Arise (ARISE) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were SEK 153 million, down from SEK 191 million year-over-year, with EBITDA at SEK 47 million and EBIT at SEK 24 million; full-year net sales were SEK 470 million, EBITDA SEK 226 million, and EBIT SEK 144 million.

• Profit after tax reached SEK 33 million (SEK 0.86 per share) for Q4 and SEK 172 million (SEK 4.26 per share) for the year; the board proposed an increased dividend of SEK 1.25 per share.

• The project pipeline expanded by nearly 2,000 MW in 2024, reaching 8,850 MW, with 10% of the 400 MW sales target for 2024-2025 achieved.

• The company focused on maximizing value from green electricity production, accelerating projects to ready-to-build, and maintaining capital discipline.

• All business segments delivered positive earnings despite lower electricity prices and a weak transaction market.

Financial highlights

• Q4 operating cash flow was SEK 94 million, with cash flow after investments at SEK 40 million; full-year operating cash flow was SEK 279 million, with cash flow after investments at SEK 51 million.

• Own production generated 97 GWh in Q4 at an average income of SEK 525/MWh, and 321 GWh for the year at SEK 581/MWh.

• Settlement with a previous service provider positively impacted EBITDA by SEK 10 million.

• Net interest savings of EUR 2.5 million were realized from refinancing activities.

• Net debt increased to SEK 387 million, mainly due to project financing and share buybacks.

Outlook and guidance

• Several project sales are expected in 2025, with Finland and the UK as key contributors.

• The company targets 500 MW project sales per year from 2026 to 2028 and expects improved transaction markets and higher power prices.

• Hedges for Q4 2024 and Q1 2026 were secured at EUR 60/MWh and EUR 70/MWh, respectively, covering about 10% of volumes.

• The late-stage development portfolio is expected to be realized within two to three years.

• Medium- to long-term electricity prices are expected to rise, supporting growth and value creation.