Orrön Energy AB (publ) (ORRON) Earnings Call Transcript & Summary

[Audio Gap] and giving a strategic outlook update for the company. There will be a Q&A session at the end of the presentation. [Operator Instructions] And with that, I would like to hand over to our CEO, Daniel Fitzgerald, to kick off this Capital Markets Day.

Thank you, Jenny. And good afternoon, and welcome to Orron Energy's Capital Markets Day for 2025. I'll be joined today by some of my colleagues. So we'll have Jonas giving us an overview of the Nordic business. We'll have Axel, who will run through the greenfield development projects, which I'm sure there's a lot of interest and questions about today, and then Espen will run us a little bit more through the financials. And we'll spend a little bit more time today going through our Q4 results, but also looking ahead at the next year and what that looks like for us as a company as we step into 2025 and then also step beyond that into 2026 and the future. And we see a range of triggers in the company that are coming over the next 12 and 24 months, which are really important to focus on, and we'll explore those as we go through today. So Orron Energy, we are a renewable company. We have producing assets, development projects, repowering, life extension. We're stepping into ancillary services into batteries and into trading some of the volumes we produce. We're active across the whole life cycle of the renewable sector from the inception of projects all the way through to repowering, life extension and growing them again. We have 380 megawatts of producing assets, which is wind spread across Sweden and Finland. And that delivers long-term cash flow for the company and is a key pillar of our business. Last year, we generated around north of EUR 30 million worth of revenue from these assets. We have a low cost base. And that really forms a foundation of our ability to grow the company and invest in greenfield projects and other opportunities with higher rates of return. We're continuing to grow the business in the producing asset domain, and we increased production by around 5% last year through M&A and Jonas will touch on the assets and what we've done over the last year. We expect to continue that as we go forward as well and continually add to the business being really selective about the assets we step into to ensure that each deal we do is accretive for our shareholders. We have a 40-gigawatt pipeline of greenfield projects. These are early-stage projects, and I'm pleased to say that the first project has reached ready-to-permit in the U.K. We have a range of projects in Germany that are very close to reaching ready-to-permit. And behind that, we have another portfolio of projects that's coming. We've started our first sales process for our first project in the U.K. and so we expect this platform we've invested for 2 years into. We expect the next 12 months to start to see some of the returns coming out of that and continuing well into the future as we continue to build that pipeline. Organic growth in our view is one of the key pillars to create very long term, and we have organic growth spread across all of our countries of operation from the greenfield through to the development projects into the producing assets. And we're always looking at ways to squeeze more value out of the assets. We're seeing in challenging markets like we saw last year that we're bringing ancillary services. We're bringing price-dependent bidding and curtailment into the discussion to increase the value of the assets and increase the revenues we get out of them. When we get into life extension and later-life assets, being able to extend that life span, repower assets, increase production, there's a huge value in being able to do that across a broad portfolio, and Jonas will touch on that a little bit more as we go through the presentation. And finally, none of this is possible if we don't have a strong balance sheet. If we need to touch the equity side of the business at any point in tough markets, I think that's one of the challenges for shareholders as we step into difficult times, but Orron Energy has maintained a strong balance sheet throughout many decades of companies within Lundin Group, but also within -- since inception as Orron Energy. Today, we have over EUR 100 million of liquidity headroom. We're fully financed. And as we step into markets like we saw last year, the ability to move into M&A is really important for us going forward and having the firepower to do so is a key part of the strength of this company. If we step a little bit back into 2024, looking at the highlights, we delivered power generation of just over 900 gigawatt hours last year. Remembering that we have a portfolio that should deliver around 1,000, we saw a low production due to weather impacts. And we've also seen some volatility in the markets and increasing levels of negative pricing, which has forced us to curtail production slightly. So we delivered last year, notwithstanding both of those, we delivered 900 gigawatt hours and had the highest production ever as a company in Q4 of last year. That led to revenues of over EUR 30 million from the producing assets and an additional EUR 11 million from the sale of our Leikanger asset last year. So proportionate revenues, EUR 42 million as a company. And in tough markets like last year, there's still a lot of cash generation from the underlying business that we can use to invest and grow. That led to EBITDA of EUR 10 million, excluding the noncash items. We delivered in line with expenditure guidance. So we're at the low end of our OpEx range. We delivered in line with G&A spend in terms of Sudan spend, and we had around EUR 5 million savings on our CapEx program due to a small amount of phasing and savings on our greenfield projects. So we are really focused on that cost base to ensure that the balance sheet remains strong and the cash generation remains strong. The greenfield platform is in a really exciting stage this year. We're starting to see the first projects coming to market. End of last year, the first 1.4-gigawatt solar and 500-megawatt battery project in the U.K. reached ready-to-permit. We are in the midst of a sales process, and we'll see that evolve over the coming months. Germany, very, very close behind. Jonas in the Nordics added around 50 gigawatt hours worth of long-term power generation. Very, very accretive transactions and especially in the market conditions like we saw last year. And if we look at that investment compared to Leikanger, we sold Leikanger, which was around 100 gigawatt hours for EUR 50 million or just north of EUR 50 million. We've invested EUR 10 million to acquire half of the production of Leikanger. So the recycling of capital from Leikanger not only has it improve our balance sheet, we're able to deploy that capital at more than double the rate of return that we sold Leikanger for, and we expect to continue to do that as we're going forward. Our net debt position at the end of last year was EUR 65 million. We have a facility of EUR 170 million revolving credit facility at the corporate level, which means we have north of EUR 100 million of liquidity headroom. And I think that's really important as we step into 2025 as we're starting to look more broadly at M&A and other opportunities to continue to grow the business. Our production story has been a fantastic story since inception of the company. If you roll back your minds to the summer of 2022 when we launched this Orron Energy, we had three assets and two of those were in production. Karskruv was in the project phase still to be completed. We delivered 250 gigawatt hours. As we look to this coming year, we expect to produce between 900 and 1,050 gigawatt hours of production so a significant increase. That's through the Slitevind acquisition, the acquisition of Siral, many of the other brownfield M&A that we've completed. We have also completed the Karskruv project at the end of 2023, and that underpins the growth of production over that period. Remembering also that we've taken 100 gigawatt hours of Leikanger out of this business. So as we look forward, I think you should expect us to continue to grow in terms of producing assets M&A, and you should also expect this to focus on other opportunities -- slightly different geographies and slightly different opportunities to where we sit today. The greenfield pipeline is a really exciting trigger this year for the company. We've been investing in this business since early 2023. So 2 years of investment where we had a vision at the start to create a large-scale pipeline and take that all the way through to projects that have land and grid secured and looking to test the market at that point in time. The pipeline is really large scale, 40 gigawatts spread mostly between Germany and the U.K. with a small amount in Germany and France. Our first projects in the market, Germany very soon to follow. And if we look beyond that over the next 2 years, we expect to see around 4 gigawatts worth of projects reaching that ready-to-permit milestone. And so that gives us a really nice platform of future opportunity to continue to grow the business, to continue to see additional revenue streams coming in. I think the U.K., important to note in the U.K. that we are in the midst of a grid reform process. I think the grid in the U.K. is heavily subscribed for new projects today. So we are in the midst of a reform, both on the grid connections and also from Clean Power 2030, the U.K. government has a really strong ambition to grow the renewable end of the power generation system and reach net zero. So those 2 key reforms are in a consultation phases that stands at the moment. I think investors are having to spend some time to understand what that means for projects, and we're right in the midst of that now. And that will impact the sales process that we have ongoing at the moment where investors need to consider how