Hi, and welcome to this 2nd quarter, 1st half year, 2023 presentation from Cloudberry. We are happy to present yet another strong quarter after the summer break. I am today joined by Christian Helland, our CFO, and we will go through a presentation. We also open up for questions, so please use your Q&A function on your website. We have an agenda. I will take you through the highlights and give you an overview of the portfolio. Christian will take you through the key financials. I will come back with the outlook before we open up for answering any questions that you sent us. Let's dive into the presentation. As mentioned, we are happy to present yet another strong quarter.
Sale of our hydropower plants, we have shown the value creation that we made last quarter, and we are happy to present this strong results. And we do think it's important to see the fundamental values that we have created in our portfolio, and also our ability to execute on the projects and bringing them from early greenfield project into valuable producing assets. And on our project, on the projects, we continue to focus on delivering on executing on the projects. We have worked closely with Skovgaard on the Odin portfolio, and implemented the portfolio in Denmark into Cloudberry
We have also started to look at new projects with Skovgaard. In the Odin transaction, we have also a development agreement where we have a first right of refusal on new projects, so that goes according to plan, and we are very pleased with the development in Denmark. We have also taken a FID on Munkhyttan. We have Vestas turbines on that project, and we have just started on the construction of the wind farm in SE3. On the more mature construction projects, Sundby and Øvre Kvemma, they are also moving forward according to plan, and we have no hiccups on those projects.
We will continue to focus on, delivering on, on these projects and, and, continue our valuable, the profitable growth, going, going forward. We have also increased our debt facility with the Norwegian savings banks as earlier communicated. Just to take one step back, a little introduction to Cloudberry and our platform. Our platform here, you can see it on the left side, is covering all the project from very start, greenfield, until they are in production and under operations. That plot- platform gives us flexibility to allocate our time and, and capital to, to the... where we see the best returns.
That makes Cloudberry a bit unique that we have this flexibility, and we think that's also important to understand Cloudberry, to understand how we are working on this platform, to always focus where we can get the best returns. Our platform is also diversified. As you see here, our portfolio is diversified on different regulatory regimes, different countries. We are now present in through Scandinavia. We have also a diversified portfolio on the different price areas. Altogether, we have production in six different price areas now with the DK1 and DK2 in the portfolio.
We have also diversified that portfolio on technologies and production profiles with both the hydro and the wind that is in production. As you can see, we have also a balanced portfolio on the different countries, and that also gives us a wider with the with the hubs, both in Denmark, Norway, and Sweden, gives us also a wider opportunities for more projects, and that is is also creating a bigger diversification in the project portfolio. We see that the backlog has increased.
We have continued to focus on getting new hydro projects and wind project into the portfolio, and we are also currently working on, on more projects into the portfolio to, to increase the, the, the pipeline, but also getting them into the backlog, where we have the exclusive projects. All in all, we, we see a active market, and, and, we, we think we are perfectly positioned for going into the, to the value- most valuable projects going forward. Here also show you the, the, the growth platform as as now showed through farming down last year in one of our wind projects. We had a, a sale of 3 hydro projects, that we have this flexibility that we, we talk about.
We can develop projects in-house, we can use our M&A capabilities on interesting projects, and we can build these projects and take them into production. What we have done historically is to sit and own these producing assets, but now lately we have also farmed down and sold this project, and you can see the value creation we do here on our platform. We will focus on how we use our efficient use of our capital and maximizing the values on this growth platform. Here you see the portfolio. We have adjusted for new projects and also those projects that has been taken out of the company through the sale.
This is updated with the Munkhyttan, and you see here a nice and steady growth on the portfolio. The latest here is that Duvhällen have now got the final grid connection, and we are now looking at that project. You might recall that we have applied for a postponement of that concession, we will see how we are going to deal with that going forward. Yeah, on the ESG side, we have had no accidents, no environmental damages. Everything has moved forward according to plan, and we have, through our increased production, also increased our avoided emissions.
We did also present our Transparency Act report in July, that is on our homepage for those who wants to dive into the transparency report. Thank you so much. That was all from me for now, I give the word to Christian, who will take you through the financial numbers. Thank you.
All right. Thank you, Anders. Hi, everyone. Hope you had a very good summer. Here in Norway, it's been, been rainy and the... Of course, a lot of water over the last couple of weeks, but all our operations have been going well. For us, a very important quarter, a very strong quarter, and as we told the market before summer, now we can finally show the underlying fundamental values in our portfolio. We have sold down three out of 28 hydropower plants. So here you see a combination of, of sale of 3 hydro plants to 2 times the book value, and also increased production in our portfolio, increasing our production with 60% from last year. A very strong quarter.
