Oscar Properties (OP) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 2024 fell to SEK 70.2m from SEK 133.9m year-over-year, with a net loss of SEK -106.7m compared to a profit of SEK 61.9m last year.

• The company is in a critical financial situation, with negative equity and a shift in accounting principles to liquidation basis.

• Major asset sales and debt restructuring efforts are ongoing, including the sale of properties worth SEK 2.2bn and further divestments post-period.

• Several board and management changes occurred, including the appointment of a new CEO and chairman in June 2024.

Financial highlights

• Net sales: SEK 70.2m (down from SEK 133.9m year-over-year).

• Operating income (driftnetto): SEK 38.6m (down from SEK 64.1m year-over-year).

• Value change in properties: SEK -64.2m (down from SEK 161.0m year-over-year).

• Net result: SEK -106.7m (down from SEK 61.9m year-over-year).

• Earnings per share: SEK -0.74 (down from SEK 0.43 year-over-year).

Outlook and guidance

• The company’s ability to continue as a going concern is highly uncertain due to severe liquidity and solvency issues.

• Ongoing negotiations with creditors and a proposed debt-to-equity conversion are critical for survival.

• The board has prepared a control balance sheet showing depleted equity, with a control meeting scheduled for July 2024.