Q2 2026 Magnora ASA Earnings Call
Erik Sneve: MAGNORA ASA's H1 report and Q2 report. It has been an astonishing quarter. We have done so many things over the last year. We introduced the data center business last year, and we successfully listed it on Euronext Growth in June, raising 650 million in cash. Magnora retains 52.7% of the company, so it is a part of Magnora Group, and we consolidate the numbers. The company has already entered into a couple of letter of intents with customers and potential partners. We have increased our operating leverage quite considerably during the quarter as we have adjusted our cost structure and development activities.
Erik Sneve: MAGNORA ASA's H1 report and Q2 report. It has been an astonishing quarter. We have done so many things over the last year. We introduced the data center business last year, and we successfully listed it on Euronext Growth in June, raising NOK 50 million in cash. Magnora retains 52.7% of the company, so it is a part of Magnora Group, and we consolidate the numbers. The company has already entered into a couple of letter of intents with customers and potential partners. We have increased our operating leverage quite considerably during the quarter as we have adjusted our cost structure and development activities.
Speaker #1: ASA's first half report and quarterly second quarter report—it's been an astonishing quarter. We have done so many things over the last year. We introduced the data center business last year, and we successfully listed it on Euromarket Growth in June, raising $650 million in cash.
Speaker #1: MAGNORA retains 52.7% of the company, so it is a part of the MAGNORA Group, and we consolidate the numbers. The company has already entered into a couple of letters of intent with customers and potential partners.
Speaker #1: We have increased our operating leverage quite considerably during the quarter, as we've adjusted our cost structure and development activities. Previously, we've had NOK 25 to 35 million in OPEX in development costs, but after the adjustment through the spring, they're going to be around NOK 10 to 15 million per quarter for the renewable business, as it enters more of a harvesting phase. The marginal cost for new megawatts is quite low because of the team's productivity.
Erik Sneve: Previously, we have had 25 to 35 million in OpEx and development in cost, but after the adjustment through the spring, they are going to be around 10 to 15 million per quarter for the renewable business as it enters more of a harvesting phase, and the marginal cost for new megawatt is quite low because of the team's productivity. New sales and earn-outs will impact the bottom line directly, as will Magnora Data Center.
Erik Sneve: Previously, we have had NOK 25 to 35 million in OpEx and development in cost, but after the adjustment through the spring, they are going to be around $10 to 15 million per quarter for the renewable business as it enters more of a harvesting phase, and the marginal cost for new megawatt is quite low because of the team's productivity. New sales and earn-outs will impact the bottom line directly, as will Magnora Data Center.
Speaker #1: New sales and earn-out will impact the bottom line directly, as will MAGNORA Data Center South Africa, which is entering a harvest phase. We entered the market in January, I think, 2021, and we have multiple clusters for sale.
Erik Sneve: South Africa is entering a harvest phase. We entered the market in January, I think, 2021, and we have multiple clusters for sale, so close to 1 gigawatt, perhaps more towards 2030. South Africa is one of the fastest-growing renewable markets globally. We are very proud that our subsidiary, Magnora Data Center, was able to secure land, a building permit, and a grid connection agreement for the Hämeenlinna project close to Helsinki in less than eight months.
Erik Sneve: South Africa is entering a harvest phase. We entered the market in January, I think, 2021, and we have multiple clusters for sale, so close to 1GW, perhaps more towards 2030. South Africa is one of the fastest-growing renewable markets globally. We are very proud that our subsidiary, Magnora Data Center, was able to secure land, a building permit, and a grid connection agreement for the Hämeenlinna project close to Helsinki in less than eight months.
Speaker #1: So close to 1 gigawatt, perhaps more, towards 2030. South Africa is one of the fastest-growing renewable markets globally. We're very proud that our subsidiary, Magnora Data Center, was able to secure land, a building permit, and a grid connection agreement for the Hämeenlinna project close to Helsinki in less than eight months.
Speaker #1: It's one of our records, I think. But we're standing on the shoulders of all the experience we have in Magnora, so it's been an easy task when we find the right project.
Erik Sneve: It is one of our records, I think. We are standing on the shoulders of all the experience we have in Magnora, so it has been an easy task when we find the right project. Very happy with my team, and I would like to congratulate them. The cash position in the group is NOK 814 million. Together with the credit line, it is close to 1 billion. We have a quite low cost base, as you see. We have added new board of directors with experience from both technical and the commercial side in the data center industry, and they are thought leaders, and we gain a lot of traction from having them on board in Magnora as well as Magnora Data Center. Looking a little back at our history for the new spectator, we have returned 1 billion to shareholders over the last seven years.
