Enefit Green (EGR1T) Q3 2024 earnings summary

Executive summary

• New CEO and CFO appointments signal a leadership transition, with a focus on leveraging international energy sector experience and core market growth.

• Installed power generation capacity surpassed 1 GW after Sopi-Tootsi wind farm completion.

• Q3 2024 electricity production rose 32% year-over-year to 342 GWh, mainly from new wind and solar assets.

• Net profit increased 8% year-over-year to €5.4m, supported by higher production and the Akmenė windpark settlement.

• Operating income and EBITDA declined slightly due to a 40% drop in captured electricity prices and wider wind/solar profile discounts.

Financial highlights

• Q3 2024 operating income: €43.5m (-2% YoY); EBITDA: €15.7m (-1% YoY); net profit: €5.4m (+8% YoY).

• 9M 2024 operating income: €150.7m (+1% YoY); EBITDA: €77.0m (+1% YoY); net profit: €42.8m (+17% YoY).

• Q3 2024 revenue was €33.8m (down from €39.7m in Q3 2023); 9M 2024 revenue was €123.9m (down from €146.1m).

• Implied captured electricity price dropped 40% YoY in Q3 to €50.3/MWh.

• Q3 2024 investments totaled €76.9m, mainly in wind and solar projects.

Outlook and guidance

• 2024 full-year production expected at 1.84 TWh, with 66% covered by PPAs at €66.5/MWh.

• Q4 2024 electricity production forecast revised down to 645 GWh due to slower ramp-up at Sopi-Tootsi and Kelmė I.

• Leverage expected to peak in 2025 as major projects complete; focus remains on financing and partnerships for future growth.

• No new long-term PPAs signed in Q3; 49.8% of 2024-2028 expected production covered by PPAs at €68.0/MWh.

• Investment policy updated to focus on WACC+2% returns, proactive PPA management, and limited-risk emerging tech investments.