Operational Company
Holding Company
Power plant
Note 01\tSummary of significant accounting policies
The consolidated financial statements of EAM for the year ending 31 December 2023 were authorised for issuance by the board on 30 April 2024.
EAM is a public limited liability companyincorporated and domiciled in Norwaywith registered office at Cort Adelers gate 33, NO-0254 Oslo, Norway. The Company was founded on 5 January 2011 and listed on the Oslo Stock Exchange under the ticker \u201cEAM\u201d in 2013. EAM Solar ASA is the parent company of the Group. The primary business activity of EAM is both to own solar photovoltaic power plants and sell electricity under long-term fixed price sales contracts, and to pursue legal proceedings to restore company values. EAM was structured to create a steady long-term dividend yield for its shareholders. Following the P31 Acquisition, the main value of EAM is dependent on the future outcome of litigation activities.
EAM currently owns 4 photovoltaic power plants through a holding company and 2 subsidiaries in Italy. The Company has no employees.
01.01\tBasis for preparation of the financial statement
The EAM Group\u2019s consolidated financial statements have been prepared in accordance with IFRS Accounting standards as adopted by the EU and mandatory for financial years beginning on or after 1 January 2023.
The consolidated financial statements are based on historical cost. In addi-tion, interest rate swaps used for hedging is measured at fair value.
The consolidated financial statements have been prepared based on uniform accounting principles for similar transactions and events under similar circumstances.
The Group\u2019s presentation currency is Euro (EUR) and the parent company\u2019s functional currency is Norwegian Krone (NOK). Most of the Group\u2019s revenue and cost are in Euro, thus the group accounts are presented in Euro. Balance sheet items in the Group companies with a functional currency other than EUR are converted to Euro by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period.
The financial statements and annual report are prepared under the assump-tion of going concern. However, although the Company\u2019s asset base and operating revenues covers ordinary operations, administration and service of operating assets debt obligations, the Company\u2019s liquidity is strained due to the significant legal costs relating to the litigation activities. See note 23for more information. The board and manager are placing all their effort into operating the Company in a prudent manner, pending the legal proceedings that is expected to ultimately solve the situation for EAM.
01.02\tConsolidation principles
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries on 31 December 2023.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealised gains, and losses resulting from intragroup transac-tions and dividends are eliminated in full.
The acquisition method is applied when accounting for business combi-nations. A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:
\u2022Derecognises the assets (including goodwill) and liabilities of the subsidiary.
\u2022Derecognises the carrying amount of any non-controlling interest.
\u2022Derecognises the cumulative transaction differences recorded in equity.
\u2022Recognises the fair value of any investment retained.
\u2022Recognises any surplus or deficit in profit or loss.
\u2022Reclassifies the parent\u2019s share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate.
01.03\tUse of estimates in the financial statements
Management has used estimates and assumptions that have affected assets, liabilities, incomes, expenses, deferred tax asset and information on potential liabilities.
Future events may lead to estimates being changed and estimates and their underlying assumptions are reviewed on a regular basis. Changes in accounting estimates are recognised during the period when the changes take place. If the changes also apply to future periods, the effect is accounted for prospectively. See also note 4.
01.04\tForeign currency
The Group\u2019s consolidated financial statements are presented in EUR. Each entity in the Group determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency.
Transactions in foreign currency
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a foreign currency are translated into the functional currency using the exchange rate applicable at the end of the reporting period.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchanges at the date when the fair value is determined. Change in exchange rates are recognised in the statement of comprehensive income as they occur during the accounting period.
Foreign operations
On consolidation, the assets, and liabilities of operations with a functional currency other than the EUR are translated to EUR at the rate of exchange prevailing at the reporting date and their statements of comprehensive income are translated at exchange rates prevailing at the dates of the trans-actions.
The average exchange rates are used as an approximation of the transaction exchange rate. The exchange differences arising on translation for consolida-tion are recognised in other comprehensive income. On disposal of a foreign
operation, the accumulated translation differences relating to the subsidiary are recognised in the statement of comprehensive income.
Translation differences arising from the translation of a net investment in foreign operations are specified as translation differences in the statement of equity.
01.05\tRevenue recognition
Revenue is recognized when a customer obtains control of the goods or services.
Sale of solar power
EAM owns and operates four solar power plants in Italy, which generate electricity. Revenue from the sale of electricity is recognised in the statement of comprehensive income once delivery has taken place and the risk and return have been transferred.
All EAM\u2019s electricity sales are made under 20-year sale agreements in the feed-in-tariff (FIT) scheme, with the Italian renewable energy authority Gestore Servizi Energetici (GSE) as commercial counterparty.
In 2022 the Italian authorities set a limit on the market price to be realised for renewable energy and made the reductions applicable for companies with FIT contracts. More information on the Sostegni Ter Decree can be found under Financial Review above.
In previous years, the fixed price sales contracts (FIT) accounted for approximately 80 per cent of revenues, with electricity sales at market prices accounting for approximately 20 per cent. This was substantially changed in 2022 following the increase of market prices. In 2023 the FIT revenues accounted for approximately 56 per cent and market price revenue accounted for approximately 44 per cent of the revenue, prior to taking reduction under the Decree into consideration.
Market price contracts are renewed yearly.
Interest income
For all financial instruments measured at amortised cost, interest income or expense is recorded using the effective interest rate (EIR), which is the rate which exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the statement of comprehensive income.
01.06\tSegments
The Group owns and operates four solar PV power plants in Italy as of year-end 2023 and thus only one segment both geographically and nature wise. Further information relating to segments is presented in note 9.
01.07\tIncome tax
Income tax consists of tax payable and changes to deferred tax. Deferred tax liability/tax asset is calculated on all differences between the carrying and tax value of assets and liabilities, except for temporary differences related to investments in subsidiaries where the Group controls when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Deferred tax assets are recognised when it is probable that the company will have a sufficient profit for tax purposes in subsequent periods to utilise the deferred tax asset. The companies recognise previously unrecognised deferred tax assets to the extent it has become probable that the company can utilise the deferred tax asset. Similarly, the company will reduce a deferred tax asset to the extent that the company no longer regards it as probable that it can utilise the deferred tax asset.
Deferred tax liability and deferred tax asset are measured based on the expected future tax rates applicable to the companies in the Group where temporary differences have arisen.
Deferred tax liability and deferred tax asset are recognised at their nominal value and classified as non-current asset investments (long-term liabilities)
in the balance sheet. Tax payable and deferred tax are recognised directly in equity to the extent that they relate to equity transactions.
01.08\tProperty, plant, and equipment
All property, plant, and equipment (including solar power plants) are valued at their cost less accumulated depreciation and impairment. When assets are sold or disposed of, the carrying amount is derecognised and any gain or loss is recognised in the statement of comprehensive income.
The cost of tangible non-current assets is the purchase price, including taxes/duties and costs directly linked to preparing the asset for its intended use. Costs incurred after the asset is in use, such as regular maintenance costs, are recognised in the statement of comprehensive income as incurred, while other costs expected to provide future financial benefits are capitalised.
Depreciation is calculated using the straight-line method over the following useful lives:
\u2022Movers, modules, and cable connectors 20 years
\u2022Land lease rights 25 years
The depreciation period and method are assessed each year. A residual value is estimated at each year-end, and changes to the estimated residual value are recognised as a change in an estimate.
01.09\tLeases
The Group has adopted IFRS 16 from 1 January 2019. The standard replaces IAS 17 \u2018Leases\u2019 and for lessees eliminates the classifications of operating leases and finance leases.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity\u2019s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
01.10\tClassification and measurement of financial assets and liabilities
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 60 days for the feed-in-tariff contracts, and 15 days for the market price contracts.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
01.11\tCash and cash equivalents
Cash includes cash in hand, at the bank or cash seized by the Prosecutors Office of Milan.
Cash equivalents are short-term liquid investments which can be immedi-ately converted into a known amount of cash and have a maximum term to maturity of three months.
01.12\tEquity
Costs of equity transactions
Transaction costs directly related to an equity transaction are recognised directly in equity after deducting tax expenses.
01.13\tProvisions
A provision is recognised when the Group has an obligation (legal or constructive) because of a previous event, it is probable (more likely than not) that a financial settlement will take place because of this obligation, and the size of the amount can be measured reliably. If the effect is considerable,
the provision is calculated by discounting estimated future cash flows using a discount rate before tax which reflects the market\u2019s pricing of the time value of money and, if relevant, risks specifically linked to the obligation.
Restructuring provisions are recognised when the Group has approved a detailed, formal restructuring plan and the restructuring has either started or been publicly announced.
Provisions for loss-making contracts are recognised when the Group\u2019s estimated revenues from a contract are lower than unavoidable costs that were incurred to meet the obligations pursuant to the contract.
01.14\tContingent liabilities and assets
Contingent liabilities are not recognised in the annual accounts. Significant contingent liabilities are disclosed, except for contingent liabilities that are unlikely to be incurred.
Contingent assets are not recognised in the annual accounts but are disclosed if there is a certain probability that a benefit will be added to the Group.
01.15\tCurrent/non-current classification
Assets and liabilities are presented based on current and non-current classification.
An asset is classified as current when it is expected to be sold or utilised or sold in the consolidated entity\u2019s normal operating cycle, or within 12 months after the reporting period, all other assets are classified as non-current.
A liability is classified as current when it is expected to be paid in the consoli-dated entity\u2019s normal operating cycle or within 12 months after the reporting period, all other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
01.16\tDerivative financial instruments and hedging activities
Derivatives at fair value not classified as hedging instruments are carried in the statement of financial position at fair value with net changes in fair value in profit and loss statement.
The categories include foreign exchange contracts and interest rate swaps.
01.17\tEarnings per share
Earnings per share are calculated by dividing the majority shareholders\u2019 share of the profit/loss for the period by the weighted average number of ordinary shares outstanding over the course of the period. When calculating diluted earnings per share, the average number of shares outstanding is adjusted for all share options that have a potential dilutive effect. Options that have a dilutive effect are treated as shares from the date they are issued.
01.18\tIntangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intan-gible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
01.19\tEvents after the reporting period
New information on the Company\u2019s financial position at the end of the reporting period, which becomes known after the reporting period, is recorded in the annual accounts. Events after the reporting period which do not affect the Company\u2019s financial position at the end of the reporting period, but which will affect the Company\u2019s financial position in the future are disclosed if significant. See note22.
01.20\tApplication of new IFRS requirements
According to the amendments to IAS 1, effective as of 1 January 2023, the Group has disclosed material accounting policy information rather than significant accounting policies.
01.21\tNew standards and interpretations not yet adopted
Accounting Standards that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 31 December 2023. The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
01.01\tBasis for preparation of the financial statement
The EAM Group\u2019s consolidated financial statements have been prepared in accordance with IFRS Accounting standards as adopted by the EU and mandatory for financial years beginning on or after 1 January 2023.
The consolidated financial statements are based on historical cost. In addi-tion, interest rate swaps used for hedging is measured at fair value.
The consolidated financial statements have been prepared based on uniform accounting principles for similar transactions and events under similar circumstances.
The Group\u2019s presentation currency is Euro (EUR) and the parent company\u2019s functional currency is Norwegian Krone (NOK). Most of the Group\u2019s revenue and cost are in Euro, thus the group accounts are presented in Euro. Balance sheet items in the Group companies with a functional currency other than EUR are converted to Euro by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period.
The financial statements and annual report are prepared under the assump-tion of going concern. However, although the Company\u2019s asset base and operating revenues covers ordinary operations, administration and service of operating assets debt obligations, the Company\u2019s liquidity is strained due to the significant legal costs relating to the litigation activities. See note 23for more information. The board and manager are placing all their effort into operating the Company in a prudent manner, pending the legal proceedings that is expected to ultimately solve the situation for EAM.
01.20\tApplication of new IFRS requirements
According to the amendments to IAS 1, effective as of 1 January 2023, the Group has disclosed material accounting policy information rather than significant accounting policies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23006": { "value": "01.01\tBasis for preparation of the financial statement
The EAM Group\u2019s consolidated financial statements have been prepared in accordance with IFRS Accounting standards as adopted by the EU and mandatory for financial years beginning on or after 1 January 2023.
The consolidated financial statements are based on historical cost. In addi-tion, interest rate swaps used for hedging is measured at fair value.
The consolidated financial statements have been prepared based on uniform accounting principles for similar transactions and events under similar circumstances.
The Group\u2019s presentation currency is Euro (EUR) and the parent company\u2019s functional currency is Norwegian Krone (NOK). Most of the Group\u2019s revenue and cost are in Euro, thus the group accounts are presented in Euro. Balance sheet items in the Group companies with a functional currency other than EUR are converted to Euro by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period.
The financial statements and annual report are prepared under the assump-tion of going concern. However, although the Company\u2019s asset base and operating revenues covers ordinary operations, administration and service of operating assets debt obligations, the Company\u2019s liquidity is strained due to the significant legal costs relating to the litigation activities. See note 23for more information. The board and manager are placing all their effort into operating the Company in a prudent manner, pending the legal proceedings that is expected to ultimately solve the situation for EAM.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23007": { "value": "01.01\tBasis for preparation of the financial statement
The EAM Group\u2019s consolidated financial statements have been prepared in accordance with IFRS Accounting standards as adopted by the EU and mandatory for financial years beginning on or after 1 January 2023.
