Losses at floating developer Hexicon narrowed in the second quarter of the year thanks to streamlined project development activity.
The Swedish company lost Skr26.8m (€2.4m) during the last three months, compared to a deficit of Skr65.9m in the year-ago period.
The primary reason for the improved results is that expenses in the gigawatt-scale MunmuBaram project in South Korea began to be capitalised starting from the third quarter of 2023, the developer said.
The pace of development has also been reduced due to structural change in ownership, with Heixcon taking full control earlier this year from Shell, which exited the project.
The results were also positively influenced by the capitalisation in 32MW TwinHub project in the UK, which it said was developed at a reduced rate compared to the same period last year.
Meanwhile, Hexicon has extended a Skr75m credit facility until the end of the year. It is backed by Wallstreet Aktiebolag, a company within the Wallenius Group, and private investors.
“Hexicon is evaluating various necessary financing options to support the business and continue advancing prioritised projects as well as proceed with planned portfolio divestments,” it stated.
Chief executive Marcus Thor (pictured) said: “For Hexicon, the second quarter has unfolded as anticipated. Considering the relatively cool market conditions, we expected a slower pace in divestment processes.
“Additionally, we’ve noted that several market transactions have been carried out with smaller upfront payments in favour of milestone based payments.
“This is something that we consider in our processes going forward as it also provides an incentive to stay in longer in some markets. We are continually evaluating our project portfolio to set the right priorities and ensure value creation in our projects moving forward.”