Orrön Energy (ORRON) Q3 2024 earnings summary

Executive summary

• Maintains a long-term strategy focused on low-cost onshore wind, solar, and battery assets across the Nordics and Europe, with a 40 GW greenfield pipeline and growing emphasis on organic growth and greenfield projects in the UK and Germany.

• Power generation reached 620 GWh in the first nine months, about 10% below expectations due to low wind speeds and voluntary curtailments, with full-year guidance revised to 900 GWh.

• Added 33 GWh of annual power generation through acquisitions and increased ownership in windfarms in SE3 and SE4 price areas.

• Maintained high technical availability (96%) across operational assets despite challenging market conditions.

• Maintains significant liquidity headroom and financial resilience, supporting continued investment and growth.

Financial highlights

• Q3 power generation was 164 GWh, 20% below expectations due to low wind and curtailment.

• Q3 2024 revenue was EUR 3 million, with an achieved price of EUR 18/MWh and negative EBITDA of EUR 4 million.

• EBITDA for the first nine months was EUR 9 million, with an average achieved price of EUR 35/MWh.

• Net debt at quarter-end was EUR 56 million, down from EUR 92 million at the start of the year, mainly due to the Leikanger divestment; liquidity headroom was EUR 116 million.

• Operating costs and G&A are on track to meet full-year guidance; CapEx guidance reduced to EUR 11 million due to cost savings and phasing.

Outlook and guidance

• Full-year 2024 power generation forecast is 900 GWh, with most revenues and cash flow expected in Q4 and Q1 due to seasonally higher prices and wind speeds.

• Full-year 2024 revenue expected between EUR 30–36 million, with EBITDA (excluding Sudan legal costs) of EUR 5–11 million.

• Free cash flow pre-CapEx for 2024 projected between EUR 0–6 million (excluding legal costs), with ample liquidity to withstand prolonged low prices.

• Capital expenditure guidance for 2024 reduced from EUR 14 million to EUR 11 million due to cost savings and investment phasing.

• First UK and German greenfield projects expected to reach ready-to-permit milestones and enter the sales process by year-end 2024.