these reforms play out through the course of the coming months. In terms of certainty, we expect that the programs that are in consultation today, we will have absolute certainty in around May of this year, at which point we can move forward with the remainder of the process to secure our connections. So Axel will touch a little bit more on the overall landscape in the U.K. But what we see with these 2 key reforms is it's a short period as we go through it. The ambition is to simplify the connections process and really reward mature projects with earlier dates. So we see opportunity in this to potentially accelerate some of the projects in the U.K. In Germany, we don't see the same constraints around grid, and we see a much more favorable opportunity set. So this broad platform over multiple countries should generate really well into the future. In terms of what value looks like for these assets, I think the key things that always jump out in challenging markets is the economics will always rule in the long run. The cheapest technologies, the most economic technologies, those with the highest return will always win. When we look on the left-hand side of this chart, you can see the levelized cost of energy and how that has evolved from 2022 to today, and then how we expect that to evolve in the future. And it's really clear to see that solar and onshore wind and including co-located solar and battery are by far the cheapest technologies we have to generate energy today. So irrespective of where the markets sit, what tariffs and support mechanisms are there, I think it's hard to fight against the economics of the lowest-cost technologies. If we then apply the futures price or the subsidy price or feed-in tariff price in the U.K. and Germany against the LCOE of these technologies, you can see that there's a gap between what it costs to build and what you receive on the other side in terms of the revenues for your power generation. So the U.K. and Germany are really strong markets. They have some of the highest pricing across Europe and the technologies we're focused on both in the Nordics for onshore wind, batteries and solar and then in the U.K. and Germany for solar and battery co-located, they are, by far, the best place to be in terms of economic returns. The balance sheet is a really important part of the company. So when we look at our assets, the cash generation of our assets and the liquidity headroom as a company, you start on the left-hand side of this chart, looking at the free cash flow breakeven of our assets. So if you add in all of our operating costs, G&A costs, interest costs getting down to free cash flow, our core assets will deliver free cash flow down to EUR 17 a megawatt hour. If we add on all of the growth in G&A and the debt levels, even at EUR 30 a megawatt hour, we're generating free cash flow. We achieved -- in the tough markets over the last 2 years, we've achieved north of EUR 30 a megawatt hour on our business. So the underlying assets are strong. When we look at the cash generation and EBITDA of that, excluding, of course, the Sudan costs, we see there that revenues are quite simply 1,000 gigawatt hours times our achieved price. So at EUR 30 a megawatt hour, EUR 30 million a year of revenues. Same for EUR 50, same EUR 70. So we expect free cash flow to be quite strong for the business as we go forward at reasonable prices. This excludes, of course, any growth from the greenfield projects or sales from the greenfield projects or any future M&A. And as Espen will touch on later, we have over EUR 100 million of liquidity headroom. So although markets are challenging today, our assets are such long-dated assets with -- in the order of 30 years life span, the underlying cash generation is strong and we have a balance sheet to support the company. We couldn't be in a better position today, both from a market perspective and also from an opportunity set going forward. Stable sustainable business is really important for us and for all of the Lundin group companies. If you cast your minds back to some of the key principles across the Lundin Group, we are a renewable company, but that's not enough in today's day and age in terms of sustainability. We want to be industry leading. We've delivered over 2 terawatt hours of clean carbon-neutral power generation to the grid. We have 40 gigawatts of opportunities. That represents around EUR 20 billion of investment into clean power. We've had 0 material incidents, 0 impact on the environment in our operations. And in our projects, we're looking at increasing the net biodiversity as we install new projects into the system. We have strong governance. We have a very experienced Board. We have a very experienced management team and that governance framework has a strong focus on how we operate our business and the standards at which we hold ourselves to. So sustainability really is at the core of our business. I think a few comments on the markets. Energy markets and especially electricity markets, these are evolving day by day and especially as we transform the energy sector. We're seeing more renewable technology coming in. We're seeing governments changing the power mix, whether it's shutting down nuclear, shutting down coal, increasing solar, increasing wind, the whole energy sector is in a very fast pace of evolution. And we're seeing that transformation as we sell our power to grid and how we think about selling power to grid. We saw low pricing in Q3 and Q4 last year. I think a mix of high hydro balances in Sweden, mixed with relatively low demand, means that hydro has been producing quite hard at points when prices have been negative. We've seen that low demand more broadly across Europe has been impacting some of the energy systems in the Nordics. It's nice to see in Q1 that we're seeing the spot pricing increasing. We're seeing strong pricing in the U.K. and Germany. And certainly in the Nordics, the rate of change is quite fast. As we step into ancillary services, price-dependent bidding, the last 2 years, we've seen more negatively priced hours in the energy markets than we have historically. We're reacting to that. We're agile. So we're -- now we're one of the first companies to step into price-dependent bidding where depending on the day-ahead price, we'll choose how to bid our volumes. We'll choose whether we want to slow down production, speed up production, whether we want to put volumes into the ancillary services markets and grid stabilization, and we're doing that with a range of counterparties across a range of turbines. So there are so many opportunities to create value in this space, but we need to be agile as markets evolve and as the sector transforms. If we look longer term though, I think the lowest levelized cost of energy is solar and wind at around EUR 30, EUR 35 a megawatt hour. We're not achieving prices last year, we achieved prices of EUR 34 a megawatt hour as a company. We do not have pricing at that level. If that stays long term, we do not have the ability to invest in any new power generation in the Nordics. If GDP growth and energy use increases, and that link is very, very strong, as we see GDP continuing, we see energy use increasing. If we are unable to see higher pricing, we will see no new supply coming in. And we know what that means in cyclical markets. We've made very few investment decisions in wind in the Nordics. We've shut down a lot of offshore wind. We've shut down a lot of the large supply through either economics or government intervention. So our view longer term is we have to see pricing pick up to a more reasonable level in the fullness of time. And looking forward then to 2025 before I pass over to Jonas to speak about the Nordics. I'd say 2025 looks largely the same as 2024 in terms of our guidance. We expect production of between 900 and 1,050 gigawatts hours. And that takes into account the variance in weather conditions, and it also takes a provision for some of the negatively priced hours that we saw in 2024. It also takes into account our recent acquisitions. So we expect to be in that range based on the seasonality and variability of production. Our operating costs, slightly higher than 2024, and that includes the impact of the acquisitions that we've made throughout the year. G&A and Sudan legal costs, very much in line with 2024. So on the cost side, we're very, very close to where we expected to be and where we expect to be in 2025 is very close to 2024. On the Sudan case, this is our last year of very high costs. So EUR 7 million, this will decrease significantly next year as we enter the final stages of the case. I think with every day and every phase of the case that continues, our view on the outcome gets even stronger. There is absolutely nothing in this case that has been put forward that suggests that the 2 individuals who have been accused of the crimes, there's no evidence that supports the prosecutor's view that there will be a conviction in this case. And the acquittal of those two individuals means the end of the Sudan case in our minds. So we expect next year is around half the cost of this year and then decreasing going forward. So really important to see the end of that case, both for ourselves, for the individuals and our shareholders and stakeholders. Our capital program for next year focuses mainly on the greenfield pipeline. So we expect to spend around EUR 12 million of CapEx, of which a large portion is focused towards the greenfield Europe spend. None of this accounts for any revenues that come in from the sales processes. So this guidance assumes that we don't sell anything from the platform. And we expect to sell both in the U.K. and Germany. We expect to see revenues coming in this year from those 2 sides of the business, which then reduces the need for capital into the program going forward. And so I'll pass over to Jonas to give us a bit more flavor on the Nordics, and then I'll pick up at the end. Thank you.

