EAM Solar (EAM) Q2 2024 earnings summary

Executive summary

• EAM Solar changed its legal form from a public limited company to a limited liability company, impacting its Oslo Stock Exchange listing.

• The Milan Criminal Appeal Court upheld fraud convictions against Aveleos directors for defrauding the Italian state but acquitted them of fraud against EAM; EAM plans to appeal.

• Arbitration in Milan awarded EAM approximately EUR 2.7 million, but Aveleos has appealed; first hearing set for February 2025.

• Energeia AS issued a 12-month notice to terminate its management agreement; transition to a self-sufficient organization is underway.

Financial highlights

• Q2 2024 revenues were EUR 303 thousand, up from EUR 245 thousand in Q2 2023; H1 2024 revenues were EUR 514 thousand.

• EBITDA for Q2 2024 was minus EUR 237 thousand, improved from minus EUR 525 thousand in Q2 2023.

• Net income for Q2 2024 was minus EUR 771 thousand, compared to minus EUR 351 thousand in Q2 2023.

• Cash flow from operations in H1 2024 was positive at EUR 273 thousand; cash at period end was EUR 194 thousand.

• Book equity at quarter end was EUR 1.1 million, with an equity ratio of 13.5%.

Outlook and guidance

• Liquidity remains strained due to ongoing legal costs; additional capital infusion may be required to maintain going concern.

• Sale of power plants could release significant liquidity, but may take 9–18 months to complete.

• EAM does not expect to receive the arbitration award without further legal action.