The consolidated financial statements are based on historical cost. In addi-tion, interest rate swaps used for hedging is measured at fair value.
The consolidated financial statements have been prepared based on uniform accounting principles for similar transactions and events under similar circumstances.
The Group\u2019s presentation currency is Euro (EUR) and the parent company\u2019s functional currency is Norwegian Krone (NOK). Most of the Group\u2019s revenue and cost are in Euro, thus the group accounts are presented in Euro. Balance sheet items in the Group companies with a functional currency other than EUR are converted to Euro by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period.
The financial statements and annual report are prepared under the assump-tion of going concern. However, although the Company\u2019s asset base and operating revenues covers ordinary operations, administration and service of operating assets debt obligations, the Company\u2019s liquidity is strained due to the significant legal costs relating to the litigation activities. See note 23for more information. The board and manager are placing all their effort into operating the Company in a prudent manner, pending the legal proceedings that is expected to ultimately solve the situation for EAM.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23295": { "value": "01.02\tConsolidation principles
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries on 31 December 2023.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealised gains, and losses resulting from intragroup transac-tions and dividends are eliminated in full.
The acquisition method is applied when accounting for business combi-nations. A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:
\u2022Derecognises the assets (including goodwill) and liabilities of the subsidiary.
\u2022Derecognises the carrying amount of any non-controlling interest.
\u2022Derecognises the cumulative transaction differences recorded in equity.
\u2022Recognises the fair value of any investment retained.
\u2022Recognises any surplus or deficit in profit or loss.
\u2022Reclassifies the parent\u2019s share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23296": { "value": "01.02\tConsolidation principles
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries on 31 December 2023.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealised gains, and losses resulting from intragroup transac-tions and dividends are eliminated in full.
The acquisition method is applied when accounting for business combi-nations. A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:
\u2022Derecognises the assets (including goodwill) and liabilities of the subsidiary.
\u2022Derecognises the carrying amount of any non-controlling interest.
\u2022Derecognises the cumulative transaction differences recorded in equity.
\u2022Recognises the fair value of any investment retained.
\u2022Recognises any surplus or deficit in profit or loss.
\u2022Reclassifies the parent\u2019s share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__20-1": { "value": "01.03\tUse of estimates in the financial statementsManagement has used estimates and assumptions that have affected assets, liabilities, incomes, expenses, deferred tax asset and information on potential liabilities.Future events may lead to estimates being changed and estimates and their underlying assumptions are reviewed on a regular basis. Changes in accounting estimates are recognised during the period when the changes take place. If the changes also apply to future periods, the effect is accounted for prospectively. See also note 4.Note 04\tSignificant accounting judgements, estimates, assumptions and comparable figuresIn the process of applying the Group\u2019s accounting policies in accordance to IFRS, management has made several judgements and estimates. All estimates are assessed to the most probable outcome based on the management\u2019s best knowledge. Changes in key assumptions may have significant effect and may cause material adjustments to the carrying amounts of assets and liabilities, equity, and the profit for the year. The Company\u2019s most important accounting estimates are the following items:Revenue and receivablesThe Group has receivables against various parties including the Italian state and companies involved in the criminal proceedings in Milano. It is uncertainty regarding the willingness or ability for these parties to pay. To the extent the Company or its subsidiary is aware of any doubt in the likelihood of collecting such receivable a provision has been made. Significant judgement is required in estimating the soundness of such receivable.In the case of ENFO 25 where the Company received a GSE order to suspend the incentives and relevant payments of feed-in-tariff, the Company previously decided to recognise revenues in full.The Administrative Court of Lazio (TAR) has decided in a court ruling on 12 July 2021 that the termination decision made by GSE on the FIT contract for ENFO25 in September 2019 is invalid and consequently cancelled.GSE has not paid the FIT tariff for the electricity delivered by ENFO 25 since July 2019, and currently owe approximately EUR 1\u00a0060 thousand in unpaid electricity bills to ENFO 25. The Administrative Court also ordered GSE to cover the legal costs of EAM Solar ASA.Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables, amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the company has not recognised Feed-In-Tariff revenues for ENFO25.Tax assetsThe Group has recognised deferred tax asset because it is considered that it is probable that future taxable amounts will be available to utilise those temporary differences. If such assumption proves to be incorrect the tax can be lost partly or in its entirety. Total recognised tax asset at the reporting date is EUR 40\u00a0002.BrundesiniENFO 25EAM Solar ASAEnergia Fotovoltaica 25 Srl (IT)EAM Solar Italy Holding Srl (IT)ENS Solar One Srl (IT)Operational CompanyHolding CompanyPower plant", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23689": { "value": "01.04\tForeign currency
The Group\u2019s consolidated financial statements are presented in EUR. Each entity in the Group determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency.
Transactions in foreign currency
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a foreign currency are translated into the functional currency using the exchange rate applicable at the end of the reporting period.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchanges at the date when the fair value is determined. Change in exchange rates are recognised in the statement of comprehensive income as they occur during the accounting period.
Foreign operations
On consolidation, the assets, and liabilities of operations with a functional currency other than the EUR are translated to EUR at the rate of exchange prevailing at the reporting date and their statements of comprehensive income are translated at exchange rates prevailing at the dates of the trans-actions.
The average exchange rates are used as an approximation of the transaction exchange rate. The exchange differences arising on translation for consolida-tion are recognised in other comprehensive income. On disposal of a foreign
operation, the accumulated translation differences relating to the subsidiary are recognised in the statement of comprehensive income.
Translation differences arising from the translation of a net investment in foreign operations are specified as translation differences in the statement of equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23690": { "value": "01.04\tForeign currency
The Group\u2019s consolidated financial statements are presented in EUR. Each entity in the Group determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency.
Transactions in foreign currency
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a foreign currency are translated into the functional currency using the exchange rate applicable at the end of the reporting period.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchanges at the date when the fair value is determined. Change in exchange rates are recognised in the statement of comprehensive income as they occur during the accounting period.
Foreign operations
On consolidation, the assets, and liabilities of operations with a functional currency other than the EUR are translated to EUR at the rate of exchange prevailing at the reporting date and their statements of comprehensive income are translated at exchange rates prevailing at the dates of the trans-actions.
The average exchange rates are used as an approximation of the transaction exchange rate. The exchange differences arising on translation for consolida-tion are recognised in other comprehensive income. On disposal of a foreign
operation, the accumulated translation differences relating to the subsidiary are recognised in the statement of comprehensive income.
Translation differences arising from the translation of a net investment in foreign operations are specified as translation differences in the statement of equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f23976": { "value": "01.05\tRevenue recognition
Revenue is recognized when a customer obtains control of the goods or services.
Sale of solar power
EAM owns and operates four solar power plants in Italy, which generate electricity. Revenue from the sale of electricity is recognised in the statement of comprehensive income once delivery has taken place and the risk and return have been transferred.
All EAM\u2019s electricity sales are made under 20-year sale agreements in the feed-in-tariff (FIT) scheme, with the Italian renewable energy authority Gestore Servizi Energetici (GSE) as commercial counterparty.
In 2022 the Italian authorities set a limit on the market price to be realised for renewable energy and made the reductions applicable for companies with FIT contracts. More information on the Sostegni Ter Decree can be found under Financial Review above.
In previous years, the fixed price sales contracts (FIT) accounted for approximately 80 per cent of revenues, with electricity sales at market prices accounting for approximately 20 per cent. This was substantially changed in 2022 following the increase of market prices. In 2023 the FIT revenues accounted for approximately 56 per cent and market price revenue accounted for approximately 44 per cent of the revenue, prior to taking reduction under the Decree into consideration.
Market price contracts are renewed yearly.
Interest income
For all financial instruments measured at amortised cost, interest income or expense is recorded using the effective interest rate (EIR), which is the rate which exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the statement of comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24271": { "value": "01.06\tSegments
The Group owns and operates four solar PV power plants in Italy as of year-end 2023 and thus only one segment both geographically and nature wise. Further information relating to segments is presented in note 9.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24315": { "value": "01.07\tIncome tax
Income tax consists of tax payable and changes to deferred tax. Deferred tax liability/tax asset is calculated on all differences between the carrying and tax value of assets and liabilities, except for temporary differences related to investments in subsidiaries where the Group controls when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Deferred tax assets are recognised when it is probable that the company will have a sufficient profit for tax purposes in subsequent periods to utilise the deferred tax asset. The companies recognise previously unrecognised deferred tax assets to the extent it has become probable that the company can utilise the deferred tax asset. Similarly, the company will reduce a deferred tax asset to the extent that the company no longer regards it as probable that it can utilise the deferred tax asset.
Deferred tax liability and deferred tax asset are measured based on the expected future tax rates applicable to the companies in the Group where temporary differences have arisen.
Deferred tax liability and deferred tax asset are recognised at their nominal value and classified as non-current asset investments (long-term liabilities)
in the balance sheet. Tax payable and deferred tax are recognised directly in equity to the extent that they relate to equity transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24316": { "value": "01.07\tIncome tax
Income tax consists of tax payable and changes to deferred tax. Deferred tax liability/tax asset is calculated on all differences between the carrying and tax value of assets and liabilities, except for temporary differences related to investments in subsidiaries where the Group controls when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Deferred tax assets are recognised when it is probable that the company will have a sufficient profit for tax purposes in subsequent periods to utilise the deferred tax asset. The companies recognise previously unrecognised deferred tax assets to the extent it has become probable that the company can utilise the deferred tax asset. Similarly, the company will reduce a deferred tax asset to the extent that the company no longer regards it as probable that it can utilise the deferred tax asset.
Deferred tax liability and deferred tax asset are measured based on the expected future tax rates applicable to the companies in the Group where temporary differences have arisen.
Deferred tax liability and deferred tax asset are recognised at their nominal value and classified as non-current asset investments (long-term liabilities)
in the balance sheet. Tax payable and deferred tax are recognised directly in equity to the extent that they relate to equity transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24601": { "value": "01.08\tProperty, plant, and equipment
All property, plant, and equipment (including solar power plants) are valued at their cost less accumulated depreciation and impairment. When assets are sold or disposed of, the carrying amount is derecognised and any gain or loss is recognised in the statement of comprehensive income.
The cost of tangible non-current assets is the purchase price, including taxes/duties and costs directly linked to preparing the asset for its intended use. Costs incurred after the asset is in use, such as regular maintenance costs, are recognised in the statement of comprehensive income as incurred, while other costs expected to provide future financial benefits are capitalised.
Depreciation is calculated using the straight-line method over the following useful lives:
\u2022Movers, modules, and cable connectors 20 years
\u2022Land lease rights 25 years
The depreciation period and method are assessed each year. A residual value is estimated at each year-end, and changes to the estimated residual value are recognised as a change in an estimate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24602": { "value": "01.08\tProperty, plant, and equipment
All property, plant, and equipment (including solar power plants) are valued at their cost less accumulated depreciation and impairment. When assets are sold or disposed of, the carrying amount is derecognised and any gain or loss is recognised in the statement of comprehensive income.
The cost of tangible non-current assets is the purchase price, including taxes/duties and costs directly linked to preparing the asset for its intended use. Costs incurred after the asset is in use, such as regular maintenance costs, are recognised in the statement of comprehensive income as incurred, while other costs expected to provide future financial benefits are capitalised.
Depreciation is calculated using the straight-line method over the following useful lives:
\u2022Movers, modules, and cable connectors 20 years
\u2022Land lease rights 25 years
The depreciation period and method are assessed each year. A residual value is estimated at each year-end, and changes to the estimated residual value are recognised as a change in an estimate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__29-1": { "value": "01.08\tProperty, plant, and equipment
All property, plant, and equipment (including solar power plants) are valued at their cost less accumulated depreciation and impairment. When assets are sold or disposed of, the carrying amount is derecognised and any gain or loss is recognised in the statement of comprehensive income.
The cost of tangible non-current assets is the purchase price, including taxes/duties and costs directly linked to preparing the asset for its intended use. Costs incurred after the asset is in use, such as regular maintenance costs, are recognised in the statement of comprehensive income as incurred, while other costs expected to provide future financial benefits are capitalised.
Depreciation is calculated using the straight-line method over the following useful lives:
\u2022Movers, modules, and cable connectors 20 years
\u2022Land lease rights 25 years
The depreciation period and method are assessed each year. A residual value is estimated at each year-end, and changes to the estimated residual value are recognised as a change in an estimate.
01.09\tLeases
The Group has adopted IFRS 16 from 1 January 2019. The standard replaces IAS 17 \u2018Leases\u2019 and for lessees eliminates the classifications of operating leases and finance leases.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity\u2019s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
01.18\tIntangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intan-gible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f24779": { "value": "01.09\tLeases
The Group has adopted IFRS 16 from 1 January 2019. The standard replaces IAS 17 \u2018Leases\u2019 and for lessees eliminates the classifications of operating leases and finance leases.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity\u2019s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25167": { "value": "01.10\tClassification and measurement of financial assets and liabilities
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 60 days for the feed-in-tariff contracts, and 15 days for the market price contracts.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25168": { "value": "01.10\tClassification and measurement of financial assets and liabilities
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 60 days for the feed-in-tariff contracts, and 15 days for the market price contracts.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25179": { "value": "Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 60 days for the feed-in-tariff contracts, and 15 days for the market price contracts.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25287": { "value": "Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25349": { "value": "01.11\tCash and cash equivalents
Cash includes cash in hand, at the bank or cash seized by the Prosecutors Office of Milan.