Erik Sneve: It is one of our records, I think. We are standing on the shoulders of all the experience we have in Magnora, so it has been an easy task when we find the right project. Very happy with my team, and I would like to congratulate them. The cash position in the group is NOK 814 million. Together with the credit line, it is close to NOK 1 billion. We have a quite low cost base, as you see. We have added new board of directors with experience from both technical and the commercial side in the data center industry, and they are thought leaders, and we gain a lot of traction from having them on board in Magnora as well as Magnora Data Center. Looking a little back at our history for the new spectator, we have returned NOK 1 billion to shareholders over the last seven years.
Speaker #1: I'm very happy with my team, and I'd like to congratulate them. The cash position in the group is not $814 million; together with the credit line, it's close to $1 billion.
Speaker #1: And we have quite a low cost base, as you see. We've added a new board of directors with experience from both the technical and commercial sides in the data center industry, and they're thought leaders. We've gained a lot of traction from having them on board at Magnora as well as Magnora Data Center.
Speaker #1: So, looking a little back at our history for the new spectator, we've returned NOK 1 billion to shareholders over the last seven years. We've had close to a 28% annual average return for shareholders. We've created a new business from scratch—in early 2025—into a listed data center company, listed on the Oslo Stock Exchange in less than 18 months.
Erik Sneve: You have close to 28% annual average return for the shareholders. We have created a new business from scratch in early 2025 into a listed data center company. This is on Oslo Stock Exchange in less than 18 months. Let us go over the Magnora Group. The net portfolio is around 10 gigawatts. We have a very attractive data center portfolio as well in those numbers. We are in four European markets. We have raised 650 million for the data center business. If we break down the share price at the end of Q2, which was at NOK 24, you see that there was NOK 2.4 per share in cash, and the data center business valued at around NOK 9. So the renewable business in Magnora is priced at around 900 million. So that is NOK 12.4 per share, and that is the lowest number since, I think, 2019. Market update.
Erik Sneve: You have close to 28% annual average return for the shareholders. We have created a new business from scratch in early 2025 into a listed data center company. This is on Oslo Stock Exchange in less than 18 months. Let us go over the Magnora Group. The net portfolio is around 10GW. We have a very attractive data center portfolio as well in those numbers.
Speaker #1: Let's go over the MAGNORA Group. The net portfolio is around 10 gigawatts. We have a very attractive data center portfolio as well. In those numbers, we are in four European markets.
Erik Sneve: We are in four European markets. We have raised NOK 650 million for the data center business. If we break down the share price at the end of Q2, which was at NOK 24, you see that there was NOK 2.4 per share in cash, and the data center business valued at around NOK 9. So the renewable business in Magnora is priced at around 900 million. So that is NOK 12.4 per share, and that is the lowest number since, I think, 2019. Market update.
Speaker #1: We've raised NOK 650 million for the data center business. If we break down the share price at the end of Q2, which was at NOK 24, you see that there was NOK 2.4 per share.
Speaker #1: In cash. And the data center business is valued at around NOK 9 per share, so the renewable business in MAGNORA is priced at around $900 million, which is 12.4 NOK per share.
Speaker #1: And that's the lowest number since, I think, 2019. Market update: Increased geopolitical uncertainty is driving electricity prices and a quest for energy security. We think it's a perfect storm for a second green wave.
Erik Sneve: Increased geopolitical uncertainty drives electricity prices and a quest for energy security. We think it's a perfect storm for a second green wave. It's been slow, predominantly because of interest rates previously and inflation, but inflation has cooled down, and the grid connections and access to transformers are the bottleneck now. But if you look to market like the US, you see that over 90% of new energy equipment installed is from solar, BESS, and onshore wind. That's quite opposite to what you think when you read the newspapers or internet. So renewable has come for here to stay. It's very affordable, flexible power together with battery storage. Of course, it creates problems in some markets, but this can be mitigated by battery to a large extent. Looking at the South African market, it's growing considerably. Renewable share from 19% to 33% by 2030.
