Company Expands Portfolio with Acquisition in Sweden

In a recent earnings call, the company discussed its financial and operational performance, noting a 20% increase in power generation and a robust financial position with ample liquidity.

Although power generation fell short of expectations in the first half of the year due to unfavorable wind conditions, the company remains optimistic about the full year, projecting a production range of 900 to 1,000 gigawatt hours. The divestiture of the Leikanger hydropower asset has strengthened the company’s net debt position and enhanced its capacity for expansion.

Looking ahead, the company expects a rise in capital expenditure and has shared projections for several financial metrics, including EBITDA and free cash flow.

### Key Takeaways
– The company realized a 20% year-over-year increase in power generation, attributed to the addition of Cast Group.
– Power generation declined by 10% in the first half of the year due to weak wind conditions.
– Expected full-year production is forecasted to range between 900 and 1,000 gigawatt hours.
– Proportionate EBITDA reached €13 million in the first half, while net debt decreased to €46 million.
– Cash flow from investing activities was negatively impacted by €49 million, primarily due to the asset sale.
– The company holds over €120 million in liquidity and has lowered its legal cost guidance by €1 million.
– A new portfolio of 500 megawatts of solar and battery projects has been acquired in Sweden.

### Company Outlook
– Positive EBITDA is expected if the achieved price exceeds €25 per megawatt hour.
– Projected free cash flow for the year is estimated between -€16 million and -€2 million.
– Net debt is anticipated to rise by €16 million for the full year, supported by a strong liquidity position.
– The company is committed to organic growth, acquisitions, and new project development to create long-term value.

### Challenges
– Power generation volumes were below expectations due to weak wind conditions.
– The achieved price per megawatt hour fell approximately 40% year-over-year, impacting revenues.
– There was negative EBITDA for the quarter, excluding non-cash items, due to decreased revenues and increased operating and legal costs.

### Positive Aspects
– The financial position remains strong, with total liquidity exceeding €120 million.
– The sale of the Leikanger asset significantly lowered net debt and improved financial capacity for growth.
– There has been progress in building a greenfield portfolio, with plans to monetize early-stage projects soon.

### Misses
– Lower achieved prices and weak wind conditions resulted in reduced revenue and power generation.

### Q&A Highlights
– Key discussion topics included energy pricing, acquisition strategies, and greenfield asset monetization.
– Approximately 700 megawatts were added to the pipeline in the first half of the year.
– No decisions have been made regarding share buybacks, although the option is being considered.

The company is confident in its strategy and financial stability, positioning itself to seize market opportunities and foster growth through strategic investments and asset development.