Eolus announces success in Swedish arbitration case

Sweden’s Eolus Vind AB (STO:EOLU-B) on Monday said it will book a SEK-85-million (USD 7.8m/EUR 7.4m) positive effect on its third-quarter pre-tax earnings after settling an arbitration case related to two wind farms it agreed to sell a few years back and subsequently built on behalf of the buyer.

The case concerns the 163.4-MW Kraktorpet and 68.4-MW Nylandsbergen wind projects in Sundsvall municipality, the rights to which were sold to German investment firm Aquila Capital back in 2017. At the time, the buyer also awarded Eolus an agreement regarding the construction of the facilities.

Eventually, the Swedish firm contracted Veidekke to handle the design and construction of roads, foundations and internal electrical grid for the wind farms. The legal dispute arose in 2020 as the two parties failed to agree on responsibility for damages and delays due to insufficient roads during the thawing period.

Following the positive outcome of the proceedings for Eolus, it will add SEK 96 million to its operating profit in the third quarter. Cash flow in the following trimester is set to be impacted by SEK 28 million, the renewable energy developer said.

(SEK 10 = USD 0.913/EUR 0.867)

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