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OX2 (OX2) investor relations material

OX2 Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary25 Jul, 2024

Executive summary

  • Q2 2024 featured strong construction and asset management progress, with stable development and greenfield additions of up to 150 MW.

  • The first battery storage project in Sweden (Bredhälla, 42.5 MW) was sold and handed over, marking diversification in energy storage.

  • The total portfolio stands at 47 GW, with 33 GW in development and over 4 GW constructed or under construction.

  • EQT's SEK 60/share cash offer for OX2 reached over 50% acceptance, with regulatory approvals pending and acceptance period open until October 14.

  • No major acquisitions occurred, but a greenfield project of up to 150 MW was added.

Financial highlights

  • Net sales for Q2 2024 were SEK 2,233 million, with LTM net sales at SEK 7.3 billion, down 10.8% year-over-year.

  • Operating margin LTM was 5.5%, and return on capital employed LTM was 9%, both below targets.

  • Gross margin for Q2 was 10% (impacted by an SEK 86 million impairment), but LTM gross margin was 27%.

  • Operating income for Q2 was SEK -206 million, with LTM operating income at SEK 427 million (6% of sales).

  • Cash position at quarter-end was SEK 3,002–3,181 million, with an equity ratio of 57.7%.

Outlook and guidance

  • Full-year 2024 outlook for improved operating income is reiterated, but uncertainty has increased due to lengthy customer decision processes.

  • Most 2024 earnings are expected in Q4, with nearly 2 GW in ongoing sales processes.

  • Personnel and project development cost increases are expected to be below 5% for the full year.

  • Project development expenses are stabilizing after significant investments in recent years.

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Frequently asked questions

OX2 AB develops and sells wind farms and solar parks in the Nordics and the Baltic countries. OX2 aims to be one of the leading developers within renewable energy and has built more than 400 wind turbines with a capacity of over 1,100 MW. The projects are constructed by other major players in the industry, but OX2 also provides construction works through partners. The company was incorporated in 2004 and is headquartered in Stockholm, Sweden.

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