Cash equivalents are short-term liquid investments which can be immedi-ately converted into a known amount of cash and have a maximum term to maturity of three months.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25633": { "value": "01.14\tContingent liabilities and assets
Contingent liabilities are not recognised in the annual accounts. Significant contingent liabilities are disclosed, except for contingent liabilities that are unlikely to be incurred.
Contingent assets are not recognised in the annual accounts but are disclosed if there is a certain probability that a benefit will be added to the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__39-1": { "value": "01.15\tCurrent/non-current classification
Assets and liabilities are presented based on current and non-current classification.
An asset is classified as current when it is expected to be sold or utilised or sold in the consolidated entity\u2019s normal operating cycle, or within 12 months after the reporting period, all other assets are classified as non-current.
A liability is classified as current when it is expected to be paid in the consoli-dated entity\u2019s normal operating cycle or within 12 months after the reporting period, all other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
01.18\tIntangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intan-gible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25798": { "value": "01.16\tDerivative financial instruments and hedging activities
Derivatives at fair value not classified as hedging instruments are carried in the statement of financial position at fair value with net changes in fair value in profit and loss statement.
The categories include foreign exchange contracts and interest rate swaps.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f25850": { "value": "01.17\tEarnings per share
Earnings per share are calculated by dividing the majority shareholders\u2019 share of the profit/loss for the period by the weighted average number of ordinary shares outstanding over the course of the period. When calculating diluted earnings per share, the average number of shares outstanding is adjusted for all share options that have a potential dilutive effect. Options that have a dilutive effect are treated as shares from the date they are issued.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__44-1": { "value": "01.18\tIntangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intan-gible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
Note 21\tIntangible assets
2023 | Intangible assets |
Carrying value 1 January 2023 | 9\u00a0101 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2023 | 8\u00a0401 |
2022 | Intangible assets |
Carrying value 1 January 2022 | 9\u00a0801 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2022 | 9\u00a0101 |
Intangible assets are depreciated linear over the lifetime of the FIT contracts. The FIT contract period is running to 2031.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__45-1": { "value": "01.19\tEvents after the reporting period
New information on the Company\u2019s financial position at the end of the reporting period, which becomes known after the reporting period, is recorded in the annual accounts. Events after the reporting period which do not affect the Company\u2019s financial position at the end of the reporting period, but which will affect the Company\u2019s financial position in the future are disclosed if significant. See note22.
Note 22\tEvents after the balance sheet date
Changes to the board of directors
The directors Stephan Jervell and Gro Pr\u00f8del Hvammen has both informed the Company the need to resign from the board of directors prior to the ordinary annual general meeting for reasons unrelated to the Company.
The Company consequently has decided to convene an extraordinary shareholder\u2019s meeting on 10 May 2024 for the establishment of an interim board of directors pending the annual general meeting of the shareholders scheduled 22 May 2024.
Criminal proceedings in Milan
The final hearing is scheduled for 16 May 2024. The Court of Appeal has stated its intention to render its judgement in the case at the conclusion of the hearing on 16 May 2024
New Arbitration in Milan of 2020
The Milan Chamber of Arbitration\u2019s final decision in the arbitration between EAM Solar ASA and Aveleos SA was received 29 February 2024. The arbitration court conclusion was a net amount in favour of EAM of between EUR 2\u00a0686\u00a0810 and EUR 2\u00a0939\u00a0814 after interest is applied.
A range is stated above due to a possible clerical error made in the Final Award. Aveleos has requested the Arbitration Chamber to correct the error and revise the stated interests. Aveleos has further challenged the application of other interest rates. This matter is expected to be sorted by 27 May 2024. The total amount should be considered preliminary until this date.
Further, Aveleos has until 18 June 2024 to submit an appeal of the Final Award.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f26296": { "value": "Note 02\tAlternative Performance Measures \u201cAPMs\u201d
EAM uses financial performance measures not within the applicable financial reporting framework also referred to as Alternative performance measures or APMs. These are used to give the reader relevant figures for comparison, analysis, and additional information. The Company uses the APMs in a consistent and transparent manner to make it understandable to users of the financial reports.
To provide a basis for analysis the Company presents EBITDA, EBIT, equity ratio and working capital.
Definitions:
EBITDA\u2013 Earnings Before Interest, Tax, Depreciation and Amortisation. Used as a measure of overall financial performance and indicator for cash that is available to pay debt.
EBIT- Earnings Before Interest and Tax. Used as an indicator of a company\u2019s profitability.
Equity ratio- Equity as a percentage of total assets at the end of the period. Shows financial position.
Working capital- Total current assets minus total current liabilities. Used as a measure of a company\u2019s liquidity, operational efficiency, and short-term financial health.
EBITDA(EUR) | 2023 | 2022 |
Revenue | 992\u00a0716 | 1\u00a0221\u00a0073 |
Total revenue | 992\u00a0716 | 1\u00a0221\u00a0073 |
Cost of operations | (237\u00a0408) | (813\u00a0734) |
Sales, general and administration expenses | (743\u00a0296) | (949\u00a0613) |
Legal costs | (982\u00a0772) | (1\u00a0386\u00a0837) |
Operating profit before depreciation and amortisation (EBITDA) | (970\u00a0760) | (1\u00a0929\u00a0111) |
EBIT(EUR) | 2023 | 2022 |
Revenue | 992\u00a0716 | 1\u00a0221\u00a0073 |
Total revenue | 992\u00a0716 | 1\u00a0221\u00a0073 |
Cost of operations | (237\u00a0408) | (813\u00a0734) |
Sales, general and administration expenses | (743\u00a0296) | (949\u00a0613) |
Legal costs | (982\u00a0772) | (1\u00a0386\u00a0837) |
Operating profit before depreciation and amortisation (EBITDA) | (970\u00a0760) | (1\u00a0929\u00a0111) |
Depreciation, amortizations and write downs | (564\u00a0108) | (563\u00a0575) |
Operating profit (EBIT) | (1\u00a0534\u00a0869) | (2\u00a0492\u00a0686) |
Equity ratio(EUR) | 31 Dec 2023 | 31 Dec 2022 |
TOTAL ASSETS divided by TOTAL EQUITY | 8\u00a0453\u00a0361 / 3\u00a0865\u00a0999 | 10\u00a0659\u00a0199 / 3\u00a0865\u00a0999 |
Equity ratio | 20.8% | 36.3% |
Working capital(EUR) | 31 Dec 2023 | 31 Dec 2022 |
Total current assets | 2\u00a0774\u00a0798 | 4\u00a0273\u00a0803 |
-Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
= Working capital | 284\u00a0698 | 1\u00a0969\u00a0277 |
Note 03\tList of subsidiaries
The following subsidiaries are included in the consolidated financial statements. Profit and equity below is from the last audited financial statements of the subsidiaries (2022), presented in ITA GAAP.
Company | Country | Principal activity | Ownership | Vote | Profit | Equity |
2022 | ||||||
EAM Solar Italy Holding Srl | Italy | Holding company | 100% | 100% | (1\u00a0696\u00a0594) | (1\u00a0581\u00a0596) |
Ens Solar One Srl | Italy | Solar power plant | 100% | 100% | (189\u00a0174) | 57\u00a0997 |
Energia Fotovoltaica 25 Srl | Italy | Solar power plant | 100% | 100% | 25\u00a0137 | 295\u00a0698 |
All subsidiaries based in Italy have registered office at Piazza Cinque Giornate 10, 20129 Milano, Italy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f26831": { "value": "Note 03\tList of subsidiaries
The following subsidiaries are included in the consolidated financial statements. Profit and equity below is from the last audited financial statements of the subsidiaries (2022), presented in ITA GAAP.
Company | Country | Principal activity | Ownership | Vote | Profit | Equity |
2022 | ||||||
EAM Solar Italy Holding Srl | Italy | Holding company | 100% | 100% | (1\u00a0696\u00a0594) | (1\u00a0581\u00a0596) |
Ens Solar One Srl | Italy | Solar power plant | 100% | 100% | (189\u00a0174) | 57\u00a0997 |
Energia Fotovoltaica 25 Srl | Italy | Solar power plant | 100% | 100% | 25\u00a0137 | 295\u00a0698 |
All subsidiaries based in Italy have registered office at Piazza Cinque Giornate 10, 20129 Milano, Italy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f27007": { "value": "Note 04\tSignificant accounting judgements, estimates, assumptions and comparable figures
In the process of applying the Group\u2019s accounting policies in accordance to IFRS, management has made several judgements and estimates. All estimates are assessed to the most probable outcome based on the management\u2019s best knowledge. Changes in key assumptions may have significant effect and may cause material adjustments to the carrying amounts of assets and liabilities, equity, and the profit for the year. The Company\u2019s most important accounting estimates are the following items:
Revenue and receivables
The Group has receivables against various parties including the Italian state and companies involved in the criminal proceedings in Milano. It is uncertainty regarding the willingness or ability for these parties to pay. To the extent the Company or its subsidiary is aware of any doubt in the likelihood of collecting such receivable a provision has been made. Significant judgement is required in estimating the soundness of such receivable.
In the case of ENFO 25 where the Company received a GSE order to suspend the incentives and relevant payments of feed-in-tariff, the Company previously decided to recognise revenues in full.
The Administrative Court of Lazio (TAR) has decided in a court ruling on 12 July 2021 that the termination decision made by GSE on the FIT contract for ENFO25 in September 2019 is invalid and consequently cancelled.
GSE has not paid the FIT tariff for the electricity delivered by ENFO 25 since July 2019, and currently owe approximately EUR 1\u00a0060 thousand in unpaid electricity bills to ENFO 25. The Administrative Court also ordered GSE to cover the legal costs of EAM Solar ASA.
Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables, amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the company has not recognised Feed-In-Tariff revenues for ENFO25.
Tax assets
The Group has recognised deferred tax asset because it is considered that it is probable that future taxable amounts will be available to utilise those temporary differences. If such assumption proves to be incorrect the tax can be lost partly or in its entirety. Total recognised tax asset at the reporting date is EUR 40\u00a0002.
Brundesini
ENFO 25
EAM Solar ASA
Energia Fotovoltaica 25 Srl (IT)
EAM Solar Italy Holding Srl (IT)
ENS Solar One Srl (IT)
Operational Company | Holding Company | Power plant |
Note 04\tSignificant accounting judgements, estimates, assumptions and comparable figures
In the process of applying the Group\u2019s accounting policies in accordance to IFRS, management has made several judgements and estimates. All estimates are assessed to the most probable outcome based on the management\u2019s best knowledge. Changes in key assumptions may have significant effect and may cause material adjustments to the carrying amounts of assets and liabilities, equity, and the profit for the year. The Company\u2019s most important accounting estimates are the following items:
Revenue and receivables
The Group has receivables against various parties including the Italian state and companies involved in the criminal proceedings in Milano. It is uncertainty regarding the willingness or ability for these parties to pay. To the extent the Company or its subsidiary is aware of any doubt in the likelihood of collecting such receivable a provision has been made. Significant judgement is required in estimating the soundness of such receivable.
In the case of ENFO 25 where the Company received a GSE order to suspend the incentives and relevant payments of feed-in-tariff, the Company previously decided to recognise revenues in full.
The Administrative Court of Lazio (TAR) has decided in a court ruling on 12 July 2021 that the termination decision made by GSE on the FIT contract for ENFO25 in September 2019 is invalid and consequently cancelled.
GSE has not paid the FIT tariff for the electricity delivered by ENFO 25 since July 2019, and currently owe approximately EUR 1\u00a0060 thousand in unpaid electricity bills to ENFO 25. The Administrative Court also ordered GSE to cover the legal costs of EAM Solar ASA.
Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables, amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the company has not recognised Feed-In-Tariff revenues for ENFO25.
Tax assets
The Group has recognised deferred tax asset because it is considered that it is probable that future taxable amounts will be available to utilise those temporary differences. If such assumption proves to be incorrect the tax can be lost partly or in its entirety. Total recognised tax asset at the reporting date is EUR 40\u00a0002.
Brundesini
ENFO 25
EAM Solar ASA
Energia Fotovoltaica 25 Srl (IT)
EAM Solar Italy Holding Srl (IT)
ENS Solar One Srl (IT)
Operational Company | Holding Company | Power plant |
Note 05\tOther operating expenses
VAT is not included in the fees specified below.
Specification of auditor\u2019s fee | 2023 | 2022 |
Statutory audit | 79\u00a0456 | 67\u00a0130 |
Other services from RSM Advokat AS | - | 2\u00a0682 |
Other services | 6\u00a0398 | 3\u00a0263 |
Total fee to auditor\u2019s | 85\u00a0855 | 73\u00a0075 |
RSM Advokat AS is a related party to the auditor RSM.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__6__59-1": { "value": "Note 05\tOther operating expenses
VAT is not included in the fees specified below.