As you see, EBITDA, both on consolidated and proportional levels, at NOK 281 million. We have a net profit after tax of NOK 325 million. We also have shown that our risk-reducing hedges has been doing well through a turbulent time. We've been very, very satisfied, again, to show that we can take projects from development phase, focus on the right projects in the right areas, build them, operate them, and see that private money is willing to pay historically high prices for these assets. This has been obviously known to us internally, but now also it's more visible also for the market, what type of value the market is putting on our producing assets. Yes. The balance sheet, very clean balance sheet.
We also seen still a very strong cash position, give us a lot of flexibility in a turbulent market to take on both organic and inorganic opportunities going forward. You see a significant step up in our total equity. Again, we believe the, the balance is very conservative. As mentioned, the sale of our hydro projects was 2 times the book, book value. This shows basically a conservative valuation of our existing assets. As you can see, we increased equity with about NOK 2.1 billion. This is from NOK 600 million from net profit over the period. Also, we, we raised some capital last year of NOK 800 million, and we have now included the minority shares in Odin.
A very strong development, keeping, keeping a very flexible balance sheet to, to move on internal projects, both in, in that we have now, as Anders mentioned, in, in Sweden, new opportunities in Denmark, and we also see a lot of activity generally in the Nordic market. As you're aware, also, we, we report on our proportionate debt, and this includes Odal and Forte as well. So you can see our proportionate interest-bearing debt is NOK 2.1 billion, with total assets of, of, NOK 7.5 billion. We have also a very strong relationship with our local savings banks, giving us a lot of support.
They have increased our debt facility with NOK 800 million, so we now both have a strong cash position and also a good flexibility in our, in our available debt position with our three Norwegian savings banks . Yes, here we drill down a little more in the segments. The development segment, we, we focus a lot on this. This is where we see the best return on our capital employed. This is in the development phase, where we take on and focus our time on the projects where we see the most value creation. This is typically greenfield, or early phase development, where we can add value as a local developer. This, this is where also we have some increased costs. We have more...
spend more, have more people working on this, and also then a little more cost on, employees and third parties. We also have some one-off effects with, with the 2 major transactions we did with Odin and also with the sale of our hydro plant. There's some one-off cost effects in these numbers. The operation segment has been, the numbers are obviously, you can see the numbers here, but for us, a very important part to giving us the opportunity to move projects forward, and as mentioned, on time, on budget. The Captiva transaction has helped us a lot with, with skilled personnel, helping us to move the projects forward. Also, they are added on new development projects in our hydro portfolio.
One thing is the running business, but what's not shown in the figure is what they add also on the project side and on the development side that will be bumpy. All in all, a good quarter for us. The production segment, again, here we increased it with 60%. We've only included one month from the Odin portfolio in Denmark. We see our power prices are still high at 76 øre. It was extreme last year at above 1 krone, but very strong levels compared to historical figures. We are now ramping up also our Sundby, where Vestas is coming in with the 9 turbines now shortly. The Sundby project's moving forward. Munkhyttan, as Anders mentioned, has also started construction.
We expect a, a further ramp-up in the production in, in, in the quarters to come. Here also, as mentioned, you, you see, the sale of our, our three assets, and, and again, what the value, private money is willing to put on these assets, which we think is quite interesting for, for the market to see. We also want to emphasize that this is a more and more important part of Cloudberry to, to use our platform, develop this project, either own them or farm down parts of it. This is something also that you should expect to see, in the future. Again, so it's not only the production, you should look at, but also our, ability as a company to develop projects and, and bring it forward to production.
Yeah, we'll come back to... We see a lot of good questions, but before we, we move on there, there's just a couple of comments from you on outlook and summary. Then I see we get a lot of very good questions, so just please, keep on sending them in, and we'll ask them, answer them shortly. Right.
Thank you, Christian. As Christian mentioned, thank you for sending us questions. We will try to answer as many of them as possible shortly. Before we go into the Q&A session, we will give you a short update on the outlook. As you see here, it's the price curve that we have from Volue, and we use this price curve in our work, and we have no internal price curve, but that uses Volue and also THEMA on the power price going forward. It is no significant changes from last quarter.
to remember is that most of our projects have been developed on a lower power price than you see here. Historically, we have had a lower power price in Norway over the last 10, 15, 20 years, and most of these projects have then been developed on the historic power price. So, we think it's a positive outlook. We think that there will be a demand for more renewables in the Nordics, and that will also affect the power price going forward
When it comes to our focus, we will continue to focus on getting the right projects on board, where we can use our own in-house development teams on both hydro and wind. We have also used M&A opportunities and done partnerships with other players. I think you can expect that we will continue to do more of the same, but have even a stronger focus on greenfield development projects going forward. We have a strong focus both on the hydropower side, but also on the wind side, both onshore and offshore, to build a larger portfolio....
