Enersense International: Beginning of 2024 was hard, but the worst could be behind us - Nordea

Net sales was above our expectation in Q2 but order book was down by 21% on y/y basis. The company also downgraded its full year 2024 net sales guidance by 6% due to weak demand for renewable energy projects and because of weak EV charger markets.

The net result was EUR -13.7m in Q2 leading reported equity ratio to be 15.8%. However, the worst could now be behind. The focus is now set to new strategy which is expected to improve cash flow.

Enersense has also launched a tight efficiency programme to support profitability. New covenant levels for end of 2024 are equity ratio over 18%, net debt per EBITDA under 6x and liquidity of EUR 5m. Covenants for end of 2025 are equity ratio over 30%, net debt per EBITDA 2.25x and liquidity of EUR 15m. Successful divestments of non-core assets would help a lot and we expect to hear some news before end of the year 2024.

A possible divestment of wind power development portfolio of 5GW could even lead to a positive surprise we believe.

We also expect the company to set new long term financial targets when there is more information regarding divestments and the restructuring process.

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