Specification of auditor\u2019s fee | 2023 | 2022 |
Statutory audit | 79\u00a0456 | 67\u00a0130 |
Other services from RSM Advokat AS | - | 2\u00a0682 |
Other services | 6\u00a0398 | 3\u00a0263 |
Total fee to auditor\u2019s | 85\u00a0855 | 73\u00a0075 |
RSM Advokat AS is a related party to the auditor RSM.
Cost of operations
(237\u00a0408)
(188\u00a0184)
(49\u00a0225)
Land rent
-
-
-
Insurance
(89\u00a0218)
(39\u00a0993)
(49\u00a0225)
Operation & Maintenance
(52\u00a0228)
(52\u00a0228)
-
Energeia operating costs
-
-
-
Other operations costs
(95\u00a0963)
(95\u00a0963)
-
Sales, ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f27730": { "value": "Note 06\tSalary and personnel expense and management remuneration
Board of directors year-end 2023:
\u2022Viktor Erik Jakobsen (chair & acting CEO)
\u2022Stephan Lange Jervell (non-executive director)
\u2022Gro Pr\u00f8del Hvammen (non-executive director)
The CEO in 2023, Viktor Erik Jakobsen, is hired and remunerated by the manager (see note 7for description of transactions with related parties).
Viktor Erik Jakobsen, has received in 2023 NOK 245\u00a0000 in remuneration for his work as chair. Stephan Lange Jervell has received NOK 450\u00a0000 in 2023 and Gro Pr\u00f8del Hvammen has received NOK 150\u00a0000 in 2023.
Nomination committee year-end 2023:
\u2022Leiv Askvig (chair)
\u2022Nils Erling \u00d8degaard (member)
\u2022Georg Johan Espe (member)
Leiv Askvig has received in 2023 NOK 39\u00a0750 in remuneration for his work as chair of the Nomination Committee. Nils Erling \u00d8degaard and Georg Johan Espe each received NOK 24\u00a0000 in 2023 in remuneration for their work as members of the Nomination Committee.
No member of the management receives remuneration or financial benefits from other companies in the Group other than those stated above. No additional remuneration has been paid for services outside the normal functions of a director. No loans or guarantees have been given to any members of the Group management, the board of directors or other company bodies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f27731": { "value": "Note 06\tSalary and personnel expense and management remuneration
Board of directors year-end 2023:
\u2022Viktor Erik Jakobsen (chair & acting CEO)
\u2022Stephan Lange Jervell (non-executive director)
\u2022Gro Pr\u00f8del Hvammen (non-executive director)
The CEO in 2023, Viktor Erik Jakobsen, is hired and remunerated by the manager (see note 7for description of transactions with related parties).
Viktor Erik Jakobsen, has received in 2023 NOK 245\u00a0000 in remuneration for his work as chair. Stephan Lange Jervell has received NOK 450\u00a0000 in 2023 and Gro Pr\u00f8del Hvammen has received NOK 150\u00a0000 in 2023.
Nomination committee year-end 2023:
\u2022Leiv Askvig (chair)
\u2022Nils Erling \u00d8degaard (member)
\u2022Georg Johan Espe (member)
Leiv Askvig has received in 2023 NOK 39\u00a0750 in remuneration for his work as chair of the Nomination Committee. Nils Erling \u00d8degaard and Georg Johan Espe each received NOK 24\u00a0000 in 2023 in remuneration for their work as members of the Nomination Committee.
No member of the management receives remuneration or financial benefits from other companies in the Group other than those stated above. No additional remuneration has been paid for services outside the normal functions of a director. No loans or guarantees have been given to any members of the Group management, the board of directors or other company bodies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28042": { "value": "Note 07\tTransactions with related parties
Related parties
Energeia AS is the manager of EAM. Energeia AS in Norway and Italy employs or subcontract all the personnel conducting the technical and administrative services for EAM. Energeia AS owns 9.5 per cent of the shares in EAM.
Sundt AS and Canica AS are shareholders in EAM. They are also shareholders in Energeia AS, but not involved in the day-to-day operations of Energeia AS. Sundt AS was represented on the board of directors of Energeia AS until 13 December 2022. Certain key personnel managing the day-to-day operations of EAM are also investors in Energeia AS.
Transactions with related parties
All the transactions have been carried out as part of the ordinary operations and at arms-length prices.
In 2023 Energeia direct costs of the management of EAM was EUR 488 thousand (2022: EUR 909 thousand). For 2023 the direct cost was EUR 0.11 per kWh based on full year figures. (Against EUR 0.20 per kWh in 2022).
On 15 August 2019 EAM Solar ASA sold the shares in the subsidiary EAM Solar Norway Holding AS to Energeia AS. The board of directors decided to conduct this sale to protect and secure the financial integrity of EAM Solar ASA.
The final sales price for the shares consisted of two elements; 1) a fixed price for the shares, and 2) a profit split if Energeia sold the power plants with a profit before year-end 2020. On 30 April 2020 Energeia AS sold the power plants indirectly owned by EAM Solar Norway Holding AS to a third party.
Since Energeia AS sold the power plants in 2020, EAM Solar ASA is entitled to receive 75 per cent of any net capital gains realized by Energeia AS above the purchase price from EAM Solar ASA.
The provisional capital gain for EAM Solar ASA was in 2020 estimated to be NOK 70.9 million and the profit was entered in the books in 2019 and 2020. The final sales price, including capital gain, will be determined in 2025 when all historical tax assessments relating to the period prior 2019, and taxes related to the sale of the power plant in 2020 are finalized with the tax authorities in Italy.
On 31 December 2023 the Group had payables to related parties (Energeia AS) of EUR 245 thousand.
Energeia AS ownership at year end
Company/owner | Ownership | Person | Position year-end 2023 |
Jakobsen Energia AS | 10.93% | Viktor E Jakobsen | Chair and acting CEO of EAM Solar ASA |
Sundt AS | 14.51% | Family office | Shareholder of EAM Solar ASA |
Naben AS | 4.84% | Audun W Iversen | Shareholder of EAM Solar ASA |
Canica AS | 6.11% | Family office | Shareholder of EAM Solar ASA |
Stanja AS | 0.47% | Stephan L Jervell | Director of EAM Solar ASA |
Cerebrum Invest AS | 0.08% | Ragnhild M Wiborg | Chair of EAM Solar ASA (resigned 31 Jan 2023) |
Others | 63.05% |
Note 08\tFinancial income and expenses
Financial income(EUR) | 2023 | 2022 |
Interest income | 10\u00a0857 | 3\u00a0898 |
Foreign exchange gain | 1\u00a0393\u00a0949 | 1\u00a0188\u00a0672 |
Total financial income | 1\u00a0404\u00a0806 | 1\u00a0192\u00a0570 |
Financial expenses(EUR) | 2023 | 2022 |
Interest expense | (267\u00a0068) | (172\u00a0589) |
Foreign exchange losses | (550\u00a0282) | (566\u00a0547) |
Other financial expenses | (3\u00a0516) | (25\u00a0849) |
Total financial expenses | (820\u00a0867) | (764\u00a0986) |
Net financial income (expenses) | 583\u00a0939 | 427\u00a0585 |
The average exchange rate used for 12M 2023 is EUR/NOK 11.4206 (12M 2022 EUR/NOK 10.1040), whereas the exchange rate used on 31 December 2023 is EUR/NOK 11.2405 (31 December 2022: EUR/NOK 10.5138).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28659": { "value": "Note 08\tFinancial income and expenses
Financial income(EUR) | 2023 | 2022 |
Interest income | 10\u00a0857 | 3\u00a0898 |
Foreign exchange gain | 1\u00a0393\u00a0949 | 1\u00a0188\u00a0672 |
Total financial income | 1\u00a0404\u00a0806 | 1\u00a0192\u00a0570 |
Financial expenses(EUR) | 2023 | 2022 |
Interest expense | (267\u00a0068) | (172\u00a0589) |
Foreign exchange losses | (550\u00a0282) | (566\u00a0547) |
Other financial expenses | (3\u00a0516) | (25\u00a0849) |
Total financial expenses | (820\u00a0867) | (764\u00a0986) |
Net financial income (expenses) | 583\u00a0939 | 427\u00a0585 |
The average exchange rate used for 12M 2023 is EUR/NOK 11.4206 (12M 2022 EUR/NOK 10.1040), whereas the exchange rate used on 31 December 2023 is EUR/NOK 11.2405 (31 December 2022: EUR/NOK 10.5138).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28672": { "value": "Financial income(EUR)
2023
2022
Interest income
10\u00a0857
3\u00a0898
Foreign exchange gain
1\u00a0393\u00a0949
1\u00a0188\u00a0672
Total financial income
1\u00a0404\u00a0806
1\u00a0192\u00a0570
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28673": { "value": "Financial income(EUR)
2023
2022
Interest income
10\u00a0857
3\u00a0898
Foreign exchange gain
1\u00a0393\u00a0949
1\u00a0188\u00a0672
Total financial income
1\u00a0404\u00a0806
1\u00a0192\u00a0570
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28744": { "value": "Financial expenses(EUR)
2023
2022
Interest expense
(267\u00a0068)
(172\u00a0589)
Foreign exchange losses
(550\u00a0282)
(566\u00a0547)
Other financial expenses
(3\u00a0516)
(25\u00a0849)
Total financial expenses
(820\u00a0867)
(764\u00a0986)
Net financial income (expenses)
583\u00a0939
427\u00a0585
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28745": { "value": "Financial expenses(EUR)
2023
2022
Interest expense
(267\u00a0068)
(172\u00a0589)
Foreign exchange losses
(550\u00a0282)
(566\u00a0547)
Other financial expenses
(3\u00a0516)
(25\u00a0849)
Total financial expenses
(820\u00a0867)
(764\u00a0986)
Net financial income (expenses)
583\u00a0939
427\u00a0585
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f28886": { "value": "Note 09\tSegment information
The Group owns and operates four solar PV power plants in Italy as of year-end 2023. The business is investing in and operating power plants that have similar economic characteristics.
During the year ended 31 December 2023 approximately EUR 602 thousand (2022: EUR 914 thousand) of the Group\u2019s external revenue was derived from sales to the Italian state, represented by GSE for the Feed In Tariff contracts.
Approximately EUR 474 thousand (2022: EUR 1\u00a0300 thousand) of the Group\u2019s external revenue was derived from sales to an international commodities trading house for the market price contracts. Due to the implementation of the Sostegni Ter Decree, which is applicable for companies with Feed In Tariff contracts, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy.
Based on the information received from GSE and the Decree, the Company has during the first half of 2023 had an estimated electricity sales revenue reduction of EUR 90 thousand.
Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the Company has not recognised Feed-In-Tariff revenues for ENFO 25.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f29226": { "value": "Note 10\tOperational costs breakdown 2023
EUR | EAM Solar Group | ENS1 & ENFO25 | Other & Eliminations |
Revenues | 992\u00a0716 | 992\u00a0716 | - |
Cost of operations | (237\u00a0408) | (188\u00a0184) | (49\u00a0225) |
Land rent | - | - | - |
Insurance | (89\u00a0218) | (39\u00a0993) | (49\u00a0225) |
Operation & Maintenance | (52\u00a0228) | (52\u00a0228) | - |
Energeia operating costs | - | - | - |
Other operations costs | (95\u00a0963) | (95\u00a0963) | - |
Sales, General & Administration | (743\u00a0296) | (245\u00a0817) | (497\u00a0479) |
Accounting, audit & legal fees | (159\u00a0025) | (32\u00a0568) | (126\u00a0458) |
IMU tax | (12\u00a0898) | (12\u00a0898) | - |
Energeia direct costs | (361\u00a0167) | (128\u00a0211) | (232\u00a0956) |
Other administrative costs | (210\u00a0205) | (72\u00a0140) | (138\u00a0065) |
Legal costs | (982\u00a0772) | (64\u00a0621) | (918\u00a0151) |
Legal costs | (855\u00a0799) | (64\u00a0567) | (791\u00a0231) |
Energeia legal costs | (126\u00a0974) | (54) | (126\u00a0920) |
EBITDA | (970\u00a0760) | 494\u00a0094 | (1\u00a0464\u00a0855) |
Note 10\tOperational costs breakdown 2023
EUR | EAM Solar Group | ENS1 & ENFO25 | Other & Eliminations |
Revenues | 992\u00a0716 | 992\u00a0716 | - |
Cost of operations | (237\u00a0408) | (188\u00a0184) | (49\u00a0225) |
Land rent | - | - | - |
Insurance | (89\u00a0218) | (39\u00a0993) | (49\u00a0225) |
Operation & Maintenance | (52\u00a0228) | (52\u00a0228) | - |
Energeia operating costs | - | - | - |
Other operations costs | (95\u00a0963) | (95\u00a0963) | - |
Sales, General & Administration | (743\u00a0296) | (245\u00a0817) | (497\u00a0479) |
Accounting, audit & legal fees | (159\u00a0025) | (32\u00a0568) | (126\u00a0458) |
IMU tax | (12\u00a0898) | (12\u00a0898) | - |
Energeia direct costs | (361\u00a0167) | (128\u00a0211) | (232\u00a0956) |
Other administrative costs | (210\u00a0205) | (72\u00a0140) | (138\u00a0065) |
Legal costs | (982\u00a0772) | (64\u00a0621) | (918\u00a0151) |
Legal costs | (855\u00a0799) | (64\u00a0567) | (791\u00a0231) |
Energeia legal costs | (126\u00a0974) | (54) | (126\u00a0920) |
EBITDA | (970\u00a0760) | 494\u00a0094 | (1\u00a0464\u00a0855) |
Sales, General & Administration
(743\u00a0296)
(245\u00a0817)
(497\u00a0479)
Accounting, audit & legal fees
(159\u00a0025)
(32\u00a0568)
(126\u00a0458)
IMU tax
(12\u00a0898)
(12\u00a0898)
-
Energeia direct costs
(361\u00a0167)
(128\u00a0211)
(232\u00a0956)
Other administrative costs
(210\u00a0205)
(72\u00a0140)
(138\u00a0065)
Legal costs
(982\u00a0772)
(64\u00a0621)
(918\u00a0151)
Legal costs
(855\u00a0799)
(64\u00a0567)
(791\u00a0231)
Energeia legal costs
(126\u00a0974)
(54)
(126\u00a0920)
EBITDA
(970\u00a0760)
494\u00a0094
(1\u00a0464\u00a0855)
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f29551": { "value": "Note 11\tIncome tax
The basis for the recognition a deferred tax asset is forecasted results in the operating segments. There are no expiry dates on any of the losses carried forward. Property tax payable is expensed as an operating expense under SG&A.