Erik Sneve: Increased geopolitical uncertainty drives electricity prices and a quest for energy security. We think it's a perfect storm for a second green wave. It's been slow, predominantly because of interest rates previously and inflation, but inflation has cooled down, and the grid connections and access to transformers are the bottleneck now. But if you look to market like the US, you see that over 90% of new energy equipment installed is from solar, BESS, and onshore wind. That's quite opposite to what you think when you read the newspapers or internet. So renewable has come for here to stay. It's very affordable, flexible power together with battery storage. Of course, it creates problems in some markets, but this can be mitigated by battery to a large extent. Looking at the South African market, it's growing considerably. Renewable share from 19% to 33% by 2030.
Speaker #1: It's been slow, predominantly because of interest rates previously and inflation, but inflation has cooled down. Now, grid connections and access to transformers are the bottleneck.
Speaker #1: But if you look to markets like the U.S., you see that over 90% of new energy equipment installed is from solar, BESS, and onshore wind.
Speaker #1: So that's quite the opposite of what you think when you read newspapers or the internet. So renewables have come here to stay. It's very affordable, flexible power together with battery storage.
Speaker #1: Of course, it creates problems in some markets, but this can be mitigated by batteries to a large extent. Looking at the South African market, it's growing considerably.
Speaker #1: Renewable share from 19% to 33% by 2030, so very fast growing. A little bit lumpy, difficult to time the exact timing of sales, but here you see the market in total.
Erik Sneve: Very fast-growing, a little bit lumpy, difficult to time the exact timing of sales. But there you see the market in total. Today it's 242 terawatt-hours, just shy of Norway and Sweden combined. And then with Denmark, we have 350 terawatt-hours consumption in the Nordics currently, but South Africa is moving towards 395 terawatt-hours by 2050. So Nordic may be dwarfed by the South African market. It's a very fast-growing and large energy market, and particular renewables, since they're replacing all the coal with renewable, BESS, solar, and wind. One of the largest renewable build-outs of any growth market. Business updates. Here you see the portfolio across the Magnora Group. We've done a net to Magnora based on the ownership share in Magnora Data Center. And the onshore wind portfolio has grown quite a bit, which we're happy with in South Africa.
Erik Sneve: Very fast-growing, a little bit lumpy, difficult to time the exact timing of sales. But there you see the market in total. Today it's 242 terawatt-hours, just shy of Norway and Sweden combined. And then with Denmark, we have 350 terawatt-hours consumption in the Nordics currently, but South Africa is moving towards 395 terawatt-hours by 2050. So Nordic may be dwarfed by the South African market. It's a very fast-growing and large energy market, and particular renewables, since they're replacing all the coal with renewable, BESS, solar, and wind. One of the largest renewable build-outs of any growth market. Business updates. Here you see the portfolio across the Magnora Group. We've done a net to Magnora based on the ownership share in Magnora Data Center. And the onshore wind portfolio has grown quite a bit, which we're happy with in South Africa.
Speaker #1: So today it’s 242 terawatt-hours, so just shy of Norway and Sweden combined, and then with Denmark we have 350 terawatt-hours consumption in the Nordics currently.
Speaker #1: But South Africa is moving towards 395 terawatt-hours by 2050, so the Nordics may be dwarfed by the South African market. It's a very, very fast-growing and large energy market, especially renewables, since they're replacing all the coal with renewables.
Speaker #1: BESS, solar, and wind. One of the largest renewable build-outs of any growth market. Business update: Here you see the portfolio. Across the group, we've done a net to Magnora based on the ownership share in Magnora Data Center.
Speaker #1: And the onshore wind portfolio has grown quite a bit, which we're happy with in South Africa. Then we have the earn-outs from Vinci and First Solar on the right there.
Erik Sneve: Then we have the earn-outs from VINCI and First Solar on the right there. In the renewable segment, we see a shift from growth to more harvest. We have a target of 12 gigawatts. We think we're going to reach that across the technologies, but we're not going to grow as fast as we've done previously, and we'll be more in the harvest phase. But selectively, if we come across new, very interesting opportunities, we'll, of course, look at them. A little bit about the board. Very proud to have a very good board who knows a lot about data center. We're very pleased by the work Torstein Sannes has done over the last decade for Magnora and for Magnora shareholders. As he retired, it made sense to look for experienced, seasoned data center people.