Thank you. I will start with a bit of a personal reflection. I joined the renewable industry at the age of 23, which is -- that was back in 1996. And this year, 2024, is one of the more or most challenging years I've seen or experienced in terms of market conditions. Having said that, on the other hand, it is potentially also the year with the best organizational performance I have experienced. So I'm quite happy with what we have actually done during 2024. We have delivered on operations and asset optimization. We have delivered on M&A and consolidation, and we have matured the greenfield portfolio to enable future investments in production growth. The operational assets, cash generating, that's the foundation of the business. The cash we generate from operational assets we reinvest in M&A and greenfield development. M&A, brownfield M&A, gives us more assets, generates more cash flow. And the greenfield, what we invest in the greenfield pipeline, we, in return, get investment opportunities for future growth. We also get as an alternative or combined divestment opportunities. And in 2024, we have optimized operations. We have added another 50 gigawatt hours through brownfield M&A, and we have developed the greenfield portfolio. The greenfield portfolio named as the cherry on top internally. Our assets are high-quality assets, top-tier suppliers. The well-diversified portfolio reduces technical risk. It reduces risk with variations in weather and price variations in between the various price regions. And in -- I mean, we have a long-term annual production capacity of 1,000 gigawatt hours. We delivered a reasonable or good 97% availability in 2024. We have an average asset life of 8 years. The diversified portfolio includes 100% owned projects, but also partially owned where we have external owners. And the beauty of that is actually that, that adds additional investment opportunities in terms of potential consolidation going forward. We tend to be more long term than the majority of the part owners we see in our wind farms. Karskruv is 100% owned. So where we see the largest consolidation potential is the Näsudden hub on Gotland and the rest of Sweden projects with this, of course, that adds up to a quite large number of projects in the rest of Sweden box. And during '24, we have mainly consolidated some 25 gigawatt hours out of the Näsudden hub. In total, we have more than 500 gigawatt hours of consolidation portfolio in the Näsudden hub and rest of Sweden. On top of that, MLK is a -- we own MLK, 50%, together with another partner. Daniel touched upon power generation. We have a steady production growth since inception. The '24 outcome equals 1,000 gigawatt hours if we take into account the weather impact and voluntary price curtailment. We also see the '25 estimate, including it gives room for variations in weather and price curtailment. With an eternal perspective on assets, we aim to operate them forever. It means that we actively have to prolong land leases, renew permits, and that's a daily time-consuming work that we focus on every day to make sure that we actually can operate them as long as possible, if not forever. We have been an early mover when it comes to implementation of ancillary services and voluntary curtailment. Ancillary services is actually supporting the TSO to keep frequency in the grid, in the network, and voluntary curtailment as Dan mentioned, is to avoid producing when the hours -- when the electricity prices are profitable. To combine those 2 things is quite complex and that is also something we have been an early mover on the separate ancillary services and voluntary curtailment, but especially to combine them is quite complex. Like when it comes to price-dependent bidding on voluntary curtailment, we have it today on assets with various makes and, I would say, 10 different models as well. So we have the ability to -- if we acquire things, we also have the ability to potentially increase value through implementation of these services. Operational excellence, life extension and repowering, these are focus areas for us. When we then come to acquisitions, we valuate -- evaluate potential investment opportunities and judge if we can; increase operational efficiency, if we can; apply life extensions, if we can; repower, so that gives us more, I would say, opportunities when it comes to brownfield investment and M&A. And as mentioned, 25 GWh out of the 50 GWh that we have added for 2024 is from consolidation. And we have invested in other -- Daniel mentioned Siral, which was a company we acquired in 2022, and we have done Siral-like investments in a company called Slättens Vind, and Slättens is also an example of where we add a further growth potential. We buy a stake and it gives us the opportunity to step wise continue to grow. I mean, compared to the European greenfield business that Axel will present soon, the Nordic business is more focused on actually creating future investment opportunities for future growth and/or divestment. And we have a pipeline of 1 gigawatt matured during the year in terms of, I mean, land, grid and permitting work and also preparations for the first wind measurement campaign actually to measure wind. And as you can see, the technology breakdown is quite even between wind, PV, solar and batteries, BESS. The greenfield portfolio, also quite diversified in terms of projects, geography, price areas, technologies, also that we have stand-alone projects and co-located projects. So this is Nordic greenfield development at a glance from early-stage projects to ready-to-build projects. So we have shovel-ready BESS projects just waiting acceptable market conditions through to early stage 1s. And in-house development enables low CapEx when it comes to investments. We -- if we invest ourselves, we don't have to pay development premiums. Of course, if the market is strong, we could as well divest projects out of this portfolio, also from the Nordic portfolio. This -- the selection of projects, of Nordic projects, would allow for a -- for us to actually double the power production. These example projects could generate potentially another 1,000 gigawatt hours a bit more long term, of course. And on top of that, we have another 500 megawatts in the portfolio for further investments or divestments. Axel?

