European Energy suffers H1 earnings losses but confirms guidance

European Energy A/S on Friday reported an EBITDA loss and a decline in revenue in the first half of 2024 due to lower sales of projects and energy but the Danish renewables developer still reaffirmed its full-year guidance with a higher risk margin.

The green energy firm posted negative earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 2.4 million (USD 2.66m) for the first six months of 2024 against earnings of EUR 49 million in the first half of 2023. Revenue dropped to EUR 80 million from EUR 91 million.

On a quarterly basis, EBITDA saw a drastic drop to about EUR 1.34 million in the April-June period from EUR 32.8 million a year earlier. Revenue decreased by more than 4% to EUR 46.2 million.

Due to higher energy production and ongoing sales processes, European Energy affirms its 2024 financial outlook of an EBITDA of EUR 230 million, backed by 1.7 GW of projects in active sales processes. However, the risk margin has been increased to +/- 20%, up from +/- 10% as most project sales are expected to close in the last quarter.

More details about European Energy's financial performance during the reported period are in the table below:

Nevertheless, the company boasted a high level of activity during the reported period in terms of ongoing construction projects and a record-high number of power purchase agreements (PPAs). The company is building 28 projects in eight countries and signed nine power offtake deals to support the construction of 1,411 MW of renewable energy across five countries.

The Soborg-based firm also registered record electricity generation of 1,020 GWh in the first half of 2024, up about 24% compared to the year before. This included 898 GWh of wind and 122 GWh of solar. However, because of the lower power prices in many markets and higher balancing costs, the company’s power sales profit decreased by 42%.

(EUR 1 = USD 1.109)

Choose your newsletter by Renewables Now. Join for free!