Income tax expense
(EUR) | 2023 | 2022 |
Current taxes | 25\u00a0816 | 19\u00a0818 |
Changes in deferred taxes | 242\u00a0626 | 120\u00a0766 |
Correction for previous years tax | (8\u00a0064) | - |
Total income tax expense | 260\u00a0376 | 140\u00a0582 |
Income tax net income | 260\u00a0376 | 140\u00a0582 |
Income tax other comprehensive income | - | - |
Total income tax expense | 260\u00a0376 | 140\u00a0582 |
Tax payable
(EUR) | 2023 | 2022 |
Tax payable for the year | 25\u00a0816 | 19\u00a0818 |
Prepaid tax | (24\u00a0574) | (19\u00a0818) |
Total payable tax | 1\u00a0242 | - |
Temporary differences Norway | ||
Receivables | (1\u00a0067\u00a0833) | - |
Intercompany interest | (5\u00a0989\u00a0196) | (5\u00a0361\u00a0669) |
Total temporary differences | (7\u00a0057\u00a0029) | (5\u00a0361\u00a0669) |
Tax losses carried forward | 722\u00a0429 | 816\u00a0680 |
Tax losses carried forward not recognised as an asset | - | (816\u00a0680) |
Basis for deferred tax | (6\u00a0334\u00a0600) | (5\u00a0361\u00a0669) |
Deferred tax | (974\u00a0368) | (804\u00a0250) |
Temporary differences Italy | ||
Tangible assets | 51\u00a0623 | 51\u00a0630 |
Intangible assets | - | - |
Leasing | 115\u00a0050 | 215\u00a0111 |
Cash flow hedge | - | - |
Total temporary differences | 166\u00a0673 | 266\u00a0741 |
Tax losses carried forward | 16\u00a0313\u00a0816 | 14\u00a0701\u00a0320 |
Tax losses carried forward not recognised as an asset | (16\u00a0313\u00a0816) | (14\u00a0701\u00a0320) |
Basis for deferred tax asset | 166\u00a0673 | 266\u00a0741 |
Deferred tax asset | 40\u00a0002 | 64\u00a0018 |
Tax expense reconciliation
(EUR) | 2023 | 2022 |
Profit before tax | (950\u00a0930) | (2\u00a0065\u00a0101) |
Corporation tax charge thereon at 22% (2019: 22%) | (208\u00a0378) | (454\u00a0322) |
Adjusted for the effects of: | - | |
Expenses not deductible for tax purposes | 203\u00a0359 | 123\u00a0790 |
Gain from sale, not taxable | - | - |
Change in temporary differences | (201\u00a0532) | - |
Change in tax rates | - | - |
Different tax rates in foreign jurisdictions | (657\u00a0312) | (513\u00a0108) |
Change in tax loss not carried forward | 988\u00a0486 | 882\u00a0304 |
Change in deferred tax | - | - |
Withholding tax on intercompany interest | 143\u00a0820 | 101\u00a0921 |
Adjustments to tax in respect of previous periods | (8\u00a0064) | - |
Translation differences | - | - |
Other minor items | - | (3) |
Income tax expense for the year | 260\u00a0378 | 140\u00a0582 |
Effective tax rate | (27%) | (7%) |
Note 11\tIncome tax
The basis for the recognition a deferred tax asset is forecasted results in the operating segments. There are no expiry dates on any of the losses carried forward. Property tax payable is expensed as an operating expense under SG&A.
Income tax expense
(EUR) | 2023 | 2022 |
Current taxes | 25\u00a0816 | 19\u00a0818 |
Changes in deferred taxes | 242\u00a0626 | 120\u00a0766 |
Correction for previous years tax | (8\u00a0064) | - |
Total income tax expense | 260\u00a0376 | 140\u00a0582 |
Income tax net income | 260\u00a0376 | 140\u00a0582 |
Income tax other comprehensive income | - | - |
Total income tax expense | 260\u00a0376 | 140\u00a0582 |
Tax payable
(EUR) | 2023 | 2022 |
Tax payable for the year | 25\u00a0816 | 19\u00a0818 |
Prepaid tax | (24\u00a0574) | (19\u00a0818) |
Total payable tax | 1\u00a0242 | - |
Temporary differences Norway | ||
Receivables | (1\u00a0067\u00a0833) | - |
Intercompany interest | (5\u00a0989\u00a0196) | (5\u00a0361\u00a0669) |
Total temporary differences | (7\u00a0057\u00a0029) | (5\u00a0361\u00a0669) |
Tax losses carried forward | 722\u00a0429 | 816\u00a0680 |
Tax losses carried forward not recognised as an asset | - | (816\u00a0680) |
Basis for deferred tax | (6\u00a0334\u00a0600) | (5\u00a0361\u00a0669) |
Deferred tax | (974\u00a0368) | (804\u00a0250) |
Temporary differences Italy | ||
Tangible assets | 51\u00a0623 | 51\u00a0630 |
Intangible assets | - | - |
Leasing | 115\u00a0050 | 215\u00a0111 |
Cash flow hedge | - | - |
Total temporary differences | 166\u00a0673 | 266\u00a0741 |
Tax losses carried forward | 16\u00a0313\u00a0816 | 14\u00a0701\u00a0320 |
Tax losses carried forward not recognised as an asset | (16\u00a0313\u00a0816) | (14\u00a0701\u00a0320) |
Basis for deferred tax asset | 166\u00a0673 | 266\u00a0741 |
Deferred tax asset | 40\u00a0002 | 64\u00a0018 |
Tax expense reconciliation
(EUR) | 2023 | 2022 |
Profit before tax | (950\u00a0930) | (2\u00a0065\u00a0101) |
Corporation tax charge thereon at 22% (2019: 22%) | (208\u00a0378) | (454\u00a0322) |
Adjusted for the effects of: | - | |
Expenses not deductible for tax purposes | 203\u00a0359 | 123\u00a0790 |
Gain from sale, not taxable | - | - |
Change in temporary differences | (201\u00a0532) | - |
Change in tax rates | - | - |
Different tax rates in foreign jurisdictions | (657\u00a0312) | (513\u00a0108) |
Change in tax loss not carried forward | 988\u00a0486 | 882\u00a0304 |
Change in deferred tax | - | - |
Withholding tax on intercompany interest | 143\u00a0820 | 101\u00a0921 |
Adjustments to tax in respect of previous periods | (8\u00a0064) | - |
Translation differences | - | - |
Other minor items | - | (3) |
Income tax expense for the year | 260\u00a0378 | 140\u00a0582 |
Effective tax rate | (27%) | (7%) |
Tax payable
(EUR) | 2023 | 2022 |
Tax payable for the year | 25\u00a0816 | 19\u00a0818 |
Prepaid tax | (24\u00a0574) | (19\u00a0818) |
Total payable tax | 1\u00a0242 | - |
Temporary differences Norway | ||
Receivables | (1\u00a0067\u00a0833) | - |
Intercompany interest | (5\u00a0989\u00a0196) | (5\u00a0361\u00a0669) |
Total temporary differences | (7\u00a0057\u00a0029) | (5\u00a0361\u00a0669) |
Tax losses carried forward | 722\u00a0429 | 816\u00a0680 |
Tax losses carried forward not recognised as an asset | - | (816\u00a0680) |
Basis for deferred tax | (6\u00a0334\u00a0600) | (5\u00a0361\u00a0669) |
Deferred tax | (974\u00a0368) | (804\u00a0250) |
Temporary differences Italy | ||
Tangible assets | 51\u00a0623 | 51\u00a0630 |
Intangible assets | - | - |
Leasing | 115\u00a0050 | 215\u00a0111 |
Cash flow hedge | - | - |
Total temporary differences | 166\u00a0673 | 266\u00a0741 |
Tax losses carried forward | 16\u00a0313\u00a0816 | 14\u00a0701\u00a0320 |
Tax losses carried forward not recognised as an asset | (16\u00a0313\u00a0816) | (14\u00a0701\u00a0320) |
Basis for deferred tax asset | 166\u00a0673 | 266\u00a0741 |
Deferred tax asset | 40\u00a0002 | 64\u00a0018 |
Tax expense reconciliation
(EUR) | 2023 | 2022 |
Profit before tax | (950\u00a0930) | (2\u00a0065\u00a0101) |
Corporation tax charge thereon at 22% (2019: 22%) | (208\u00a0378) | (454\u00a0322) |
Adjusted for the effects of: | - | |
Expenses not deductible for tax purposes | 203\u00a0359 | 123\u00a0790 |
Gain from sale, not taxable | - | - |
Change in temporary differences | (201\u00a0532) | - |
Change in tax rates | - | - |
Different tax rates in foreign jurisdictions | (657\u00a0312) | (513\u00a0108) |
Change in tax loss not carried forward | 988\u00a0486 | 882\u00a0304 |
Change in deferred tax | - | - |
Withholding tax on intercompany interest | 143\u00a0820 | 101\u00a0921 |
Adjustments to tax in respect of previous periods | (8\u00a0064) | - |
Translation differences | - | - |
Other minor items | - | (3) |
Income tax expense for the year | 260\u00a0378 | 140\u00a0582 |
Effective tax rate | (27%) | (7%) |
Note 12\tEarnings per share
Basic earnings per share is calculated as the ratio of the profit for the year due to the shareholders of the parent company, divided by the weighted average number of ordinary shares outstanding. The Company had 6\u00a0852\u00a0210 shares outstanding on 31 December 2023. There is no dilutive potential on the ordinary shares, so the earnings will be the same for both basic and diluted basis.
Earnings per share(EUR) | 2023 | 2022 |
Profit for holders of ordinary shares | (1\u00a0211\u00a0308) | (2\u00a0205\u00a0683) |
Basis for earnings per share | (1\u00a0211\u00a0308) | (2\u00a0205\u00a0683) |
Earnings per share(EUR) | 2023 | 2022 |
- Basic | (0.18) | (0.32) |
- Diluted | (0.18) | (0.32) |
Earnings per share in NOK\u200c1 | 2023 | 2022 |
Continued operation | ||
- Basic | (2.02) | (3.25) |
- Diluted | (2.02) | (3.25) |
Total shares outstanding at period end | 6\u00a0852\u00a0210 | 6\u00a0852\u00a0210 |
Weighted average number of ordinary shares oustanding | 6\u00a0852\u00a0210 | 6\u00a0852\u00a0210 |
Weighted average number of shares adjusted for dilutive shares | 6\u00a0852\u00a0210 | 6\u00a0852\u00a0210 |
1Average NOK/EUR exchange rate | 11.421 | 10.104 |
Note 13\tProperty, plant and equipment
2023 (EUR) | Solar power plants | Solar power plants under lease | Leashold improvements | Total |
Carrying value 1 January 2023 | 1\u00a0356\u00a0652 | 4\u00a0342\u00a0529 | 288\u00a0800 | 5\u00a0987\u00a0981 |
Additions | 1\u00a0750 | - | 3\u00a0550 | 5\u00a0300 |
Depreciation | (114\u00a0133) | (412\u00a0999) | (36\u00a0277) | (563\u00a0410) |
Carrying value 31 December 2023 | 1\u00a0244\u00a0269 | 3\u00a0929\u00a0530 | 256\u00a0072 | 5\u00a0429\u00a0872 |
2022 (EUR) | Solar power plants | Solar power plants under lease | Leashold improvements | Total |
Carrying value 1 January 2022 | 1\u00a0470\u00a0610 | 4\u00a0755\u00a0529 | 312\u00a0119 | 6\u00a0538\u00a0257 |
Additions | 12\u00a0600 | 12\u00a0600 | ||
Depreciation | (113\u00a0958) | (412\u00a0999) | (35\u00a0919) | (562\u00a0876) |
Carrying value 31 December 2022 | 1\u00a0356\u00a0652 | 4\u00a0342\u00a0529 | 288\u00a0800 | 5\u00a0987\u00a0981 |
Economic life of 20\u201325 years and straight-line depreciation.
Solar power plants under lease include a plot of land, that is not being depreciated since the land has an unlimited useful life, with a carrying amount of EUR 572 thousand.
