Eolus Vind: Positive outlook on '24 activity - ABG

Strong close to '23 with Q4 EBIT of SEK 99m (ABGSCe 50m)
Expecting good project sales activity during '24e
Only minor estimate changes, keep value range of SEK 110-150


Q4 result overview

Eolus delivered Q4 EBIT of SEK 99m vs. ABGSCe at SEK 50m. The deviation came on a larger-than-expected contribution from a group of projects that were finished in Q4. The cash flow was weak at SEK -407m, but this is temporary, as Eolus has not yet received payment for the completed projects. 2023 was a record year for Eolus, with EBIT of SEK 764m from good execution in onshore wind, as well as contribution from the US battery storage portfolio. The board proposed a DPS of SEK 2.25 (ABGSCe SEK 3.00). The balance sheet remains strong, particularly once the cash flow from the finished projects comes in Q1, and we argue that the board should examine the potential for increasing cash returns to shareholders. The '23 net debt of SEK 118m should turn into a strong net cash position in 2024.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eolus-vind/Equity-research/2024/2/eolus-vind---positive-outlook-on-24-activity/