Thank you, Jonas. We established our European greenfield development platform back in 2023. At that point in time, we had a clear vision on what we wanted to achieve, and we had a plan on how to get there. Fast forward to 2025, we see that we're beginning to turn that vision into reality. As part of that, we have successfully established a large-scale pipeline that we touched upon earlier during this presentation. And we have 10 projects that are currently being matured towards RtP. As part of that, we've also secured over 5,000 acres of land, and we have achieved RtP for our first large-scale U.K. solar and battery project. In addition to that, we have 150 megawatts in Germany, where we're waiting for the municipality approval to reach RtP. Moving on to the U.K. We've initiated the sales process for our East Midlands project. It is a large-scale project with solar capacity of 1.4 gigawatt peak and 500-megawatt of battery capacity. We have a grid connection for this project of 1 gigawatt of export capacity and 500 megawatt of import capacity. We've secured binding land agreements of 3,200 acres. And thanks to the vast amount of land we've secured, we've been able to achieve a project that is larger than our initial grid connection capacity. Dan mentioned the ongoing reforms, the grid connection reform and the Clean Power 2030 action plan. Together, we see that they've introduced some short-term uncertainty. However, we see that the U.K. government is committed to renewables build-out. And as such, we see that we have a strong outlook for our projects going forward. Looking at some of the development highlights, we have three main categories. We have an attractive location, an optimized layout and reduced development and construction costs. Starting with the location, the project is located in an area where we have a flat topography. We have good grid infrastructure and sparse population. And this is exactly what you want for a large-scale project, both during the development stage, the construction stage and beyond. On the layout side, I mentioned the large amount of land that we've secured. And thanks to that, we haven't had to optimize for capacity per acre. Instead, we've been able to choose the lowest cost traditional fixed-tilt solar technology. And finally, on the reduced development and construction costs, we've had a very successful land campaign on this project. It's not uncommon for projects of this size that you will see the project spread over a handful or even more parcels. That means that you then need to connect these various parcels either to each other or you do separate grid connection points from the various parcels to the grid connection points. For us, we have these two large adjacent areas, meaning that we only need one interconnection point, and we can then connect the full project through one grid connection point. Looking at the key deliverables for this project. You will notice a lot of green ticks on this slide and that's because we have finalized the land, the grid and the pre-permit work stream to achieve RtP. On the land side, the key deliverable is to sign the binding land agreements. But before we do so, there's a range of actions. Most importantly, I would say, is the initial constraints mapping where we look to ensure that the land we will later secure can be successfully developed. Moving on to the grid side. As most of you know, we started our U.K. business by first securing grid. But even before we did that, we looked at hundreds of grid connection locations ranking the various locations based on the range of criteria, including irradiation, land availability and grid constraints. And then the Midlands project was one of the higher ranking locations where we ended up submitting a grid connection application. With land and grid secured, we start the permit work stream or the pre-permit work stream. So as I mentioned on the land side, we've already done some of the constraints mapping and looked at or ensure that the land we secure can actually be successfully developed. But now we go into a bit more detail, and we prepare a planning and site appraisal report. The outcome of that report was positive, showing that the project is well positioned to obtain a permit. As part of that, we also completed an agricultural land classification study. So in the U.K., all agricultural land is classified depending on the grade of the soil. Higher grade soil is typically then reserved for agricultural activities. So we've taken on-site soil samples across our land area and analyzed those, and the result of that study was that the soil quality generally is of lower grade, again, positive from a permitting perspective. Finally, we've completed the grid route feasibility study to look at both the ability to connect the project to the grid but also the cost of doing so. That study showed that we can connect the project at a very reasonable cost. So quickly touching up on next steps for this project. We've been talking about this ongoing grid reform in the U.K. And as part of that reform, we need to apply for a revised connection offer. That application window is expected to open during the second quarter of 2025, and we are ready to submit that application once the window opens. We then expect feedback during the second half of 2025. And here, we see again that our grid-first strategy is beneficial where two projects are at the same development stage. For example, two projects at RtP, priority will be given to the project that first applied for grid. On the permit side, the next step is to prepare and submit the actual permit application, and that will then take the project from RtP towards RtP. Moving on to Germany. We're active across multiple technologies with three core pillars. We have agricultural solar projects where farming activities can continue in parallel with our solar projects. This has numerous benefits. It makes previously unavailable land available for development. So I spoke about the high-grade land under the U.K. section before, and it's similar in Germany, where certain land is protected unless you keep the farming activities going. We also see that the dual use of land increases local acceptability because you're not replacing farmland with a solar farm, you're retaining the farming business. The second pillar, traditional solar, I don't think I need to spend any time on. And finally, we have battery energy storage systems, which is currently a very hot market in Germany, in part due to the high renewable penetration. Across these 3 pillars, we expect five projects to reach RtP during 2025 and 2026. Our first two German projects are awaiting final municipality approval. So in Germany, you need an approval to reach the RtP milestone or [Foreign Language], which is the first decision of the municipality. On the back of this, we also have potential battery opportunities where we have secured the land and applied for grid, and we're awaiting grid feedback. Generally speaking, we don't see the same grid constraints in Germany, as we've seen in the U.K. But when it comes to battery connections, the situation is at least more comparable with longer lead times to connect to the grid. Looking a bit more in detail at our first 2 projects, we have finalized all the development work on these 2 projects. For our first project, we have received the go ahead from the municipality to submit the actual RtP application, and we're expecting that project to reach RtP during the first half of this year. Both these projects are agricultural solar projects. So the first category, we looked at the previous slide, and we have 100% of land secured for both those sites. Each of the project is on a single integrated site. We've touched upon the benefits of that during this Midlands project. And we've done a range of permitting and environmental studies with favorable results. And that, combined with the limited visual impact, as you will see from the renderings on the right-hand side, gives us high project acceptability. Finally, on the grid side, we have positive grid feedback result for both projects. And in Germany, you can't secure the grid until you reach the ready-to-permit application stage. So I spent most of this presentation on 2025, and we see that we now have a maturing development platform that will start delivering value to us and, more importantly, to our shareholders. As part of this, we have the first project successfully having reached RtP. We have initiated the first sales process, and we will have more sales processes following this initial process. And then we expect a range of project reach RtP during this year and next year. Looking ahead towards 2026 and beyond, we see that we are able to build on this strong foundation and transition towards long-term value creation. We will achieve that through progressing an increasing number of projects towards key development milestones. We will scale up the business for future success. And we will keep our opportunistic approach to value creation to explore any opportunity to maximize the value in this business. With that, I'll hand over to Espen for a financial update. Thank you.

