Enefit Green (EGR1T) Q4 2024 earnings summary

Executive summary

• Electricity production rose 40% to 1.9 TWh in 2024, driven by new wind and solar assets, while heat production fell 31% due to divestments.

• Installed capacity exceeded 1.1 GW, 2.4 times higher than at IPO, with major projects completed in Estonia, Lithuania, and Finland.

• Major asset sales (Paide, Valka, Brocēni CHP plants, pellet factory) and biomass exit impacted year-on-year comparability.

• Strategic focus shifted to the Baltics and Poland, with a possible exit from Finland and partnerships for future growth.

• Emphasis on stable cash flow, asset reliability, and balancing growth and profitability.

Financial highlights

• Revenue/operating income declined 4% to €220.9m due to lower electricity prices and asset sales, but EBITDA rose 8% to €114.8m and net profit increased 26% to €70.3m.

• Earnings per share up 26% to €0.266.

• Q4 2024: EBITDA up 28% and net profit up 44% year-over-year.

• Record investments of €388.4m, mainly in wind and solar developments.

• Net financial costs rose with higher interest expenses, but impact was neutralized by high capitalization.

Outlook and guidance

• Focus on maximizing value from existing assets, timely completion of projects under construction, and expanding system services.

• No new long-term PPAs signed in 2024; 47% of potential production covered by existing PPAs at an average price of €67.8/MWh.

• Long-term electricity price forecasts for core markets revised down by 10–15%.

• Dividend policy remains at 50% of net profit, with payout decisions at the annual meeting.

• Cautious approach to new renewables due to market oversupply and price volatility.