Erik Sneve: Then we have the earn-outs from VINCI and First Solar on the right there. In the renewable segment, we see a shift from growth to more harvest. We have a target of 12 gigawatts. We think we're going to reach that across the technologies, but we're not going to grow as fast as we've done previously, and we'll be more in the harvest phase. But selectively, if we come across new, very interesting opportunities, we'll, of course, look at them. A little bit about the board. Very proud to have a very good board who knows a lot about data center. We're very pleased by the work Torstein Sannes has done over the last decade for Magnora and for Magnora shareholders. As he retired, it made sense to look for experienced, seasoned data center people.
Speaker #1: In the renewable segment, we see a shift from growth to more harvest. We have a target of 12 gigawatts, and we think we're going to reach that across the technologies.
Speaker #1: But we're not going to grow as fast as we've done previously, and we'll be more in the harvest phase. But selectively, we've come across new, very interesting opportunities.
Speaker #1: We'll, of course, look at them. A little bit about the board—we're very proud to have a very good board who knows a lot about data centers.
Speaker #1: We're very pleased with the work Torstein Sandnes has done over the last decade for MAGNORA and for the MAGNORA shareholders. As he retired, it made sense to look for experienced, seasoned data center people.
Speaker #1: Well then, John has been here for a long time, but all three people—Hilde Hückelberg, who has worked a lot with AI establishments in the Nordics and in Norway in particular, and Lars Hedin, who founded and built Eco Data Center.
Erik Sneve: Hilde and John have been here for a long time, but all three people, Hilde Hukkelberg, worked a lot with AI establishments in the Nordics and in Norway in particular. Lars Schedin founded and built EcoDataCenter, very successful Swedish data center business. And Jean-François Berche, one of the key first employees in Amazon Web Services and OpenAI and Microsoft. So an excellent team who knows how to develop this business and powered and zoned land and even more. Take a look at our cost base. It has been hovering around NOK 30 million per quarter, operating costs and development costs historically, and we've been able to scale that down from last year.
Erik Sneve: Hilde and John have been here for a long time, but all three people, Hilde Hukkelberg, worked a lot with AI establishments in the Nordics and in Norway in particular. Lars Schedin founded and built EcoDataCenter, very successful Swedish data center business. And Jean-François Berche, one of the key first employees in Amazon Web Services and OpenAI and Microsoft. So an excellent team who knows how to develop this business and powered and zoned land and even more. Take a look at our cost base. It has been hovering around NOK 30 million per quarter, operating costs and development costs historically, and we've been able to scale that down from last year.
Speaker #1: Very successful Swedish data center business, and Jean-François Burke, one of the key first employees in Amazon Web Services, and OpenAI, and Microsoft. So, an excellent team.
Speaker #1: Who knows how to develop this business and power land and even more. Take a look at our cost base. It has been hovering around NOK 30 million per quarter in operating and development costs historically.
Speaker #1: And we've been able to scale that down from last year. In Q4, we had some legacy payments from the Talisk project, but as they moved out and we've made adjustments in the Norwegian, Italian, and German teams, we've seen that our new cost base is around 10 to 15 million per quarter.
Erik Sneve: In Q4, we had some legacy payments from the Talisk project. As they moved out and we've done adjustments in the Norwegian, Italian, and German teams, we'll see that our new cost base is around NOK 10 to 15 million per quarter, operating the business as you see it today. To provide more examples from South Africa, we have five clusters there we think could be for sale or be sold by 2030. Predominantly wind, solar, and BESS spread quite evenly. Wind is the highest paying, and together they provide base load in most South African projects. Quite interesting combination, and that's been part of our origination strategy and development strategy since the start.
Erik Sneve: In Q4, we had some legacy payments from the Talisk project. As they moved out and we've done adjustments in the Norwegian, Italian, and German teams, we'll see that our new cost base is around NOK 10 to 15 million per quarter, operating the business as you see it today. To provide more examples from South Africa, we have five clusters there we think could be for sale or be sold by 2030. Predominantly wind, solar, and BESS spread quite evenly. Wind is the highest paying, and together they provide base load in most South African projects. Quite interesting combination, and that's been part of our origination strategy and development strategy since the start.
Speaker #1: Operating the business as you see it today—to provide more examples from South Africa, we have five clusters there. We think they could be for sale or be sold by 2030.
Speaker #1: So predominantly wind and solar, and they're spread quite evenly. Wind is the highest paying, and together they provide baseload in most South African projects.
Speaker #1: So, quite an interesting combination, and it's been part of our origination strategy and development strategy since the start. We entered the market in 2021, as I've said before, and it takes three to five years to mature a good wind project.