Thanks, Axel. Good afternoon, everyone. We'll go through the -- we'll take a close look at our Q4 results, but we'll also look at how our planned 2025 activity will translate into financial outlook, both for results and liquidity. Before we start, I just would like to say that I hope going through the slides that you will see as we're trying to communicate that the company is in great shape financially. As you know, we have a very ideal combination of long-term cash flow generation from high-quality assets that will produce cash flow for decades to come, coupled with very material upside from our greenfield portfolio and all this being backed by a strong balance sheet. So just starting off with some details on our Q4 results before we go more into the outlook later on. We did achieve record-high power generation in Q4, 287 gigawatt hours despite voluntary curtailments as a response to periods of low and negative prices, as Dan touched upon earlier. Our achieved price for the quarter was EUR 30 per megawatt hour. That was a significant improvement relative to Q3, where we only had EUR 18 per megawatt hour, but still low price in a historical context, but we're very -- we really appreciate the recent improvement in prices, and we're also seeing that continuing into Q1 so far this year. So that -- those volumes and pricing translates then into revenues of EUR 9 million the quarter and an EBITDA, excluding certain noncash G&A items of EUR 1 million for Q4. I think it's important to keep in mind that, that reported EBITDA, excluding the noncash items of EUR 1 million, that includes EUR 2 million of Sudan legal costs. As Dan said earlier, this year 2025 will be the peak year in terms of legal costs. We expect them to be significantly lower next year and then going away altogether as the case is expected to end during first half next year. Already mentioned a strong balance sheet, and we do have ample liquidity available, which provides us with a lot of resilience and optionality. You can see that demonstrated here on the slide, year-end '24 net debt on a proportionate basis of EUR 65 million compared to a revolving credit facility of EUR 170 million, which provides us with more than EUR 100 million of available liquidity. If we then go into some of the key financial metrics on a quarterly basis a bit more in detail and comparing to the preceding quarters going back to the fourth quarter of '23. Starting with revenues on the left-hand side, you can see that our Q4 revenues were significantly improved compared to Q2 and Q3 in '23. The improvement compared to Q2 was driven by volumes as prices were quite similar. But relative to Q3, we saw a big uptick both in volumes and pricing. And you can also see that Q4 in '24 came in very close to what we achieved in Q3 '23 with a lower achieved price being almost fully offset by higher volumes, which is driven by Karskruv coming in line in late 2023. And you see the same pattern when we move to EBITDA and also CFFO prior to working capital with Q4 this year or showing a strong improvement compared to Q2 and Q3 and coming in quite close to the fourth quarter of '23. I think going forward, given the nature of onshore wind business, you should also expect the same pattern of seasonality on a quarterly basis with Q4 and Q1 being the quarters, so we typically generate most revenues where -- because we have both higher volumes and typically stronger prices during the winter months as opposed to the summer quarters of the year. Moving then to our achieved price for the fourth quarter of '24. The average system price in Q4 was EUR 31 per megawatt hour, whereas the average spot price for our portfolio was EUR 42 per megawatt hour during the same period. And this just shows you the very favorable geographic location of our assets, which typically translates into higher prices when you compare it to the Nordic average system price. For 2024, we have seen our portfolio achieving higher spot prices for every single quarter with an average premium exceeding 20% for the full year. Guarantees of origin and some hedging impact had a positive impact of EUR 1 per megawatt hour for Q4 before you then deduct the capture price discount to arrive at our all-in achieved price for the quarter of EUR 30 per megawatt hour in Q4. When it comes to the capture price discount, we did see a sequential improvement in Q4 compared to Q3 in '24, so lower capture price discount at the end of the year as compared to Q3. So Q4 being closer to the first half level, albeit for the full year '24, the capture price discount did increase compared to 2023, as you can see on the slide here. When it comes to how we look at this going forward, this is obviously driven by many moving parts and inherently challenging to forecast. But we do expect, and based on the data that we are looking at on a daily basis, we do expect capture price discount in '25 to stay quite close to what we realized in '24. But we also note that there are several energy market research consultants that do expect the capture price discount to improve or decrease significantly already from 2025 compared to what we have actually seen over the last 12 months. If you take a look at how our proportionate net debt evolved over the quarter, we entered Q4 '24 with a proportionate net debt of EUR 56 million. Then we had a CFFO, excluding working capital, of minus EUR 1.6 million, as I showed on the previous slide. We had a negative cash impact from changes in working capital of minus EUR 1.1 million during the quarter. And then our cash flow from investing activities consists of acquisitions and CapEx, CapEx being mainly investments into our greenfield portfolio. That was EUR 1.6 million in Q4. And as we have shown before and reported in our year-end report today, we did deliver in line with all our guidance or actually below on our CapEx guidance. But our CapEx for the full year then of EUR 9 million, whereas EUR 1.6 million was in Q4. And then the acquisitions that we have reported today, part of those were closed in Q4. So our cash impact on our Q4 cash flow of EUR 5.3 million during the quarter. So our total cash flow from investing activities of minus EUR 6.9 million. And then we had some other small impacts, including FX, resulting in an ending proportion of net debt of EUR 65 million as at the end of 2024. If we then shift the focus to the chart on the right-hand side, you can see the material amount of available liquidity that we have with current cash and the undrawn portion of our revolving credit facility totaling EUR 106 million. And as I said earlier in this presentation, that leads to resilience and very valuable optionality for the company and especially in the current market environment. As a result of previous year's investments and expenditures, we have -- the company has accumulated significant tax balances that we can utilize to offset future payable tax. As you can see from the slide here, it totals around EUR 500 million, split between Sweden and Finland. Corresponding quite well to also how our power generation and cash flow is split between the two countries. And that -- this results in a potential future reduction in payable tax of EUR 100 million for the company. This is a very material amount and definitely something we -- therefore, we are highlighting it, and it is -- we are good. This is important to take into account when you are estimating future cash flow generation for the company, and obviously, will lead to strong cash flow conversion for many years to come. If I then sum up into our cash flow outlook for 2025 and all the figures you see on this slide reflects our outlook and guidance for this year. So here, we are assuming power generation volume of 975 gigawatt hours. Just want to reiterate, as Daniel also said earlier, I mean, our long-term power generation capacity is indeed 1,000 gigawatt hours, but for 2025, we have chosen to reflect potential impact from voluntary curtailment into our outlook. So here, we are assuming 975 gigawatt hours based on then 3 different scenarios for achieved price, ranging from EUR 30 to EUR 50 per megawatt hour of achieved price. Keep in mind that for 2024, which I guess we can only argue was quite weak from a pricing perspective, we had an achieved price of EUR 34 for the full year as we think these are very reasonable price ranges for '25. So based on those price scenarios and the volumes, as mentioned, we expect revenues to end up between EUR 29 million and EUR 49 million for the year with a corresponding EBITDA, excluding Sudan legal costs, ranging from EUR 3 million to EUR 23 million and then EBITDA breakeven of EUR 27 per megawatt hour excluding Sudan legal costs. We have mentioned this before, we'd just like to repeat why we think it's very relevant and important, to focus on the cash flow potential for the company, excluding the Sudan legal costs. And this is obviously due to the very temporary nature of the Sudan legal costs. As I said, this year will be the peak year, significantly lower next year before going away. And then you compare that to our assets with more than 20 years of remaining technical lifetime on average before taking into account any potential from life extension or repowering, meaning that we expect these assets to generate cash flow for decades to come. Moving then to free cash flow pre-CapEx. We estimate that to range from minus EUR 2 million to plus EUR 80 million for '25 based on the mentioned price scenarios. And when rolling also in the Sudan legal costs, we estimate this to end up between minus EUR 9 million and plus EUR 11 million. And if you then add our 2025 CapEx guidance of EUR 12 million to these figures, I think it's very clear to see that even in a low price scenario, we do have ample room in our debt facility to pursue all planned activity and still maintain a very significant capacity for other potential opportunities and accretive growth opportunities that may arise. And lastly, it is important to note that this forecast fully exclude any potential impact, cash flow impact, on revenues from greenfield project sales, which we do occur -- we should do expect to occur both this year and also going forward, and obviously, can have a quite material impact on our earnings. So with that, I'll hand over to Dan for some concluding remarks.

