Eolus Vind: A good report after a diffcult year - ABG

Q2’22 EBIT of SEK 220m vs. ABGSCe SEK 45m

Stor-Skälsjön sale the main driver of the beat

Still waiting for Öyfjellet, even if completion is closer

Q2’22 results overview
Eolus Vind delivered a good Q2 report, with net sales coming in at SEK 1,448m, which was 27% vs. ABGSCe 1,140m. EBITDA came in at SEK 221m, clearly above our forecast of SEK 47m, while EBIT was SEK 220m (ABGSCe 45m). The company delivered a net profit of 225m compared to ABGSCe 35m, but given that Eolus only owns 51% of the Stor-Skälsjön project, minority interests received SEK 122m. Hence, the net profit ex minority interests amounted to SEK 103m (+192% vs. ABGSCe SEK 35m). The main deviation was the sales of the project of Stor-Skälsjön Vind, which contributed SEK 900m in sales in the quarter (while Öyfjellet contribute less than expected).

Good growth opportunities in both the Nordics and the US
Management continues to see good growth opportunities both in the Nordics and the US. The US accounts for more than a third of the 17.4 GW project portfolio, which was up 1.5 GW compared to Q1. Ongoing sales processes include Skallberget/Utterberget, Tjärnäs and Rosenskog totaling 118 MW, as well as Centennial Flats (US, 500 MW solar and 250 MW battery storage). Unfortunately, as of Aug 31 the Öyfjellet project was still not completed even if the company is getting closer (71 of 72 turbines commissioned). All in all, the good Q2 will support the FY’22e EBIT considerably (adds SEK 175m to our FY’22 estimate of SEK 54m). At the same time, the year will remain sub-par due to the problems coming from the Öyfjellet project particularly earlier in the year.

Final thoughts and conference calls details
We think Eolus delivered a good report, even if we can’t extrapolate the result into coming quarters. Hopefully the Öyfjellet project can be concluded during Q3, allowing investors to fully focus on the company’s long-term growth prospects. There is a confe ...
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Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eolus-vind/Equity-research/2022/8/eolus-vind---a-good-report-after-a-diffcult-year/