Strengthening political tailwinds continue to support offshore wind markets as a growing number of countries launch ambitions, supported by industry incentives and regulatory frameworks, to increase renewable energy production, and ultimately, combat climate change.

"The third quarter has shown Aker Offshore Wind taking key strides in progressing our projects on several fronts," said Tom Selwood, Chief Financial Officer of Aker Offshore Wind. "In all our markets, we see Aker's unparalleled deep-water expertise, offshore capabilities and technologies as true differentiators. Now, more than at any time before, we are seeing policy makers put in place the structure necessary to enable the industrialisation of offshore wind."

This summer, Norwegian authorities outlined more details regarding upcoming license processes for Sørlige Nordsjø II and Utsira Nord. Post 30 September, the Bureau of Ocean Energy Management (BOEM) in the US released an offshore wind leasing path forward through 2025, which confirms the California call areas will progress towards lease auction in September 2022.

Operational highlights

Aker Offshore Wind saw positive advancements across all its markets, in addition to expanding its portfolio in the quarter. The company is currently engaged in projects in South Korea, the US, Norway, the UK, and Sweden, with an additional opportunity in Japan being finalised.

At the start of the quarter, Aker Offshore Wind submitted bids for the ScotWind leasing round together with partner Ocean Winds. The partnership has committed to invest significantly in the supply chain and in technology innovations such as subsea substations. Local content will also play a key role where two-thirds of the minimum 60 percent UK local content will come from Scotland.

During the three months to 30 September, Aker Offshore Wind expanded its portfolio when it was selected as preferred bidder along with Mainstream Renewable Power to acquire an initial 80 percent stake in Progression Energy's floating offshore wind opportunity in Japan.

In Sweden, and further to the execution of the Joint Development Agreement in March 2021, Aker Offshore Wind formed a 50-50 joint venture with Hexicon with a view to developing at least three sites for floating offshore wind. Former Swedish Finance Minister Pär Nuder and former Vattenfall executive Mikael Kramer joined the Board of Directors of the joint venture.

"We believe we have comprehensive bids for ScotWind in the UK, while in Sweden we have established a strong team to support us through the addition of Pär Nuder and Mikael Kramer. The expansion of our portfolio with a well-formed early-stage development opportunity in Japan brings with it new partners and their strengths which we believe will provide a winning combination," said Selwood.

Financial results   

Revenue for the period was NOK 6 million and EBITDA (Earnings before interest, tax, depreciation and amortisation) was negative NOK 71 million. The cash balance at the end of the quarter was NOK 268 million.

Aker Offshore Wind will present the results in a live webcast, followed by a Q&A session, today at CET 0930. Click on the following link to follow the event:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211021_7

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.