Year-end report, 2018 Rabbalshede Kraft AB (publ)
2018 was a fantastic year, with a positive outcome on the bottom line.
Significant events
In 2018, Rabbalshede Kraft AB sold a wind-power project in Åndberg covering 53 wind turbine positions. In December 2018, Rabbalshede Kraft AB transferred both control over the project and the material risks and benefits, while all costs were charged to profit or loss and all commitments for the project were finalized. The income, including earnout, was reliably estimated at the same point in time. The Board of Directors and company management were thus of the opinion that the income linked to the wind-power project is secure, and that the full earnings impact can be recognized in 2018. The assessment of the Board was confirmed by events after the balance-sheet date, and the earn out, as expected, was settled on February 22, 2019.
The production during the year totalled 465 GWh, which is lower than expected due to less wind than an average wind year. Availability of our own and our customers’ wind turbines remained high, around 98 percent.
Despite lower production than expected we have increased the revenue from the sale of electricity by capturing the market’s higher electricity and certificates prices. Prices for power and certificates have in 2018 increased compared to 2017-level. We have worked with PPA and hedges for our own and our customers’ production of wind power. We have also increased our efforts to secure
agreements on service management.
Our service operations, with a focus on technical, financial and commercial services, continue to grow. At the end of December, we were servicing 195 wind turbines. Service of the Group’s 12 Nordex wind turbines switched to proprietary management during
the year. We are also expanding our partnership with Atalante Energies, our sister company in France, by bringing their 41 turbines into our control system.
Business Development acquired two wind-power projects, Gärdshyttan and Lönhult, on March 27, 2018. Gärdshyttan contains an environmental permit for five wind turbines, with a tip height of 190 meters, located in Askersund Municipality, Örebro County. Lönhult contains five wind turbines with a tip height of 210 meters located in Aneby Municipality, Jönköping County. The acquisition of Lönhult is subject to the environmental permit entering force.
On March 27, 2018, the permit for the Lursäng project entered force for three turbines with a maximum tip height of 200 meters.
The environmental permit for phase 2 of the Årjäng NV wind-power project, containing eight turbines with a tip height of 240 meters, also entered force in 2018.
The company has completed construction of the Lyrestad wind farm, located in Mariestad and the Töreboda region. The project contains an installed capacity of 76 MW. The farm is co-owned with Ardian Infrastructure. Rabbalshede Kraft AB owns 25 percent and Ardian Infrastructure owns the remaining 75 percent. 100 percent of the electricity produced is sold to Google under a
long-term contract.
Agreements on the acquisition of a total of three turbines in Falkenberg, Hjo and Skara were signed in May. The turbines are Vestas V90 models with 2 MW capacity, and began operation in 2011 and 2012.
The Raftsjöhöjden wind farm was acquired on November 30, 2018. The farm contains four Siemens turbines with an installed capacity of 2.3 MW per turbine.
We have restructured our electricity trading funkction to meet the market activities more proactively.
A shareholder loan of MSEK 70, together with a loan of MSEK 100 from Swedbank, was secured to facilitate wind farm investments.
We updated our ISO certificate under the new standard during the year. We are now certified under ISO 9001:2015, the standard for quality management systems, and 14001:2015, the standard for environmental management systems. Being certified is an important part of our operations, as this provides security in our processes both internally and externally.
Events after the balance-sheet date
The Högen wind-power project, with space for four turbines with a tip height of 180 meters, was purchased on February 6, 2019.
On February 7, 2019, an extraordinary general meeting was held at which Stine Rolstad Brenna was elected new chairman of the board. Stine Rolstad Brenna has been a director of the Company since April 2017 and assumes the position from the outgoing chair Bertil Villard.
On February 22, 2019, the earn out for the Åndberg project was settled in cash.
On February 26, 2019, an investment decision on construction of the Gärdshyttan windpower project was taken. The project contains five turbines.
Mads Miltersen’s term as CEO ended on 28 February 2019. Mr. Mikael Kowal assumes the role of Interim Managing Director for the period 1 March 2019 to 31 March 2019. Mr. Peter Wesslau starts the position of Group CEO on 1st April 2019.
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