Thanks, Espen. And I think to sum up, our strategy has remained largely unchanged since we started this company. We've focused on the lowest cost, lowest levelized cost of energy technologies, low breakeven costs, some of the cheapest power to produce. We want to maintain a strong balance sheet, and we want to continue to grow through M&A, and we want exposure to the upside from the greenfield platform. Our assets have long-life cash flows. They have long technical life and we extend to increase that over time. And greenfield project sales really is an upside that we expect to see in the coming 12 to 24 months. Strong balance sheet, organic growth in full flow across all of our countries of operation. And I think that early monetization event, I know a lot of investors and analysts have been asking about it, it really is something that we're going to start seeing in 2025. I think it's important to note on days like today where we see the market cap of the company. Today, we're around EUR 150 million market cap as a company. If we just take Karskruv and MLK, we have around 150 megawatts of installed capacity. Just to rebuild them, looking at the capital cost today, is EUR 250 million. They account for around half of our production. We have another big portion of production in the assets that Jonas looks after across the Nordics. So we have another double of that on top. We have greenfield on top of that, and we have a relatively low net debt deposition. So at this point in the market, it really feels like our valuation is disconnected from the underlying value of our assets. If we just reflect a little bit on some of the public to private transactions we've seen through the course of the last 12 months, the OX2 transaction, the Encavis transaction, the Helios solar transaction, we've seen significantly higher multiples being placed on public companies by private players than what we're seeing in public markets. So my sense today is it feels like we are close to the bottom in terms of valuation for renewable companies. And the break apart or the value of our underlying assets is significantly higher than where the market cap sits today. And I think that's important to consider as we move forward with the company. And so with that, I'll invite my colleagues to come and join us back up on stage and Jenny as well, and we'll move into Q&A.

Yes, we have received a lot of good questions online. [Operator Instructions] I thought that we should start with questions in the room. Yes, Kaleb.

Thank you. If I start out with -- you touched on this earlier, but you've acquired 50 gigawatt hours of production this year. I imagine at a price above where your own assets are trading. So why not buy back assets instead? I mean, you touched on it earlier, but given that you're trading 60-plus percent below your asset value, is there some reason we're kind of missing here as to why you haven't done it yet?

No, I think the acquisitions, we're seeing accretive acquisitions that we're stepping into. So I think we'll continue down that pathway. But as you quite rightly note, we have ample liquidity headroom in our balance sheet. We also have approval at the AGM to move into buybacks, and I think you should expect that discussion to be alive, certainly within -- in the company and management. We can't leave it alone forever, and we do see the undervaluation of the company and very much that discussion is alive.

And on the 1.9 gigawatt solar and battery project you have under ongoing sales right now, what's a reasonable price expectation per megawatt for ready-to-permit projects in the U.K. region?

So very difficult to say as the market evolves so rapidly. I think we've spent not a great deal on that project. I think the multiples on our invested capital are quite large. But there's a range of buyers of these kind of projects. Some of the buyers are developers who will take the project 100% today, with no future contingency. Other buyers would like us to carry the project through to ready to build and take it on to the next milestones. And so depending on the structure of the bid, it's very difficult to put an answer on that question that gives you an exact multiple that you can apply to value our greenfield business. But I think you should rest assured that it's multiples on the invested capital. And as soon as we have the results of this process, I think we'll share that directly to the market.

Okay. And just last one. You said you expected to diversify projects during 2025 and 2026. How many megawatts are you kind of talking on average for each respective project?

So it depends on whether you're in Germany and U.K., and you can jump in, Axel, at any point if I miss it, but we're expecting around 4 gigawatts worth of projects. So 5 German solar and a range in the U.K. And so if you take megawatts of that size, we have really large-scale projects in the U.K. and much smaller in Germany. So I think we're north of 5 projects when you add it all together and around 4 gigawatts over the next 2 years, we expect, to come to market.

Any further questions from the room?

My name is Mattias Ehrenborg from Redeye. I have a question mainly regarding to the current market environment and maybe it's directed towards you, Jonas. But as you mentioned in the beginning, you've been active in the business since the late '90s, and you said that 2024 has been maybe one of the most challenging years. Could you add some color to that? What has been the main challenges and what you see ahead? Because it's easy to get a picture from different media outlets and so on, but that discussion is maybe a bit different from what you see on a daily basis.

I mean, it's low prices, of course, high volatility. But I mean, we have seen that that's also saying that we have seen it before and it tends to change. So we expect them to recover. I mean we have seen lower quarterly market prices, I mean, system prices but achieved price from renewables taking into account capture rate discount. That's where we have seen record-low prices in some price areas. But I mean, with -- I mean, we have -- I think we have been in a position where we have built out a new capacity beforehand and betting on consumption to come. And now we see that no new investment decisions are taken. So I mean, we haven't seen any in Q2, Q3 in Sweden, don't expect any in Q4. So I mean, no investment decisions, okay, potentially that building out, I mean, the transformation of industry into electrification of larger Swedish industries will take a few more years potentially, but will happen. So I think that it's just the difference from building beforehand production capacity. And now what will happen is that we will see that will -- the outbuild might be paused a bit and we will, step-by-step, see consumption ticking up, and then we will be in a different situation, quite good for us, I mean, when we potentially see a lower supply and a higher demand. So I think it's normal in -- if you see in a larger context, but the major difference would be capture rate discounts compared to, I mean, 10 years ago when we also had periods with low prices. But I think it's the third or fourth time through the cycle where we see very low prices, meaning that we have also had 3, 4 better periods. So better periods are to come.

And if I may, another question regarding the massive product we have seen in the U.K. Typically, when you see products of these sizes, they're typically located in deserts in Arizona and now is in the East Midlands, maybe not the most sunniest part of the world. Could you elaborate a bit on why is this an attractive project?

Yes. I think if we look at irradiation across Europe, and it surprised me as well in the beginning actually, but when you look at the U.K., it's higher than you would think and that gives us good economics of a project in that site. And then I think you also referred to a better location in terms of actually realizing the project. And that area of England is not densely populated. We see that it's one of the actually hottest areas in the U.K. to develop new solar projects. The government -- the U.K. government has recently approved some projects in that area that are also large-scale several hundred megawatts of capacity. So it is a very attractive site for solar development.

I think we've got around 4 landowners for that entire parcel of solar. So it's not like we're chasing if we were to do a solar project of that size in Sweden. You can imagine how many landowners we need to get 3,000-plus acres away. So I think there's a range of things. The size of our project helps the revenue stream for landowners, really helps to get some of the really big landowners engaged. It's really condensed parcels. So it's two blocks of solar with around half one each. So I think it's -- it will be interesting to see the outcome of the process. We're waiting with bated breath as our -- as is the market on what this means for us.

