Skandia GreenPower (SKAND) Q2 2024 earnings summary

Executive summary

• Achieved a turnaround in 2023 with cost-saving measures, entering 2024 with strong growth and profitability prospects.

• Achieved a consolidated operating profit of NOK 2.3 million in H1 2024, up NOK 21.7 million from H1 2023, driven by cost reductions and increased customer base.

• Customer base reached 30,482 at H1 2024, with 200,957 MWh delivered, and is set to double to ~60,000 by September 2024 after the Motkraft acquisition.

• Cost reduction program in 2023 led to a 47% decrease in operating expenses year-over-year, with significant savings in personnel and other costs.

• Acquisition of Motkraft for NOK 36.5m in cash, expected to be accretive from day one.

Financial highlights

• Gross revenue for H1 2024 was NOK 141.6m, down from NOK 167.6m in H1 2023 due to lower power prices.

• Net revenue increased to NOK 19.6m from NOK 11.7m year-over-year, reflecting higher average margin per customer.

• EBITDA improved from NOK -17.4m in H1 2023 to NOK 9.2m in H1 2024.

• Net result turned positive at NOK 2.3m, up from NOK -19.4m in H1 2023.

• Equity increased to NOK 85.4m at H1 2024 from NOK 14.9m at year-end 2023.

Outlook and guidance

• Targeting 100,000 customers by 2026, up from 30,482 at June 2024 and ~60,000 post-Motkraft acquisition.

• EBITDA guidance for 2024 is NOK 24.5m, with a goal of NOK 54.6m by 2026.

• Net result target of NOK 34.9m by 2026 and plans to distribute 90% of net result as dividends for 2025 and 2026, with first payout in H2 2025.

• Positive outlook for earnings and growth, with further customer base expansion expected after Motkraft acquisition.

• Scalable cost structure and successful integration of acquisitions position the company for further profitable growth.