European Energy swings to EBITDA loss in Q1, keeps guidance

Danish renewables developer European Energy A/S on Friday posted an EBITDA loss for the first quarter of 2024, blaming it on the lack of project sale transactions and lower earnings from energy sales.

The Soborg-based firm on Friday reported negative earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 3.75 million (USD 4.05m) for the first three months of 2024, against a positive EUR 16.3 million in the same period a year earlier. This led to an operating loss of EUR 8.2 million versus a profit of about EUR 12.2 million.

A significant increase of 51% was registered in power production to 555 GWh in the first quarter. However, because of the drastic decline in power prices across all primary markets, energy sales rose by only 3% to EUR 27.1 million and revenue as a whole was down 22% on the year.

Below are more details about European Energy's Q1 financial performance:

As of the end of March, the green energy firm’s portfolio of assets under management comprised a total of 2.9 GW, including 1.7 GW of wind and 1.2 GW of solar power. The figures show a 25% increase compared to the same quarter in 2023.

The company maintains its financial outlook for 2024, expecting an EBITDA of EUR 230 million, or a growth of around 30%, with a risk margin of +/- 10%. Profits before tax are also expected to grow but at a lower rate than EBITDA.

“We have paved the way for the future growth of the company during the first quarter of 2024 with the many important and strategic deals and agreements that we have signed. At the same time, we expect to initiate more than 1 GW of new construction activities during 2024,” CEO Knud Erik Andersen noted in the statement.

(EUR 1 = USD 1.082)

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