Yeah, I, I think, on the summary, we, we, have shown a significant growth in, in, profitability through the, the sale. As mentioned, as Christian mentioned, you have to expect, more of the same, not for the time being. We are happy with what we have just done. We got a lot of interest from other players that want to, to discuss, other, opportunities with us, and, and buying more of our project. For the time being, we are, we are happy, and, and, we have a, a strong balance sheet, so we can continue developing our projects, across, the Nordics.
When, when we, when we, when we see this over some, some time, we think, we have now shown the flexibility and the importance of our platform and how we can use that to the, to the best for Cloudberry and our shareholders. Thank you so much for listening to our presentation. I have had the chance to, to look at some of the questions, so I will just answer a few of them now before Christian can come on and do some of the other questions. We have gotten several questions about the windfall tax in Norway, when we can expect news on, on the windfall tax, and what... how this affect the market here in Norway.
For the time being, it's summer holiday in the Parliament. The, the renewable sector, the renewable companies have been very clear with the, the government and that we, we need to have a, a, a framework that works for, for us and, and our new project, and, and that cannot imply a, a ground for a ground rent tax on existing wind. I think that point is, is taken, and the Parliament will resume in, in October, and I hope we can have a decision from, from the government on, on this after sometimes Q4 this year. Of course, that also affect the attractiveness of, of projects in Norway.
I had a question here, if, if, if that affects the, the market. I see... I will say yes, that's that's a lot of infra funds and other investors who are now having a focus on other, other countries in the Nordics, and especially on the wind side. When it comes to hydropower, yes, we see some opportunities, and and hydro is kind of going along as it has done earlier. So, on small hydro, we, we continue to, to see that there is attractive assets and opportunities, and also from from the international. And, and just to have another... give you another answer to, to the, the, the Capital Markets Day, yes, that's the 5th of September.
We will, we will focus on our on our strategy going forward until 2030, and we will also then dive into the development portfolio and give you much more detailed information on the portfolio and also on some of those projects that is in the portfolio. Okay, Christian, thank you.
Yes. A lot of good questions, we're scanning through here. I see several questions related to the equity position and why we have such a steep step-up in our balance sheet on equity values. First, just to comment on how this is booked, and this is quite important. It's booked at cost, so our book values are at cost, and we've just shown that the sale of the hydro plants is at two times our cost or the existing balance. First of all, just, it's important that the property plant and equipment is booked at cost and not at market value. It's conservative. We believe it's highly conservative fundamentals here. The NOK 5.0 billion figure compared to the NOK 2.9 billion figure, where is the step up?
12 months of profitability, NOK 600 million. We had the equity raise last year of NOK 800 million, and we have included Odin and the minority shares of NOK 700 million. If you sum those up, that's the step up from NOK 2.9 to NOK 5.0. Again, we believe it's, it's a lot of value in the company, and the market has shown its willingness to pay significantly higher than the booked values in the private market. Where do you see value creation going forward? This we'll try really to explain in the Capital Markets Day, but we feel in a short time we've taken a position in the Nordics.
We get a lot of, of both greenfield projects, project owners coming to us asking, "Can you help us develop this project into possible producing assets?" For us, we're a relatively small team. We have to prioritize on the projects and work on the ones where we believe we can add the most value. This is, again, in the southern parts of the Nordics, and now also we see a lot of interesting opportunities coming in Denmark. That's some comments around that. Yes, you also noticed we are merchant. Again, now with a bigger portfolio, Nordic portfolio, We always asset we need when if we're going to hedge and have hedging on our revenue, it needs to be efficient and have low risk, especially if we take on baseload hedges.
Now we have a portfolio, and we're also now have worked on, doing this on a portfolio level, reducing the total risk, and also making it more attractive with more volumes available. No, no news there yet, but it's, it's, it's something we're continuously working on, also with larger industry that's looking for, for fixed price, long-term, power purchase agreements. Power deficit, we didn't mention it in this quarter, but there is obviously new to Norway, that Norway is running into a power deficit in not too many years, and especially in the southern parts of Norway. Part of Cloudberry's mission is obviously to, to fill this with, with projects. In Norway, we focus on hydro at the moment.
In Sweden it's, it's, it's a lot of wind, in Denmark, wind and possibly also solar over time. We, we will get this. You see a deficit in, in Sweden after nuclear is taken out, for us, these are really interesting market to help fill the energy transition. This is a big part of our purpose. Question about interest rates: "You have a very low interest payment?" Yes, the short answer is, we have fixed interest rates a lot in 2021, 2022, on long-term, 10- to 20-year fixed agreements. Yes, we have low interest payments on our current situation. Odin, obviously, is a new transaction, there we are... we'll get higher interest rates. All our historical investments have long-term fixed interest rates, giving us very efficient financing.