(EUR) | 2023 | 2022 |
Plant and equipment - at cost | 2\u00a0773\u00a0216 | 2\u00a0771\u00a0466 |
Less: Accumulated depreciation | (1\u00a0528\u00a0946) | (1\u00a0414\u00a0813) |
1\u00a0244\u00a0270 | 1\u00a0356\u00a0653 | |
Plant and equipment under lease | 8\u00a0041\u00a0834 | 8\u00a0041\u00a0834 |
Less: Accumulated depreciation | (4\u00a0112\u00a0304) | (3\u00a0699\u00a0305) |
3\u00a0929\u00a0530 | 4\u00a0342\u00a0529 | |
Leasehold improvements - at cost | 520\u00a0019 | 516\u00a0469 |
Less: Accumulated depreciation | (263\u00a0947) | (227\u00a0669) |
256\u00a0072 | 288\u00a0800 |
Leasing
Total obligation | Contracts identified as leases applying IFRS 16 | Contracts that were previously identified as leases applying IAS 17 | Total |
ENS Solar One | 72\u00a0408 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0332 |
Total obligation 31 December 2023 | 72\u00a0408 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0332 |
Long term obligation | Amount | Amount | Total |
ENS Solar One | 68\u00a0052 | 2\u00a0818\u00a0549 | 2\u00a0886\u00a0601 |
Total long term obligation 31 December 2023 | 68\u00a0052 | 2\u00a0818\u00a0549 | 2\u00a0886\u00a0601 |
Short term obligation | Amount | Amount | Total |
ENS Solar One | 4\u00a0356 | 449\u00a0375 | 453\u00a0731 |
Total short term obligation 31 December 2023 | 4\u00a0356 | 449\u00a0375 | 453\u00a0731 |
The interest rate used for the recognition of contracts identified as leases applying IFRS 16 and contracts that were previously identified as leases applying IAS 17 is 4.92 per cent p.a., equal to the interest rate of the underlying agree-ments with the financial institution for obligations measured as of 31 December 2019. The contracts identified as leases applying IFRS 16 run to 2035. The contracts that were previously identified as leases applying IAS 17 run to 2030. The lease contracts recognized in applying IFRS 16 is the land rent and surface rights for ENS One, and the lease contracts that were previously identified as leases applying IAS 17 are leases of the solar power plants of ENS One. The \u201cRight Of Use\u201d is calculated as the same value as the lease obligation at the time of initial application.
Undiscounted lease liabilities and maturity of cash outflow
Year | Amount | ||
2024 | 697\u00a0000 | ||
2025 | 697\u00a0000 | ||
2026 | 697\u00a0000 | ||
2027 | 697\u00a0000 | ||
2028 | 697\u00a0000 | ||
After 2028 | 1\u00a0433\u00a0000 | ||
Total undiscounted lease liabilities at 31 December 2023 | 4\u00a0918\u00a0000 | ||
Summary of the lease liabilities | Contracts identified as leases applying IFRS 16 | ||
Contracts that were previously identified as leases applying IAS 17 | Total | ||
At initial application 1 January 2023 | 76\u00a0763 | 3\u00a0694\u00a0608 | 3\u00a0771\u00a0372 |
New lease liabilities recognised in the year | - | - | - |
Cash payments lease | (7\u00a0872) | (608\u00a0466) | (616\u00a0338) |
Interest expense on lease liabilities | 3\u00a0516 | 181\u00a0781 | 185\u00a0297 |
Disposal | - | - | - |
Total lease liabilities at 31 December 2023 | 72\u00a0407 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0331 |
The Company has chosen to apply the practical expedient laid out in IFRS 16 where there is no reassessment whether a contract is, or contains, a lease at the date of initial application. Instead IFRS 16 is applied to all contracts that were previously identified as leasing applying 17. Further, the Company has chosen to apply the modified retrospective approach in the new standard.
Note 13\tProperty, plant and equipment
2023 (EUR) | Solar power plants | Solar power plants under lease | Leashold improvements | Total |
Carrying value 1 January 2023 | 1\u00a0356\u00a0652 | 4\u00a0342\u00a0529 | 288\u00a0800 | 5\u00a0987\u00a0981 |
Additions | 1\u00a0750 | - | 3\u00a0550 | 5\u00a0300 |
Depreciation | (114\u00a0133) | (412\u00a0999) | (36\u00a0277) | (563\u00a0410) |
Carrying value 31 December 2023 | 1\u00a0244\u00a0269 | 3\u00a0929\u00a0530 | 256\u00a0072 | 5\u00a0429\u00a0872 |
2022 (EUR) | Solar power plants | Solar power plants under lease | Leashold improvements | Total |
Carrying value 1 January 2022 | 1\u00a0470\u00a0610 | 4\u00a0755\u00a0529 | 312\u00a0119 | 6\u00a0538\u00a0257 |
Additions | 12\u00a0600 | 12\u00a0600 | ||
Depreciation | (113\u00a0958) | (412\u00a0999) | (35\u00a0919) | (562\u00a0876) |
Carrying value 31 December 2022 | 1\u00a0356\u00a0652 | 4\u00a0342\u00a0529 | 288\u00a0800 | 5\u00a0987\u00a0981 |
Leasing
Total obligation | Contracts identified as leases applying IFRS 16 | Contracts that were previously identified as leases applying IAS 17 | Total |
ENS Solar One | 72\u00a0408 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0332 |
Total obligation 31 December 2023 | 72\u00a0408 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0332 |
Long term obligation | Amount | Amount | Total |
ENS Solar One | 68\u00a0052 | 2\u00a0818\u00a0549 | 2\u00a0886\u00a0601 |
Total long term obligation 31 December 2023 | 68\u00a0052 | 2\u00a0818\u00a0549 | 2\u00a0886\u00a0601 |
Short term obligation | Amount | Amount | Total |
ENS Solar One | 4\u00a0356 | 449\u00a0375 | 453\u00a0731 |
Total short term obligation 31 December 2023 | 4\u00a0356 | 449\u00a0375 | 453\u00a0731 |
The interest rate used for the recognition of contracts identified as leases applying IFRS 16 and contracts that were previously identified as leases applying IAS 17 is 4.92 per cent p.a., equal to the interest rate of the underlying agree-ments with the financial institution for obligations measured as of 31 December 2019. The contracts identified as leases applying IFRS 16 run to 2035. The contracts that were previously identified as leases applying IAS 17 run to 2030. The lease contracts recognized in applying IFRS 16 is the land rent and surface rights for ENS One, and the lease contracts that were previously identified as leases applying IAS 17 are leases of the solar power plants of ENS One. The \u201cRight Of Use\u201d is calculated as the same value as the lease obligation at the time of initial application.
Undiscounted lease liabilities and maturity of cash outflow
Year | Amount | ||
2024 | 697\u00a0000 | ||
2025 | 697\u00a0000 | ||
2026 | 697\u00a0000 | ||
2027 | 697\u00a0000 | ||
2028 | 697\u00a0000 | ||
After 2028 | 1\u00a0433\u00a0000 | ||
Total undiscounted lease liabilities at 31 December 2023 | 4\u00a0918\u00a0000 | ||
Summary of the lease liabilities | Contracts identified as leases applying IFRS 16 | ||
Contracts that were previously identified as leases applying IAS 17 | Total | ||
At initial application 1 January 2023 | 76\u00a0763 | 3\u00a0694\u00a0608 | 3\u00a0771\u00a0372 |
New lease liabilities recognised in the year | - | - | - |
Cash payments lease | (7\u00a0872) | (608\u00a0466) | (616\u00a0338) |
Interest expense on lease liabilities | 3\u00a0516 | 181\u00a0781 | 185\u00a0297 |
Disposal | - | - | - |
Total lease liabilities at 31 December 2023 | 72\u00a0407 | 3\u00a0267\u00a0924 | 3\u00a0340\u00a0331 |
The Company has chosen to apply the practical expedient laid out in IFRS 16 where there is no reassessment whether a contract is, or contains, a lease at the date of initial application. Instead IFRS 16 is applied to all contracts that were previously identified as leasing applying 17. Further, the Company has chosen to apply the modified retrospective approach in the new standard.
Note 14\tOther contractual obligations
The Group has the following contractual obligations not recognized in the balance sheet relating to operations and maintenance, and insurance for ENS 1 and ENFO 25 (All amounts are undiscounted).
Year(EUR) | Amount |
2024 | 92\u00a0000 |
2025 | 92\u00a0000 |
2026 | 92\u00a0000 |
2027 | 92\u00a0000 |
2028 | 92\u00a0000 |
After 2028 | 289\u00a0000 |
Total | 749\u00a0000 |
Equity contribution agreement and patronage letter
In conjunction with the \u201cP31 acquisition\u201d, EAM Solar Italy Holding Srl entered
into a so-called patronage letter and an equity contribution agreement with UBI Leasing and UniCredit respectively. These agreements may under certain circumstances require EAM Solar Italy Holding Srl to inject additional equity into the debt financed SPVs to cover any shortfall or breach of the debt repayment obligations of the SPVs.
The FIT contracts of the SPVs have been terminated by GSE due to fraud against the State of Italy.
In November 2018 EAM Solar ASA was served with a notice that UBI Leasing had requested the Court of Brescia for an injunction of EUR 6 million on EAM assets. The court of Brescia granted a preliminary non-enforceable injunction. EAM challenged the injunction. Court hearings in this matter has been ongoing since 2019 until this day.
EAM has requested UBI to provide both witnesses and documentation of the bank\u2019s handling of the leasing financing activities of the Solar PV power plants in 2010 and 2011 in the proceedings. On 10 November 2022 the Judge decided that UBI must submit certain documents on EAM\u2019s request. A hearing was conducted on 30 March 2023 where UBI submitted more documents.
The final hearing in this matter was heard on 4 March 2024. The Judgement is expected in early May 2024.
No provisions are made in the accounts on this matter.
Receivable and payable against Aveleos S.A., its directors and its two shareholders Enovos Luxembourg S.A. and Avelar Energy Ltd.
The 2019 ruling by the Criminal Court of Milan was appealed by several parties, and the appeal procedure in the Criminal Court of Appeal of Milan commenced with one hearing in October 2020 and two hearings in December 2020, and on 20 January 2021, the Criminal Appeal Court of Milan decided to revoke the first instance judgement of the Criminal Court of Milan.
EAM Solar ASA decided to join with the Prosecutor\u2019s Office in Milan in appealing the Criminal Appeal Court of Milan decision to the Italian Supreme Court of Cassation in 2021.
On 7 October 2021 the Supreme Court of Italy decided to annul the acquittal decision of by the Criminal Appeal Court of Milan in its entirety.
In November 2021 the Supreme Court issued its full grounds for the annulment decision of the acquittal ruling. The Supreme Court found that the Criminal Appeal Court of Milan did not fulfil its obligation to conduct a correct and comprehensive review of the factual evidence in the criminal case, resulting in an erroneous evaluation of the evidence with the effect that the acquittal decision was based on obvious inconsistent and illogical arguments.
The Supreme Court sent the criminal proceedings back to a different chamber of the Criminal Appeal Court of Milan for new proceedings to be conducted, with the requirement that the new court proceedings must be based on a complete review of the evidence, making correct application of the principles of law and the rules of logic as formulated in the Supreme Court decision.
On the fraud of EAM, the Supreme Court concluded that the evidenced withholding of essential information during the contractual negotiations constitutes a contractual fraud.
In July 2023, Section V of the Court of Appeal in Milan notified the parties that the appeal proceedings would continue, and the first hearing took place on 30 November 2023. The final hearing is scheduled for 16 May 2024. The Court of Appeal has stated its intention to render its judgement in the case at the conclusion of the hearing on 16 May 2024.
The Company estimates its claim to be more than EUR 300 million. The claim is a contingent asset that will not be recognised in the balance sheet.
Based on the Share Purchase Agreement and the addendums, the Company is entitled to a payment from Aveleos due to the overpayment for ENS4 and the post-closing adjustments including interest. This amount has been confirmed by EY in a separate audit on the issue which later has been updated and reconfirmed by RSM.
In addition, the company has recognised a loan of EUR 2.5 million given by Aveleos in 2014.
EAM Solar Italy Holding Srl was on 10 December 2020 notified that Aveleos had filed a petition, without EAM\u2019s knowledge, to the Civil Court in Milano claiming payment of shareholder loans in the amount of EUR 12\u00a0683\u00a0721 under the Sale and Purchase Agreement of the P31 transaction.
EAM Solar ASA and its subsidiary is of the opinion that such claim does not exist and have third party expert opinions supporting this fact. The fact is that Aveleos SA owes EAM Solar ASA money following the SPA due to the non-transfer of 10 power plants.
EAM Solar Italy Holding Srl contested the decision in January 2021 and enrolled the case to Court. A hearing was expected to take place in June 2021 but ended up being scheduled for 7 September 2021. In the meantime, Aveleos adhered to our objection that an arbitration was already pending on the same issue, and accordingly decided to drop the case. This will bring the proceedings to an end.
No provisions are made in the accounts on this matter.
