Eolus Vind (EOLU) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw no new sales, with net sales at 24 MSEK, and negative operating results due to SEK 40 million write-downs on Arkona and Skidbladner offshore projects; sales for key projects are expected in Q1 2025.

• Centennial Flats BESS project in Arizona moved to construction, triggering a $64.7 million milestone payment post-quarter, expected to positively impact Q4 operating profit by $51 million.

• Portfolio size reduced to 26 GW after Swedish government permit rejections, resulting in SEK 40 million write-downs and a 2,200 MW reduction.

• Construction is progressing on major projects in Sweden and the U.S., with an order backlog increased to SEK 832 million.

• Asset management portfolio grew to 967 MW at period end, up from 817 MW a year earlier.

Financial highlights

• Net sales for Q3 2024 were SEK 24 million, down from SEK 127 million in Q3 2023.

• Operating profit (EBIT) was negative SEK 94 million, compared to positive SEK 159 million last year.

• Net loss for Q3 2024 was SEK 79 million, versus a profit of SEK 94 million in Q3 2023; rolling 12-month net profit at -90 MSEK.

• Cash position at end-September was SEK 425 million, down from SEK 980 million a year ago.

• Cash flow from operating activities was negative SEK 1,042 million, mainly due to ongoing construction investments.

Outlook and guidance

• Sales processes for Pome, Fågelås, Boarp, Dållebo, Ölme (73 MW), and Pienava (158 MW) are expected to close in Q1 2025 or have been initiated.

• Full-year 2024 expected to be positive due to Centennial Flats payment.

• New business plan and financial targets for 2025-2027 to be finalized and implemented.

• Market softness in Nordics persists, but U.S. activity remains robust and is supported by policy measures.

• Optimism for 2025 pipeline with new projects expected to enter backlog.