Erik Sneve: We entered the market in 2021, as I've said before, and it takes three to five years to mature a good wind project, a little shorter for solar, and much less for BESS since it's less footprint. The structural demand is exceptional. The grid is being built out at a quite high pace. They have a national plan for 14,500 kilometers of new lines. It takes three to five years to secure a project, as I said, so the entry barriers are really high. We have around 19 employees in this team, and we're very proud of the results they've achieved so far. The data center business went from zero start of 2025 to NOK 1.3 billion, a little over, since early 2025 till today. We've done multiple transactions, signed land in various markets, four different countries with local teams supporting the projects.
Erik Sneve: We entered the market in 2021, as I've said before, and it takes three to five years to mature a good wind project, a little shorter for solar, and much less for BESS since it's less footprint. The structural demand is exceptional. The grid is being built out at a quite high pace. They have a national plan for 14,500 kilometers of new lines. It takes three to five years to secure a project, as I said, so the entry barriers are really high. We have around 19 employees in this team, and we're very proud of the results they've achieved so far. The data center business went from zero start of 2025 to NOK 1.3 billion, a little over, since early 2025 till today. We've done multiple transactions, signed land in various markets, four different countries with local teams supporting the projects.
Speaker #1: A little shorter for solar, and much less for BESS since it has a smaller footprint. The structural demand is exceptional. The grid is being built out at quite a high pace.
Speaker #1: They have a national plan for 14,500 km of new lines. It takes three to five years to secure a project, as I said. So the entry barriers are really, really high.
Speaker #1: So we have around 19 employees in this team, and we're very proud of the results they've achieved so far. The data center business went from zero at the start of 2025 to $1.3 billion—a little over—from early 2025 till today.
Speaker #1: We've done multiple transactions, signing land in various markets in different countries, with local teams supporting the projects. We received our first firm grid connection yesterday in Finland.
Erik Sneve: We received our first firm grid connection yesterday in Finland. Very proud of the team's achievements, as I said. Established a joint venture with Blix Group here in Oslo, also co-owner on Storespeed. We have a lot of origination activity now, and I think the fall will be very exciting for the data center business for Magnora, as customers are also interested in many of these sites. Give you an example. Data center project in Finland. We met the team end of 2025. Zoning was completed, made concept design, building permit, grid connection agreements acquired, went from 70% to 100%. Signed up letter of intent with district heating company, with utility, backup power, additional electricity, all in eight months. You see the land on the picture. It's in an area near a recycling business, so no neighbors are going to be offended by this facility.
Erik Sneve: We received our first firm grid connection yesterday in Finland. Very proud of the team's achievements, as I said. Established a joint venture with Blix Group here in Oslo, also co-owner on Storespeed. We have a lot of origination activity now, and I think the fall will be very exciting for the data center business for Magnora, as customers are also interested in many of these sites. Give you an example. Data center project in Finland. We met the team end of 2025. Zoning was completed, made concept design, building permit, grid connection agreements acquired, went from 70% to 100%. Signed up letter of intent with district heating company, with utility, backup power, additional electricity, all in eight months. You see the land on the picture. It's in an area near a recycling business, so no neighbors are going to be offended by this facility.
Speaker #1: Very proud of the team's achievements, as I said. We established a joint venture with Blix Group here in Oslo. We are also co-owners of StorSpeed. We have a lot of origination activity now, and I think the fall will be very exciting for the data center business for Magnora, as customers are also interested in many of these sites.
Speaker #1: Giving example, data center project in Finland. We met the team end of 2025, zoning was completed, made concept design, building permit, grid connection agreements, acquired went from 70% to 100%, signed up letter intent with district heating company with utility, backup power, additional electricity, all in eight months.
Speaker #1: You see the land in the picture. It's in an area for recycling businesses, so no neighbors are going to be offended by this facility. And the municipality is just adorable.
Erik Sneve: The municipality is just adorable. They would like to create a lot of new business in Hämeenlinna, and data center is one part of the businesses they're interested in looking at. We initially planned the site to be 120-megawatt site, but because servers have become more dense, we see that it's an opportunity to develop this site much further. We're in discussions with local partners on how we're going to do that and develop this as a campus over time and potentially a phase 3 as well. Other markets sales processes have been protracted over the last years because of high inflation and high interest rates, and also ability to access transformers and new transmission lines. We think all these metrics are improving, and we have noticed a sustained and renewed interest for solar projects, even in Norway.