I have a question directed to Jonas. You spoke about the brownfield opportunities within Slättens Vind. Will you be able to pursue those opportunities without taking full control over the company?

I guess we have 2 options. One is to try to pursue them without taking control of the company or to try to take control of the company. So in one way or the other, we will succeed, yes.

How do you view the shareholding in [indiscernible] through Slättens?

I mean, [indiscernible], Slättens, there are -- it's a number of -- I mean, our background is actually from -- it started with cooperatives and sooner to be when the first turbines where -- in Sweden where normally, I would say, both -- and the projects were realized by cooperatives and later next step was smaller ABs and so forth. So I mean, it's the same type of company with diversified assets that we have that we are interested in, but nothing specifically apart from that to say about [indiscernible], but generally speaking, that's the brownfield, more small-scaled niche acquisitions we are seeking.

How has the dialogue been with Slättens? Have they been interested in your propositions?

I mean, we are the largest owner in Slättens Vind, and we have a very good relationship with the Chairman of the Board and other shareholders. So I think it's -- I think they view it as positive. We have a market knowledge, we can change and so forth. I mean, we have ownership in -- they have ownership in turbine and wind power sites where we are not represented. So it's a good combination actually.

Just one more question. You mentioned earlier the average asset life is about 8 years, which kind of implies some of the Slitevind assets, I guess, have very few years left. So maybe this is more to you, Jonas, which assets are those? And what kind of short-term possibilities do you have to extend the asset life net with cost?

We have, I mean, 50% of the portfolio, MLK, Karskruv. So half of the production is from 2 assets and the other 50% is actually plus 45 assets. So it varies a lot. But I mean, we can do -- it's very little we can't do, if you see what I mean. We can, of course, to replace solar turbines, smaller, older turbine with new large turbines that's repowering that's very beneficial, but could also in this CapEx environment be quite expensive. So it's good to have the option to just extend lifetime, I mean, replacing main components to keep the towers and foundations and operate them for another 10, 15 years. So I think we have all options and it's very site specific from a technical point of view and from a permitting point of view as well. So it is actually to let them -- let the assets generate cash, and in parallel, just find the best long-term solution. So repowering life extension, it's very seldom that we just take them down after 30 years. That will happen, but not often.

I think it's quite a sliding scale between decommissioning all the way through to life extension. So you can end up with -- like we've done this last year, we've done a big blade campaign to extend the lifespan of a range of assets on some turbines that may not be economic on other turbines with very small changes, we can get another 5 or 10 years out. So I think you should expect us to look at that portfolio. And as we reach the end of life, we're going to make the investment decisions that make sense from full-scale repowering just to small changes, which extend the life spans.

And I think that in the end of the day, if nothing else, if we don't succeed with anything else, we can always use the grid connection to replace an old turbine with the BESS project, battery project. So it's a lot of options we can choose to operate the asset or to use the site for a very, very long period of time.

Dan, you mentioned something about the different geographies. How do you view the prospects for going into other countries? I think, in particular, you're exposed to Germany where new government feed-in tariffs are high but weren't sure that, that's going to last. How do you view the capital allocation going forward relative, in particular, the Nordics and Germany?

So I think we've got a good program both in the Nordics, Germany, U.K., and I think the capital program was still funding the greenfield business. So that should continue in the Nordics, the smaller scale M&A. The growth in greenfield projects, you should expect that to continue. And that's, to a large extent, that's roughly balanced to our cash generation. So as the greenfield projects start to deliver cash generation, that will be less capital that we need to spend and Jonas is largely redeploying cash generation. So Espen's war chest of EUR 100 million should be used at the right point to step into a third leg for the company. And that's somewhere where we're going to be spending a little bit more time as markets are weak to have a look at opportunities more broadly across Europe for growth in terms of the company. We get asked a little bit about technologies and opportunities. I think the playbook is open from greenfield projects all the way through to operating assets. But one area that we see more and more that we need to be exposed to is around the difference between a producer and consumer and how energy is traded in the middle. I think there's -- as we see more and more of our turbines going into ancillary services, battery revenue, storage, et cetera, ancillary markets, that trading is so critical when it comes to the way power markets are evolving. So we're spending a little bit of time to understand that a bit more as well.

And coming back to question on consumption. Do you see any activities in, e.g. data center generation? Or what is your view on consumption of large consumers currently, in particular in the Nordics?

Yes. So I think we have, as Jonas touched on, we have seen this big wave of green projects coming H2 greenfield, the Northvolt and others up in the northern areas, and I think that's slowing down a little bit. But we will still see electrification coming. So I do see consumption over time will follow GDP and will increase. But the dynamics between how we supply energy and consumer energy will change. You're starting to see us change already one of the first where we're restricting supply as prices come down. We need to see the demand side response. The consumption should increase heavily when prices are so low. And so we expect, again, it's going to take some time, but we expect both the supply and demand side to come more into balance to provide a floor -- somewhat a floor and a ceiling on price a little bit more. So as we touched on, I think the markets are in a very volatile phase where we're evolving on every aspect of the grid and of the market we're seeing investments in different areas. So we need to stay agile and keep some of the war chest available as we see nice opportunities to continue to grow.

Would replacing turbines at the end of life makes sense at current electricity prices?

Yes. I'll let you jump in, Jonas, but it's -- there's been no wind investment decisions made in the last probably 6 to 9 months in the Nordics. So I think that tells you something around where prices are sitting today and where the replacement cost of new turbines are. I think that needs to evolve over time. We need to see pricing pick up. But the repowering opportunities, we can extend life spans for long enough until we get to pricing where we see it attractive enough to step into it. So in my mind, in the fullness of time, we will see pricing where it absolutely makes sense. And we have to keep investing to have that opportunity. But today, it's quite challenging.

And it takes a few years to get the permitting in place and all of that. And yet again, referring to a long period in the industry, we have really seen that before as well, where you actually work with greenfield development without actually being -- if you were to invest today, it might not happen, but we know that the opportunity will occur when prices have recovered. But actually, to a more detailed answer to the question is that right now, I would say that it's more likely if we have to replace a turbine. It's more likely that we were to buy still a -- if it's an old turbine, we can still buy a larger secondhand turbine. So you could buy brand new, that could be challenging with today's pricing, but there are a lot of other opportunities to buy secondhand as well with another 15, 20 years. Maybe you don't have 30 from such an investment, but it's 25% of the price or 30% of the price. So we have options. We can do it. I'm not saying that everyone can, but we can.

And that's the Nordics. I think the greenfield business, there's still strong economics for solar across the rest of U.K., Germany and the rest of our markets.

Do we have any more questions from the room? If not, I will take a few questions from our online function. So what is your view on 2025 power prices across your key markets?

Well, I think we -- as we showed in our cash flow outlook, they represented achieved price scenarios ranging from 30% to 50%. I think I also said '24 was quite -- all agree, a challenging year in terms of achieved price. We still achieved EUR 34 on average for the full year. So hence, why we have come forward with the 30% to 50% range. We think that's a reasonable range in the current market. Especially that goes for the Nordics, where we have our power generation. And for our greenfield markets, we still see a lot of strength and the very strong prices keeping up. That's also reflected in futures pricing.

