Extending credit facility until the end of the current year
Today, Hexicon announced an extension of the repayment and accrued interest on its current 75 MSEK credit facility until the end of 2024. While we view the news as positive, providing the company with greater flexibility regarding the timing of the important MunmuBaram divestment, we are not making any changes to our estimates or recommendation.
The credit facility, totaling 75 MSEK, was originally established on July 14, 2023, with “Wallstreet Aktiebolag,” a company within the Wallenius Group. The extension postpones the repayment date from July 12 to December 31, 2024, under the same terms, including the interest rate. However, the extension includes an added layer of security through the inclusion of Hexicon's project portfolio. As of the end of 2023, 20 MSEK of this facility had been utilized.
Extended credit facility provides more flexibility
We view the news as positive because the extended credit facility can be used to strengthen the company's working capital and enable Hexicon to continue developing its project portfolio. Furthermore, we believe that the deferred repayment of the loan provides the company with more flexibility to find the right time to divest the important MunmuBaram project. However, as the loan repayment and accrued interest are still due by the end of the current year and we still believe that the company will need additional financing, we do not make any changes to our estimates or recommendation.
In the bigger picture, we believe that Hexicon’s investment story and growth to cash flow neutrality hinges on the successful development and divestments of the project portfolio. Hexicon has invested heavily in securing and advancing 12 active projects, 3 of which are already in the late stage. The company’s focus is now on starting divesting parts of its project portfolio, which should generate a significant amount of revenue and is reflected in our estimates provided in the latest updated report. On the other hand, project divestments are subject to several uncertain factors, and we believe that the timing of divestments and the deal structure will be critical factors in determining Hexicon’s future capital needs.
Hexicon
Hexicon is a project developer in floating wind that opens up new markets in countries with deep water. The company is also a technology supplier with TwinWind, a patented floating wind design. The technology enables increased use of global wind power and can thus contribute to increased access to renewable energy. Hexicon operates in several markets in Europe, Africa, Asia and North America.
Read more on company pageKey Estimate Figures30.05
2023 | 24e | 25e | |
---|---|---|---|
Omsætning | 5,7 | 78,1 | 451,5 |
vækst-% | -50,64 % | 1.266,11 % | 478,41 % |
EBIT (adj.) | -180,3 | -87,2 | 270,7 |
EBIT-% (adj.) | -3.155,99 % | -111,65 % | 59,95 % |
EPS (adj.) | -0,51 | -0,37 | 0,58 |
Udbytte | 0,00 | 0,00 | 0,00 |
Udbytte % | |||
P/E (adj.) | - | - | 0,27 |
EV/EBITDA | - | - | 1,99 |