Erik Sneve: The municipality is just adorable. They would like to create a lot of new business in Hämeenlinna, and data center is one part of the businesses they're interested in looking at. We initially planned the site to be 120-megawatt site, but because servers have become more dense, we see that it's an opportunity to develop this site much further. We're in discussions with local partners on how we're going to do that and develop this as a campus over time and potentially a phase 3 as well. Other markets sales processes have been protracted over the last years because of high inflation and high interest rates, and also ability to access transformers and new transmission lines. We think all these metrics are improving, and we have noticed a sustained and renewed interest for solar projects, even in Norway.
Speaker #1: They would like to create a lot of new business in Hämeenlinna, and data centers are one part of the businesses they're interested in looking at.
Speaker #1: We initially planned the site to be a 120-megawatt site, but because servers have become more dense, we see that it's an opportunity to develop this site much further. We're in discussions with local partners on how we're going to do that and develop this as a campus over time, and potentially a phase three as well.
Speaker #1: In other markets, sales processes have been protracted over the last few years because of high inflation, high interest rates, and also the limited ability to access transformers and new transmission lines. We think all these metrics are improving.
Speaker #1: And we have noticed sustained and renewed interest for solar projects, even in Norway. We're working on a transaction in the UK with a solar investor.
Erik Sneve: We're working on a transaction in the UK with a solar investor. In Germany, we have sales dialogues on a few projects. The Italian BESS auction is coming up, and we hope to have our projects ready by that. Also supply chain clarifications are required for the Talisk project. All in all, we see that there will be more transformers available over the next few years and substations. We think the market will improve as interest rates have stabilized and inflation have come down quite considerably. Regarding the value chain, we've spoken about this many times, so I won't spend too much time. We are a matrix organization, and we staff teams according to the underlying mega processes.
Erik Sneve: We're working on a transaction in the UK with a solar investor. In Germany, we have sales dialogues on a few projects. The Italian BESS auction is coming up, and we hope to have our projects ready by that. Also supply chain clarifications are required for the Talisk project. All in all, we see that there will be more transformers available over the next few years and substations. We think the market will improve as interest rates have stabilized and inflation have come down quite considerably. Regarding the value chain, we've spoken about this many times, so I won't spend too much time. We are a matrix organization, and we staff teams according to the underlying mega processes.
Speaker #1: In Germany, we have sales dialogues on a few projects, and the Italian Bests Auction is coming up. We hope to have our projects ready by that time.
Speaker #1: And also, supply chain clarifications are required for the Talisk project. But all in all, we see that there will be more transformers available over the next few years.
Speaker #1: And substations, so we think the market will improve as interest rates have stabilized and inflation has come down quite considerably. Regarding the value chain, we've spoken about this many times, so I won't spend too much time.
Speaker #1: But we're a matrix organization, and we staff teams according to the underlying mega processes. We have a good capital base, so we're able to mature and develop projects, and we sell them before they're built—so, before they're ready to build stage, for the new reader.
Erik Sneve: We have a good capital base, so we're able to mature and develop projects, and we sell them before they're built, so before they're ready to build stage for the new reader. We have active project portfolio and execution. We know that in data center, we need more capital. You need capital for the grid connection fees and the deposits, large projects. You need to do geotechnical surveys. You need to get the building permits. Per project, it's a little more expensive than solar and BESS. So we need a solid balance sheet, and you need the speed and execution, and that's what we've shown we can do many, many times, and you need flexibility in the value chain. We have the edge portfolio on the data center side when we see good small opportunities, try to build a network of development projects in the Oslo region.
Erik Sneve: We have a good capital base, so we're able to mature and develop projects, and we sell them before they're built, so before they're ready to build stage for the new reader. We have active project portfolio and execution. We know that in data center, we need more capital. You need capital for the grid connection fees and the deposits, large projects. You need to do geotechnical surveys. You need to get the building permits. Per project, it's a little more expensive than solar and BESS. So we need a solid balance sheet, and you need the speed and execution, and that's what we've shown we can do many, many times, and you need flexibility in the value chain. We have the edge portfolio on the data center side when we see good small opportunities, try to build a network of development projects in the Oslo region.
Speaker #1: So, we have an active project portfolio in execution. We know that in data centers, we need more capital. You need capital for the grid connection fees and the deposits—large projects.