Should we expect any more asset sales in 2025?

I think everything is for sale at the right price. So we constantly keep a track on what our assets are worth. We're constantly in the market for acquisitions and divestments. So although we're not planning a sales process for anything at this stage, like the Leikanger asset last year proved, I think, if the right bids and offers are on the table, then we will act on those.

And speaking of some growth opportunities with investments in ancillary services and batteries, what is your strategy to create value from these investments? How do you see the value creation from this?

I think batteries are going to be forming a larger part of the infrastructure of the grid over time. As we see the renewable generation being more intermittent, we need some means of storing and dispatching that energy at the right point in time. So I think we -- like we do on our acquisitions, I think we look at the economics of every single investment. Battery stand-alone in the Nordics, I think economics are challenging at low pricing like they are today, but there's some opportunities for some of the larger-scale batteries there. I'd say ancillary services, certainly along our wind farms. It costs us almost nothing to put them in place. So to have that option is very, very low cost. And as we see this volatility in the market, we're generating some decent revenues out of -- certainly out of MLK. We're going to see Karskruv coming online and potentially some more assets through 2025. So where we have the technical ability to provide those services out of wind, we should be providing them.

Great. I think maybe this is for Axel to respond to. It's about the greenfield business. The sale process of the East Midland project, is it at risk of being delayed due to the grid reform? Or is there any change in timing from our side on this?

Yes. So I think since the start of this European greenfield business, we've said that we will focus on the development side and get the projects to key development milestones. And then when we reach the RtP stage, we will go out and approach the market to assess divestment options at that point in time. We're at that stage of East Midland's project and we'll see what feedback we get. There is some uncertainty introduced due to this grid reform, but it's hard to comment more when we have an ongoing process.

And on that note, are we aiming to specifically sell at R2B or are you also open to sell at R2B, ready to build?

Yes. So again, I think our plan has always been, we take the projects to key development milestones. The first such milestone is RtP, and then we approach the market. But we're also keeping our opportunistic approach to value creation. So we will definitely explore market opportunities at the RtP milestone.

Great. And then this is for Jonas maybe. Are you looking -- are you open to wind turbines from China to invest?

I don't think it's likely that we do that large scale, I don't think so. I mean, not at this point in time. But I think that what can happen, I mean, generally speaking, if we -- there are sites with -- you could have a 5 turbine, 10 turbine site with turbines both from Europe and China. And if you were to have a Chinese turbine in such a group, it could happen. It's not something we are chasing, no.

I think it's a discussion we don't have in solar. So all of the solar panels and most of the battery cells are ex China, and that is by far the cheapest provision of that technology. It's really hard to ignore. I agree with Jonas, there's the penetration of Chinese turbines into Europe isn't there today. But with CapEx around 50% of where the Western suppliers are providing turbines, I think it's something that's going to be coming more and more into the industry as we go forward, especially if we see lower pricing.

Perfect. And looking at the smaller transactions that you've done in the Nordics, you had a strategy where you're building small, small transactions. And what is the overall rationale strategy for doing this? Where do you create value from these small transactions?

We buy much cheaper than if we were to -- normally, I mean, a larger sized project, 40, 50 megawatts attracts also financial institutions and investors. And then it's hard for us to compete because we are chasing higher returns. So it's a bit more work with stepwise smaller transactions, but we find that we get more value for money. And then for sure, as we work with every day, I mean, we can buy a stake, then we want to reach majority. And in the end of the day, we prefer to own assets 100%, which can reduce OpEx. And it's -- so I think we see -- and on top of that, it is actually the growth potential that comes with these minority stakes. So we see a lot of strategic rationale in doing that.

And there seems to be a little bit of a confusion, so maybe you can clear the waters a bit. Regarding the average asset life of our operational portfolio, could you give us a more flavor on this?

I mean we have 8 years average asset age so far. And I mean that, of course, includes older turbines and newer turbines like MLK, Karskruv. So that's the average. And I mean, potentially, 30-year is a normal -- when we see that we want to technical life is normal, I would say, 30 years on a turbine. But what we are saying is that you can extend that reusing foundations, roads, electrical equipment and tower beyond 30 years as well. But I mean -- and to operate a site, you will never operate the turbine forever, that's not likely, but you can use a site forever or at least for a very, very long time.

Good. Speaking about the technology and branching out to new technologies, are we looking at nuclear as part of branching out into new areas?

Certainly, traditional nuclear is too big for us. It's not something we're looking at. I think SMRs and the modular reactors are -- they are coming to market, but we're not seeing that much penetration yet. I think it's still in the hype phase. It's not for us today.

Okay. So assuming that other Nordic power producers struggle with cash flows in '24, does this open up new M&A possibilities for the company? Or how do you see this landscape?

Absolutely. I think our favorite type of sellers are motivated seller. So we have the balance sheet to be able to step into opportunities. I think with some of the smaller-scale deals that Jonas has been able to put together. We're seeing north of 20% IRR on a reasonable long-term price and accounting for some of the short-term loans that we're seeing. So I think having a strong balance sheet in tough markets is absolutely a strong place to be.

Do you have a comment to the share price? I guess assuming the share price reaction today is what is being...

Yes. I think I made it during the presentation. I must admit we're not happy with where the share price is today. We will be working to try and rectify, and I think the valuation of the company at around EUR 150 million today just doesn't even account for some of our largest producing assets, let alone the rest of the producing asset stock, the organic growth we have, the greenfield sales. So in the fullness of time, I think we will see the share price more reflective of where the value of the company is. But I don't think we can ignore where the renewable sector is today. And unfortunately, with the investment sentiment around renewables, we are not immune to that investor sentiment.

And what do you think is the focus area for the company within the coming 2 to 3 years? Where do you see the company will be?

Yes. I think the next 2, 3 outlook is really quite simple. I think keep delivering in the Nordic business, see the cash generation out of the assets. We should keep continuing to look for accretive M&A and growing that business, both organically through greenfield and through the M&A side. We need to sell some projects in the greenfield business. We're going to see the fruits of that in the next 12 to 24 months as the first U.K. and German projects come through. Two-year time frame, we're going to see the end of the Sudan case. So that -- seeing that in the rearview mirror is going to open up the door for a lot of other investors today that are precluded from owning the stock. And then I think stepping into broader M&A and another growth leg for the company's is really important. So it feels like this year is a year where we're going to see a lot of these things really starting to come to fruition and the work we've done over the last 1 or 2 years is going to start paying off.

Thank you. We have no further questions from the audience online. Do we have anyone in the room who wish to add the final question? No? Thank you so much, everyone, for joining, both in person and online. And thank you all, our presenters, today for a great presentation. You know where to find us and send us an e-mail in case you have any further follow-up questions, and thank you for today.