Energiekontor (EKT) Q3 2024 earnings summary

Executive summary

• Achieved record results in 2023 with significant growth in sales and earnings; continued expansion of project pipeline and own generation capacity in 2024.

• Operates in five countries with 39 wind and solar parks totaling around 395–400 MW, aiming to expand to 610–615 MW as projects under construction are commissioned.

• Project pipeline increased to over 12 GW by mid-2024, with strong regional and technological diversification.

• Strategy targets double-digit organic growth and 15% average annual EBT increase from 2023 to 2028, aiming to double EBT from €60m to €120m.

• Despite market challenges, the company maintains a solid pipeline and continues to expand its portfolio and project development activities.

Financial highlights

• 2023 sales rose 28.9% to €241.8m; EBITDA up 35.8% to €135.6m; EBT up 51.8% to €95.5m; EPS nearly doubled to €5.97.

• H1 2024 sales increased 19.6% to €78.0m, but EBITDA fell 23.9% to €35.9m and EBT dropped 39.9% to €16.7m; EPS down 43.3% to €0.85.

• Market capitalization at €797.0m as of 30 September 2024; share price declined 31.1% YTD to €57.00.

• Gross electricity generated by group-owned parks was 432 GWh in 9M 2024 (full year 2023: 635 GWh).

• Dividend for 2023 raised to €1.20 per share.

Outlook and guidance

• FY 2024 EBT guidance set at €30–70m, reflecting market risks, capacity shortfalls, and subdued business; mid-term strategy targets EBT of €120m by 2028 with 15% average annual growth.

• Segment EBTs for project development, power generation, and operations are all expected below 2023 levels.

• Delays in UK grid expansion and long turbine delivery times are pushing some project completions and earnings into 2025 and 2026.

• Focus remains on organic growth, expanding own portfolio to 1.5–2.0 GW and realizing 3–4 GW of projects by 2028.