Speaker #1: You need to do geotechnical surveys. You need to get the building permit. So, per project, it's a little more expensive than solar and BESS.
Speaker #1: So, we need a solid balance sheet, and you need the speed and execution. That's what we've shown we can do many, many times.
Speaker #1: And you need flexibility in the value chain. So, we have the edge portfolio on the data center side. When we see good, small opportunities, we try to build a network of development projects in the Oslo region.
Speaker #1: And then, with the balance sheet, we have flexibility in our approach to monetizing each project. And when we see that a project is dead, we're not afraid to shut it down.
Erik Sneve: With the balance sheet, we have flexibility on the approach to monetize each project. When we see a project is dead, we're not afraid to shut it down. Magnora Data Center, shortened timelines in a similar fashion, but here we sell on a specific date. People want to go in the market, let's say H1 2028, H2 2028, or H2 2029. That's really important, and we align all business processes. We spend money, and we de-risk the project. We have a very good relationship with a few EPC vendors who are helpful when we discuss the project opportunity, the land, and the permit, and strong control over long lead critical items. That's what create integrity and trust in a sales process. As we've done many times before, we probably want to make early sales. I cannot promise when.
Erik Sneve: With the balance sheet, we have flexibility on the approach to monetize each project. When we see a project is dead, we're not afraid to shut it down. Magnora Data Center, shortened timelines in a similar fashion, but here we sell on a specific date. People want to go in the market, let's say H1 2028, H2 2028, or H2 2029. That's really important, and we align all business processes. We spend money, and we de-risk the project. We have a very good relationship with a few EPC vendors who are helpful when we discuss the project opportunity, the land, and the permit, and strong control over long lead critical items. That's what create integrity and trust in a sales process. As we've done many times before, we probably want to make early sales. I cannot promise when.
Speaker #1: MAGNORA data center, shortened timelines, in a similar fashion, but here we sell on a specific date. People want to go in the market, let's say, first half '28, second half '28, third, second half '29.
Speaker #1: So that's really important. And we align all business processes, we spend money, and we de-risk the project. We have a very good relationship with a few EPC vendors.
Speaker #1: We're helpful when we discuss the project opportunity, the land, and the permit, and maintain strong control over the long-lead, critical items. That's what creates integrity and trust in a sales process.
Speaker #1: And as we've done many times before, we probably want to make early sales. I cannot promise when. On the data center side, we have a big watch list.
Erik Sneve: On the data center side, we have a big watch list. We have flexibility. We look for local people with integrity. We don't have any expensive stuff on our balance sheet, and we diversify. We're in four markets, and I think we're going to be in another market in data center within maybe the end of the quarter. So exciting times to have that. We follow strategy of simple rules in our day-to-day business. Regarding the financials, here you need to remember that the data center business is consolidated on 100% basis in these numbers. Operating profit and loss was -36.4 million in Q2, and net profit approximately the same. Paid-in capital NOK 6.9 billion, most of the costs allocated to the data center business in the group. Cash flow, you see the net financing, net investment, and the cash from the start of the quarter.
Erik Sneve: On the data center side, we have a big watch list. We have flexibility. We look for local people with integrity. We don't have any expensive stuff on our balance sheet, and we diversify. We're in four markets, and I think we're going to be in another market in data center within maybe the end of the quarter. So exciting times to have that. We follow strategy of simple rules in our day-to-day business. Regarding the financials, here you need to remember that the data center business is consolidated on 100% basis in these numbers. Operating profit and loss was -36.4 million in Q2, and net profit approximately the same. Paid-in capital NOK 6.9 billion, most of the costs allocated to the data center business in the group. Cash flow, you see the net financing, net investment, and the cash from the start of the quarter.
Speaker #1: We have flexibility. We look for local people with integrity. We don't have any expensive assets on our balance sheet, and we diversify. We're in four markets, and I think we're going to be in another market—data centers—maybe by the end of the quarter.
Speaker #1: So, exciting times ahead, but we follow strategy as simple rules in our day-to-day business. Regarding the financials, here you need to remember that the data center business is consolidated on a 100% basis.
Speaker #1: In these numbers, the operating profit and loss was negative 36.4 million in the second quarter, and net profit was approximately the same. Paid-in capital was 6.9 billion.
Speaker #1: Most of the costs are allocated to the data center business in the group. Regarding cash flow, you see the net financing, net investment, and the cash from the start of the quarter.
