Good results continue in the second quarter

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European Energy A/S

Company announcement 11/2022 (29.08.2022)

European energy’s second quarter financials topped the same period last year despite a hard market with increasing revenues and costs due to the turbulent geopolitical situation.

European Energy delivered strong second quarter results with EBITDA of €12 million compared to €7 million in the second quarter of last year and pre-tax profit of €6.4 million compared to €0.9 million euros in the second quarter of last year. In mid-2022, the Group achieved nearly 57% (77.1 MEUR) of the EBITDA outlook for 2022 and nearly 70% (69.2 MEUR) of the pre-tax profit outlook for 2022.

While energy prices are at historically high levels, the current high inflation and other factors have driven supply prices higher for future projects as construction and financing costs rise.

Two major trends are currently disrupting the energy market. Energy prices remain at a high level, as do prices for steel, logistics and solar panels. At the same time, inflation and interest rates are rising. Increasing investment in new renewable electricity generation is the best and only long-term solution to reduce both energy prices and CO2 emissions. This is also the reason why European Energy will continue to use all its available cash to invest in new projects.

These disruptive factors contribute to the interest that European Energy is generating from stakeholders and business partners around the world for its renewable energy projects.

The new business line, Power-to-X, is attracting growing interest from stakeholders and business partners with a new green hydrogen contract for Port Esbjerg (DK) and a new research project on green aviation fuel.

In the traditional divestment of energy parks, there has also been continued interest in our projects and growing net worth in our assets. European Energy is pursuing a strategy of keeping more assets in the Group for a longer period. As a result, the Group only concluded a smaller project sale in the second quarter of 2022. Among the new projects of interest are the plans to build the largest solar park in Latvia in close collaboration with the Latvian authorities.

Planned construction activities in various markets for the second half of 2022 will include connecting to the grid a record capacity of over 600 MW of new renewable energy capacity. The actual date of connection to the network of the projects can have an impact on the final result of the end of the year. Current forecasts do not include electricity sales from these new assets. If all assets are connected without delay, electricity sales could exceed forecasts if the energy market remains at current levels throughout the year.

The increase in European Energy’s development pipeline from 16 GW in Q2 2021 to 24 GW in Q2 2022 results from the Group’s ability to secure land for new projects. This further illustrates the keen interest of external partners to engage in the green transition.

The Group’s total revenue amounted to €285.5 million in the first half of 2022 compared to €38.1 million in the first half of 2021. The main reason for this strong increase is the disposal of energy parks carried out in the first quarter of 2022.

The outlook for European Energy for the 2022 financial year remains at an EBITDA of 135 million euros and a pre-tax profit of 100 million euros. If electricity prices remain at current levels, the Group will consider retaining a few additional assets that will strengthen the IPP business.

For more information, please contact Investor Relations: [email protected]

This announcement has been made in accordance with the EU Market Abuse Regulation (Regulation (EU) No 596/2014, as amended).


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