Hexicon Q2'24: Waiting for divestments to generate power
Hexicon's Q2 report contained no major surprises. The company is still awaiting regulatory approvals for the transfer of ownership of the key MunmuBaram project. As a result, we expect the establishment of a long-term ownership structure for the project, which could provide near-term financing and improve cash flow for project development, to be delayed until 2025. In addition, the immediate need for a cash infusion is forcing Hexicon to explore other financing options on uncertain terms. Against this backdrop, we believe that the near-term risk/reward profile is not favorable.
Hexicon is a project developer in offshore wind power, with the goal of opening up new markets in countries with deep water. The company is also a technology provider 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.
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