Eolus Vind: Margin hit by Wind Wall delay - ABG

Q2 EBIT of SEK 8m 83% below ABGSCe SEK 47m
Weaker profitability in Wind Wall
Öyfjellet completion still expected in ‘21

Eolus Vind delivered sales of SEK 673m in Q2’21, which was 6% better than our forecast of SEK 634m). However, the profitability came up short, with an EBIT of SEK 8m, 83% below our forecast of SEK 47m, for a margin of 1.2% (ABGSCe 7.4%). The main earnings driver in Q2 was the handover of the Wind Wall project, which took place on 18 May. However, there has been delays (partly related to COVID-19) compared to the initial plan to reach completion during 2020. The later than expected completion affected the margin more than we had anticipated. The company’s net profit came in at SEK -2m compared to ABGSCe SEK 36m.

The Q2 profitability was disappointing, which justifies a smaller share price correction. The negative effect on profitability due to the Wind Wall delay could increase the perceived margin risk also for Öyfjellet. However, as that project continues to develop according to our forecasts, we still expect a strong EBIT improvement in H2’21 vs. H1’21.

Länk till analysen i sin helhet: https://www.introduce.se/foretag/eolus-vind/Equity-research/2021/8/eolus-vind---margin-hit-by-wind-wall-delay/