Arise (ARISE) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered solid results with net sales of SEK 101 million and profit after tax of SEK 30 million, despite lower electricity prices and seasonally weaker production revenue.

• EBITDA was SEK 53 million, EBIT SEK 33 million, reflecting lower market prices but strong operational performance.

• Project portfolio expanded by 745 MW in Q2, with 175 MW advanced to late stage and a new 500 MW partnership in Finland.

• Completion of the Lebo wind farm increased own production by over 25% and was included in the Production segment from May.

• Integration of new employees and acquired companies, along with a strong financial position, remain key focuses.

Financial highlights

• Net sales for Q2 2024 were SEK 101 million, down from SEK 110 million in Q2 2023.

• EBITDA was SEK 53 million (Q2 2023: SEK 69 million); EBIT at SEK 33 million (Q2 2023: SEK 53 million).

• Profit after tax totaled SEK 30 million, or SEK 0.76 per share.

• Operating cash flow was SEK 24 million, down from SEK 60 million in Q2 2023; cash flow after investment improved to -SEK 34 million from -SEK 167 million year-over-year.

• Net debt increased to SEK 358 million, with cash and cash equivalents at SEK 804 million.

Outlook and guidance

• Expectation of price recovery in the second half of the year and ambition to complete at least one project sale in 2024.

• Focus on advancing early-stage projects, growing the pipeline in selected geographies, and optimizing long-term value.

• Anticipate improvements in project valuations supported by lower interest rates, CapEx, and favorable market signals for renewables.

• Demand for renewable energy remains strong despite economic and market uncertainty.

• UK government targets to double onshore wind and triple solar by 2030, supporting bullish outlook.