA amounted to KSEK 31,102 (60,848) · EBIT was KSEK 8,746 (36,494) · The average sales price for wind-power production amounted to SEK 463/MWh (486), of which electricity accounted for SEK 289/MWh (299) and electricity certificates and guarantees of origin for SEK 174/MWh (187) · In March, an agreement was signed with Mölndal Energi for construction and sale of one wind turbine · During the period, The Company has amortized on its bank loans, 171 Million from the rights issue in December 2015, 200 Million from the company's main shareholder Manor Investment S.A., a shareholder loan undertaken in April  · Further Shareholder loans from the company's main shareholder Manor Investment S.A, will be used during the coming period to eliminate all outstanding covenant issues waived today

First quarter, January-March 2016

  • Production from the Group’s wind farms during January-March amounted to 124,386 MWh (174,693).  
  • Net sales totaled KSEK 54,802 (80,151).
  • EBITDA amounted to KSEK 31,102 (60,848).
  • EBIT was KSEK 8,746 (36,494).
  • The average sales price for wind-power production was SEK 463/MWh (486), of which electricity accounted for SEK 289/MWh (299) and electricity certificates and guarantees of origin for SEK 174/MWh (187).
  • Depreciation/amortization totaled KSEK 22,356 (24,354).
  • The Company posted a loss after tax of KSEK 7,642 (profit: 12,627).

Significant events after the end of the period

We are pleased to announce that we, together with our main shareholder Manor Investment S.A., have reached a long-term solution to the financial problems we reported in the year-end report. Rabbalshede Kraft now stands securely with a healthy balance sheet, long-term owners and the opportunity to get out of a challenging period stronger than before.

The group reported covenant breach for Töftedal Vind AB, Skaveröd Gurseröd Wind AB, Arjang Southwest Wind AB, Arjang Northwest Wind AB, Kil Vind AB, Bratton Wind AB and Dingle Skogen Vind AB in 2015 year end report. The company has post reached a solution on all covenant breaches by working with the banks over the first four months of 2016.

The capital from the rights issue was not sufficient to solve the covenant breach due to deteriorating electricity and certificate prices after year end. Between November 2015 and March 2016 the electricity price dropped by another 17%. The company's main shareholder, Manor Investment S.A., undertook to complement it with a set of shareholder loans.

171 million from the rights issue done in December 2015 were used in the first quarter to reduce debt in Skaveröd Gurseröd Wind AB, Arjang Southwest Wind AB Arjang Northwest Wind, Hud and Töftedal Vind AB. A shareholder loan of 200 million will be used to amortize the outstanding loans on Bratton Vind AB, Kil Wind AB and Dingle Skogen Vind AB and resolve the outstanding covenant breach.

Other shareholder loans should be used to further amortize debt in Skaveröd Gurseröd Wind AB, Arjang Southwest Wind AB, Arjang Northwest Wind, Hud and Töftedal Vind AB so as to eliminate all outstanding covenant breaches which are currently waived by the lenders.

For further information, please contact:

Britta Ersman, IR and Financial Manager
Tel. +46 (0) 525 197 18, +46 (0) 702 79 79 43
britta.ersman@rabbalshedekraft.se

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