Cloudberry Clean Energy (CLOUD) Q2 2024 earnings summary

Executive summary

• Q2 2024 featured strong power production growth, with 143 GWh produced, mainly from wind and supported by diversified assets in Norway, Sweden, and Denmark.

• Proportionate revenue was NOK 288m and EBITDA NOK 194m, both lower year-over-year due to smaller asset sales, but underlying production volumes and profitability improved.

• Strategic asset rebalancing included selling three hydropower plants for NOK 320.5m, increasing Forte Energy Norway AS stake to 49.99%, and optimizing the portfolio for better price regions.

• New partnership with Holmen Renewable Energy expands project backlog by ~1 TWh, providing access to large land areas in Sweden for scalable wind development.

• Construction milestones achieved at Øvre Kvemma and Munkhyttan, with Odal Wind Farm resuming production after downtime and full operation expected by year-end.

Financial highlights

• Proportionate revenue: NOK 288m (Q2 2024) vs NOK 363m (Q2 2023); proportionate EBITDA: NOK 194m vs NOK 280m.

• Consolidated cash position: NOK 934m; equity ratio at 69%; net interest-bearing debt at NOK 766m.

• 75% of interest-bearing debt fixed at long-term rates below 4%, minimizing exposure to rising rates.

• Gain from asset sales in Q2 2024 was NOK 109m (2.3x booked equity), down from NOK 258m in Q2 2023 (2.0x booked equity).

• Excluding asset sales, both revenue and profitability increased quarter-on-quarter, driven by higher production volumes.

Outlook and guidance

• Strategic focus remains on profitability, IRR-driven growth, and capital recycling, with continued investment in solar, wind, and battery projects in the Nordics.

• Partnership with Holmen to develop ~1 TWh of wind projects in SE3, increasing backlog by 40–50%.

• All construction projects on track; Munkhyttan commercial production expected by end of Q3 2024, Sundby final construction to complete in Q3.

• Odal Wind expected to have all turbines operational by year-end, with financial downside mitigated by warranties.

• No plans to enter Power-to-X projects; focus remains on renewable energy production.