Skandia GreenPower (SKAND) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked by significant acquisition activity and organic customer growth, with total customers rising to 56,391 from 30,814 in Q2, driven by the Motkraft acquisition and positive net new sales.

• Motkraft acquisition completed for NOK 36.5 million, adding 28,057 customers and contributing to EBITDA and future digital strategy.

• Net result for Q3 2024 reached NOK 0.6 million, up from NOK -1.2 million in Q3 2023, marking a NOK 1.8 million improvement.

• EBITDA for Q3 2024 was NOK 4.9 million, compared to NOK 0.1 million in Q3 2023, an increase of NOK 4.8 million.

• Results for the quarter were in line with management's forecasts.

Financial highlights

• Gross revenue for Q3 was NOK 27.3 million, up from NOK 17.0 million in Q3 2023; net revenue was NOK 8.9 million.

• EBITDA for Q3 was 4.9 MNOK, up from 0.1 MNOK in Q3 2023; net result improved to 0.6 MNOK from -1.2 MNOK year-over-year.

• YTD gross revenue is lower than last year due to lower power prices and fewer customers in Q1, but Q3 revenue increased due to higher customer numbers.

• Equity at quarter-end was 88 MNOK, up from 15 MNOK at the same time last year.

• Negative operating cash flow in Q3 (-12.2 MNOK) due to seasonal working capital changes; investment cash flow driven by Motkraft acquisition (-32.9 MNOK).

Outlook and guidance

• SGP maintains guidance for 2024 EBITDA at 24.5 MNOK, expecting full effect from Motkraft in Q4 and continued customer growth.

• Customer base target set at 100,000 by 2026, with organic growth and further integration of acquisitions expected to drive performance.