Enefit Green (EGR1T) Q2 2024 earnings summary

Executive summary

• Q2 2024 electricity production increased 35% year-over-year, driven by new wind and solar farms, while thermal output fell due to asset sales and outages.

• Operating income declined 7% to €38.3m, EBITDA decreased 2% to €18.9m, but net profit surged 246% to €3.9m, mainly due to lower taxes and higher production from new assets.

• Major investments continued, with €129.8m invested in Q2, focused on wind and solar developments; renewable capacity under construction reached 637 MW.

• CEO transition underway, with a new CEO effective October 2024 and ongoing CFO recruitment.

• The company exited its biomass business, now focusing solely on power production.

Financial highlights

• Q2 2024 operating income: €38.3m (-7% YoY); EBITDA: €18.9m (-2% YoY); net profit: €3.9m (+246% YoY).

• H1 2024 operating income: €107.2m; EBITDA: €61.3m (+2%); net profit: €37.4m (+18%).

• Q2 earnings per share: €0.015 (vs. €0.004 in Q2 2023).

• Average electricity price earned in Q2 was €70/MWh, 22% below last year; market sales price was €52/MWh, 18% lower year-over-year.

• Investments in Q2: €129.8m (+74% YoY), mainly in wind and solar projects.

Outlook and guidance

• 2024 electricity production forecast at just over 2 TWh, with 62.8% hedged by PPAs at €67.2/MWh.

• Management expects to bring 130 MW of new capacity online by year-end, totaling nearly 260 MW delivered over two years.

• Leverage expected to peak in 2025 as major projects complete; net debt/EBITDA at 5.5x as of June 2024.

• Long-term electricity price forecasts for 2025–2026 raised by 15% due to higher gas and CO2 prices.

• Focus remains on completing projects under construction, developing storage and hydrogen technologies, and active PPA management.