Asking a little bit about the projects, Sundby, and when, when can you expect revenue from, from our, your projects? We're starting to lift now the Vestas turbine on, on Sundby in this fall. Again, we always want to test them, and so forth, so we said revenue generating from, from H1 next year. This is also the same we said with Kvemma. We want to test it, make sure it runs well, and, and so forth. Also from, from next in 2024, first half of 2024. Also, questions around Odin: "Is there seasonal variations?" Just to say, the, the wind, we only had one... reported one month, the wind in Europe has been very low in, in June. It's been.
It's again, there is normally lower winds in, in the summer versus the winter months. A rule of thumb is that about one third to 40% of the volumes are produced in the summer, two thirds or 60% is produced in the winter season. There is variations, and this fits quite well with our hydro portfolio that produces normally better in the summer. This is what we said over, now over the quarters, we expect more a levelized production profile. Wind is, as always, lower in the summer months, and less dense as well. A question about cash, our cash position. We are cautious with our cash. We see this can give us a lot of opportunities in the market.
We know it's a challenging market, having a strong cash position, together with a lot of flexibility with our local savings banks, give us the possibility to take advantage of local opportunities, both organic opportunities with Duvhällen now that we're starting working on. We'll move into a procurement phase over time on Duvhällen. Obviously, we haven't known news yet on expected startup of the project, but obviously now, when we recently got the grid, we're moving forward with that project, which we believe is located attractive area close to Stockholm. Anders, you maybe have picked up other-.
Yeah.
questions, but that answers some of them. Thank you.
Questions keep on coming in, so I think you must look at some of the latest questions there, and you can finish off the Q&A session when you're ready. We had some questions here concerning Duvhällen, and yes, we just got the final grid concession, and we need some more time to plan for the development of the project, and also to coordinate that with the grid owner, Vattenfall Eldistribution. So that is just important work that we need to look into during the autumn, and I think you cannot expect any FID on Duvhällen over this year.
We got a question about Finland, yes, I mean, we are cautious when we are moving into new markets. We, we started off in our own home market with hydropower in Norway, then moved into Sweden. We needed some time to get Sweden up and running. Moving into Denmark, we have the same process in Denmark. We like to have, you know, be in control over the, over the project, and also the, the, the setup and the structure. Of course, Finland is a part of the Nordics, we are, and we have looked at the opportunities there.
For the time being, we will now focus on getting to know Denmark and getting that into the portfolio in a good way. Then we had a question here: "Why did you sell the hydropower projects or the hydropower plants?" Good question. It's, it's of course, a new record price for hydropower. It's important to show the underlying value of the work we do. two out of these three hydropower plant, we were partly developing together with our partners. I think also we can see a better use or better returns on the capital developing new hydropower projects.
We have a portfolio of hydropower projects that we are currently working on, and that is far bigger than the GWh we sold on these 3 projects. We found that the time is right to show both how we can use the platform for farming down, but also sale of assets, and that can also happen going forward. That was really what I had on my list now of questions, and then Christian will take the last questions here before we say thank you.
Yes. Sorry, we are not able to answer all the questions, but a little technical questions on, on Odin. We can confirm, yes, the purchase price was NOK 2 billion for our 80% share. This also includes, it's important to mention, this includes also the land, which is not normal in these type of transactions. We think this is very interesting also with repowering giving repowering possibilities, and so forth in the future. It's also an agreement, which is why they're giving us options to step into new projects, and so forth. Yes, we confirm that number. Also quite interesting with power prices, we don't have a lot of speculations about the power prices in the future.
What we do, we use third parties when, when we do investments decisions on, on new projects, and so forth. THEMA and Volue are two providers we use. What's quite important for us is what industry is willing to pay for power, and we see obviously this is a significant change versus three years ago, versus today, what, what industry believes they have to pay for new renewable power in, in Europe. This, you see, more and more transactions from, from both, I would say, steel producers, but also, also pharmacy, a lot of, European, industry looking for green power. We believe the underlying drivers for this is very strong. Renewables has been priced down significantly, now over the last year.
The underlying drivers, we, we strongly believe in, and we also see the willingness for the industry to, to keep on paying higher prices for, for the power and securing this power for, for longer periods of time. Anders answered it with sell, sell of hydro. As the CFO, obviously, we did not plan to sell any of our hydro, but when we get these type of prices and, and also in... We see that the, the private market is willing to pay this, we see that selling down one unit can make us to produce two new ones. We, we obviously recycle this capital, so, so we can have grow the volumes faster. Both showing profitability and also giving us the opportunity to, to add on more volume quickly. Yeah.
Lots of great questions, and we're here. Hope it was interesting to hear us, and thanks so much for your time, and looking forward to see you on the Capital Markets Day on fifth of September for here in Oslo, Frøyas gate. Thank you, everyone.