Hi, and welcome to this, 1Q 2023 presentation from Cloudberry Clean Energy. We are happy to present the best quarter ever in Cloudberry's history. We have prepared a presentation for you that we will go through. Before we start on the presentation, we are also happy to have received, government's, postponement of the proposed ground rent tax earlier this morning. That will of course have some positive impact on Cloudberry's financials, in 2023 that we will dive into later in the presentation.
It's also an important signal that the government is listening to the renewable industry in Norway, and it's very important for the renewable sector to have a stable framework for the investments that we have to make to reach the climate goals and also to build out more the renewable power for the increased demand that we see in Norway. A very good start of the day for Cloudberry, and I am joined by Christian Helland, our CVO, here today, and we will go through the presentation that we have prepared for you. I will kick off and give you an introduction to Cloudberry and some of the highlights. Christian will give you a run-through of the financial numbers.
After the outlook, we will open up for Q&A. Please write your questions during the presentation, and we will try to answer as many of the questions as possible after the outlook. With that, I will dive into the presentation. We have over the last years delivered on our strategy. We have been able to build a Nordic independent power producer. We have established a platform. We have also managed to establish a wide portfolio of projects and finance the projects. We are today fully financed for one terawatt-hour of production. At the same time, we have built also a great company with a strong culture.
Delivering on the strategy, delivering on what we have said that we were going to do is important for us. As you can see here on the right side, you have an overview of our portfolio. We have today around 30 different renewable assets in production, about 100 turbines spinning and generating cash flow to the company. As you can see, we have also some projects under construction with a hydropower plant on the west coast of Norway. We have also a wind farm just outside Eskilstuna and Stockholm, they are both under construction and develop according to plan. We will see first power from those projects later in 2023, and they will be in full operation by end of H1 year, 2024.
The production portfolio and then the constructions are moving ahead as planned. In addition, we have seen that we have been able to also get more project into the backlog. We have some new hydropower projects, and we have also seen that we have managed to grow the pipeline. With now hubs both in Norway, Sweden and Denmark, we have better access to new projects and I think also going forward, you will see that we are managed to grow the portfolio on both hydro, wind, but also solar, especially in Denmark. And that will give some effect also to the overall portfolio of Cloudberry. The status per today is very positive on the project side of the company.
This is also important slide to understand how we are thinking of financing and the growth. We want to recycle more. We want to maximize the shareholder value. We have a flexible platform where we can farm down or sell development projects like we did last year on the shallow water project in Sweden. We can continue to develop the projects, make them ready to build, and also we can sell down or farm down on producing assets. That generating cash flow for new development projects in the portfolio.
We see a lot of interest from the market, both on the, on the greenfield and the project with the permit, and also of course for producing assets. We have some attractive assets that maybe we will, we will see over the year that we do kind of farm-downs or sales to fund further growth. Moving on to the highlights. I mean, we are especially proud, as I said, you can see here on the right-hand side that we have managed to deliver on what we have said that we were going to do. We have delivered on the production, increased the production, doubled that every year from 2020 to today.
We will also see that this capacity will grow in the years to come. That is important for us. That has also been the reason for why we today can deliver a tripling of the production portfolio and EBITDA that is 10 x higher than the 1Q 2022. That is proof of that we managed to deliver on our promises. If you want to dive into one particular project, it has to be the Odin portfolio. The Odin portfolio, the reason for this was to diversificate on the projects.
We see that political risk is quite large in the renewable sector, and with then three different countries, we added two new price areas. We have been able to de-risk our producing portfolio. It's also important for us to have a very strong local presence, and we have that through our partners Skovgaard Energy that we feel share many of the same values as we do. We are planning to close this transaction in Q2 this year. We have already started to work on some of the projects in the project development portfolio that we have a first right of refusal to in Denmark.
You will see that we will close the transaction in Q2, but we will also see new projects coming out of the development portfolio in Denmark. This slide many of you know. This is how we have done it. We have built a portfolio over time, starting with smaller hydro projects, and now we are looking into larger wind and hydro projects. Munkhyttan, which is the one here, with the permit, will be a project that we will take a FID on over the next quarter. Everything is now developing according to plan on that project. We have also proud that we have no health and safety incidents in 1Q in 2023. We have no material and, or environmental damages recorded.
We have a very thorough sustainability report out. You can find it on our homepage. It has of course a lot of number on our reporting on our footprint and so forth, but you'll also find some really interesting stories from our project managers on how we live sustainability on our projects on site and some things we have done to secure our sustainable footprint. That was it from me, and I'll leave now the word to Christian, who will take you through the financial, and then I will come back later. Thank you.
