Gigasun (GIGA) Q2 2024 earnings summary

Executive summary

• Achieved SEK 6.0 million profit after tax for Q2 2024, reversing a SEK -38.4 million loss from Q2 2023, driven by lower interest expenses and stable operations.

• Installed capacity grew to 293.3 MW at quarter-end, with 8.4 MW added in Q2 and 17.4 MW more post-period, reaching 310.7 MW.

• Signed new contracts for 16.7 MW in Q2, with a robust project pipeline of 131.1 MW.

• Refinancing in China secured SEK 870 million at 4.05% interest, extending amortization from 7 to 10 years, improving cash flow.

• Option program for management and board introduced, with 3 million new options and repurchase of 1.9 million old options.

Financial highlights

• Q2 revenues were SEK 64.7 million, down 1.2% year-over-year; net sales rose 5% to SEK 55.8 million.

• Operating profit (EBIT) for Q2 was SEK 27.9 million, up 3.1% year-over-year; EBITDA margin reached 75%.

• Interest expenses dropped to SEK 22.8 million from SEK 45.3 million due to bond repayments and lower-cost leasing.

• Earnings per share before dilution improved to SEK 0.10 from SEK -0.97 in Q2 2023.

• Year-to-date profit after tax was SEK -10.0 million, a significant improvement from SEK -73.6 million last year.

• Total cash flow for Q2 was SEK 34.1 million, with SEK 58 million in cash at period-end.

Outlook and guidance

• Strategic review underway to optimize ownership structure and unlock company value.

• Uncertainty remains in meeting 2024 financial targets, but refinancing is expected to support profitable operations.

• Focus remains on expanding installed capacity and leveraging China’s green growth policies.