Swedish floating wind technology developer Hexicon has announced a SEK 115 million (approximately EUR 11 million) impairment related to its TwinHub floating wind project in the UK.
Hexicon’s project obtained a Contract for Difference (CfD) in the UK’s fourth allocation round (AR4) in 2022, with a strike price of GBP 87.30/MWh.
In 2022, the company initiated offshore site investigations, selecting London Marine Consultants as Principal Designer for the 32 MW project and Mingyang Smart Energy as the preferred turbine supplier.
Since early 2024, Hexicon has focused on selling the project, though recent market conditions have complicated divestment efforts that would yield substantial returns.
“Divestment of the TwinHub project remains a priority, as it continues to incur costs and liabilities,” the company stated on 30 January.
The SEK 115 million impairment stems from increased inflation and supply chain costs, which have impacted the TwinHub project’s financial viability. SEK 127 million (nearly EUR 12 million) of intangible assets and goodwill were written down, with other adjustments, including revised deferred tax effects, positively impacting SEK 12 million (around EUR 1 million), totaling a net effect of SEK 115 million.
Hexicon reports that this impairment exclusively affects the TwinHub project. A control balance sheet completed on 30 January indicates that Hexicon Holding AB’s remaining projects possess sufficient surplus values to maintain the company’s equity above registered share capital.
“The impairment is disappointing and reflects years of effort for a financially orderly exit from TwinHub,” said Marcus Thor, CEO of Hexicon.
“Hexicon’s portfolio remains geographically diverse across multiple development stages. While one project is written down, others have increased in value. We focus investments on valuable, promising projects as we move towards commercialization.”
Original Story at www.offshorewind.biz