Stake sale in Swedish offshore wind projects boosts OX2’s Q4 profit

Swedish renewables developer OX2 AB (STO:OX2) made SEK 627 million (USD 60.7m/EUR 56.9m) in profit in the fourth quarter of 2022, up from SEK 236 million a year earlier.

Performance in the three-month period was driven by the sale of 49% of three of the company’s Swedish offshore projects with a potential capacity of 9 GW to the investment arm of Ingka Group, the biggest retailer in the IKEA franchisee system. This deal added SEK 594 million to OX2’s operating profit in the quarter. The operating margin rose to 27.8% from 13% in the fourth quarter of 2021.

“During the fourth quarter, we completed the sale of 49% of three of our Swedish offshore projects, sold two onshore wind farms and continued to add attractive projects to our development portfolio,” said chief executive Paul Stormoen.

The developer ended the year with a project development portfolio of almost 28.3 GW.

In the full year, OX2’s profit tripled to SEK 1.09 billion from SEK 334 million in the previous year as its top line grew to SEK 7.64 billion from SEK 4.98 billion due to higher net sales from new sales of onshore and offshore wind and solar projects, as well as a larger portfolio under construction and milestones reached in construction projects.

The developer reiterated its goal of an average annual sales volume of at least 1,500 MW in the 2023-2024 period. From 2025, it will target at least 2,000 MW.

In the 2023-2027 period, the company will aim to achieve average annual growth (CAGR) in operating income of at least 25% per year, a newly introduced target. The updated targets also include an operating margin of above 10% and a return on capital employed of 25%.

The previous targets included an operating margin of 10% in the medium term and operating income of SEK 2.5 billion in the medium term.

(SEK 1 = USD 0.097/EUR 0.091)

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