EAM Solar (EAM) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a return to profitability with net income of EUR 199k, compared to a loss of EUR 827k in Q3 2023, driven by reinstatement of the ENFO25 FIT subsidy and positive net financial items.

• An equity issue of 100–250 million new shares at NOK 0.10 per share is underway, critical for maintaining going concern.

• The Milan Court of Appeal's July 2024 decision in ongoing litigation was appealed to the Supreme Court of Cassation.

Financial highlights

• Q3 2024 revenues were EUR 415k, up from EUR 333k in Q3 2023; 9M 2024 revenues reached EUR 1,046k, up from EUR 787k in 9M 2023.

• EBITDA for Q3 2024 was EUR 31k (7.5% margin); adjusted EBITDA was EUR 185k, excluding litigation costs.

• Net financial items were positive at EUR 322k in Q3 2024, supporting a pre-tax profit of EUR 211k.

• 9M 2024 net loss was EUR 187k, a significant improvement from a loss of EUR 740k in 9M 2023.

• Cash at period end was EUR 86k, with EUR 36k restricted and EUR 62k seized by Italian authorities.

Outlook and guidance

• Successful completion of the equity issue is necessary to avoid reconstruction or bankruptcy.

• Reinstatement of the ENFO25 FIT contract is expected to increase 2024 gross revenues by EUR 230k, with an additional reimbursement of EUR 0.5–0.7 million anticipated in Q4 2024.

• Sale of the four remaining power plants could release significant liquidity, but may take 9–18 months.