Norway’s Otovo secures fresh capital for growth as revenue soars

January 25 (Renewables Now) - Norway-based home solar and battery systems provider Otovo ASA (FRA:89K) on Wednesday announced yet another surge in revenue as well as having secured NOK 1.3 billion (USD 132m/EUR 121m) in fresh capital to support its growth with a focus on expanding its subscription business.

Otovo has received committed bank financing of up to a total of NOK 550 million along with an uncommitted option for the same amount from a banking consortium comprising local lenders DNB and Spb1 SR-Bank.

Additionally, the Nordic firm plans to raise NOK 200 million through a share issue that is fully guaranteed by its largest shareholder Axel Johnson AB. The private placement, which will take place after the bell on Wednesday, will be carried out at NOK 19.88 per Otovo share.

The fresh funds will be enough to build 12,500 new solar assets across Europe.

OTOVO MORE THAN DOUBLES Q4 REVENUE

In a separate statement, Otovo said its revenue more than doubled and the number of completed installations surged by a drastic 82% year-on-year in the fourth quarter of 2022.

The Norwegian business booked NOK 282 million in revenue in the last three months of 2022, compared with NOK 109 million in the same quarter a year earlier. The completed installations in the reported period stood at 2,205, up from 1,209 in the fourth quarter of 2021.

The gross profit in the reported period was two and a half times higher, standing at NOK 56 million. The company’s sales, covering 13 European countries, however, saw a 12% decrease to 1,826 units.

Otovo in the statement reaffirmed its positive outlook for the coming months, expecting to at least double its revenue during the first half of 2023.

Shares in the Norwegian firm were trading 1.98% lower at NOK 19.80 as of 1046 CET in Oslo. The company’s market capitalisation stands at about NOK 2.69 billion.

Otovo, which is currently trading its shares on Euronext Growth, on Wednesday also reaffirmed its plan to up-list on the main list of the Oslo Stock Exchange. The up-listing, however, will be delayed until February due to the abovementioned equity issue.

(NOK 10 = USD 1.013/EUR 0.933)