All right. Thank you, Anders. Hi, everyone. Yeah, jump straight into the financials. It's been another great quarter for Cloudberry. Now you really see what we said back in 2020, how the ramp-up is coming along, and you can see it both on the consolidated and proportionate figures. Again, the proportionate figure is the management reporting. As you see, 3 x increase in revenue and 10 x on the EBITDA compared to last year. Year-over-year, we really try to improve these figures and now also with Odin coming in, you will see further ramp-up in these numbers going forward. We see production increasing from 29 to 30 GWh. I'll get back to that on the next slides.
It's also nice for us to see that we capture good prices in these areas. This we mentioned earlier, but you see, for example, our larger projects in NO1 have very low correlation with wind speeds in Europe. This does that we get low cannibalization effects of our current assets. This is also comfortable to us to see that we get good prices at the right times of production. As Anders mentioned, ground tax has been delayed, and there is a good process there. The results will be net effects. Net profit will be NOK 11 million better this quarter. This is great news, obviously and helps us with especially Odal, who is generating a lot of cash here in the Oslo region.
We also report on net financials. You don't see that here, but we have, as mentioned earlier, hedged all the risk on currency. It's been large volatility on the EUR/NOK and also DKK/NOK. The full position in the Odin transaction is hedged and was hedged at favorable terms. The main number behind this hedge is financial gains for the quarter. It's been a strategy for Cloudberry all along to take away currency risk and interest rate risks on our debt. To the balance sheet, there's no big changes here. We've had the strategy and to have a very strong, robust balance sheet. As you can see, very clean balance sheet. As of today, very little interest-bearing debt that will pick up now when we close the Odin transaction.
We have a good, very good cash position, as mentioned, to take both Odin and Munkhyttan transaction. Equity keeps increasing with strong results on the P&L and other comprehensive income. Again, just we report on consolidated and proportionate. Important to say the proportionate figures include our net ownership in Forte and Odal. Again, proportionate reporting is a good way to understand our business. Here is more details driving down into the segments, and we'll get back to the production segment on the next slides. As you see, the development segment, we have no project sales this quarter, but we have strong development in the backlog and the pipeline.
Really driving forward the projects, as Anders mentioned, Sundby is going according to plan, and this is a good cooperation between development and Captiva to drive the existing Sundby project forward with nine Vestas turbines to be installed later this year. We also see a lot of spin-off effects with our new office in Eskilstuna and the access to new local projects taking advantage of good development in the region. This is very important for us. This is now over time to show that development is bringing value to the company with new projects, local projects that's not necessarily accessible to large infrastructure investors. We also have two new hydro project where Captiva has been helping us to get these assigned, and we hope to put in the concession application later this year.
At Simpevarp, we just signed an agreement with Svea Vind. For us, this really speeds up the projects, take down the costs, and also increases highly the probability of getting this project done. Really excited about this partnership. It's a large nearshore project outside the nuclear reactor in Oskarshamn, and it's also been some significant meetings with the local population there over the quarter. Very good developments on the development segment, even though it's not measurable in the short term in the financial figures. Operation segments, again, we see how well Captiva and Cloudberry works together, bringing... Captiva bringing a lot of project know-how from construction of wind. We also see they're getting new customers, external customers on their asset management part.
The digital portion is developing, adding new and favorable add-ons to the company and also aligning a lot of the reporting with the EU taxonomy, which is becoming more and more important for the renewable companies in Europe. Production segment, again, very good pickup in our production, strong prices and continuous growth in this segment. Our production volumes have been slightly lower than we expected. Prices a little bit better. It's two main factors by this. One is basically it's been a quite cold winter on the West Coast. Rivers has been frozen, especially for the Forte portfolio. You get less volumes in Q1, obviously picking up significantly now in Q2.
It's also been some weather instruments at Odal, especially in January, where you had freezing conditions which is now replaced and is hopefully working very well for the next winter. This is just to illustrate now the continuous ramp-up we see. This is showing the EBITDA for our three first years on our proportionate level, and we also see now we will get with Odin also should be coming into production, we'll get more than on an annual basis 800 GWh in production. Here we just illustrate a little the sensitivity we see on different power prices, given about 800 GWh in production.
Again, very pleased with the development for the quarter, and I give the word to Anders to spend a couple of minutes on the outlooks and summary before we head into the Q&A session. Thanks a lot.
