European Energy A/S: Interim Report H1 2024 – Financially subdued start to 2024 amid market pressure, but satisfying underlying traction

Company announcement 12/2024 (30.08.2024)

European Energy announces its financial report for H1 2024.

Highlights:

• EBITDA first half 2024: Earnings were impacted by lower realized electricity prices and low project sales, largely due to normal sales seasonality, resulting in EBITDA of EUR -2 million in H1 2024, down from EUR 49 million the year before. However, Q2 2024 trailing twelve months (LTM) EBITDA increased by EUR 15 million or 16%.
• Maintain financial outlook for 2024: With 1.7 GW of projects in active sales processes, we confirm our 2024 financial outlook of EUR 230 million EBITDA and continued growth in pre-tax profit, but at a lower rate than EBITDA. As most project sales are expected to close in Q4, uncertainty around the outlook has increased, leading to a revised and higher risk margin of +/- 20%, up from +/- 10%.
• Record electricity generation: Electricity production of 1,020 GWh in H1 2024 represents an increase of approximately 24% compared to the previous year. However, as electricity prices in many markets declined and balancing costs were higher, our profit from electricity sales decreased by 42%. Q2 2024 LTM electricity production increased by 67%, while gross profit decreased by 17% for the same reasons as in H1 2024.
• High activity: In H1 2024, European Energy signed 9 PPAs for the supply of 1.4 GW of renewable energy in five countries, delivering significant value enhancements to our projects. Construction activity is also high and increasing, and battery storage deployment and the near completion of our Power-to-X activities have generated additional economic value for the company.
• 2024 capital increase: The agreement with Mitsubishi HC Capital Inc. was closed on April 16, resulting in a capital injection of EUR 700 million for a 20% stake in European Energy. This will enable European Energy to take more long-term and value-creating decisions on investments and divestments. In the short term, part of the proceeds has been used for liability management, including a partial redemption of our senior bonds and a full redemption of our hybrid capital.

For further information, please contact Investor Relations:

[email protected]

This communication is made in accordance with the Market Abuse Regulation (Regulation (EU) No 596/2014 on market abuse).