Litigation funding agreement with Therium
The funding being received from Therium is a contribution to lower the legal costs incurred in pursuing the claim, and legal costs are reduced with the contribution from Therium, and any subsequent repayment to Therium is conditional on EAM receiving a claim award. Therefore, there is no liability to recognise a payment to Therium at this stage in the financial statements. EAM will recognise a claim award after having reimbursed Therium of their amount. Unused litigation funding at the end of the year was EUR 61 thou-sand. Therium has committed to invest a maximum amount of up to EUR 2.3 million. The agreement entitles Therium to receive the invested amount plus a contingency fee of 3X the committed funds under any incepted tranche of funding as a first priority payment from any litigation claim awarded to the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f31758": { "value": "Note 15\tFinancial risk management
Regulatory risk
The largest risk to the Company\u2019s operations and profitability are regulatory risk relating to changes in agreements, taxation or operational regulations made by the State of Italy. This risk is difficult to hedge against apart from securing that operations always follow the prevailing rules and regulations.
Financial risk
The Group has different financial instruments; a) trade and other receivables and trade accounts payable and b) leasing.
Credit risk
Under normal circumstances the risk for losses is considered to be low, as the counterpart is the Italian state, but given the unpaid FIT amounts on ENFO 25, the management at year-end 2022 decided to make a provision and write down the receivable against GSE, see note 16. The Group has not made any offsets or other derivative agreements to reduce the credit risk in EAM.
Interest-rate risk
Interest rate risk is the risk that the fair value or future cash flows of a finan-cial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relate primarily to the Group\u2019s debt with floating interest rates.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Groups approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Groups reputation. Surplus liquidity is primarily placed on a bank deposit account.
Capital structure and equity
The primary focus of the Group\u2019s capital management is to ensure that it maintains an acceptable capital ratio to support its business operations and the ongoing legal proceedings.
The financial statement is prepared based on going concern.
There is uncertainty relating to ongoing legal proceedings in 2024 whether the Group has sufficient liquidity for the next twelve months.
Risk associated with the economic situation in Europe
Throughout 2022 and 2023 markets in Europe have been characterised by surging energy prices, increasing interest rates and price increases in general. The Group has to a very little extent been affected by this.
Since the Decree in Italy has limited the market price during the first half of 2023 there has been no windfall profit for the Group in this period. Increased interest rates impact the group to a certain extent through the external leasing debt.
The War in Ukraine and sanctions against Russia
The war in Ukraine and the sanctions against Russia has had no direct impact on the Company\u2019s operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f31842": { "value": "Credit risk
Under normal circumstances the risk for losses is considered to be low, as the counterpart is the Italian state, but given the unpaid FIT amounts on ENFO 25, the management at year-end 2022 decided to make a provision and write down the receivable against GSE, see note 16. The Group has not made any offsets or other derivative agreements to reduce the credit risk in EAM.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f31974": { "value": "Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Groups approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Groups reputation. Surplus liquidity is primarily placed on a bank deposit account.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32126": { "value": "Risk associated with the economic situation in Europe
Throughout 2022 and 2023 markets in Europe have been characterised by surging energy prices, increasing interest rates and price increases in general. The Group has to a very little extent been affected by this.
Since the Decree in Italy has limited the market price during the first half of 2023 there has been no windfall profit for the Group in this period. Increased interest rates impact the group to a certain extent through the external leasing debt.
The War in Ukraine and sanctions against Russia
The war in Ukraine and the sanctions against Russia has had no direct impact on the Company\u2019s operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32306": { "value": "Note 16\tTrade receivables
Trade and other receivables(EUR) | 2023 | 2022 |
Accounts receivables | - | - |
Deferred revenue towards GSE | 131\u00a0940 | 218\u00a0121 |
Receivable from sale | - | 305\u00a0017 |
Other receivables | 1\u00a0601\u00a0261 | 1\u00a0651\u00a0606 |
Total trade and other receivables | 1\u00a0733\u00a0201 | 2\u00a0174\u00a0744 |
Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the Company has not recognised Feed-In-Tariff revenues for ENFO 25.
GSE normally has 60 days payment terms from receiving an invoice. In 2015, GSE introduced a 12-month delayed payment on 10 per cent of the expected annual revenues, thereby being paid in June the following year.
Other receivables are mainly receivable on VAT for Italian subsidiaries that does not expire and can be utilised against other taxes or cashed out in the event the companies cease to exist.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32307": { "value": "Note 16\tTrade receivables
Trade and other receivables(EUR) | 2023 | 2022 |
Accounts receivables | - | - |
Deferred revenue towards GSE | 131\u00a0940 | 218\u00a0121 |
Receivable from sale | - | 305\u00a0017 |
Other receivables | 1\u00a0601\u00a0261 | 1\u00a0651\u00a0606 |
Total trade and other receivables | 1\u00a0733\u00a0201 | 2\u00a0174\u00a0744 |
Management evaluated the situation of ENFO 25 and its net receivable position against GSE at year end 2022, concluding that it is more likely than not, that the net receivable against GSE will not be collected. Based on this conclusion the trade receivable against GSE and the corresponding provision of payable was written down and the net amount recognised as an operating cost, write down of trade receivables amounting to EUR 569 thousand at year-end 2022. Revenues recognition and reporting of revenues for 2022 remained unchanged, however from 1 January 2023 the Company has not recognised Feed-In-Tariff revenues for ENFO 25.
GSE normally has 60 days payment terms from receiving an invoice. In 2015, GSE introduced a 12-month delayed payment on 10 per cent of the expected annual revenues, thereby being paid in June the following year.
Other receivables are mainly receivable on VAT for Italian subsidiaries that does not expire and can be utilised against other taxes or cashed out in the event the companies cease to exist.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32570": { "value": "Note 17\tCash and cash equivalents
(EUR) | 2023 | 2022 |
Cash Norway | 73\u00a0255 | 937\u00a0904 |
Cash Italy | 318\u00a0465 | 526\u00a0494 |
Cash and cash equivalents | 391\u00a0720 | 1\u00a0464\u00a0397 |
Restricted cash Norway | 16\u00a0378 | 294\u00a0851 |
Restricted cash Italy | 228\u00a0804 | 331\u00a0541 |
Seized cash Italy | 61\u00a0616 | 61\u00a0616 |
The restricted cash in Italy of EUR 229 thousand is the debt service reserve account of ENS Solar One Srl. The EUR 62 thousand of the seized cash is taken from companies not included in the in the first criminal proceedings. The restricted cash in Norway is related to a tax withholding account.
The Group had no undrawn credit facilities at 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32571": { "value": "Note 17\tCash and cash equivalents
(EUR) | 2023 | 2022 |
Cash Norway | 73\u00a0255 | 937\u00a0904 |
Cash Italy | 318\u00a0465 | 526\u00a0494 |
Cash and cash equivalents | 391\u00a0720 | 1\u00a0464\u00a0397 |
Restricted cash Norway | 16\u00a0378 | 294\u00a0851 |
Restricted cash Italy | 228\u00a0804 | 331\u00a0541 |
Seized cash Italy | 61\u00a0616 | 61\u00a0616 |
The restricted cash in Italy of EUR 229 thousand is the debt service reserve account of ENS Solar One Srl. The EUR 62 thousand of the seized cash is taken from companies not included in the in the first criminal proceedings. The restricted cash in Norway is related to a tax withholding account.
The Group had no undrawn credit facilities at 31 December 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f32788": { "value": "Note 18\tShare capital, shareholder information and dividend
The 20 main shareholders as at 31 December 2022 are:
Shareholder | Shares | Ownership |
CANICA AS | 886\u00a0762 | 12.9% |
SUNDT AS | 784\u00a0612 | 11.5% |
ENERGEIA AS | 650\u00a0956 | 9.5% |
NORDNET LIVSFORSIKRING AS | 304\u00a0055 | 4.4% |
DNB LIVSFORSIKRING AS | 269\u00a0086 | 3.9% |
MELLEM NES INVEST AS | 156\u00a0928 | 2.3% |
AKA AS | 125\u00a0000 | 1.8% |
SKJ\u00c6VELAND | 82\u00a0120 | 1.2% |
AUTO SPAR AS | 68\u00a0113 | 1.0% |
CLEARSTREAM BANKING S.A. | 63\u00a0623 | 0.9% |
VIRO AS | 61\u00a0156 | 0.9% |
NORDNET BANK AB | 58\u00a0258 | 0.9% |
MP PENSJON PK | 51\u00a0345 | 0.7% |
NORTH SEA GROUP AS | 49\u00a0000 | 0.7% |
LORGEN | 46\u00a0000 | 0.7% |
MATHIASSEN | 41\u00a0438 | 0.6% |
M\u00d8GSTER | 41\u00a0000 | 0.6% |
KM FORVALTNING AS | 40\u00a0000 | 0.6% |
PARK LANE FAMILY OFFICE AS | 37\u00a0300 | 0.5% |
SKINSTAD | 36\u00a0000 | 0.5% |
Total of the 20 main shareholders | 3\u00a0852\u00a0752 | 56.2% |
All the shares in the Company and shareholders have equal rights, including voting rights. Each share carries the right to one vote at the Company\u2019s general meeting.
Share premium is the difference between nominal value of the Company\u2019s shares and the total amount the Company received for shares issued.
Due to the financial situation of the Company the board of directors propose no dividend payments for 2023.
Share capital | 1 Jan 2023 | 31 Dec 2023 |
No of shares | 6\u00a0852\u00a0210 | 6\u00a0852\u00a0210 |
Nominal value (NOK) | 10 | 10 |
Share capital | 68\u00a0522\u00a0100 | 68\u00a0522\u00a0100 |
Note 18\tShare capital, shareholder information and dividend
The 20 main shareholders as at 31 December 2022 are:
Shareholder | Shares | Ownership |
CANICA AS | 886\u00a0762 | 12.9% |
SUNDT AS | 784\u00a0612 | 11.5% |
ENERGEIA AS | 650\u00a0956 | 9.5% |
NORDNET LIVSFORSIKRING AS | 304\u00a0055 | 4.4% |
DNB LIVSFORSIKRING AS | 269\u00a0086 | 3.9% |
MELLEM NES INVEST AS | 156\u00a0928 | 2.3% |
AKA AS | 125\u00a0000 | 1.8% |
SKJ\u00c6VELAND | 82\u00a0120 | 1.2% |
AUTO SPAR AS | 68\u00a0113 | 1.0% |
CLEARSTREAM BANKING S.A. | 63\u00a0623 | 0.9% |
VIRO AS | 61\u00a0156 | 0.9% |
NORDNET BANK AB | 58\u00a0258 | 0.9% |
MP PENSJON PK | 51\u00a0345 | 0.7% |
NORTH SEA GROUP AS | 49\u00a0000 | 0.7% |
LORGEN | 46\u00a0000 | 0.7% |
MATHIASSEN | 41\u00a0438 | 0.6% |
M\u00d8GSTER | 41\u00a0000 | 0.6% |
KM FORVALTNING AS | 40\u00a0000 | 0.6% |
PARK LANE FAMILY OFFICE AS | 37\u00a0300 | 0.5% |
SKINSTAD | 36\u00a0000 | 0.5% |
Total of the 20 main shareholders | 3\u00a0852\u00a0752 | 56.2% |
All the shares in the Company and shareholders have equal rights, including voting rights. Each share carries the right to one vote at the Company\u2019s general meeting.
Share premium is the difference between nominal value of the Company\u2019s shares and the total amount the Company received for shares issued.
Due to the financial situation of the Company the board of directors propose no dividend payments for 2023.
Share capital | 1 Jan 2023 | 31 Dec 2023 |
No of shares | 6\u00a0852\u00a0210 | 6\u00a0852\u00a0210 |
Nominal value (NOK) | 10 | 10 |
Share capital | 68\u00a0522\u00a0100 | 68\u00a0522\u00a0100 |
Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
Equity contribution agreement and patronage letter
In conjunction with the \u201cP31 acquisition\u201d, EAM Solar Italy Holding Srl entered
into a so-called patronage letter and an equity contribution agreement with UBI Leasing and UniCredit respectively. These agreements may under certain circumstances require EAM Solar Italy Holding Srl to inject additional equity into the debt financed SPVs to cover any shortfall or breach of the debt repayment obligations of the SPVs.
The FIT contracts of the SPVs have been terminated by GSE due to fraud against the State of Italy.
In November 2018 EAM Solar ASA was served with a notice that UBI Leasing had requested the Court of Brescia for an injunction of EUR 6 million on EAM assets. The court of Brescia granted a preliminary non-enforceable injunction. EAM challenged the injunction. Court hearings in this matter has been ongoing since 2019 until this day.
EAM has requested UBI to provide both witnesses and documentation of the bank\u2019s handling of the leasing financing activities of the Solar PV power plants in 2010 and 2011 in the proceedings. On 10 November 2022 the Judge decided that UBI must submit certain documents on EAM\u2019s request. A hearing was conducted on 30 March 2023 where UBI submitted more documents.
The final hearing in this matter was heard on 4 March 2024. The Judgement is expected in early May 2024.
No provisions are made in the accounts on this matter.
Receivable and payable against Aveleos S.A., its directors and its two shareholders Enovos Luxembourg S.A. and Avelar Energy Ltd.
The 2019 ruling by the Criminal Court of Milan was appealed by several parties, and the appeal procedure in the Criminal Court of Appeal of Milan commenced with one hearing in October 2020 and two hearings in December 2020, and on 20 January 2021, the Criminal Appeal Court of Milan decided to revoke the first instance judgement of the Criminal Court of Milan.