Thank you, Christian. Hi, everyone. Yes, we feel that Cloudberry is perfectly positioned for the energy transition in the Nordics, and we have strong drivers in the EU who's pushing the energy transition. We also see that we have a massive demand in the Nordics for new renewable power. We need to settle the uncertainty around the ground rent tax in Norway, but I think also that has moved in the right direction today with the postponement of the proposal. We see that the framework, the politicians, the institutions are all eager to push the energy transition further. Also the demand side is growing.
In some price areas in Norway and Sweden, you will see a deficit of power already in 2026, 2027. All this is key to the energy transition. With our local hubs in the different countries, we see also that we managed to get more projects into the portfolio and to deliver on the demand of new production. The power price here is shown on the left-hand side. It's the long-term volume base price, and you have several of these price prognosis.
What we see, looking into, to them is that, you see a shift in power prices, from the historical quite low power prices in the Nordics to an average that is as high, as is higher, going forward. We believe also in this shift and in that way we see the positive outlook. To sum up, what we have talked about today is very much the key. We see the growth in production. We see that we can grow also the profitability.
We manage to grow the development portfolio and we are looking to dive more into the development portfolio on our capital markets day after the summer to give you better insight in the different projects and also the maturity and how we work on the development side of Cloudberry. In addition to that, we will close Odin transaction in Q2, and this is then giving us immediate cash flow from the production in Denmark. We also managed to take the projects that we have under construction to production, and we will also see new FIDs over the year, and already in the second quarter this year.
All in all, very well positioned and things are going according to plan, and we deliver on what we have promised over the years. Thank you so much for following us on this presentation. We will now move on to the questions. We have had several questions here so far, many of them relating to the tax issues, of course. Christian will now give you some answers and please send us more questions, and we will try to answer them. Thank you.
Drawing straight into the Q&A. We just took some notes here on some of the financial questions. Anders will get more back to on the strategic questions. Is it likely that you will reverse your tax proposal on Odal? Yes. The press conference started 10:45 today, we will obviously listen a little more careful with it. As it looks, it looks like we will reverse it and get significantly better numbers than expected for Odal in 2023 and also for the Cloudberry Group as a whole. As mentioned, it improved immediately our net profit with 11 million NOK in this or 1Q. We'll get back to it.
Also, again, we plan to do a press release hopefully today where we come up with a little more information about this revised or the delayed delaying and also what we see coming out from the press conference. Hopefully later today or latest tomorrow. Was also some questions about dividend. As written in the prospectus in December, there's no changes to our policy. We said that over time we plan to pay out a 30%-50% of the free cash flow from our production segment. Our board and also our new board now elected in EGM now in April, is clear that it's important for us to have a base production. This also links into the next question about PPA versus merchant pricing.
As we mentioned, to have a good diversification now of production makes it much more easy for us to make good PPAs and hedges so we don't run into shortfall risks. This has been extremely important for us to have low risk. If we do a hedging, it should be a clean and clear hedge that we don't run into actual other risks by doing this hedge. Having bigger volumes diversified in more regions between different technologies would obviously make it more attractive for us to go into longer PPAs, both long and midterm power agreements.
We see obviously industry also after low power prices, especially in Norway for 10 years, is starting to understand that there is a shift in the power curve, and we see that the dialogues are getting better and better between us as producers and the industry as buyers of power. As of today, we're still 97% merchant. Again, we're working continuously with industry to see if we can find good solutions for both the industry and Cloudberry. Anders, While I go back and read a little bit, you maybe want to comment on some of the other questions.
Yes. Thank you, Christian. I see that you covered many of the questions related to tax and PPA and, and we have one question here regarding solar power and where we do have our competence from developing solar. What we have done so far is used our in-house resources, so both Captiva through their team in Bern, and the experience they have with developing solar projects and also The competence that Skovgaard Energy has in Denmark, developing solar, that's what we have used so far.
projects and we have already come to applying for a solar project in Norway, 8 MW ground-mounted solar project in the south of Norway. We are planning then to look into more solar projects with the resources we have today and also adding more resources when we decide on going large on solar. That was the answer to that question. Christian
I also got the question here, do you plan to raise more equity? I think, on this question it's quite important to go back to Anders' second slide. For us, it's been now very important to show the organic growth. We have a clear funding plan and it's fully funded for the project ahead of us. As you see, we get a lot of interest in our assets, and now we can start using our platform to recycle the capital. For us, great flexibility with the local saving banks, so we have a good flexibility on the debt side. We have a lot of interest on asset level, on farm-downs if needed to fund new initiatives and projects.
For us now it's important to show that we create a lot of value and to build on our organic platform going forward. Okay. Then I think we've used more or less the time available. Anders and I thank you a lot for listening to us today, and hope to see you next quarter. Thanks a lot.