A strong quarter and healthy growth in the project portfolio
CEO Comment:
The company delivered a strong quarter with EBITDA of MSEK 53 and net profit of MSEK 30, especially considering that the second quarter is normally a period of lower production revenue. Favourable price hedging and the Lebo project, which increases our own production by more than 25%, contribute to the result. We also received the earnout for the Ranasjö- and Salsjöhöjden project. We are continuing to present very healthy growth in our project portfolio, which increased by 745 MW. Furthermore, our focus on accelerating projects has resulted in projects in late developmental phase increasing by 175 MW. In total, this means that we are in line with delivering on our financial targets.
Second quarter (1 April–30 June 2024)
- Net sales for the quarter amounted to MSEK 101 (110).
- Operating profit before depreciation and amortisation (EBITDA) was MSEK 53 (69).
- Operating profit (EBIT) was MSEK 33 (53).
- Profit after tax totalled MSEK 30 (36) and earnings per share amounted to SEK 0.76 (0.85).
- Operating cash flow was MSEK 24 (60) and cash flow after investments amounted to MSEK -34 (-167).
- Production generated 69 GWh (54) of green electricity with an average income of SEK 549 per MWh (947).
- The project portfolio increased by 745 MW during the quarter.
| Selected key figures | Q2 2024 | Q2 2023 | Q2 2022 | Q2 2021 | Q2 2020 |
| Net sales, MSEK | 101 | 110 | 53 | 36 | 30 |
| EBITDA, MSEK | 53 | 69 | 25 | 12 | 6 |
| Earnings per share, SEK | 0.76 | 0.85 | -0.13 | -0.16 | -0.80 |
| Adjusted equity per share, SEK | 59 | 63 | 29 | 24 | 23 |
| Equity/assets ratio, % | 57 | 59 | 35 | 51 | 45 |
| Project portfolio, MW | ~7,900 | ~5,700 | ~2,350 | ~1,300 | ~1,300 |
First half of the year (1 January–30 June 2024)
- Net sales for the period amounted to MSEK 213 (217).
- Operating profit before depreciation and amortisation (EBITDA) totalled MSEK 123 (145).
- Operating profit (EBIT) was MSEK 87 (114).
- Profit after tax totalled MSEK 77 (88) and earnings per share amounted to SEK 1.90 (2.01).
- Operating cash flow was MSEK 142 (90) and cash flow after investments amounted to MSEK 20 (-208).
- Production generated 159 GWh (141) of green electricity with an average income of SEK 661 per MWh (940).
- The project portfolio increased by almost 1,000 MW during the first half of the year.
Significant events during the first half of the year
- In May, Arise announced that the Board had resolved to utilise the authorisation granted by the 2024 Annual General Meeting to buy back the company’s own shares corresponding to MSEK 50 ahead of the 2025 Annual General Meeting. Under this share buyback programme and the previous buyback programme, 2,201,045 own shares were repurchased for MSEK 97 during the first half of the year.
- In May, Eva Vitell announced that she was leaving the Board of Arise at her own request, since she had accepted a position with Svenska Kraftnät.
- In May, the Lebo wind farm was completed. The wind farm is fully owned by Arise, has a capacity of 33 MW and is located in price area 3. Following the completion, Lebo is part of the Production segment.
- Arise announced in June that the earnout payment for the Ranasjö- and Salsjöhöjden project had been established at MEUR 6.6, which was received in the same month. Of the earnout amount, MEUR 4.2 had already been recognised whereby the earnings effect for the quarter amounted to MEUR 2.4.
- In June, Arise’s subsidiary Pohjan Voima entered into a cooperation agreement with Finsilva, one of Finland’s largest landowners. The cooperation opens up opportunities for the development of new wind and solar projects, which may also include battery storage. Five project areas have been identified with estimated potential of approximately 500 MW.
Halmstad, 17 July 2024
Arise AB (publ)
For further information, please contact:
Per-Erik Eriksson, CEO Arise AB, +46 702 409 902
Markus Larsson, CFO Arise AB, + 46 735 321 776
This information is such information as Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 17 July, 2024.