Arise (ARISE) Q3 2024 earnings summary

Executive summary

• Net sales rose to SEK 105 million in Q3 2024, up from SEK 96 million year-over-year, driven by revenue from the Kölvallen project and strong development segment performance.

• Profit after tax increased to SEK 63 million (SEK 1.55/share), up from SEK 35 million (0.84), positively impacted by deferred tax recognition.

• Operating cash flow improved to SEK 43 million from -SEK 47 million, and cash flow after investments was -SEK 8 million, a significant improvement from -SEK 231 million.

• The development portfolio expanded by over 1,200 MW in the first nine months, reaching approximately 8,100 MW, with 200 MW added in Q3.

• The company completed its first energy storage project sale (40 MW Pajkölen), receiving SEK 50 million at closing, with further payments and earn-outs pending.

Financial highlights

• Q3 net sales: SEK 105 million (Q3 2023: SEK 96 million).

• EBITDA: SEK 55 million (Q3 2024) vs. SEK 59 million (Q3 2023); EBIT: SEK 33 million (Q3 2024) vs. SEK 43 million (Q3 2023).

• Profit after tax: SEK 63 million (Q3 2024) vs. SEK 35 million (Q3 2023); EPS: SEK 1.55 (Q3 2024) vs. SEK 0.84 (Q3 2023).

• Operating cash flow: SEK 43 million (Q3 2024) vs. -SEK 47 million (Q3 2023).

• Cash flow after investments: -SEK 8 million (Q3 2024) vs. -SEK 231 million (Q3 2023).

Outlook and guidance

• Project valuations expected to improve due to falling interest rates and reduced project supply.

• Bullish short-term view on power prices entering winter, with potential for higher prices if colder weather materializes.

• Plans to advance early-stage projects to late-stage and pursue further project sales in 2024 and 2025.

• Monitoring market for hedging opportunities, targeting SE4 at EUR 60 and SE3 at EUR 50 for new hedges.

• Strong financial position allows flexibility and continued growth.