109 Cloudberry Annual report 2021 Financial statements Cloudberry Production (“Production”) Cloudberry Production owns long-term yield hydro and wind assets in Norway and Sweden. Revenues come mostly from power production sold on a continuous basis through bilateral agreements or through the spot market, Nordpool. Producing assets are entitled to electricity certificates and guarantees of origin. Producing assets are remotely controlled from operational centres and Cloudberry has operational agreements with local partners. Production is also the local manager and delivers management services to the Forte portfolio. The focus during 2021 has been on increasing production volumes and the construction of our new renewable projects. By year end Production had a producing portfolio of 58 MW and a secured portfolio of total 150 MW. In total, Cloudberry’s proportionate production ended at 117 GWh (21 GWh) for the year. Annual production will increase in 2022, following acquisitions made during 2021, as well as the completion of power plants which are currently under construction. Cloudberry Develop (“Develop”) Cloudberry Development has a significant on- and offshore development portfolio with renewable assets in Sweden and Norway. Since inception, ten projects have been fully developed and sold to infrastructure investors and European insurance companies. Develop is responsible for development of hydro and wind power assets from early stage until the projects receive construction permits. Going forward Cloudberry has the option to either sell or maintain in-house projects for long-term cash flow. Larger projects may be farmed down in order to diversify risk. In 2021, the main activities have been focused on growing the portfolio and moving existing projects in the portfolio forward. With the acquisition of Captiva in January 2022, further resources within hydro development have joined the Cloudberry team. Projects with construction permit increased from 151 to 160 MW per year end and has grown further in 2022 (218 MW per reporting date). Cloudberry has per year end an exclusive backlog of 370 MW (388 MW at the reporting date). The company has ongoing dialogue with landowners, municipalities and grid companies to clarify opportunities for new wind power projects. Cloudberry Clean Energy (“Corporate”) Corporate consists of the activities of corporate services, management, and group finance. There was significant corporate activity in 2021. The company has during the year listed on Oslo Børs’ main list, raised additional NOK 1 700 million in equity, increased the debt facility to NOK 1 400 million, purchased 60% of the Captiva Group and been active in the M&A market. Corporate consists mainly of Cloudberry Clean Energy ASA, the parent company accounts. Costs which are by nature related to the segments are allocated to the respective business segment. Allocated costs are mostly salaries for employees related to Production and Develop that are employed in Cloudberry Clean Energy ASA. By year end, there were five employees in the corporate segment. Cloudberry has outsourced several services in connection with Oslo Børs listing, financing and due diligence processes. The corporate management aims to remain a cost-effective, agile and dynamic team. Proportionate financials (APM) The main adjustments compared with the consolidated IFRS reported figures are that associated companies are included in the financial accounting lines, the profit or loss statement and share of assets and net debt, with the respective proportionate ownership share, while in the consolidated financials, associated companies are consolidated with the equity method. Another difference is that internal gains are eliminated in the consolidated financials but are retained in the proportionate financials. Please refer to the section Alternative Performance Measure for definitions and further reconciliations to the Group IFRS reported figures.
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