EAM Solar ASA decided to join with the Prosecutor\u2019s Office in Milan in appealing the Criminal Appeal Court of Milan decision to the Italian Supreme Court of Cassation in 2021.
On 7 October 2021 the Supreme Court of Italy decided to annul the acquittal decision of by the Criminal Appeal Court of Milan in its entirety.
In November 2021 the Supreme Court issued its full grounds for the annulment decision of the acquittal ruling. The Supreme Court found that the Criminal Appeal Court of Milan did not fulfil its obligation to conduct a correct and comprehensive review of the factual evidence in the criminal case, resulting in an erroneous evaluation of the evidence with the effect that the acquittal decision was based on obvious inconsistent and illogical arguments.
The Supreme Court sent the criminal proceedings back to a different chamber of the Criminal Appeal Court of Milan for new proceedings to be conducted, with the requirement that the new court proceedings must be based on a complete review of the evidence, making correct application of the principles of law and the rules of logic as formulated in the Supreme Court decision.
On the fraud of EAM, the Supreme Court concluded that the evidenced withholding of essential information during the contractual negotiations constitutes a contractual fraud.
In July 2023, Section V of the Court of Appeal in Milan notified the parties that the appeal proceedings would continue, and the first hearing took place on 30 November 2023. The final hearing is scheduled for 16 May 2024. The Court of Appeal has stated its intention to render its judgement in the case at the conclusion of the hearing on 16 May 2024.
The Company estimates its claim to be more than EUR 300 million. The claim is a contingent asset that will not be recognised in the balance sheet.
Based on the Share Purchase Agreement and the addendums, the Company is entitled to a payment from Aveleos due to the overpayment for ENS4 and the post-closing adjustments including interest. This amount has been confirmed by EY in a separate audit on the issue which later has been updated and reconfirmed by RSM.
In addition, the company has recognised a loan of EUR 2.5 million given by Aveleos in 2014.
EAM Solar Italy Holding Srl was on 10 December 2020 notified that Aveleos had filed a petition, without EAM\u2019s knowledge, to the Civil Court in Milano claiming payment of shareholder loans in the amount of EUR 12\u00a0683\u00a0721 under the Sale and Purchase Agreement of the P31 transaction.
EAM Solar ASA and its subsidiary is of the opinion that such claim does not exist and have third party expert opinions supporting this fact. The fact is that Aveleos SA owes EAM Solar ASA money following the SPA due to the non-transfer of 10 power plants.
EAM Solar Italy Holding Srl contested the decision in January 2021 and enrolled the case to Court. A hearing was expected to take place in June 2021 but ended up being scheduled for 7 September 2021. In the meantime, Aveleos adhered to our objection that an arbitration was already pending on the same issue, and accordingly decided to drop the case. This will bring the proceedings to an end.
No provisions are made in the accounts on this matter.
Litigation funding agreement with Therium
The funding being received from Therium is a contribution to lower the legal costs incurred in pursuing the claim, and legal costs are reduced with the contribution from Therium, and any subsequent repayment to Therium is conditional on EAM receiving a claim award. Therefore, there is no liability to recognise a payment to Therium at this stage in the financial statements. EAM will recognise a claim award after having reimbursed Therium of their amount. Unused litigation funding at the end of the year was EUR 61 thou-sand. Therium has committed to invest a maximum amount of up to EUR 2.3 million. The agreement entitles Therium to receive the invested amount plus a contingency fee of 3X the committed funds under any incepted tranche of funding as a first priority payment from any litigation claim awarded to the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33199": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
Equity contribution agreement and patronage letter
In conjunction with the \u201cP31 acquisition\u201d, EAM Solar Italy Holding Srl entered
into a so-called patronage letter and an equity contribution agreement with UBI Leasing and UniCredit respectively. These agreements may under certain circumstances require EAM Solar Italy Holding Srl to inject additional equity into the debt financed SPVs to cover any shortfall or breach of the debt repayment obligations of the SPVs.
The FIT contracts of the SPVs have been terminated by GSE due to fraud against the State of Italy.
In November 2018 EAM Solar ASA was served with a notice that UBI Leasing had requested the Court of Brescia for an injunction of EUR 6 million on EAM assets. The court of Brescia granted a preliminary non-enforceable injunction. EAM challenged the injunction. Court hearings in this matter has been ongoing since 2019 until this day.
EAM has requested UBI to provide both witnesses and documentation of the bank\u2019s handling of the leasing financing activities of the Solar PV power plants in 2010 and 2011 in the proceedings. On 10 November 2022 the Judge decided that UBI must submit certain documents on EAM\u2019s request. A hearing was conducted on 30 March 2023 where UBI submitted more documents.
The final hearing in this matter was heard on 4 March 2024. The Judgement is expected in early May 2024.
No provisions are made in the accounts on this matter.
Receivable and payable against Aveleos S.A., its directors and its two shareholders Enovos Luxembourg S.A. and Avelar Energy Ltd.
The 2019 ruling by the Criminal Court of Milan was appealed by several parties, and the appeal procedure in the Criminal Court of Appeal of Milan commenced with one hearing in October 2020 and two hearings in December 2020, and on 20 January 2021, the Criminal Appeal Court of Milan decided to revoke the first instance judgement of the Criminal Court of Milan.
EAM Solar ASA decided to join with the Prosecutor\u2019s Office in Milan in appealing the Criminal Appeal Court of Milan decision to the Italian Supreme Court of Cassation in 2021.
On 7 October 2021 the Supreme Court of Italy decided to annul the acquittal decision of by the Criminal Appeal Court of Milan in its entirety.
In November 2021 the Supreme Court issued its full grounds for the annulment decision of the acquittal ruling. The Supreme Court found that the Criminal Appeal Court of Milan did not fulfil its obligation to conduct a correct and comprehensive review of the factual evidence in the criminal case, resulting in an erroneous evaluation of the evidence with the effect that the acquittal decision was based on obvious inconsistent and illogical arguments.
The Supreme Court sent the criminal proceedings back to a different chamber of the Criminal Appeal Court of Milan for new proceedings to be conducted, with the requirement that the new court proceedings must be based on a complete review of the evidence, making correct application of the principles of law and the rules of logic as formulated in the Supreme Court decision.
On the fraud of EAM, the Supreme Court concluded that the evidenced withholding of essential information during the contractual negotiations constitutes a contractual fraud.
In July 2023, Section V of the Court of Appeal in Milan notified the parties that the appeal proceedings would continue, and the first hearing took place on 30 November 2023. The final hearing is scheduled for 16 May 2024. The Court of Appeal has stated its intention to render its judgement in the case at the conclusion of the hearing on 16 May 2024.
The Company estimates its claim to be more than EUR 300 million. The claim is a contingent asset that will not be recognised in the balance sheet.
Based on the Share Purchase Agreement and the addendums, the Company is entitled to a payment from Aveleos due to the overpayment for ENS4 and the post-closing adjustments including interest. This amount has been confirmed by EY in a separate audit on the issue which later has been updated and reconfirmed by RSM.
In addition, the company has recognised a loan of EUR 2.5 million given by Aveleos in 2014.
EAM Solar Italy Holding Srl was on 10 December 2020 notified that Aveleos had filed a petition, without EAM\u2019s knowledge, to the Civil Court in Milano claiming payment of shareholder loans in the amount of EUR 12\u00a0683\u00a0721 under the Sale and Purchase Agreement of the P31 transaction.
EAM Solar ASA and its subsidiary is of the opinion that such claim does not exist and have third party expert opinions supporting this fact. The fact is that Aveleos SA owes EAM Solar ASA money following the SPA due to the non-transfer of 10 power plants.
EAM Solar Italy Holding Srl contested the decision in January 2021 and enrolled the case to Court. A hearing was expected to take place in June 2021 but ended up being scheduled for 7 September 2021. In the meantime, Aveleos adhered to our objection that an arbitration was already pending on the same issue, and accordingly decided to drop the case. This will bring the proceedings to an end.
No provisions are made in the accounts on this matter.
Litigation funding agreement with Therium
The funding being received from Therium is a contribution to lower the legal costs incurred in pursuing the claim, and legal costs are reduced with the contribution from Therium, and any subsequent repayment to Therium is conditional on EAM receiving a claim award. Therefore, there is no liability to recognise a payment to Therium at this stage in the financial statements. EAM will recognise a claim award after having reimbursed Therium of their amount. Unused litigation funding at the end of the year was EUR 61 thou-sand. Therium has committed to invest a maximum amount of up to EUR 2.3 million. The agreement entitles Therium to receive the invested amount plus a contingency fee of 3X the committed funds under any incepted tranche of funding as a first priority payment from any litigation claim awarded to the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33200": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33201": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33202": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33203": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f33204": { "value": "Note 19\tDebt
EUR | 2023 | 2022 |
Other non current liabilities | 343\u00a0887 | 343\u00a0887 |
Lease liabilities | 2\u00a0886\u00a0601 | 3\u00a0340\u00a0536 |
Deferred tax | 974\u00a0368 | 804\u00a0250 |
Total non-current liabilities | 4\u00a0204\u00a0856 | 4\u00a0488\u00a0674 |
Trade payables | 1\u00a0144\u00a0635 | 627\u00a0466 |
Payables to GSE | 610\u00a0405 | 756\u00a0355 |
Other payables | 80\u00a0674 | 480\u00a0681 |
Social security | 1 | - |
Taxes other than income taxes | 6\u00a0677 | 6\u00a0677 |
Accrued liabilities | 192\u00a0736 | 2\u00a0511 |
Trade and other payables | 2\u00a0035\u00a0127 | 1\u00a0873\u00a0690 |
Current leasing | 453\u00a0731 | 430\u00a0836 |
Related to ordinary operations | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total current liabilities | 2\u00a0490\u00a0100 | 2\u00a0304\u00a0526 |
Total liabilities | 6\u00a0694\u00a0956 | 6\u00a0793\u00a0200 |
Payables to GSE
On 29 March 2022, Law no. 25 (Sostegni ter Decree) entered into force. The Decree was initially intended to apply from February 2022 to the end of the year, but it was later extended to 30 June 2023. Following the Decree, the achieved market price of electricity has been limited to EUR 56 per MWh for the Company\u2019s power plants in the South of Italy. Relevant provisions are made but not yet paid as the Company is awaiting final decision in the Italian judicial system on the lawfulness of the Decree.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f34675": { "value": "Note 20\tImpairment
EAM has not identified indicators for impairment of the power plants as described in IAS 36 at year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f34702": { "value": "Note 21\tIntangible assets
2023 | Intangible assets |
Carrying value 1 January 2023 | 9\u00a0101 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2023 | 8\u00a0401 |
2022 | Intangible assets |
Carrying value 1 January 2022 | 9\u00a0801 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2022 | 9\u00a0101 |
Intangible assets are depreciated linear over the lifetime of the FIT contracts. The FIT contract period is running to 2031.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f34703": { "value": "Note 21\tIntangible assets
2023 | Intangible assets |
Carrying value 1 January 2023 | 9\u00a0101 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2023 | 8\u00a0401 |
2022 | Intangible assets |
Carrying value 1 January 2022 | 9\u00a0801 |
Additions | - |
Write downs | - |
Depreciation | (700) |
Disposals | - |
Currency translation effect | - |
Carrying value 31 December 2022 | 9\u00a0101 |
Intangible assets are depreciated linear over the lifetime of the FIT contracts. The FIT contract period is running to 2031.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f35199": { "value": "Note 23\tGoing concern
The financial statements and annual report are prepared under the assumption of going concern.
However, although the Group\u2019s asset base and operating revenues covers ordinary operations, administration and service of operating assets debt obligations, the Group\u2019s liquidity is strained due to the significant legal costs relating to the litigation activities.
At year-end 2023 the Group had EUR 391 thousand in cash of which EUR 122 thousand was unrestricted. At the end of first quarter 2024, the cash was reduced to EUR 237 thousand of which EUR 25 thousand was unrestricted. The first quarter in a year is normally a loss making quarter due to the seasonality of power production.
In the final award of 29 February 2024 in the Milan arbitration, EAM Solar ASA was awarded an estimated net compensa-tion payable by Aveleos SA between EUR 2\u00a0686\u00a0810 and EUR 2\u00a0939\u00a0814 after interest is applied. However, the Company does not foresee to receive such amounts without further legal procedures in conjunction with international collection procedures.
The final award in the arbitration does, however, open for the possibility of releasing pledges relating to Aveleos on the SPV ENS1, thus enabling EAM Solar ASA to sell the four remaining power plants in Italy. Such sale will release a signifi-cant amount of liquidity for the Company. However, such sale may take between 9 and 18 months to conclude.
A final factor with regards to the assessment of going concern is the outcome of the ongoing criminal proceedings in Milan, scheduled for a decision on 16 May 2024. A court decision upholding the original court decision of 2019 will secure going concern, an unfavourable decision for EAM Solar ASA may challenge the going concern assumption.
These circumstances imply that there will be a need for additional capital infusion. If this is not attainable, there will be a material uncertainty regarding the group\u2019s ability to continue as a going concern.
The board has convened an extraordinary general meeting on 10 May 2024 in order to grant the board power of attorney to execute on measures to improve the short term liquidity of the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXIPFC54", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }