Enersense International Plc's Financial Statement Bulletin 2022: Record-high order backlog at EUR 415 million – onshore wind power project portfolio increased to 8,000 MW
Enersense International Plc
Financial Statement Bulletin 27 January 2023 at 12:30 p.m.
The figures in this bulletin are unaudited. The figures in brackets refer to the corresponding period of the previous year unless otherwise stated. All figures and sums have been rounded off from the exact figures which may lead to minor discrepancies upon addition or subtraction.
OCTOBER–DECEMBER 2022
• Revenue was EUR 90.0 (65.9) million, +36.6 % year-on-year.
• EBITDA was EUR 3.4 (6.2) million. The EBITDA margin was 3.7 (9.4) %.
• Adjusted EBITDA was EUR 4.3 (7.5) million or 4.8 (11.4) % of revenue.
• The operating profit was EUR 1.1 (4.0) million. The profit margin was 1.2 (6.1) %.
• Undiluted earnings per share were EUR -0,04 (0.26).
JANUARY–DECEMBER 2022
• Revenue was EUR 268.0 (239.1) million, +12.1 % year-on-year.
• EBITDA was EUR 12.2 (16.6) million. The EBITDA margin was 4.6 (7.0) %.
• Adjusted EBITDA was EUR 13.7 (19.2) million, or 5.1 (8.0) % of revenue.
• The operating profit was EUR 3.5 (6.8) million. The profit margin was 1.3 (2.9) %.
• Undiluted earnings per share were EUR -0.11 (0.35).
• Onshore wind power project portfolio was approximately 8,000 MW at the end of the year 2022 (9/2022: 3,000 MW).
• The order backlog stood at EUR 415 (291) million.
• On 11 October 2022, the Finnish Competition and Consumer Authority approved a business transfer through which certain operation and maintenance services of Helen Oy would be transferred to Enersense.
• On 20 October 2022, Enersense announced that it had further specified the focus areas of its growth strategy and would focus on zero-emission transport alongside onshore and offshore wind power and solar energy. This supports the company’s long-term financial targets, which remained unchanged.
• Enersense’s acquisition of Unified Chargers Oy, a Finnish start-up which manufactures fast and high-power charging stations for electric vehicles, was completed on 15 November 2022.
• The offering of a EUR 26 million Senior Unsecured conditionally Convertible Note due January 2027 was completed on 2 December 2022.
• On 9 December 2022, Enersense and Elisa signed a project agreement of EUR 30 million on the construction of an optical fibre network in Finland.
After the review period:
• On 13 January 2023, Enersense announced that the Finnish Competition and Consumer Authority had decided to extend the processing of the acquisition concerning Voimatel Oy.
• On 17 January 2023, Enersense announced that it had signed an agreement of around EUR 35 million on the construction of an optical fibre network in Finland with Valoo, a Finnish optical fibre company.
• On 23 January 2023, Enersense announced that its adjusted EBITDA would exceed its guidance (positive profit warning).
• On 26 January 2023, Enersense announced that the Shareholders’ Nomination Board proposes that Anna Miettinen/Ensto Invest and Carl Haglund/Veritas will be elected as new board members.
• On 15 February 2023, Enersense announced that it withdraws from the acquisition of Voimatel Oy.
DISTRIBUTION OF FUNDS TO THE SHAREHOLDERS
The Board of Directors of Enersense proposes to the General Meeting that the result for the financial period 1 January 2022 to 31 December 2022 be transferred to the profit and loss account for previous financial periods and that, based on the balance sheet to be adopted for the financial period, funds be distributed to shareholders from the invested unrestricted equity reserve of the Company as a return of capital of EUR 0.10 per share, i.e. EUR 1,649,253.10 in total. The return of capital shall be paid in two instalments.
The first instalment, EUR 0.05 per share, shall be paid to shareholders that are registered in the Company’s shareholders’ register maintained by Euroclear Finland Oy on the record date of the first instalment of the return of capital on 6 April 2023. The Board of Directors proposes that the first instalment of the return of capital shall be paid as from 5 May 2023.
The second instalment, EUR 0.05 per share, shall be paid to shareholders that are registered in the Company’s shareholders’ register maintained by Euroclear Finland Oy on the record date for the second instalment of the return of capital, as later decided by the Board of Directors. The Board of Directors will decide the record date and the payment date for the second instalment of the return of capital at its meeting to be held in October 2023. The record date for the second instalment of the return of capital is planned to be on 1 November 2023, and the payment date as from 8 November 2023.
According to the proposal, no dividend would be paid based on the balance sheet to be adopted for the financial period.
GUIDANCE FOR THE 2023 FINANCIAL YEAR
In 2023, Enersense’s revenue is expected to be in the range of EUR 280–310 million and adjusted EBITDA in the range of EUR 12–18 million.
Enersense’s business environment is estimated to be developing favourably and the revenue is expected to grow. We have managed to accelerate the wind power portfolio development and we assume that the same development continues. Profitability will be impacted by the implementation of the new ERP-system as well as on-going investments in developing the offshore wind power business and acceleration of onshore wind power project development. At the end of 2022 the company completed an offering of EUR 26 million convertible bond in order to implement these investments.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
The 2023 Annual General Meeting of Enersense International Plc is scheduled to take place on Tuesday 4 April 2023. The company’s Board of Directors will convene the Annual General Meeting separately.
Enersense’s Financial Statements and Board of Directors’ Report (ESEF), Corporate Governance Statement and Remuneration Report for 2022 will be published during the week beginning 6 March 2023. All reports will be available on the company’s website at www.enersense.com/en/investors/.
WEBCAST
A webcast for media representatives, investors and analysts will be held on 27 February 2023 at 2.45 p.m. The webcast is held in Finnish. The webcast can be followed live at https://enersense.videosync.fi/q4-2022-result
Key figures
|
|
10–12/2022 |
10–12/2021 |
1–12/2022 |
1–12/2021 |
|
Revenue (EUR 1,000) |
90,033 |
65,909 |
268,037 |
239,110 |
|
EBITDA (EUR 1,000) |
3,367 |
6,188 |
12,210 |
16,639 |
|
EBITDA, % |
3.7 |
9.4 |
4.6 |
7.0 |
|
Adjusted EBITDA (EUR 1,000) |
4,350 |
7,525 |
13,654 |
19,231 |
|
Adjusted EBITDA, % |
4.8 |
11.4 |
5.1 |
8.0 |
|
Operating profit (EUR 1,000) |
1,095 |
4,047 |
3,479 |
6,834 |
|
Operating profit, % |
1.2 |
6.1 |
1.3 |
2.9 |
|
Result for the period (EUR 1,000) |
-668 |
3,349 |
-2,429 |
3,973 |
|
Equity ratio, % |
28.8 |
35.6 |
28.8 |
35.6 |
|
Gearing, % |
19.0 |
3.6 |
19.0 |
3.6 |
|
Return on equity, % |
-1.1 |
7.0 |
-4.3 |
8.3 |
|
Earnings per share, undiluted, EUR |
-0.04 |
0.26 |
-0.11 |
0.35 |
|
Earnings per share, diluted, EUR |
-0.04 |
0.26 |
-0.11 |
0.35 |
President and CEO Jussi Holopainen
"2022 was characterised by growing geopolitical tensions, global economic uncertainty, and the energy crisis in Europe, all of which are related to the aggressive Russian attack on Ukraine in February 2022. In this business environment, the past year was twofold for Enersense. Our revenue increased to EUR 268 (239) million and the order backlog increased significantly, but profitability was weakened, for instance, by multiplier effects of the war, which could not be offset by the increase in volumes.
In the summer, we were already anticipating that the full year would be challenging in terms of profitability. Although our adjusted EBITDA exceeded the updated guidance we issued in July, it stayed low at EUR 13.7 (19.2) million. The improvement of the profitability of our core business operations is at the top of the management’s agenda, and we are actively continuing our measures to turn the trend around. At the same time, however, it is my pleasure to announce that the investments in our growth strategy have already begun to be reflected in orders received. Our order backlog increased by 42 per cent compared with the end of 2021 and grew to EUR 415 million.
The strong order backlog gives us a good starting point for the year. In the financial guidance we have published today we estimate that the business environment is developing favourably and the revenue for 2023 is expected to be in the range of EUR 280–310 million. The adjusted EBITDA is expected to be in the range of EUR 12-18 million. We have managed to accelerate the wind power portfolio development and we assume that the same development continues. Profitability will be impacted by the implementation of the new ERP-system as well as on-going investments in developing the offshore wind power business and acceleration of onshore wind power project development. We expect these development projects to proceed so that they will not burden our profitability in 2024 anymore and we can expect the EBITDA to continue to increase.
To our disappointment, the Finnish Competition and Consumer Authority's assessment of the Voimatel transaction led us to withdraw from it. According to our assessment the transaction would have been a good solution for creating, developing and maintaining critical telecommunications and network infrastructure for the whole of Finland. However, the non-implementation of the acquisition will have no effect on the objectives of our growth strategy and their attainment. In 2022, we proceeded in implementing our strategy in many fronts.
In the third quarter, our order backlog reached record levels with the inclusion of a service contract on the provision of the operation and maintenance services that were transferred from the Helen energy company to Enersense as part of a business transfer. In October, we acquired a Finnish start-up which manufactures fast and high-power charging stations for electric vehicles. In December, we announced its first significant order, a delivery of heavy-duty fast-charging sites for e-trucks to Sweden. In December, we also announced that Enersense will deliver structural components for three offshore substations to the Danish Bladt Industries, a leading European provider of foundations for offshore wind power plants. For around a year, we have been investing in the ramp-up of Enersense Offshore, and already this first project, running until the second quarter of 2024, will employ up to 300 people in our Mäntyluoto production facilities. Orders related to the core operations of all our business areas have also developed favourably.
In addition to strong core businesses, we want to focus on seeking growth from offshore wind power foundations, renewable energy, and zero-emission transport. Orders received at the end of last year in the offshore wind power and EV charging businesses are evidence of our great success within these focus areas of our specified growth strategy. Today, we have also reported on the significant advancement in the development of the onshore wind power project portfolio. At the end of 2022, the project portfolio was already approximately 8,000 MW whereas in September it was around 3,000 MW. With our solar power projects, the size of our renewable energy project portfolio is altogether over 8,000 MW, which gives us a solid ground on which to build our target to have our own 600 MW onshore wind and 100 MW solar power production.
Besides these Enersense projects, we are also a co-owner in P2X, a producer of green hydrogen. P2X Solutions’ Harjavalta plant is Finland’s first industrial-scale green hydrogen production plant that is progressing to the construction stage, and the foundation stone of the plant was laid in January 2023. We consider hydrogen to play a significant role in the green transition, both in storing electricity and enabling zero-emission heavy transport, and we are pleased to be able to support P2X in executing this development.
We have set ourselves ambitious financial targets of EUR 500 million in revenue and EUR 100 million in profitability (EBITDA) by 2027. This growth also requires financial investments. At the beginning of December, we issued Enersense’s first convertible bond, raising a total of EUR 26 million for investments and other business developments, among additional purposes. We are delighted with the support that both new and former investors have shown through their investments in Enersense and its journey as an enabler of the European energy transition."
This release is a summary of Enersense's Financial Statement Bulletin 2022. The complete report is attached to this release as a pdf-file. It is also available on the company's website at www.enersense.com/investors.
ENERSENSE INTERNATIONAL PLC
Tommi Manninen
SVP, Communications and Public Affairs
More information:
Jussi Holopainen, CEO
Tel. +358 44 517 4543
Email: [email protected]
Mikko Jaskari, CFO
Tel.: +358 40 053 5337
Email: [email protected]
Media contacts:
Tommi Manninen, SVP, Communications and Public Affairs
Tel. +358 40 043 7515
Email: [email protected]
Distribution:
Nasdaq Helsinki
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