Nordic Financials (NOFIN) Q2 2024 earnings summary

Executive summary

• Operated nine solar parks in Q2 2024, producing 3,364,481 kWh, with production in line with expectations and slightly higher solar irradiation than last year.

• Revenues reached EUR 991k in Q2 2024, up from EUR 919k in Q2 2023; EBITDA was EUR 616k, up from EUR 443k.

• Strategic reorganization: Aega ASA will pay out shares in Aega AS (which owns the solar parks) as dividends, making Aega ASA debt-free and shifting its focus to operating and managing solar parks rather than owning them.

• Growth through acquisitions or new construction has been challenging due to limited access to equity funding at acceptable prices.

Financial highlights

• Q2 2024 revenues: EUR 991k (Q2 2023: EUR 919k); EBITDA: EUR 616k (Q2 2023: EUR 443k).

• Operating profit for Q2 2024: EUR 234k; net loss for Q2 2024: EUR -699k (Q2 2023: EUR -741k).

• Cash and short-term deposits at 30 June 2024: EUR 1.44m (31 Dec 2023: EUR 1.99m).

• Total equity at 30 June 2024: EUR 5.81m (31 Dec 2023: EUR 6.72m).

• Cash flow from operations in H1 2024: EUR 334k; net decrease in cash in H1 2024: EUR -549k.

Outlook and guidance

• Ongoing process may shift business model from asset ownership to operating solar parks for other owners.

• Market prices for electricity expected to remain volatile but at levels similar to Q2 2024; potential for new incentives for PV solar producers in Italy is being monitored.