Speaker #1: And we're now above 800 million in the group with the credit facilities. We're at 964 million, so we're really, really proud of that. Here you see our total portfolio distribution outlook at the end of Q2.
Erik Sneve: We are now above 800 million NOK in the group. With the credit facilities, we are at 964 million NOK, so we are really, really proud of that. Here you see our total portfolio distribution outlook at the end of Q2. We have sellable projects in all categories. We are working actively and very hard in all categories, and we hope to be able to make one or two transactions by the end of the quarter. In total, our portfolio stands above 10,000 megawatts, and we have a goal of 12,000 megawatts by the end of the year, which we think is achievable. The focus ahead, 12 gigawatts portfolio by end of 2026, continue as an active shareholder of Magnora Data Center. We get a lot of unsolicited interest for the company. We are discussing JVs, we are discussing project sales, we are discussing new origination.
Erik Sneve: We are now above 800 million NOK in the group. With the credit facilities, we are at 964 million NOK, so we are really, really proud of that. Here you see our total portfolio distribution outlook at the end of Q2. We have sellable projects in all categories. We are working actively and very hard in all categories, and we hope to be able to make one or two transactions by the end of the quarter. In total, our portfolio stands above 10,000 megawatts, and we have a goal of 12,000 megawatts by the end of the year, which we think is achievable. The focus ahead, 12 gigawatts portfolio by end of 2026, continue as an active shareholder of Magnora Data Center. We get a lot of unsolicited interest for the company. We are discussing JVs, we are discussing project sales, we are discussing new origination.
Speaker #1: We have sellable projects in all categories. We're working actively and very hard in all categories, and we hope to be able to make one or two transactions by the end of the quarter.
Speaker #1: In total, our portfolio stands above 10,000 megawatts, and we have a goal of 12,000 megawatts by the end of the year, which we think is achievable.
Speaker #1: The focus ahead: a 12-gigawatt portfolio by the end of 2026. We will continue as an active shareholder of Magnora Data Center. We get a lot of unsolicited interest for the company.
Speaker #1: We're discussing JVs, project sales, and new origination. We have maintained a very strict project development and cost discipline at Magnora historically. We say no to 9 out of 10 opportunities.
Erik Sneve: We have a very strict project development and cost discipline in Magnora historically. We say no to nine out of 10 opportunities, probably more. We execute on our project development. We have dedicated portfolio managers to follow up each project and group company, and we try to sell the projects in the range we have guided previously. We think the renewable market, in particular, will be much healthier going forward. The exact timing of it is hard to say, but when you see to the US market where 92% of all new energy is renewable, we think we have a very attractive portfolio in many markets, and we have money to develop and mature our early-stage and mid-stage projects. We are going to continue selling and developing value for our shareholders through also new initiatives we have not discussed today, but we have many interesting projects going on.
Erik Sneve: We have a very strict project development and cost discipline in Magnora historically. We say no to nine out of 10 opportunities, probably more. We execute on our project development. We have dedicated portfolio managers to follow up each project and group company, and we try to sell the projects in the range we have guided previously. We think the renewable market, in particular, will be much healthier going forward.
Speaker #1: Probably more. We execute on our project development. We have dedicated portfolio managers to follow up on each project and group company. And we try to sell the projects in the range we've guided previously.
Speaker #1: And we think the market, the renewable market in particular, will be much healthier going forward. The exact timing of it is hard to say.
Erik Sneve: The exact timing of it is hard to say, but when you see to the US market where 92% of all new energy is renewable, we think we have a very attractive portfolio in many markets, and we have money to develop and mature our early-stage and mid-stage projects. We are going to continue selling and developing value for our shareholders through also new initiatives we have not discussed today, but we have many interesting projects going on. With that, I would like to thank for the support and the interest for Magnora. Wish you all a good day, and thank you very much.
Speaker #1: But when you look at the US market, we're in 92% of all new energy renewables. We think we have a very attractive portfolio in many markets.
Speaker #1: And we have monitored, developed, and matured our early-stage and mid-stage projects. And we're going to continue selling and developing value for our shareholders.
Speaker #1: Through also new initiatives—which we haven't discussed today—we have many, many interesting projects going on. And with that, I would like to thank you for the support and the interest in MAGNORA.
Erik Sneve: With that, I would like to thank for the support and the interest for Magnora. Wish you all a good day, and thank you very much.
