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Report for the six-month period ended 30 June 2025

Highlights

• Proportionate power generation amounted to 439 GWh for the reporting period, and in addition, the Company had 20听GWh of compensated volumes relating to ancillary services and availability warranties, bringing the total proportionate power generation, including these compensated volumes, to 459 GWh.
• In July 2025, the Company completed the sale of a 76 MW solar project in Germany for a total consideration of MEUR听4.0, with MEUR 2.0 paid at closing and the remaining consideration contingent upon municipal and legislative approvals.
• Reached the ready-to-permit milestone for a second solar project in Germany of 93 MW, and advanced seven large-scale solar and battery projects in the UK towards final grid confirmation under the ongoing grid reform.
• Entered into financial hedges covering approximately 40 percent of the second-half 2025 expected proportionate power generation volumes in the SE3 and SE4 price areas at an average price of EUR 52 per MWh.
• The Company delivered in line with expenditure guidance for the reporting period, with the exception of operating expenses which were impacted by elevated balancing costs during the first half of 2025, resulting in an increase to the Company鈥檚 full-year operating expenses guidance from MEUR 17 to MEUR 19.
  
  

Consolidated financials 鈥� 6 months

• Cash flows from operating activities amounted to MEUR -3.8.
  
  

Proportionate financials - 6 months

• Achieved electricity price amounted to EUR 36 per MWh, which resulted in a proportionate EBITDA of MEUR -3.9.
• Proportionate net debt of MEUR 77.3, with significant liquidity headroom available through the MEUR 170 revolving credit facility.

Financial Summary
Orr枚n Energy owns renewables assets directly and through joint ventures and associated companies and is presenting proportionate financials in addition to the consolidated financial reporting under IFRS to show the net ownership and related results of these assets. The purpose of the proportionate reporting is to give an enhanced insight into the Company鈥檚 operational and financial results.

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Comment from Daniel Fitzgerald, CEO of Orr枚n Energy
鈥淒uring the second quarter, we continued to focus on optimising our operational assets aiming to mitigate the effects of market volatility and increased balancing costs, while advancing our project development pipeline in Germany and the UK.

The Nordic electricity market remained challenging during the first half of 2025, with continued low electricity pricing and high balancing costs impacting the Company鈥檚 financial results. The costs related to balancing the power system have been higher than normal in 2025, largely driven by structural market reforms and increasing power generation intermittency coupled with continued low demand and we cover the background to balancing and ancillary services in the operational section of this report. As a result, we need to raise our full-year guidance for operating costs from MEUR 17 to MEUR 19. However, we are also seeing increased revenues from ancillary services, which we expect will continue to grow and help offset this increase. The largest impact from higher balancing costs has been in Finland. To mitigate this at our MLK windfarm, we commissioned an automated solution in July designed to reduce our exposure to balancing risks and costs.

Early in the third quarter we entered into financial hedges for around 40 percent of our expected proportionate power generation volumes in the SE3 and SE4 price areas for the second-half of 2025 at an average price of EUR 52 per MWh, which gives more certainty against market volatility like we have seen in previous quarters. We also have several battery projects underway, which should improve our flexibility and further strengthen our resilience in the current market environment.

Our proportionate power generation in the reporting period amounted to 439听GWh, and in addition we received compensation for 20 GWh related to ancillary services and availability warranties. Notwithstanding this, our forecast production for 2025 is expected to be at the lower end of our outlook range, primarily due to weather conditions and curtailments during low-price periods.

I am really pleased to share that we closed the sale of a 76 MW solar project at the end of July, our first sale in Germany, which marks a key milestone for this business. The total consideration for the sale is MEUR听4.0, comprising of MEUR 2.0, which was paid at closing, and a remaining consideration of MEUR 2.0, which is contingent upon municipal and legislative approvals, which we hope to see concluded in 2026. The sale represents a good return on invested capital, and we will see the impact from that reflected in our third quarter results. This transaction marks the first monetisation from our greenfield platform and demonstrates our ability to unlock value early in the development cycle. I expect this to be the first in a series of project sales, as we continue to develop and mature our greenfield pipeline.

We also made progress across the wider greenfield portfolio, where we reached the ready-to-permit milestone for a 93 MW solar project in Germany, which is expected to enter a sales process shortly. In the UK, we are advancing seven large-scale solar and battery projects toward final grid confirmation under the ongoing reform, with feedback expected in the second half of this year.

Financially strong during challenging markets
We remain in a strong financial position, with more than MEUR 90 of liquidity headroom, and have the ability to manage the pace of our investments as markets evolve. However, market conditions and increased balancing costs negatively impacted our financial performance during the quarter. Proportionate revenues and other income for the quarter amounted to MEUR听6.0, and proportionate EBITDA for the quarter was MEUR -4.3. I am encouraged to see the positive results from the ancillary services implemented at MLK, which has contributed additional revenues during the reporting period and is a key part of our strategy to improve flexibility and optimise production and revenues on our assets.

Entering a new phase
We are now three years into our journey as a renewable energy company, and with the completion of our first project sale in Germany, alongside several additional projects we plan to bring to market soon, we are entering a new phase which will further diversify and strengthen our revenue streams. Supported by a robust pipeline of greenfield projects, strong technical performance across our operational assets and a dedicated team, I am confident that we are well positioned to create sustainable, long-term value for our shareholders.

I would like to once again thank our shareholders for your continued support, and look forward to providing further updates during 2025.鈥�

Webcast
Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and presenting the latest developments in Orr枚n Energy and its future growth strategy at a webcast today at 14.00 CEST. The presentation will be followed by a question-and-answer session.

Follow the presentation live on the below webcast link:

For further information, please contact:

Robert Eriksson
Corporate Affairs and Investor Relations
Tel: +46 701 11 26 15

Jenny Sandstr枚m
Communications Lead
Tel: +41 79 431 63 68

This information is information that Orr枚n Energy AB is required to make public pursuant to the Swedish Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on 6 August 2025.

Orr枚n Energy is an independent, publicly listed (Nasdaq Stockholm: 鈥淥RRON鈥�) renewable energy company within the Lundin Group of Companies. Orr枚n Energy鈥檚 core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany, and France. With financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orr枚n Energy is in a unique position to create shareholder value through the energy transition.

Forward-looking statements
Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as 鈥渁nticipate鈥�, 鈥渂elieve鈥�, 鈥渆xpect鈥�, 鈥渋ntend鈥�, 鈥減lan鈥�, 鈥渟eek鈥�, 鈥渨ill鈥�, 鈥渨ould鈥� or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company鈥檚 control. Any forward-looking statements in this press release speak only as听of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to听update or revise any of them, whether as a result of new information, future events or otherwise.

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